Australia: Call for crackdown on Perth pop-up bars ‘flouting’ liquor licensing rules
By Sarah Heath & Abbey Ross
May 4, 2018
The Australian Hotels Association WA is pushing for tougher restrictions on pop-up bars, citing the economic damage they have caused Perth’s established hospitality industry.
AHA WA chief executive Bradley Woods said the association was focused on preventing pop-up bars misusing temporary and catering licences in a way that undermined the integrity of the state’s liquor licensing laws.
He was concerned that the three week maximum period for an occasional license was not being enforced and that other restrictions such as midnight closing that applied to permanent venues were also being flouted.
There was an uneven playing field between permanent venues and pop-up bars, he said.
Mr Woods said “illegitimate” short-term bars and events were those not affiliated with established cultural festivals.
“Such events are cannibalising peak trading seasons, undermining the investment of permanent businesses, reducing overall employment levels and damaging the long-term viability of the city’s hospitality sector,” he said.
“Catering licenses were never intended for 5000-person or upright drinking events lasting three weeks.”
Director of Perth-based event management company DSB Entertainment, Phil Gorecki, organises pop-up events and said they had become increasingly popular.
They opened throughout Perth’s summer ranging from November through to April.
Between 5000 and 8500 people attended the pop-up Pineapple Club each time the event was held.
“The attraction to these places seem to be that they constantly move location and offer a range of different food vendors, silent discos, cheap drinks, and great music,” he said.
But Mr Woods said large pop-up bars had been drawing customers away from quality venues, having a detrimental impact on full-time employee jobs, trainee positions and the long-term viability of permanent establishments.
“A significant issue threatening the viability of Perth’s small bar and quality larger venues is the misuse and abuse of temporary liquor licenses to establish large-scale pop-up beer barns that have no connection to legitimate events,” Mr Woods said.
The Windsor Hotel manager Max Fox-Andrews said the growing popularity of pop-up bars had hurt established businesses around Perth.
“It’s frustrating as they seem to get away with relaxed constraints and minor overheads,” Mr Fox-Andrews said.
But Mechanics’ Institute Bar general manager Dimitri Rtshiladze said it was important to assess the effects of pop-up bars based on the demographics of each venue.
He said bigger night clubs such as Jack Rabbit Slims or Air Nightclub may see a decrease in customers due to sharing the same demographics as pop-ups, however niche bars such as Mechanics’ Institute were generally not affected.
“For the pop-up bar Ice Cream Factory, the demographic was normally 65 per cent female and between the ages of 18 and 23, ” he said.
“So, when you talk about cocktail bars and niche venues whose demographics are mainly 25 to 40 year olds, there’s not really an impact.”
Mr Rtshiladze said the AHA’s interest was with brick and mortar venues, hence the push for stricter regulations on pop-up bars.
Tradewinds Hotel function and events manager Alyssa Williamson said many people were interested in new activities that only stayed for a small amount of time rather than long term Perth businesses.
“It is up to local businesses to think outside the square to attract customers however patrons’ money needs to be going to well established businesses as they rely on this income,” Ms Williams said.
But Mr Gorecki argued venues that complained about pop-up events would be quiet regardless of the presence of Pineapple Club, or any other pop up event.
“They are just looking for someone else to blame, if you are offering an average product you will have an average business,” Mr Gorecki said.