Guide To Zoning And Obtaining A Liquor License

Introduction

Obtaining a liquor licence in Cape Town requires a thorough understanding of the city’s zoning regulations, as well as the specific requirements for different types of liquor licences.

One of the most crucial aspects of securing a liquor licence is ensuring that your property is zoned appropriately for your intended business activities. The zoning of your property dictates which types of businesses are permissible in that area, and it directly affects your ability to apply for a liquor licence.

In addition to understanding zoning, it is essential to grasp the concepts of Primary Consent Use, Secondary Consent Use, and the Consent Use application process. These concepts define the activities that can be carried out within each zoning category and determine whether additional permissions are required to operate your business.

In this guide, we will explore the different zoning categories in Cape Town, how they impact your business, and how they relate to obtaining a liquor licence. We will also discuss the importance of Primary Consent Use, Secondary Consent Use, and the process for Consent Use applications, providing you with a comprehensive understanding of the steps involved.

Understanding Zoning Categories in Cape Town

Zoning regulations are vital for ensuring that land use aligns with the city's urban planning objectives. Below, we outline some of the most relevant zoning categories and how they impact liquor licence eligibility.

1. General Business (GB) Zones

General Business (GB) zones are designated for a wide range of commercial and retail activities. These zones are typically located in high-traffic areas such as city centres or business districts, where businesses like retail stores, restaurants, cafes, and offices are the primary land uses.

Types: GB1, GB2, GB3, GB4, GB5, GB6, GB7

Liquor Licence Eligibility:

o On-consumption: Establishments such as restaurants, bars, and pubs may apply for an on-consumption liquor licence, permitting alcohol to be consumed on-site.

o Off-consumption: Liquor stores or bottle shops selling alcohol for off-site consumption are also eligible for off-consumption liquor licences.

o Special Licences: Temporary or special event licences may be granted for events such as outdoor festivals or pop-up bars, although this depends on specific circumstances.

2. Mixed Use (MU) Zones

Mixed Use (MU) zones are areas that allow a combination of residential, commercial, and sometimes light industrial uses. These zones are typically found in urban or suburban locations, encouraging a blend of housing, retail, and office spaces.

Types: MU1, MU2, MU3

Liquor Licence Eligibility:

o On-consumption: Businesses such as restaurants, cafes, and bars may apply for on-consumption licences. However, the proximity of residential properties may impose additional restrictions, such as noise control and limited operating hours.

o Off-consumption: Small-scale retail liquor outlets may be eligible for off-consumption licences.

3. Local Business (LB) Zones

Local Business zones are designed for small-scale, community-focused commercial activity. These zones accommodate businesses such as local shops, small cafes, and personal service establishments.

Types: LB1, LB2

Liquor Licence Eligibility:

o On-consumption: Smaller establishments, such as local restaurants or cafes, may apply for an on-consumption liquor licence. Larger venues, such as bars, may face resistance due to the community-oriented nature of these zones.

o Off-consumption: Liquor stores or bottle shops may be eligible for an off-consumption licence, but only under certain conditions.

4. General Industry (GI) Zones

General Industry zones are primarily intended for manufacturing, warehousing, and other industrial activities. These zones are not designed for commercial or retail businesses.

Types: GI1, GI2, GI3, GI4, GI5, GI6, GI7, GI8, GI9, GI10, GI11, GI12

Liquor Licence Eligibility:

o On-consumption: Liquor licences are rarely granted in industrial zones unless the business is involved in alcohol production, such as a brewery or distillery.

o Off-consumption: Liquor outlets may be permitted if the business is directly involved in alcohol production or distribution.

5. Residential (R) Zones

Residential zones are primarily intended for housing and personal use, with very limited scope for commercial activities. Businesses operating in residential zones are typically small-scale and low-impact.

Types: SR1, SR2, GR1-GR6

Liquor Licence Eligibility:

o On-consumption: It is difficult to obtain a liquor licence in residential zones unless the business is a small, high-end restaurant, wine estate, or similar establishment.

o Off-consumption: Liquor stores are generally not permitted in residential areas.

Primary Consent Use, Secondary Consent Use, and Consent Use Applications

While understanding the zoning of your property is crucial, it is equally important to understand the concepts of Primary Consent Use, Secondary Consent Use, and the Consent Use application process. These concepts determine whether your proposed business activity aligns with the zoning requirements and whether additional approvals are needed.

1. Primary Consent Use

Definition:

Primary Consent Use refers to the primary, permitted activity within a particular zoning category. If your business activity aligns with the primary consent use for the zone, no additional approval is required from the municipality to operate your business.

How it Relates to Liquor Licences:

If your business is in a zone where the primary consent use supports retail or hospitality businesses (e.g., a restaurant in a General Business (GB) zone), applying for a liquor licence will generally be straightforward. The application process can proceed without significant obstacles as long as the business complies with the primary use requirements of the zone.

2. Secondary Consent Use

Definition:

Secondary Consent Use refers to activities that are not the primary use for a zone but may be allowed under certain conditions. To operate a business under secondary consent use, you must submit a Consent Use application to the municipality for approval. For instance, if you wish to open a bar or nightclub in a residential zone, which is not typically designated for such uses, you will need to first obtain Consent Use approval. Only once this approval is granted can you proceed with applying for a liquor licence.

3. Consent Use Application

Definition:

A Consent Use application is a formal request submitted to the local municipality for approval to operate a business that falls outside the primary consent use of a given zoning category. The municipality will assess whether the proposed business activity is compatible with the surrounding area and its potential impact. When your business falls under secondary consent use, you must first obtain Consent Use approval before applying for a liquor licence. For example, opening a tavern in a residential zone would require Consent Use approval before applying for an on-consumption liquor licence. The consent use application process may involve notifying neighbouring property owners and possibly holding a public meeting to gather support or objections. This process is especially important when alcohol is involved, as it may raise concerns about noise, security, or traffic.

Conclusion

A clear understanding of zoning regulations, Primary and Secondary Consent Uses, and Consent Use applications is essential to navigating the liquor licence application process in Cape Town. By ensuring that your business activities align with the correct zoning and obtaining the necessary approvals, you can streamline your application and avoid unnecessary delays.

Whether you are seeking an on-consumption licence in a General Business zone or applying for Consent Use in a residential zone to open a bar, knowing these critical zoning details will help guide your journey.

If you need assistance with understanding zoning regulations, submitting a Consent Use application, or applying for a liquor licence, our team is here to provide expert guidance. We can help you navigate the process and ensure that your business complies with all requirements for a successful application.

-Marnus van Wyngaard LLB