CHAPTER

6
LIQUOR LEGISLATION

Liquor prohibition led to the rise of organized crime in America, LEARNING

and drug prohibition has led to the rise of the gang problems OBJECTIVES
we have now.
After studying this chapter, you
-Drew Carey will be able to:

1. Understand Concept of Liquor

Act
2. Define Bar Operations
3. Identify the Responsible
INTRODUCTION Beverage Service

Liqueur, flavored and sweetened distilled liquor, with alcohol

content ranging from 24 percent to 60 percent by volume.
Liqueurs are produced by combining a base spirit, usually
brandy, with fruits or herbs and are sweetened by the
addition of a sugar syrup composing more than 2 1/2 percent
of the total beverage by volume.
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The word liqueur is derived from the Latin liquefier, meaning “to make liquid.”
Liqueurs were probably first produced commercially by medieval monks and alchemists.
They have been called balms, crèmes, elixirs, and oils and have been used over the
centuries as medicines and tonics, love potions, and aphrodisiacs.

Fruit liqueurs are produced by the infusion method, in which fruit is steeped in
the spirit, which absorbs aroma, flavor, and color. Plant liqueurs, naturally colorless,
are produced by either percolation or distillation. Percolation is accomplished in an
apparatus much like a coffee percolator. Leaves or herbs are placed in the top section,
and the base spirit in the bottom section is pumped up over the flavoring material,
extracting and carrying down the flavor constituents. The distillation method uses
plants, seeds, roots, or herbs as flavoring material. They are softened in the base
spirit, then combined with additional spirits and distilled. After the base spirit is
completely flavored, it is sweetened and filtered. Plant liqueurs are frequently colored
with vegetable colorings. Liqueurs may be aged or bottled immediately.
Liqueurs, sweet in flavor and with ingredients promoting digestion, are popular
after-dinner drinks. They may be served straight, poured over ice, or mixed in an
endless variety of combinations that may include liquors, brandies, and cream. Liqueurs
are also used as flavorings in various dessert dishes.

6.1 CONCEPT OF LIQUOR ACT

Liquor is an alcoholic drink produced by distillation of grains, fruit, or vegetables
that have already gone through alcoholic fermentation. The distillation process purifies
the liquid and removes diluting components like water, for the purpose of increasing
its proportion of alcohol content (commonly expressed as alcohol by volume, ABV).

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The Liquor Act 2007 regulates and controls the sale and
supply of alcohol and certain aspects of the use of premises
on which alcohol is sold or supplied. It also provides the
Independent Liquor and Gaming Authority and the Secretary
of the Department Industry with powers to regulate the sale
and supply of alcohol.

Keyword

Alcoholic drink is a
drink that contains
ethanol, a type of
alcohol produced by
fermentation of grains,
fruits, or other sources
of sugar.

The Gaming and Liquor Administration Act 2007 establishes

the Independent Liquor and Gaming Authority for the purposes
of liquor regulatory functions, including determining liquor
licensing and disciplinary matters. It also provides for the
probity of officials under the gaming and liquor legislation,
and confers investigation and enforcement powers for the
purposes of that legislation.

6.1.1 Objectives of the Liquor Act

The objectives of the Liquor Act are to:
■■ regulate and control the sale, supply and consumption
of alcohol in a way that is consistent with the
expectations, needs and aspirations of the community
■■ facilitate the balanced development, in the public
interest, of the liquor industry through a flexible and
practical system of regulation with minimal formality
and technicality
■■ contribute to the responsible development of related
industries such as the live music, entertainment,
tourism and hospitality industries.

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In securing these objectives, the Liquor Act requires that

each person who exercises functions under the Act (including
a licensee) has due regard to the need to:
■■ minimize harm associated with misuse and abuse of
alcohol (including harm arising from violence and
other anti-social behavior)
■■ encourage responsible attitudes and practices towards
the promotion, sale, supply, service and consumption
of alcohol
■■ ensure that the sale, supply and consumption of alcohol
contributes to, and does not detract from, the amenity
of community life.

6.1.2 Objectives of the Gaming and Liquor

Administration Act
Remember
The objectives of the Gaming and Liquor Administration Act
Liquor also includes
any other substance
are to:
containing ethyl
■■ensure the probity of public officials who are engaged
alcohol (ethanol)
that is prescribed by in the administration of the gaming and liquor
regulation as liquor. legislation
■■ ensure that the Independent Liquor and Gaming
Authority is accessible and responsive to the needs
of all persons and bodies who deal with the Authority
■■ promote fair and transparent decision-making under
the gaming and liquor legislation
■■ require matters under the gaming and liquor legislation
to be dealt with and decided in an informal and
expeditious manner
■■ promote public confidence in the Authority’s decision-
making and in the conduct of its members.
These objectives guide regulators, licensees, persons selling
and supplying alcohol, and the community on the purpose
and application of the liquor laws.

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Harm Minimization and Community Safety Principles

In making a decision under this Act, a decision-maker must have regard to the following
principles (the harm minimization and community safety principles):
■■ responsible attitudes and practices towards the sale, supply, promotion and
consumption of liquor should be encouraged;
■■ community safety should not be jeopardized, particularly in relation to events
involving large numbers of people;
■■ the liquor industry should be regulated in a way that minimizes harm caused
by alcohol abuse, including:
-- adverse effects on health; and
-- personal injury; and
-- property damage; and
-- violent or anti-social behavior;
■■ the sale of liquor should be regulated in a way that contributes to the responsible
development of the liquor, tourism and hospitality industries;
■■ community amenity, social harmony and wellbeing should be protected and
enhanced through the responsible sale, supply, promotion and consumption
of liquor;
■■ the safety, health and welfare of people using licensed premises and permitted
premises should not be put at risk;
■■ noise from licensed premises and permitted premises should not be excessive;
■■ licensed premises and permitted premises should not be located where they
would be likely to cause undue disturbance, inconvenience or offence to people:
-- lawfully at adjacent or nearby premises; or
-- because of the premises’ proximity to a place of public worship, a
hospital or a school;
• licences and permits should only be issued to people who comply with ACT law,
and are likely to continue to comply with ACT law;
• licences and permits should only be issued for premises that comply with ACT law,
and are likely to continue to comply with ACT law.

Close Associate
A person is a close associate of someone (the related person) if:
■■ the person holds or will hold an executive position (however described) in
the related person’s business; or

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■■ the commissioner is satisfied that the person is or will be able to exercise a

significant influence in relation to the conduct of the related person’s business
because the person holds or will hold a financial interest, or is entitled to
exercise a relevant power, in the business.

6.1.3 Liquor License

A liquor license can be a long and challenging process. Each state, county and town
will have different requirements and licensing procedures for obtaining a permit to
sell alcohol. Understanding the general steps for applying to get a liquor license will
help to make the process easier and faster.

Type of License You Need

Know your state’s alcohol laws. The first thing to be aware of is that each state has its
own rules and requirements regarding the supply of liquor licenses, so you should
contact a local authority to find out about alcohol laws and the sale of licenses in
your specific state.
■■Each state has an Alcoholic Beverage Control (ABC) agency that regulates the
sale and distribution of liquor, so you also contact your local ABC office for
more information.
■■ Some states have license quotas limiting the number of places that can sell
alcohol within the state, at any given point in time. Towns may also have quotas
in place. It is important to know if there are any available licenses for your
state and town -- if there aren’t, you may have difficulty procuring a license.
On-license or an off-license: There are two major types of liquor license required by
premises that sell alcohol.

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■■ You will need an on-license if the liquor you sell is intended to be consumed
on the premises. Examples of businesses that would require an on-license
include bars, restaurants and taverns.
■■ You will need an off-license if the liquor you sell is intended to be consumed
off the premises. Examples of businesses that would require an off-license
include liquor stores, grocery stores and drug stores.
Specific class of licence you need. In some states, you will need to apply for a very
specific class of license, depending on the nature of your business and the variety of
alcohols you intend to sell. Some examples of the most common license classes include:
■■ Tavern license: A tavern license may be required in some states by businesses
that serve food, but make up to half of their overall profits through the sale
of alcohol.
■■ Beer and wine: Some smaller bars or restaurants may only be granted a license
to sell “soft” liquors like beer and wine. This license does not entitle its owner
to sell “hard” liquors, like spirits.
■■ Restaurant: Restaurant licenses typically allow any type of alcohol to be sold on
the premises. However, the license may stipulate that only a certain percentage
of the restaurant’s total earnings may come from the sale of alcohol. This
percentage is normally in the region of 40%

Navigating the Application Process

Start as early as possible. If you plan on opening a bar or restaurant that serves alcohol,
it’s important that you begin the process of obtaining your liquor license as early as
possible.
■■ Getting approved for a liquor license takes time - in some places as long as
a year.
■■ Therefore, it should be one of the first considerations when planning your
new business venture.
Consider the cost. The cost of obtaining your liquor license can vary greatly. In
some cases you will only need to pay a few hundred dollars to cover the application
fee and taxes.
■■ Unfortunately, due to the license quotas that exist in many towns and cities,
you may be required to buy a license from an existing bar, liquor store or
restaurant. When this happens, the cost of your obtaining your license could
rocket into the thousands of dollars range.
■■ When buying a license from another business, make sure to have a lawyer
(preferably one who’s familiar with liquor licensing) look over the agreement
and answer any questions you might have.

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Write a clear outline of the type of business you will be running. There are usually
different licenses for different types of businesses for example, running a local tavern
will require a different license than opening a liquor store.
■■ Therefore, as part of you application, you will need to write a clear description
of the type of business you will be running. You should include information
on whether you intend to sell alcohol for consumption on the premises and
on the percentage of your total income you expect to come from the sale of
alcohol.
■■ You should also include information on what type of alcohol you will be
serving or selling -- wine, beer, hard liquor or a combination of the three.
This is important as some types of alcohol (such as spirits) require a different
license than others (such as beer).
Fill in the necessary forms and provide any required documentation. You can acquire the
necessary forms from your local council or ABC agency and the Alcohol and Tobacco
Tax and Trade Bureau. In some states you will need to submit an application to both
the state and your local town or county.
■■ The application will include details about your business and your personal
background. Details such as your age, your business experience and having
a clean personal record may affect the state’s decision to grant you a license.
■■ You will also need to include a number of important documents with your
application, which may include: a certificate of incorporation, a partnership
agreement, your company constitution, a copy of your proposed food menu,
photos or drawings of the building’s exterior and a floor plan of the interior, a
code compliance certificate and a copy of the certificate of title for the premises.
Be prepared to defend your proposal. After you submit your application, a notice will
be posted at the proposed location of your business, including your name, the type of
license you are applying for and what selling privileges the proposed license would
entitle you to.
■■ This notice must be publicly displayed for a set amount of time (which varies
by state). During this time, anyone from the local community can come forward
and contest your application.
■■ Depending on the state or city laws, you may also be required to post an
announcement of your liquor license application in the local newspaper, and
in some places, reach out to local neighborhood organizations such as schools,
places of worship and nearby parks.
■■ If there are no objections to your application, local government will proceed
with reviewing your application as normal. If there are objections, you may
be called forward to defend your proposal at a public hearing, before a final
decision is made.

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Maintaining Your Liquor License

Renew your liquor license yearly. You will need to renew your
liquor license on a yearly basis, which will involve paying a
renewal fee. Remember
■■ Keep in mind that if you stay in good standing with In respect of licensed
your local agency throughout the year, you may be premises to which
entitled to a reduced fee a commercial hotel
license, community
Be aware that your license can be revoked. Understand that club license or
your license can be revoked if you violate the terms set by commercial special
your local agency. facility license relates,
the commissioner
■■ Common violations include selling liquor to a may approve, as
minor, over serving alcoholic beverages to patrons ordinary trading
and allowing an employee to be intoxicated on the hours, different hours
for different parts of
premises. the licensed premises.

6.2 BAR OPERATIONS

Bar is defined as a counter where goods and services of a
specified kind are sold and dispensed. Specifically in hospitality
industry, it is defined as a counter where food and/or beverages
are sold and provided. Thus, there are food bars as well as
beverage bars. Food bars include Oyster bars, Snack bars,
Sandwich bars etc. However, in food and beverage business,
the term ‘bar’ invariably mean the beverage bars - particularly
the ones that serve alcohol.

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6.2.1 Classification of Bar

Bars can be classified in various ways. It may be classified on the basis of its function;
architectural concepts, themes, interiors and ambience: patronizing clientele: key beverage
(product) served; location; payment of drinks; in-situ (on-premises) entertainment
offered, etc. However, noteworthy point is that a certain type of bar may fit more
than one classification.

On The Basis of Function

On the basis of function bars may be classified into:
Front Bars: These are also called as public bars. They are situated in front of the
house and are characterized by barman-guest contact, facilitating maximum interaction.
Here, bartenders serve the public face to face. Some guests are seated and served at
the bar counter itself while others purchase drinks at the bar counter and consume
standing or carry them to the tables provided. Basic front bars offer adequate bar
skills, beverage lists, comfort, decor and ambience. It gets upmarket, stylish, and more
lavish, focused (specialized) and more expensive as it evolves into lounge bars and
cocktail bars. Front bars may or may not provide entertainment.
Service Bars: These are also called as dispense bars. Here, bartenders do not serve
the public directly but pour drinks that are picked up by servers and delivered to
customers at different locations like the guestroom, a table in the restaurant or a
poolside deck chair. In short, it fills drink orders brought by waiters and waitresses
only. Generally in such bars, a single pouring station is enough to handle the volume.
Also, guests have no access to service bars and hence are characterized by absence
of barman-guest interaction. However, service bars need the same forethought in its
planning, has the same functions. Uses the same equipment’s and performs the same
tasks of recording and controlling the pouring & selling of drinks as any other bar.

It is of two basic types:

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■■ Back-of-the-house service bars: As the name suggests these are located behind
the scenes and hence hidden from guest view. They are smaller and simpler
in design. Back bar of such bars have a room for bulk supplies of beer, mixes,
liquor stock, etc and has no display. These bars do not require hiding of ugly
and noisy equipment’s and mechanical dispensing systems are often used
to increase speed and reduce liquor loss. These bars act as centralized bar
dispensing drinks in various guest service areas like various kinds of outlets,
guest- rooms, poolside etc. and thus centrally located in a hotel. It does away
with the problem of having separate bars thus maximizing the service area
of various outlets.
■■ Front-of-the-house service bars: As the name suggests these bars are in full view
of the guests but used only for dispensing beverages to the servers against
guest’s orders. These bars are less usual, are generally found in conjunction
with food service and are a part of the dining room. These bars must harmonize
well with the overall ambience and due thought should be given to its layout,
design and decor for efficiency and economy of service. The emphasis is more
on functional ambience and is not lavishly equipped as a full scale public or
cocktail bar.
Special Function Bars: As the name suggests these bars are used for beverage sales
and service at functions like banquets, meetings, receptions, conferences or conventions.
It can also be used In recreational areas like golf course and tennis courts, open gardens
& pools side or anywhere else in the hotel. It is of two basic types:
■■ Portable bars: It takes the form of mobile trolleys (on castors/wheels) built to
specifications. These mobile trolleys are parked in a suitable area when not
in use.
■■ Crash bars: These are a make-shift arrangement of trestle tables (horizontal
tables held by two pairs of collapsible legs that save space when stored) nested
together and dressed up to create a low and open bar counter. Crash bars are
more versatile as they can be arranged into any shape or size required and
can also be made to harmonize with the decor and ambience of the function.
After the function is over, these tables are dismantled and stacked away.
Minibars: They are also called as in-house bars or honor bars. It is a relatively new
concept and consists of a refrigerated cabinet placed in a guest room along with the
menu cum rate-list, for consumption by room-guest. Thus, these bars are means of
visual merchandising to boost beverage sales. By this option, the guest can enjoy the
drink in the privacy of the room. Generally, miniature single serve bottles of liquor,
pints of beer and cans of soft drinks are stocked in such bars due to space constraints.
However, the exact contents are a matter of hotel policy. Assorted snacks like nuts,
crisps etc are also kept to make the experience more complete. The guest’s’ account
is charged based on consumption - manually or electronically. Billing and Refilling is

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usually done once a day for a stay-over guest and on check-

out for a departing guest. Minibar (refilling, charging and
inventory) responsibility lies with a separate F & B team or is
appended to the Room Service Department and work 24 hours.

Keyword
On the Basis of Architectural Concerts, Themes, Interiors
Beverage is a liquid and Ambience
intended for human
consumption. In On the basis of architectural concepts, themes, interiors and
addition to their basic ambience, bars can be classified into:
function of satisfying
thirst, drinks play Cocktail Lounges: Cocktail lounges are more comfortably
important roles in furnished, more luxurious in ambience and more expensive
human culture.
than public bars. Thus, it is an enhanced version of public bars.
Seating includes chairs with armrests or sofas/couches and coffee
tables are spaciously laid out. The ambience is particularly
relaxing with enhanced elegance and style. Entertainment
may be in form of live music (like Guitarist, Pianist, etc)
and some cocktail lounges may be themed. Such bars have
a comprehensive beverage list and also serve complimentary
light snacks with the drinks. Guests use these lounges for a
‘sundowner’ in the evening or for an aperitif before proceeding
to an in-house restaurant for dinner. Overcrowding, standup
consumption and very high turnovers are not encouraged in
bars. Sometimes, there may be a cocktail lounge on privileged
floors for the exclusive use of guests staying on these floors.

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Sunken Bars: As the name suggests, these bars are sunk (immersed) and surrounded
by water on all sides i.e. it is built in the middle of a swimming pool. These bars are
usually found in resort hotels where guests spend a lot of time in and around the
pool. Here, guests swim to the bar to collect the drinks and consume it seating at
Immersed bar stools or on air floats.
Tiki Bars: As the name suggests, these bars are themed on the tiki culture i.e. a
South Seas-inspired pop culture in United States. This culture was at its height in the
1950s and 60s, and is enjoying a revival now-a-days. Tiki bars are generally made
of bamboos, canes, straw mats etc and are decorated with tropical flowers including
orchids, fruits, etc. They dispense rum based cocktails and mixed drinks such as
zombie, planters punch etc.
Pubs: Also referred to as dive or neighborhood bar in America, it is a contracted
form of ‘Public House’ - a licensed house for the sale and consumption of alcoholic
drinks on or of the premises. These are small outlets - pretty much like local places
at the comers; very basic, nothing fantastic or special and generally run of the mill
bars. They dispense common beers, standard spirits and wines.

On the Basis of Patronizing Clientele

On the basis of patronizing clientele, bars can be classified into:
Meet Bars: Also called as “singles bars”, they are patronized by individuals looking for
a new friend of the opposite sex for a date to a complete relationship. These individuals
stay long enough to meet someone they did like to spend the evening with, and then
move on to a suitable place for food, entertainment and leisurely evening together.
Ladies (Only) Bars: As the name suggests, these bars are patronized by members of
female sex only (permanently as opposed to bars having an occasional ladies’ night)
and tend to be psychologically safer. Men are strictly not allowed in such bars. They
generally dispense ladies’ drinks like cocktails, gin, vodka, wines, etc. They are popular
as the females feel secured as opposed to a regular male dominated bar However, too
many ladies bars are not likely to succeed in a single area.

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Gay/Lesbian Bars: As the name suggests, these bars are patronized by gay individuals
looking out for a partner. On the other hand, ladies only bar doubles up as Lesbian
bars also.

On the Basis of Key Product (Beverage) Served

On the basis of principal beverage sold, bars can be classified into:
Wine Bars: As the name suggests, such bars serve a wide range of wines by glass/
carafe/bottle and wine based mixed drinks. Food served include cheese trays, fruit platters
and hors d’oeuvre specialties. Wine list consists of a wide variety of wines ranging from
inexpensive house wines to quality wines at dizzy prices for accommodating different
tastes and budgets. Wine bars are declining as serving only wine limits the clientele
to wine-lovers only. Also, purchasing appropriate wines requires expertise and large
investment. Hence, such bars feature a limited range of beer and spirits to maintain
a broad appeal and realizing good profit margin. In stark reality, now-a-days these
are simply bars that have a wine oriented ambience and often broaden their offerings
by serving meals. Wine bars may also be successfully combined with a smart casual
restaurant. Also, it requires professional, knowledgeable staff that comes expensive.
Beer Bars: As the name suggests, these bars stock and serve only/predominantly
beer and beer based mixed drinks. They generally carry and sell a variety of different
styles and brands of beer like stout, porter, ales, pilsners, draught etc by glass/pitcher/
pint/can/bottle. Many a times, such bars are owned/franchised by brewery companies
as part of their vertical marketing integration strategy.
Cocktail Bars: Cocktail bars are full-service bars serving an entire range of alcoholic
and non-alcoholic beverages but specializing in wide range of cocktails and mixed drinks
- both classical and innovative. Here, the focus is on the cocktail range featured on the

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menu and the skills & proficiency of the bartender. Cocktail

bars are upmarket beverage outlets, commonly found in luxury
hotels and are luxuriously furnished and lavishly equipped.
It carries a complete range of liquors, garnish, glassware and
equipment in order to prepare and serve different cocktails and
other drinks. Such bars can be thematic and sometimes open
only in the evenings offering professional and elegant tray
and bar service. Being a high class and refined bar, standing
crowds and congested layouts are unlikely.
Tequila bars: As the name suggests, such bars stock and
serve only/predominantly different styles and brands of tequila
and tequila based mixed drinks.
Bloody Mary bars: .As the name suggests such bars serve
various styles and variations of the famous mixed-drink
Keyword
(cocktail) Bloody Mary - a mix of Vodka & tomato juice. It
also stocks all the items and Ingredients going into its making. Vodka is a distilled
beverage composed
primarily of water
On the Basis of Payment of Consumed Drinks and ethanol, but
sometimes with traces
On the basis of payment of consumed drinks (particularly at of impurities and
bars in banquets/catered events), bars can be classified into: flavorings.

Host Bars: Also called as Sponsored bars, a host bar is a

kind of special function bar where the total consumption of
beverages of any type (from what is available) and in any
quantity by the Invited guests at the function, is charged to
and paid for by the host at the end. Consumption may be
recorded and charged on
■■ drink-count basis,
■■ bottle count basis
■■ per hour basis.
On a drink-count basis of Host Bar, a system is kept to
track the number of each type of drink served through tickets
turned over to the bartender by guests, transactions recorded
by a point of sale system, or marks on a tally sheet. The
consumption is then charged generally with reduced rates
(as compared to normal rates) to obtain the host’s business.
On a bottle-count basis of Host Bar, the entire numbers of
bottles used or open is charged upon an agreed price. This
is nothing but difference between the beginning inventory

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and ending Inventory of each type of spirit, beer or wine bottles. On per hour basis
of Host Bar, the pricing plan charges a fixed beverage fee per person per hour. This
plan involves estimating the number of drinks guests will consume each hour. While
estimates are not easy to make, a rule of thumb used is three drinks/person during
the first hour, two a second, and one-and-half the third. It is then multiplied by an
established drink charge to arrive at the hourly drink charge per person. A point to
note over here is that statistics should be maintained on consumption, which can
assist in accurately setting hourly charges in future events. Another form of host bar
is the Captain’s bar, which is stacked with full bottles of liquor and mixes needed to
make all the basic bar drinks. It is a self-service or make-your-own-drink bar and is
not attended by a barman.
Cash Bars: These are also called as No-host bars, Cash on delivery (COD) bars or
A-Ia-carte bars. In some service clubs, some convention functions, and meetings; such
bars are set up. Here, the host may pay for the food and venue while the individual
participants pay for drinks consumed. Payment may be effected by cash collection or
an equivalent amount (number) of coupons that is sold prior to the event by either
the function organizer or the hotel. The prices may be the same or different from
normal selling prices. However, the prices are generally reduced in order to attract
group business.

Open Bars: In these kind of bars, the guest gets any type and any quantity of
drink desired (limited only by brands and types of merchandise carried) as he has
already prepaid for them in the form of a ticket or pass purchased for the event, which
include food, entertainment as well as beverages. In other words, the bar is ‘open’
to the guest to consume any liquor available and in any quantity desired. Thus, an
open bar is similar to a ‘drinks buffet’ during the time the bar is in operation. Here,
the price of ticket/pass is based on the number of guests, the length of cocktail hour
(some run longer and others less), the type of guest (men versus women), and other
historical factors.

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On the Basis of Location of Bars in Hotels and other Establishments

On the basis of location of bars in hotels and other establishments, bars can be classified
into:
Foyer Bars: As the name suggests, such bars are situated in the foyer (lobby area)
of some superior residential hotels and serve drinks in the same area. However, even
if there is no such bar, most of the hotels serve drinks to seated guests in the foyer.
Nightclub and Discotheque Bars: As the name suggests, these bars are found in
nightclubs (An outlet that is principally open at night for dinner, dance and cabarets.
Decor is lavish while service is elaborate. A live band is always there and most
establishments insist on formal wear so as to enhance the atmosphere) and discotheques
(An outlet which is principally meant for dancing to recorded music. A live band
may also perform. Food offered mainly consists of snacks). They serve mixed drinks
including cocktails as well as local and imported liquor. These bars ore open till the
early hours of morning and provide tray and bar service.

Airport Bars: As the name suggests, these bars are found on international airports.
They are characterized by offering quick service to transit passengers. They are often
economically priced because of access to duty-free liquor. It is posh.
Casino Bars: As the name suggests, these bars are found in casinos. They offer
gambling and gaming services as well.

On the Basis of in-Situ Entertainment Offered

On the basis of in-situ (on-premise) entertainment offered bars can be classified into
various types. A few of them include:

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Jazz Bars: As the name suggests, these are bars providing

entertainment in form of jazz music on the premises. It is the
bar’s main focal attraction apart from the bar itself.
Sport Bars: as the name suggests, these are bars that provide
sports entertainment on big television screens, with special
projections etc. It may have a series of screens and the decor
may also be geared on the theme of sports. Generally, they are
found in clubs and spring up throughout the city during Soccer
season, Cricket World-Cup, Wimbledon Tennis tournament, etc.
Piano Bars: As the name suggests, these are bars with piano
and a pianist. They provide excellent in-situ entertainment to
traditionalists who love piano tunes.

Other Bars
Stand-Up Bars: As the name suggests, these bars do not, provide
seating arrangement. Customers collect their drinks from the
bar counter after paying for the same and consume standing
or while circulating in the room. Such bars promote social
interaction, are highly Informal and are found in downtown
commercial areas where the turnover is high. People who like
to have a quick drink after a hard day’s work before heading
home are their clientele. Stand-up bar environment is usually
found at events/functions where a special function bar has
In the United States, been set-up for a limited time. Stand-up bars require far less
there was an attempt space for their operations than their counterparts that offer
from 1919 to 1933 to
sit down facilities. Given the same space a stand-up bar can
eliminate the drinking
of alcoholic beverages handle a higher turnover than a bar with sit down facilities.
by means of a
national prohibition
of their manufacture
and sale.

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Wet Bars: As the name Suggests, wet bars are one that have wash up facilities
built in its structure. Thus, public bars are wet bars as they have sinks built into the
under bar for wash up while a crash / mini bar cannot be called as wet bars due to
the absence of in-built wash up facilities.

6.2.2 Large Underbars and Back bar Equipment’s

Equipment’s for Mixing Drinks

The main equipment for mixing drinks is the pouring station. It is known by various
names like cocktail station, cocktail unit, beverage center or jockey box. It is outfitted
with the following equipment’s:
■■ Ice chest (ice bin): Considered as centerpiece of any pouring station, it is usually
30 inches long with sliding or removable doors. Sometimes, it comes with a
divider; enabling two types of ice to be stored i.e. cube ice and crushed ice.
■■ Bottle Rails or Speed Rails: The front of the station consists of a 3.5 feet bottle
rail (speed rail) with a shorter hang-on rail on the front. Sometimes, there is a
double rail on the hand sink as well. Speed rail contains the most frequently
used (poured) liquors. Usually, well brands (brands the house pours when
a drink is ordered by type rather than by name) and popular call brands
(brands customers ask for by name) are setup within easy reach in the speed
rails. Additional call brand liquors are displayed on the back bar. Both, the
well brands and the call brands collectively make a well - the liquor supply
at a bartender’s station.
■■ Mixer and Blender: Mixer and Blender are located on a recessed shelf on the
right-hand side of the cocktail unit. The shake mixer (spindle blender) has a
shaft coming down from the top that agitates the contents of its cup. It is a
mechanical substitute for a hand shaker.
Blender takes the mixing process one step further. It can grind, puree and
refine ingredients and is used in making drinks like Banana Daiquiri or Frozen
Margarita. Today’s bars have both the mixer and the blender.
Bars making a specialty frozen drink may have a frozen drink dispenser. It soft
freezes a large quantity of a premixed drink to a slush. To serve an individual
portion of drink, the glass is holded under the tap and the lever moved. At
the end of the day, drain off what is left and store it in a refrigerator.
■■ Condiment cups or Bottle wells: Condiment cups are used to hold garnishes and
are located in double rows on the left of the ice chest, to keep them chilled.
Sometimes, bottle wells replace these condiment cups and keep juices and
prepared mixes cold.

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Equipment’s for Washing and Waste Disposal

It includes the following items:
■■ A three or four-compartment sink with drainboards: It is usually a single piece
of equipment placed near a bartender station or between two stations. One
compartment is for washing, one for rinsing, and one for sanitizing (killing
bacteria with a chemical solution). In a four compartment sink, the fourth
compartment is usually used as a waste dump (by placing netting in the
bottom) to catch the debris.
■■ Hand sink with towel rack (attached to blender station): Usually, the hand sink
utilized for washing hands is a separate one but more often the fourth sink
in a four compartment sink act as a hand sink.
■■ Special glass-washing brushes: Glass brushes stand up in soapy water of the
wash sink. In automatic models, the bartender places a glass over the center
brush and presses a button to make the bristles spin. With hand models the
bartender twists the glass around and between the brushes to clean the inside
and rim. Then, the glass goes into the rinse sink, then the sanitizing solution,
and finally onto the drainboard, upside down to air-dry.

■■ Waste dump: Each pickup station has a waste dump on the server’s side of
the bar. Cocktail servers returning with dirty glasses dump the debris here.
Behind the bar are removable trashcans.
■■ Bottle chute: Empty liquor bottles are accumulated at the bar to return m to
the storeroom to exchange it for full bottles. In a bar with a storeroom below
it, a bottle chute can convey these empties directly to the storeroom. Also, a
bottle chute conveys empty beer and soda bottles to the basement below the
bar for disposal.

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6.2.3 Other Large Equipment’s

It includes the following items:
Glass Froster: Usually, a glass froster is used to chill glasses for straight-up cocktails,
frozen drinks and ice cream drinks. It is a top-opening freezer that chills glasses at of
temperature. Always dry glasses and mugs should be placed in the froster, otherwise
a thin coat of ice will form on the glass and the glass may stick to the lip of the
drinker. Alternatively, a refrigerator will frost a wet glass without making ice. Other
alternative is to ice the glass by hand with ice cubes just before the drink is poured.
Automatic Glass-Washer: For better cleanliness, stricter sanitation laws and labor
savings, automatic glass-washers are used now-a-days. It is an alternative to washing
glasses by hand. An under bar or back bar rotary glass-washer easily washes up to
500 glasses per hour, giving bartenders more time to prepare drinks. It washes and
rinses glasses with tap water, provides a final high temperature rinse (120·F to 160·
F) with good chemicals to sanitize them and blow dries them without water-spots.
There are other models of rotary glass-washer available too. Some have a variety of
“cycles” for different types of glassware and still some others provide a final rinse of
cold-water, which means glasses can be used immediately after washing. Conveyor
type washers, capable of washing up to 2000 glasses per hour are available for use
in high-volume operations.
Also, it is impractical to vent steam to and from glass-washers in a bar area (for
blow-drying glasses) and hence machines having sanitizing system using chlorine and
other chemicals are favored. P.S: Kitchen dish washing machine should never be used
to wash glasses as they have to be carried back and forth, are likely to get broken,
and leave grease marks.
Frozen Drink Dispenser: Bars making a specialty frozen drink may have a frozen
drink dispenser. It soft-freezes a large quantity of a premixed drink (like a margarita
or dalquiri) to a slush. To serve an individual portion of drink, the glass is holded
under the tap and the lever moved. At the end of the day, whatever is left is drained
off and stored in a refrigerator. All frozen drink dispensers pump a percentage of air
called as overrun into the liquid mix, increasing its volume and giving soft-frozen
consistency.
Dry (unrefrigerated) Storage Cabinets: This storage forms tile major part of the back
bar. The day’s reserve supplies of liquor - all the unopened bottles as backups are
stored here with locks. Also in dry storage cabinets are stored red house wines for
pouring by glass or carafe, reserve supply of napkins, bar towels, matches, picks,
straws, stir-sticks, and other non-food, non-beverage items.

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Refrigerators: Under counter and back bar refrigerators, which look just like dry
storage cabinets from outside, hold supplies of special mixes and juices, bottled beer,
bottled mixes if used, white wines, fruits and condiments for garnishing, cream, eggs
and other perishables at 40’ Fahrenheit. They may also be used to chill glasses. It
is important not to overload the cabinet, since proper airflow is key to chilling the
contents properly.
Ice (making) Machines: Every cocktail bar operation has an ice-maker, as it cannot
operate at all without ice. It is at under bar or back bar in case of a large bar and
elsewhere if it is a small bar.
Cash Registers: From its slow, noisy, hand-operated first version machine with a
pot-belly and a bell (called as “Ritty’s incorruptible cashier”) to today’s slim, quiet and
lightning fast computerized register (known as ECRs or Electronic Cash registers), it
has been a rock of Gibraltar at the bar. Cash registers are core of a system of controls
by which management ensures that its liquor is sold to the customer with little or no
“evaporation” en route. It generally records each bar-sale no matter how or where
payment is made. Thus, it keeps records of the drinks poured, their sales value and
hence the records of stock in hand, the costs etc, as it should be the sales record is
checked against money received at the end of every period, to verify that one equals
the other.

6.2.4 Bar Staffing

The number and type (positions) of beverage service staff needed varies from one
establishment to another. Also, the duties and responsibilities (tasks) of these positions
depend on the size and organization of the operation. At one end of the spectrum is
a small owner-operated bar, where a Single individual - the owner handles almost all
the functions and at the other end is the beverage service of a large hotel/restaurant
chain where beverage managers and other positions are found.

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Beverage Servers
Servers are a group of waiters/waitresses handling beverage
service at tables in various types of bars/dining room. Their
duties and responsibilities include recording customers’ drink
orders; transmitting them to the bartender; picking up the
drinks; serving the customers in an efficient and friendly
manner, presenting the checks; collecting payments; returning
empty glasses to the bar thus helping to keep the service
areas clean; and performing a number of opening and closing
tasks. Sometimes, they help bartenders in preparing drinks
by putting ice in glasses and adding garnishes. They may
also ring up their own checks in the cash register and carry
out quick, accurate and honest check routines ;It specific
intervals. Ideal servers should possess a pleasant personality,
a neat and attractive appearance, good communication Skills,
poise, mind for detail, alert and observant, and good basic
knowledge about drinks and liquor, They should not only
know to identify underage guests and refuse them service but
also monitor alcohol consumption and “cut off’ guests who
Keyword
are in danger of becoming intoxicated. They should also be
good salespeople and should know the art of suggestive selling Wine is an alcoholic
techniques. In some restaurants, servers serve both food and beverage made from
drinks including wine and thus they should be able to open grapes fermented
wine bottles and carry out rituals of wine service. without the addition
of sugars, acids,
enzymes, water, or
Bartender other nutrients. Yeast
consumes the sugar in
The bartender is the central figure in any beverage service the grapes and converts
it to ethanol and carbon
operation. He is an amalgam of salesperson, entertainer,
dioxide.
mixologist and psychologist. The bartender’s primary function
is to mix and serve dunks for patrons seated at the bar and/or
pour drinks for table customers served by servers. Thus, he
must know of all the drinks the house serves and the techniques
of mixing them. Other responsibilities include recording each
drink sale, washing glassware and utensils, maintaining a
clean and orderly bar, stocking the bar before opening, and
closing the bar. In many operations, the bartender also acts
as a cashier. He is a host and a promoter whose combination
of skill and style build public relations goodwill and good
business. He may invent new drinks or think of new ways
to market traditional ones. The bartender is a person with

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patience, good attitude and adaptability. His wit, wisdom and

approachability make him or her center of conversation and
the advisor of drink concoctions. He should have a pleasing
personality, pleasant appearance and should be honest. In a
speed bar, the bartender’s ability to work quickly and under
pressure is essential.

Keyword

Bartender is a person
who formulates and
serves alcoholic or soft
drink beverages behind
the bar, usually in a
licensed establishment.
Bartenders also usually
maintain the supplies
and inventory for the
bar.
Beverage Manager
A beverage manager is responsible for beverage service in the
entire hotel or large restaurant operation. He or she generally
reports to the food and beverage director (in hotels) or to the
general manager (in large restaurants). In small operations,
the beverage manager’s tasks might be performed by a head
bartender. When functioning as a department head, the beverage
manager is involved in selecting, orienting, training supervising,
scheduling, and evaluating staff members. Sometimes, the
beverage manager plan beverage service in the banquets
and functions. His duties involve day-to-day management
activities like purchasing supplies and equipments, controlling
inventory, standardizing recipes, and designing and constantly
improving income control systems. In conjunction with the
food and beverage controller or food and beverage director,
the beverage manager determines standard beverage costs,
develops departmental operating budget and supervises and
controls the production and service of beverages. He is also
responsible for maintaining quality standards and required
profit margins.

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Bar backs
One or more helpers to the bartenders generally found in large beverage service
operations are called as bar backs. They are often trainee-bartenders, whose job is to
assist the bartender. They act as runners or “gofers· to the bartender also. A bar back
relieves the bartender of all chores except pouring drinks, handling customers and cash
register. Sometimes, they may serve beer or simple mixed drinks under bartender’s
supervision. General duties include setting up the bar; preparing garnishes and special
mixed syrups; filling ice bins; washing glassware and utensils; maintaining supplies of
towels, napkins, picks, straws, stir sticks, matches; keeping bar surfaces and ashtrays
clean; washing fixtures; mopping floors; and running for liquors, beers, wines, and
other supplies needed by the bartender.

The Wine Steward or Sommelier

Wine Steward also called as wine master, cellar master or wine waiter is an employee
who takes orders and serves wines in fine restaurants. He presents the wine list to the
guests, makes recommendations, discusses wines, and takes care of serving the wines,
thus making the experience pleasurable. Wine stewards who are true connoisseurs
of wines and wine service are called sommelier. They are usually found in upscale
restaurants featuring expensive wines, extensive wine lists, and cellars containing
thousands of bottles. A tasting cup called tastevin always hanging from the neck,
a cellar key, and sometimes a leather apron are symbols of the sommelier. A well-
qualified wine steward helps in:
■■ Creating a wine list that fits the atmosphere and menu.
■■ Dealing with suppliers and importers and doing the wine ordering.
■■ Negotiating “exclusive” deals to carry certain wines that no one else in the
market has.

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■■ Controlling and keeping inventory of the cellar or wine storage area, making
purchasing decisions to maximize profits
■■ Training the servers and other staff members about wine appreciation.
■■ Orchestrating and helping publicize tastings, wine dinners, seminars and other
wine-related events for the business.

Bar Theft and Fraud

Although bar and beverage control may be more accurate and successful than food
control; bar thefts and frauds inevitably occur. Some are standard and universal while
others are situation based, Some of them are bar billing frauds while others are frauds
by manipulating the liquor being served, Of course billing frauds are prevalent in
restaurant operations as well, but occur more frequently in a bar owing to the barman
himself doubling as the cashier, the relatively more informal attitude of the guest, the
trust he places in the barman, an inability to maintain an accurate drink count and his
own state of insobriety which makes him pay cash on demand for the drink without
asking for the cheque/bill and without checking the bill if one is offered, The existing
control system and the manner in which cash is collected in the bar could proude for
loopholes leading to theft of money. Keeping a separate cashier and barman may not
solve plug the loopholes if there is a collusion between the two, and in order not to
allow a nexus to proliferate, bars employing more than one cashier have a policy of
rotating the shifts of their cashiers and in. hotels having several outlets, a different
cashier is assigned to the bar each-week I fortnight. There are several frauds that can
be perpetrated with cash registers in a bar. However, higher degree of automation and
the inclusion of an audit (till) roll may trace them and help to minimize some of them,
While on the topic of billing frauds It must be mentioned that actions on part of the
guest such as paying only against a bill checking the same, and Insisting on a paid
copy of the bill have an important role in discovering and controlling billing frauds,
It is not uncommon to find the words ‘This is not a bill” printed across a totaling slip
or KOT to enlighten the guest against possible fraud.

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Certain bar thefts and frauds may be unearthed by tight control and exercising
routine and surprise checks while others may come to light by observing trends, presence
of mind and out thinking the perpetrator, Computerized billing and inventory software
(often chained together) too, can play a major role in controlling and minimizing
certain frauds, Strict and regular physical inventory is also a measure to nip fraudulent
activities in the bud, Strict and decisive punitive action meted out to the guilty will
serve as a deterrent to others as well. However, there is perhaps no substitute for
physical on-the-job supervision, which will definitely keep the bar personnel in check
and then after the event when the tracks are clouded and the responsibility ambiguous.
The random and occasional use of shopper’s service (explained later) keep staff alert
and conforming to standard operating procedures. Guest suspicions and reports of
any anomalies comprise another important starting point for investigation of many
frauds. A supervisor in a beverage sender area must realize and understand that it is
vigilance and not suspicion that is required in order to minimize and eliminate bar
theft and fraud. The most ideal preventive measure is developing and instilling in an
employee a high level of integrity and sense of loyalty.
Bar thefts and frauds reduce the sales and raise the pour cost (beverage cost) of a
beverage sender operation leading to severely eroding the profitability of the outlet.
Control measures of all kinds may be seen as present mg the money of the owner. One
more loss to the organization, though intangible, is the loss of repute and goodwill in
the event that a fraud or theft is exposed. The customer would in all likelihood not
return to such an establishment and would perhaps deter others from going there as
well which In rum means a loss of potential new and repeat custom.
Bar thefts and frauds are widespread because of the following reasons:
■■ Personnel handling cash (like bartenders, cashiers, service staff, etc) often hold
low-paid, entry-level positions. Moreover, these employees frequently move
from job to job and have little identification/loyalty to a property.
■■ The busy environment and the complexity of production/service tasks provide
the opportunity to personnel in such beverage operations to take advantage
of loopholes in income control systems and provide ample scope to dishonest
bartenders to perpetrate frauds.
■■ To some extent, many managers are simply apathetic about employee thefts and
frauds. Some feel that theft is inevitable and simply increase prices to cover it.

Beverage (Liquor) Related Theft and Fraud

These thefts and frauds are generally due to manipulation of quantity, quality or
source of liquor by the bartender or beverage servers (waiters).

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Under Pouring
Also called short pouring, it is pouring a measure lesser than what has been ordered by
a guest. (e.g. If a bar man under pours- five drinks by one sixth the normal measure,
it results in an excess which can be sold as a sixth drink. Here, the sale of sixth drink
is not recorded and the resulting cash payment is pocketed.) This fraud does not affect
the beverage cost percentage. Under pouring alcohol in mixed drinks is widespread
and goes unnoticed because it is pre-mixed when served. Sometimes, under pouring
is resorted to compensate for shortages caused by over pouring.
Precaution: Bartenders should be told to prepare al/ drinks using a peg measure and
not to free pour under any circumstances; Other solutions include a policy of pouring
in full guest view wherever possible, use of bar optics (pourers) fitted to bottles that
deliver an exact measure of liquor, the use of automatic drink dispensing systems, and
use of shoppers to regularly observe and report on this fraud. Moreover, bartenders
should not be allowed to use their own measuring devices to avoid this fraud.

Dilution
Diluting liquor (like gin, vodka, white rum, silver tequila, etc which are colorless) and
pocketing income from the additional drinks sold is called Dilution. Further, if this
liquor is used in cocktails it is unlikely that the guest will notice minor changes in
taste. Dilution is resorted to compensate for shortages caused by over pouring.
Precaution: Use shoppers to regularly watch the bartenders and investigate frequent
guest complaints about the strength of the liquor. Bottles may be checked as some
liquors turn cloudy when water or soda are added other liquors turn a lighter color.
One way pourers in the neck of the bottle are other way of preventing dilution. Density
checks with the help of a hydrometer may be performed if dilution is suspected and
compared with its original density. Sometimes an excess of one brand of liquor may
be used to level off the shortage in another brand. This is called adulteration. Many a
times, over pouring one brand of liquor may be levelled off by using the excess liquor.

Bringing in Personal Bottles

Also called the Phantom bottle fraud, bartenders serve drinks from these bottles when
the guests order matches with the nature/brand of liquor brought in by them. The
sale is not billed and the cash is pocketed. This fraud does not affect the inventory
levels nor the beverage cost percentage but results in severe loss of revenue to the
organization.
Precaution: Marking/identifying hotel bottles in a unique and hard to duplicate
manner (like stamping) and regular visual inspection helps to eliminate this practice.

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Keep bottle stamps secure (e.g. in a safe) so that employees cannot misuse them.
Another that could be used along with stamping is to break all empty its contents
into an empty liquor bottle that has the property stamp.

Substitution
Serving a lower quality brand when guests order for call brand and billing the guest
for the expensive call brand, thus pocketing the extra cash is called substitution. Some
bartenders even fill an empty call brand bottle with house brand. In this case, even
guests seated at the front bar will not suspect that a wrong brand is being served.
Here, the inventory may reveal a shortage if the stock of each liquor is listed and
maintained separately. To cover up, the bartender may resort to leveling off the
shortage by dilution, short-pouring, or adulteration by adding similar liquor (of some
other brand).
Precaution: Bartenders and bar-servers should be made to write all drink orders on
a BOT, which is billed by a separate cashier. Having a separate cashier is desirable as
it makes the billing function independent of the liquor service function which facilitates
control. An alternative method is to write all drink orders onto a check and having
the bartender ring up the amount on the guest bill before serving the drink, thereby
charging the guest the right amount (and denying the bartender any excess).

Using Personal Drink Measuring Devices

Aiding in under pouring, these personal drink measures (invariably of a lower volume)
help obtaining excess liquor, selling the same and pocketing the excess cash. Guests
do not suspect as liquor is filled to the brim before being dispensed into the glass and
they would never doubt that the volume of the peg measure itself is faulty.
Precaution: Routinely check the portion control tools (peg-measures, pourers, etc)
and the bartenders should be made to use only the tools provided by the facility. (In
India, standard measures may be purchased from shops approved by the Government
under the Weights and Measures Act).

Selling Drinks for Cash and Recording Them as Spilled, Accident, Returned, Walk-
Out or Complimentary
It helps in pocketing the money that results from the sale. Sometimes, staff collects the
beer from undrained bottles and glasses to fill a full bottle, designated it as a flat beer
and claim a replacement In exchange. It is then sold and the proceeds are pocketed
or simply drunk by the bartender. Precaution: Bartenders should not be authorized
to give out free drinks and any complementary drink must first be authorized by

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somebody in authority. Any returned drinks and requests for replacements must be
approved by management. Also, accidents must be evidenced by the service staff and
approved by the management (like showing the crown intact neck of a beer) before a
replacement is given. To avoid frauds like building the bottle, close supervision of table
clearance, introduction of a policy of removal of the used beer bottles to the pantry
area where they will be stacked in an inverted manner, and the immediate clearance
of all glasses to the wash-up area for washing. (Breaking the bottles on clearance is
not advised as empty beer bottles are in plenty and probably command some resale
value.) Moreover, retraining and closely supervising bartenders/bar servers having
excessive spillage records or high pouring costs should be undertaken. A spoilage/
accident report must be made out for all such occurrences and signed by a responsible
person. Look for deliberate attempts on part of the staff to make extra money using
this modus operandi.

Misuse of “One Full against One Empty Bottle” Policy

In hotels/restaurants that have a system of issuing one full against one empty bottle;
bar personnel may bring in empty bottles from out and exchange for full bottles from
the hotel store/cellar. Consequently; drinks from bottles are sold and the cash pocketed.
It results in a sharp difference of the beverage cost as the bottle cost is incurred by
the hotel without a corresponding increase in its revenue. Precaution: Having an
established par stock and random checking of this par stock is recommended so that
the fraud is avoided. But a better precaution is to stamp the purchased bottles with
signature of the cellarman or special identifying label or special sticker or a rubber
stamp to which only authorized personnel have access. Comparing standard beverage
costs to achieved beverage costs periodically may eliminate this kind of fraud.

Over pouring
Bartenders do so to influence the guest for a larger tip or buy them (bartenders) a drink.
Precaution: Bartenders should be told to prepare all drinks using a peg measure and
not to free pour under any circumstances. Other solutions include use of bar optics
(pourers) fitted to bottles that deliver an exact measure of liquor, the use of automatic
drink dispensing systems, and use of shoppers to regularly observe and report on
this fraud. Moreover, bartenders should not be allowed to use their own measuring
devices to avoid this fraud.

Removing Unconsumed Bottles at “Hosted” Banquet Functions

Doing so, they are charged to the host as consumed. This can be easily done as the
consumption is usually on the basis of a “bottle count” basis. Here, the barman may

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Import empty bottles into the function room bar (which have in reality not been
consumed at the party of the host). Whisk away an equivalent amount of full bottles
and raise the amount payable by the guest. The bottles thus siphoned away are then
taken for personal use or transferred to the main bar (for fraudulent use as it is excess
stock).
Precaution: Having tile par stock counted and marked. Ensuring tight physical
supervision on the dispense of drinks. Placing all bottles on the bar top in full view
of the guest and even having a person from the host’s party keeping an eye on the
service/dispensing bar counter helps in avoiding such a fraud.

Billing Related Thefts and Frauds

In many bars, the bartender collects the money with the help of a bar cash register
before/after serving the drinks. This provides the dishonest barman with ample or scope
for billing frauds. These frauds and thefts are equally valid for a bar cashier as well.

Accumulating the Individual Drink Sales

This fraud often happens when a group of guests are running up a tab. It is done
particularly for a liquor, until the entire bottle is used and ultimately recorded as a
bottle sale. The sales price of a full bottle is generally lesser than the accumulated
sales of the equivalent number of individual drinks obtained from the same bottle.
Thus, the difference will be pocketed. Precaution: Policy includes using shoppers,
closely supervising employees, and making it mandatory for bartenders to record all
drinks on guest checks (BOTs) before they are served and cashiers will bill for them.
The bills may later be cross tallied against the pre-Checks (BOTs).

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Prerecording and Registering the Sale of Drinks during the Happy Hours
It is done to pocket the difference when the drinks are actually sold at a higher price
during normal hours.
Precaution: The use of different colored guest checks during these special (happy)
hours will help prevent this.

Using Own Guest Checks (Private Sales Checks)

It is used to collect sales income instead of those authorized by the establishment and
the sales proceeds pocketed.
Precaution: Use unique, hard-to-duplicate guest checks at your property.
Reusing paid guest checks (BOTS/Bills): Many times, the bartender/beverage server
serves a guest and collects the sales income without ringing it up. He/she uses the
old guest check for the orders and pockets the sales revenue, the cashier immediately
upon completing the service. Require bartenders to ring up all BOTs and deposit
them in a locked box to which only management has access. Abnormally long times
between picking up the bill and depositing the same should be suspected and must
be investigated. Using a pre-check system for the pick-up of beverage orders ensures
cross referencing to find the culprit.

Overcharging
When drinks are being served to a group of customers (who are running up a tab), the
barman/cashier many a times adds a charge for a few more drinks. The guest overlooks
the same and pays the amount unquestioningly. In case it is caught, the bartender may
claim an oversight, rectify the error and possibly get away. After departure such bill is
adjusted for the sales difference which is then pocketed. The stock will not differ because
the extra drinks charged were never served. This act of deliberately overcharging the
guest if he is in an intoxicated/inebriated state is called as Overcharging. Precaution:
Any alterations on a bill must be authorized by the manager only and a satisfactory
explana.ron sought. Strict actions should be taken against beverage servers caught
short-changing or overcharging the guest. It may serve as a deterrent. A computerized
system of billing would reduce overcharging in prices Charged.

Servers May Collect Cash and Destroy a Check

Precaution: When checks are accounted for, the missing checks are noticed. When a
server genuinely loses checks or guests leave without paying, additional training may

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be imparted. A stiff penalty for lost checks may be implemented. Having a pre-check
system will ensure that there is backtracking to find the value of the lost check.

Bar License
Bar license means an on license for premises that are a bar.
■■ means premises where the predominant activity at the licensed times is the
serving of liquor for consumption at the premises; and
■■ includes premises prescribed by regulation to be a bar.

Nightclub License
Nightclub license means an on license for premises that are a nightclub.
■■ means premises where the predominant activity at the licensed times is dancing
and entertainment; and
■■ includes premises prescribed by regulation to be a nightclub.

Restaurant and Cafe License

Restaurant and cafe license means an on license for premises that are a restaurant or
cafe.
■■ means premises where the predominant activity at the licensed times is the
serving of meals for consumption on the premises; and
■■ includes premises prescribed by regulation to be a restaurant or cafe.

Licenses: application and decision

A person (a proposed licensee) may apply to the commissioner for a stated license
for stated premises.
The application must:
■■ be in writing; and
■■ state the class of license applied for and, for an on license, the subclass of
license applied for; and
■■ include complete details of suitability information about—
-- the proposed licensee; and
-- each close associate of the proposed licensee; and

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 254 Legal Aspects in Tourism and Hospitality

-- if the proposed licensee is a corporation—each influential person for

the proposed licensee; and
-- if someone other than the proposed licensee is to have day-to-day control
of the business operated under the license—each person who is to have
day-to-day control; and
-- for a license other than a catering license—the proposed licensed premises;
and
■■ include a police certificate for each of the following people, dated not earlier
than 3 months before the date of the application:
-- the proposed licensee;
-- each close associate of the proposed licensee;
-- each influential person for the proposed licensee;
-- if someone other than the proposed licensee is to have day-to-day control
of the business operated under the license—each person who is to have
day-to-day control; and
■■ for a license other than a catering license include evidence that the operation
of the business at the premises under the proposed license complies with:
-- the lease where the premises are located; and
-- the territory plan; and
-- the final floor plans of the premises approved by the planning and land
authority in the development approval for the premises
-- a certificate of occupancy for the premises
■■ for an application prescribed by regulation—include a risk-assessment
management plan for the premises.

6.3 RESPONSIBLE BEVERAGE SERVICE

Alcohol consumption problem seems to be a great public health concern. Health
problems, such as traffic crashes, suicides, homicides, sexual assaults, drowning, and
recreational injuries are all associated with alcohol use. Protective factors reduce or
moderate the effects of exposure to risk. These factors in further into two groups:
individual and interpersonal factors, and contextual (societal) factors. Individual and
interpersonal factors include biological and psychological factors such as genetics,
sensation seeking personality, early problem behaviors, self-efficacy, academic failure,
family management practices, school environment, attitudes favorable to drug use, and
peer relations. Societal factors are laws regulating availability within a society, such
as minimum drinking age, BAC levels (blood alcohol concentration) in traffic, and
enforcement of extant rules. Social norms concerning alcohol use are also included

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 Liquor Legislation 255

in the second group. This indicates that alcohol prevention

strategies benefit from a multifactor approach, addressing
factors at several levels in parallel. It stated that community
action initiatives are intended to motivate and mobilize various
groups of actors within a community to coordinate extant
resources to prevent alcohol-related problems.

A systems approach to alcohol prevention involves

changing the environment in which a person consumes
alcohol. A society is built on several actors and forces that
together constitute a system. Important subsystems that have
an impact on the alcohol situation within a community are
consumption patterns, availability, social norms, the judicial
system, enforcement, sanctions, and social and medical factors.
The system with its subsystems determines the prevalence of
alcohol and drug problems within the community. These sub-
Keyword
systems are connected, but are not exchangeable. A maximum
effect requires a combination of efforts targeting as many Enforcement is the
important sub-systems and risk factors as possible. A systems process of ensuring
approach is more than the summation of prevention efforts. compliance with laws,
Efforts at several levels parallel can lead to synergy effects. regulations, rules,
standards, or social
One example could be a media campaign that increases the norms. By enforcing
support for efforts to reduce intoxication at licensed premises. laws and regulations,
Public support can motivate authorities to focus more on governments attempt
monitoring of licensed premises, but can also motivate bar to effectuate successful
owners to train their staff in responsible beverage service. implementation of
policies.
The more risk factors at different levels that can be addressed
within the system, the more the effect are enhanced.
An important goal in serving alcoholic beverage is to
offer a service that pleases and satisfies guests while at the

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 256 Legal Aspects in Tourism and Hospitality

same time causing no harm to them or to others. Most bar and beverage operations
try to ensure that guest have an enjoyable time by providing them with a friendly
atmosphere, good quality of food and drink, relaxation and entertainment, and a chance
to socialize. When a guest enters an establishment, a relationship of host and guest is
established. It is the duty of the good host to see the need of the guest. Specifically,
in the service of alcoholic beverages, this means that the host has a responsibility to
see that guest do not consume excessive quantity of alcohol.

6.3.1 Effects of Alcohol

The amount of alcohol in the blood is typically measured in terms of the Blood Alcohol
Concentration (BAC). The BAC expresses the weight of alcohol per unit volume of
blood, usually in grams per 100 milliliters (or per deciliter). A BAC of 0.10 means that
there is one tenth of a gram of pure alcohol in every 100 milliliters of blood. In other
words, there is approximately one drop of pure alcohol for every 1,000 drops of blood.
Most states hold that an individual is intoxicated when the BAC is 0.10, but some states
set a lower threshold. Someone with a BAC of 0.04 or less is not apt to lose many
faculties; at 0.05 to 0.09, there is a possibility of such a loss; above 0.09 one is almost
certain to have lost some competence. A person can feel the physical effects of alcohol
almost immediately because alcohol passes directly through the stomach walls into the
bloodstream. In a short time, it is able to affect the brain and nervous system. Alcohol
first affects the frontal lobe of the brain, reducing inhibitions, hindering reason and
judgment and slowing down reaction time. More alcohol a BAC of around 0.15 induces
a loss of muscle control. The drinker may stagger and be unable to walk a straight
line. A BAC of 0.20 to 0.30 induces confusion and stupor or loss of consciousness. At
this point, alcohol can act as a poison, causing the drinker to become ill and vomit. A
BAC of 0.30 to 0.40 may make the drinker exhausted. A BAC of 0.40 to 0.50 can affect
the part of the brain controlling respiration and heart action. If this occurs, the person
can die. Fortunately, most individuals lose consciousness before drinking this much.
The physical effects of alcohol vary among individuals. People with large bodies can
tolerate more alcohol than smaller people. This is related to the amount of water in the
body. The more water in the body, the less the effect. However, differences can exist
even between people of the same weight; people with muscular bodies and little fat
tend to put less alcohol into their blood stream than people with a higher percentage
of body fat. Several studies have been done to find out how fast alcohol can build up
in the blood. A 140 pound person drinking three drinks in a 40 minute period would
have a BAC of approximately 0.09 less 0.01, or 0.08. On average, individuals weighing
between 150 and 180 pounds add from 0.02 to 0.03 to their BAC for each drink. Thus
an employee serving a 160-pound man four 12-ounce beers in an hour should know
he is approaching intoxication or is intoxicated.

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 Liquor Legislation 257

People of different temperaments handle alcohol differently. Some become quiet,

while others become volatile. Tired or ill people may get a faster effect than a more
alert or healthy person. Unhappy or de-pressed people may get unhappier or more
depressed as they drink, while happy people may get happier. Some people have livers
that break down alcohol more efficiently than average (which is about 0.75 ounces
per hour); these people feel the effects less. Active people seem to be able to ‘hold
their liquor’ better than inactive people. Also, the body can adjust to alcohol intake
to a certain degree; people who drink infrequently often may find that they get a
quicker and greater effect than people who are accustomed to drinking. Drinking on
an empty stomach intensifies and hastens the effects of alcohol. Food in the stomach
can slow the physical effects of alcohol. The food absorbs alcohol and keeps it from
passing through the stomach wall. Fatty foods are especially effective because they
coat the stomach with oil, making the wall less permeable. Fats also tend to increase
the stomach’s churning, further reducing the amount of alcohol absorbed through the
wall. Bubbly drinks like champagne take effect faster than still ones. Thus, a 4-ounce
glass of bubbly wine will have a faster effect than a 4 ounce glass of still wine. If
drinking occurs in a relaxed atmosphere where there is a lot of conversation, dancing
or other social activities, the rate of drinking is slower. At cocktail parties, beer fests,
and other events where people are engaged primarily in drinking, the drinking rate
is faster and alcohol consumption is increased. Alcohol is a part of western culture,
and the European countries have the highest alcohol consumption in the world, with
an average level over two-and-a-half times that of the rest of the world.

6.3.2 Social Concern

Bar and Beverage Management has changed drastically in the several decades, especially
in the United States. It has become more than just providing alcoholic beverages to a
public that wants to be served. Growing social concerns about the problems caused by
improper alcoholic consumption have forced the industry to change its management style
and take steps to see that abuses in consumption do not occur. These concerns have
become such an important factor influencing management system. Alcoholic beverages
go well with food and do much to grace a meal. Social drinking is associated with
pleasantness, friendship, and fraternity. ‘Sharing the cup’ has long been a symbol of
hospitality between host and guest and among family and friends. Alcohol is often a
part of religious ceremonies and celebrations such as weddings, holidays and birthdays.
In moderate amounts, alcohol promotes relaxation and comfort. Sometimes, it is actually
used medicinally to produce these effects. Alcohol also carries the active ingredients
in many medicines. There is some evidence that a moderate amount of alcohol each
day can reduce the chance of heart problems. In addition, the alcohol industry is an
important sector of our economy. Many people gain their livelihood from it and other
industries, such as lodging and food service, find the sale of alcoholic beverages an

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 258 Legal Aspects in Tourism and Hospitality

important source of income. But in today’s scenario social concerns about the costs of
irresponsible alcohol consumption are growing. These social concerns and the actions
springing from them have sparked a moment to clearly define the responsibilities of
those serving the alcohol. Management must assume a leading role in discharging
these responsibilities; it should understand the problems and how to cope with them.
Policies and procedures must be defined, and employees should be knowledgeable
about them and their use. Beverage servers should understand alcohol’s physicals effects
and be able to detect over drinking and problems caused by it. Such an understanding
enables those serving alcohol to make that service a more positive experience. Servers
should also understand their own role in seeing that alcohol is served responsibly.
The most recent report of the WHO ranks alcohol 3rd from the top among all causes
of disability. In developed countries, alcohol problems account for 9% of all disability
adjusted life years lost. In this scenario responsible beverage service plays a pivotal
role. The majority of alcohol problems are caused by multiple risk and protective
factors. By definition a risk factor occurs before an alcohol problem and is associated
with increased probability of the problem in question. Further, it is revealed that ‘an
abstainer’ is a person who has not consumed any alcohol for at least a year. A ‘light
drinker’ is a person who consumes less than 0.22 of an ounce of 100% alcohol per
day. A ‘moderate drinker’ consumes an average of 0.22 to 0.99 of an ounce of 100%
alcohol per day. A ‘heavy drinker’ consumes an average of 1.0 ounce or more of 100%
alcohol per day. A long period of time of drinking can lead to alcohol dependence.
There are several forms of alcohol dependence. One is the inability to stop drinking
until intoxicated. Another is the compulsive need to have a drink at a certain time of
day. However another is binge drinking; it may abstain for months and then drink
heavily for days. Alcohol dependence is a disease that can be controlled by physical
and psychological therapy. About 6% of all people who consumes alcohol develops
alcohol dependence over period of time.

6.3.3 Legal Concern

In Bar and Beverage operation legal concern has to be take care by bar staff. Employees
selling the drinks during off hour are deliberately violating the law. Such sales are
usually made by employees seeking to make some extra money. A responsible enterprise
should have little difficulty in controlling this problem.
Management should set up an enforce policies and rules prohibiting it. Bar staff or
others who might engage in such activities should be monitor. House liquor should be
put back under lock immediately after closing. Storage areas should not be open until
needed for operation. Employees should not bring in their own liquor and store it in
their lockers or elsewhere. Good observation can detect this type of problem and give
rise to responsible beverage service. Further it is noticed that in most states, minors bear
some legal responsibilities for falsifying records to misrepresent their age. However,

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minors often misrepresent their age, and their originality in trying to escape detection
should not be discounted. Detection and refuses is a challenge to those providing
alcohol. All states have minimum age standards for alcoholic beverage service. Most,
not at all, states now set the legal age at 21. It is important for the bartender to know
about the state’s or locality’s age restrictions while serving alcohol to the public and
look out on the various documents such as driver’s license, government or military
ID card, passport, adhar card, etc. In some bar and beverage operations there is a
separate section were minors can order non-alcoholic beverages. If legal drinkers
are admitted to this area and allowed to purchase alcoholic beverages, some type of
identification should be use to set these individuals apart from the minors. It may be
important to see that minors allowed into such areas do not slip into areas where legal
drinkers are; many states prohibit minor from being in such areas. Further the other
legal concern is serving to intoxicated guest. An intoxicated person is often a source
of embarrassment annoyance to other guest. If people commonly become intoxicated
the other guest may stop patronizing your business.

3G E-LEARNING
INDEX

A Discrimination 12, 17, 26

Abandoned property 129, 133, 135, 136, 137, E
144, 147, 171, 172, 173
Agricultural Marketing Service (AMS) 195, Embarrassment 17
196 Employee’s State Insurance (ESI) 20
Alcohol consumption 254 Entertainment tax 9, 15
Alcoholic Beverage Control (ABC) 226 Environmental Protection Agency (EPA)
Alcoholic drink 222, 260 181, 198, 216
Alternative dispute resolution (ADR) 65 Equal Employment Opportunity Commis-
American Plan (AP) 23 sion (EEOC) 25
Animal and Plant Health Inspection Service European Food Safety Authority (EFSA) 177
(APHIS) 194 Expenditure tax 9, 15, 30, 31, 37

B F
Bar and Beverage Management 257 Fair Labor Standards Act (FLSA) 24
Bar license 253 Food and Drug Administration (FDA) 5,
Barman-guest interaction 230 181, 213, 216
Best Available rates (BAR) 23 Food legislation 175
Blood Alcohol Concentration (BAC) 256 Foreign Exchange Management Act (FEMA)
9
C
G
Cash on delivery (COD) 236
Catering 4, 36, 39 General Food Law Regulation 177, 179
Continental Plan (CP) 23 Genetically modified (GMO) 186
Customer satisfaction 118, 120, 126 Genetic Information Nondiscrimination Act
of 2008 (GINA) 26
D Guest Relation Officer 112, 113, 114, 115, 123
Guest Relations Manager 115, 116, 123
Diluting liquor 248
266 Legal Aspects in Tourism and Hospitality

H N
Hospitality industry 4, 5, 7, 16, 22, 24, 35, 37, National Mobile Property Register (NMPR)
42, 88, 93, 119 147
Hotel guests 93 Nightclub license 253
Hotel Industry 9, 13, 14, 15, 26
Hotel liability 102 O
Hotel management 22, 23, 27 Occupational Safety and Health Act (OSHA)
26
I
Organization for Standardization (ISO) 195,
Income tax 9, 15 196
Innkeeper 94, 95, 96, 98, 99, 103, 104, 105,
123, 124, 127 P
Production 176, 177, 181, 182, 183, 190, 191,
L
194, 197, 198, 199, 202, 212, 213
License for storage of Kerosene & Com- Provident Fund (PF) 20
pressed Gas (LPG) 44
Liqueur 221 R
Liquor License 226, 229 Risk analysis 177, 178
Lost property 130, 131, 137, 138, 139, 142, Risk-management 6
143, 147, 148
Lost Property Office (LPO) 138 S
Luxury tax 9, 15
Service charge 27, 28, 29, 37
M Service tax 9, 15, 20, 21, 26, 27, 28, 29, 30, 37

Mislaid property 130, 131, 132, 137, 142, 143, T

144, 171, 173
Time Share Resorts (TSR) 15
Modified American Plan (MAP) 23
Tourism 3, 15, 24, 26, 34, 39

3G E-LEARNING