On Licence vs Off Licence vs Club Licence: Which Does Your Business Need?

If your business plans to sell or supply alcohol, choosing the right licence is an important first step. The key question is simple: where will customers drink the alcohol, and who will you serve?

An on-licence generally covers alcohol consumed at your premises. An off-licence covers alcohol bought to drink somewhere else. A club licence is for qualifying clubs serving authorised customers. And if you run a BYO restaurant, there’s a detail worth knowing: a “BYO licence” is an endorsed on-licence, not a separate licence class.

Here’s a practical comparison to help you work out which option may suit your business in New Zealand.

At a glance

Licence type	Where is the alcohol consumed?	Often relevant for
On-licence	At the licensed premises	Bars, restaurants, cafés, taverns and some venues
Off-licence	Away from the licensed premises	Bottle stores and other eligible alcohol retailers
Club licence	At the club premises, by authorised customers	Sports, social and member-based clubs
BYO restaurant endorsement	Alcohol brought by diners and consumed at the restaurant	Restaurants operating a BYO model

The licence you need depends on how your business actually operates. The premises, proposed hours, local requirements and application details all matter too.

On-licence: for alcohol consumed at your venue

An on-licence authorises the sale and supply of alcohol for consumption on the licensed premises. It’s commonly used by bars, restaurants, cafés, taverns and other hospitality venues.

If customers order drinks to enjoy at their table, or at the bar, an on-licence is usually the starting point to consider. Your application should describe your business and proposed operation clearly, including the areas where alcohol will be served and the hours you’re seeking.

On-licence holders have responsibilities beyond serving drinks. Depending on the licence and its conditions, you’ll need to plan for matters such as food and non-alcoholic drinks, responsible service, staff training and transport information. The Sale and Supply of Alcohol Act 2012 sets out the framework, while your District Licensing Committee (DLC) considers the application.

When might a BYO endorsement suit you?

If your restaurant wants diners to bring their own alcohol, you may be looking for a BYO arrangement. Under the Act, BYO restaurants operate through an on-licence endorsed for that purpose. This isn’t the same as an ordinary on-licence that lets you sell drinks to customers.

A BYO endorsement is intended for a qualifying restaurant business. It generally allows diners to consume alcohol they or another accompanying diner brought, subject to the relevant rules and licence conditions. If you also plan to sell alcohol from your own drinks list, check which licence authority you need before settling on a BYO-only model.

For more detail, read our guide to types of alcohol licences or learn about our BYO licensing support.

Off-licence: for alcohol consumed elsewhere

An off-licence authorises the sale of alcohol to be consumed away from the licensed premises. It’s commonly relevant to bottle stores and other eligible retailers. Some businesses selling alcohol online or arranging delivery may also need to meet additional requirements for remote sales.

An off-licence doesn’t give you general authority to operate as a bar or serve drinks for customers to consume on-site. If your business intends to offer both takeaway sales and on-premises drinking, ask about the right licence arrangement for your particular premises and activities.

It’s also important to know that an off-licence isn’t available for every kind of shop. The Act sets rules about eligible premises and certain types of retail outlets. Your proposed business model, the premises and any relevant local alcohol policy should be checked before you make commitments.

If you’re considering an off-licence in NZ, make sure your application explains what you’ll sell, how the premises will operate and how you’ll meet your responsibilities. For online sales, don’t assume that a standard retail licence alone answers every question. The Act includes provisions relating to remote sellers, so it’s sensible to confirm the right requirements for your sales and delivery model.

Club licence: for authorised club customers

A club licence is designed for qualifying clubs that sell or supply alcohol for consumption on their club premises. Examples may include sports clubs, social clubs and other member-based organisations.

The important distinction is who may be served. Club licences restrict alcohol sales and supply to authorised customers. These generally include club members, guests invited by and accompanied by members, and members of clubs with reciprocal visiting rights. A club licence isn’t a way to serve the general public as ordinary customers.

Your club’s structure, membership arrangements, guest procedures and day-to-day operations should support the licence you’re applying for. The application needs to reflect how the club actually works, not just what it is called.

If you’re exploring a club licence in NZ, think through how you’ll check membership and manage guests before you submit. The Act’s club licence provisions and rules on sales and supply in clubs are useful starting points.

Which licence is right for your business?

Start with your intended customer experience:

• Customers buy alcohol to drink at your venue: consider an on-licence.
• Customers buy alcohol to take away: consider an off-licence, subject to premises eligibility.
• Your organisation is a club serving members and authorised guests: consider a club licence.
• Restaurant diners bring their own alcohol: ask whether a BYO endorsement on an on-licence fits your operation.
• You plan to sell alcohol online or arrange delivery: check the relevant remote-sales requirements as part of your off-licence planning.

These are helpful starting points, not a guarantee of which licence a DLC will grant. A business with several activities may need more detailed advice, and the licence conditions will set out what you can do at the premises.

What to consider before an application

Choosing the category is only one part of preparing an application. The DLC will consider matters under the Act, which can include your suitability as an applicant, the premises’ design and layout, proposed days and hours, the operation of the business, relevant local alcohol policies, and whether you have appropriate systems, staff and training.

A clear application links your business model to practical operating arrangements. Before applying, think about:

• what alcohol-related activities you intend to run
• where alcohol will be sold, served or consumed
• who will be permitted to buy or drink alcohol
• your proposed opening hours and any relevant local restrictions
• staff roles, training and management arrangements
• how you’ll support responsible service and meet licence conditions

Requirements and processes can vary between local authorities. Check local requirements for your premises and make sure your plans, documents and application tell a consistent story.

Get help choosing the right licence

Getting the licence type right from the outset can help you avoid preparing for the wrong application. Liquor Concepts supports businesses across New Zealand with on-licences, off-licences, club licences, BYO endorsements, remote sales requirements and other licensing matters.

We bring more than 24 years of experience, have supported 500+ approved licence applications and have a 98% success rate. We offer fixed-fee pricing and guide you from an initial consultation through preparation and submission. The licensing authority makes the final decision, but we’ll help you understand the process and prepare a well-supported application.

If you’re unsure which option fits your plans, contact us for a free consultation. We’ll discuss how your business intends to operate and help you identify a practical next step.

Frequently asked questions

Is a BYO licence a separate licence type in New Zealand?

No. BYO restaurant service is provided through an on-licence endorsed for a qualifying BYO restaurant. It’s not a separate fifth licence class.

Can an off-licence let customers drink alcohol on-site?

An off-licence is for sales where the alcohol is consumed away from the licensed premises. If your business plans to serve alcohol for on-site consumption, discuss whether you need an on-licence or another arrangement.

Can a club with a club licence serve anyone who walks in?

No. Club licence sales and supply are limited to authorised customers, such as members and qualifying guests. Your club needs practical procedures to manage who is served.

Where can I check the rules?

Read the Sale and Supply of Alcohol Act 2012 and check the relevant local authority’s guidance and local alcohol policy. For advice on how the rules apply to your business, get in touch with Liquor Concepts.