Heard on NRPAnet: alcohol in room rentals

How has your policy about alcohol affected your rental revenues? That was a recent question on NRPA's list serv, NRPAnet. For information on how to join the discussion, select "NRPAnet" from the right-hand side of NRPA's Web site (www.nrpa.org). Here are sonic of the responses to the alcohol-policy query:

"We are a 'dry' town, so cannot allow it. However, in tracking bookings, what business we have 'lost' because of that limitation has been minimal. Too, we always booked the rooms with some other event anyway. We have no choice. If we did, we would pick up some events that would love to come hero--like the Ducks Unlimited Banquet--but we really wouldn't be gaming anything. Too, we would probably charge more because of the potential for damages, additional clean-up from smelly spills, etc."

"We started to allow alcohol about two years ago, and it did expand our market and facility use. We were concerned about any negative impact, so we created seine restrictions. We only wanted to attract family-oriented gatherings and not commercial events. We allow beer and wine, and only on weekends. We require a licensed bartender/server to ensure no one tinder age is served and no one is overserved. Alcohol must be served by the glass, and alcohol cannot be sold. No admission charges/fees/donations allowed. In addition to that, we double the refundable damage and clean-up deposit. We have had good success. There is a little extra clean up required--normally spills around the service area--but that has been about it."

"We do allow alcohol to be served at events in the recreation center (served, but not sold). For any party or reception, whether serving alcohol or not, the city requires the renter to pay a fee for liability insurance. This is a basic commercial general liability policy that covers the city. I think the city only makes 4 or 5 bucks per rental above what we have to pay out to the insurance company, so there is not any real profit with that. I do think that we would get far fewer requests for rentals if we did not allow alcohol, though. Most of the events in our main room are weddings, anniversary or birthday parties, and most of these serve alcohol, even if only champagne and beer. I think many would seek out another venue if we did not allow it. We always have at least one staff person present at every event.

In terms of damage, outside era couple of bad ones (maybe two or three to the past five years), we've been pretty lucky. Most groups are pretty mellow. The couple of times we've had damage have come from parties where the majority of attendees are younger and a little more rowdy. Our weekend staff is instructed to call the police department if things look like they are getting out of hand."

"We operate two facilities that have the option of having bar service for events hosted there. I think you have the potential to have bookings increase, and increase revenue through that method as well as beverage sales. There is no question that many events we book would do so elsewhere if we did not have liquor available. Check with your municipality, county and state regarding liquor license costs and policies, and your insurance people regarding what they would require."

"We have a community center and allow alcohol. We require liquor liability insurance, naming the city as additional insured. The police department will have a minimum of two Officers present the entire evening. The number of officers changes depending on the event. They will also have to pay for any damage to the facility, if it occurs."

"We have a large room to our civic center that is constantly rented for weddings, etc. Our city has progressed through various policies. Currently, we do allow alcohol. This includes anything from a keg or full bar to a champagne toast. The people pay a privilege fee (to "discourage" having alcohol in our building). It is currently $50/residents, $7.5 for non-residents. Additionally, we have a damage deposit or $100. This is a separate check that we hold until after the event. I can only think of one or two problems over the years.

Our contract clearly states our expectations and their financial obligations. Our policy has been in place as long as I have been here, so I cannot tell you about revenue increases, only that it is a constant source of revenue for us. The vast majority of people do pay the fee."

"We have hardwood floors throughout the building, and brick and limestone walls. Needless to say, we are a hot commodity for weddings, receptions and parties. Until the early 1980s, we were a completely non-alcohol facility. We had so many requests for exemptions that a new policy was created. The supervisor at the time came up with a compromise policy, since most of the requests for alcohol had been to allow for toasts at the wedding receptions. "We now allow wine and champagne; no beer and no liquor. Excluding beer and liquor reduces the damage caused by wet kegs and helps ensure that our building doesn't smell like a pool hall on Mondays when the seniors and pre-schoolers come in for programs. It has also ensured that the facility is returned to the original condition by the renters, as well as limited damage to equipment."