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Revised Business Questions & Answers
Q. An example of an “on premise” establishment is:
- A grocery store that sells wine
- A convenience store that sells beer
- A restaurant that sells mixed drinks
- A package store that sells bottles of liquor
ANSWER: 3. A restaurant that sells mixed drinks
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ANSWER IN DETAIL
The on-premise establishment is when the goods and services that are sold, can be consumed there itself. In simpler terms, it means that consumers can consume or use the products as intended at the establishment.
Restaurants, bars, wineries are all, nothing but examples of on-premise establishments. Similarly, a local pub can perfectly qualify as an on-premise establishment since the products sold can be consumed or used as intended at the establishment.
Unlike an off-premise establishment wherein the consumption of products or services sold is restricted or prohibited after the transaction is complete.
Read More: Difference between On-premise establishment and Off-premise establishment
Let’s take an example, imagine you have gone to a beer, wine, or liquor shop that sells spirits. Now, with respect to a majority of the state laws, the consumption of these spirits on the premises of the establishment itself is restricted. This is what an on-premise establishment means.
Also, in Georgia, the production breweries are not permitted to sell the beers to consumers when visited the taproom.
However, in order to sell their beer for on-premise consumption, presently the breweries have to give few samples during the tour. The breweries are even allowed to do a few giveaways and sell souvenir pint glasses during various public tours and tasting sessions.
Well, whether you believe it or not, enhancing the overall on-premise establishment experience is a must.
Now we conclude that an example of an “on premise” establishment is a restaurant that sells mixed drinks.
Simplifying the overall tour and the current messy tasting regulations would bring in additional revenue for breweries. Did you know, more than 95% of the breweries in our country have on-premise sales? Indeed, on-premise establishments are a great opportunity to exploit.
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