Why Lidl Can Open a New Pub Here But You Can’t:
Lidl announced last week that it has secured High Court approval to open its first-ever in-store pub in Dundonald. A novelty. A big-saving supermarket dipping its toes into the hospitality industry with an on-licence establishment. Just because it couldn’t secure one for its off-licence due to other offies in the area objecting.
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Initially, the satirical headlines and thoughts of a cold pint after an impressive receipt for your weekly shop seem like a harmless notion, and why shouldn’t it be?
But scratch beneath the headlines, and you get hit with the fairly depressing wall of Northern Ireland’s antiquated and restrictive licensing laws. Known as the 'Surrender Principle', it continues to stifle local independent bars and entrepreneurs while big businesses navigate the system with ease and big bank balances.
Licensing laws in the north cap the number of alcohol licences in the region. This means if you want to open a new bar, you can’t just apply for a licence - you have to buy one that already exists. This "Surrender Principle" forces new businesses to strike deals with existing licence holders to transfer their licence. In Lidl’s case, they could afford to do just that. For small, independent bars or anyone with a fresh idea for a new venue, though, this process can be prohibitively expensive. Licences can cost upwards of six figures, and that’s before you’ve paid rent, fitted out your premises and poured your first pint.
This decline highlights the increasing scarcity and value of these licences.
For years, independent hospitality businesses and advocacy groups like Free the Night have fought to change these outdated restrictions. But pushback from vested interests (those who already hold licences and benefit from the scarcity) has kept the system locked in place. The results mean it’s harder for new, innovative venues to emerge, especially in an economic climate where margins are already razor-thin. Meanwhile, multinational corporations with deep pockets and legal teams can breeze through the process, snapping up the few available licences and reshaping the hospitality landscape to suit themselves.
Lidl should be able to open a bar if they want to. It’s not about them. It’s about the fact that while innovative local bars and independent venues are being squeezed by licensing constraints, a major retailer can now sell cheap pints inside a supermarket. What does that mean for how people socialise? Will it put more pressure on smaller publicans already struggling to keep their doors open? Will we lose the charm and character of our independent nightlife scene, replaced by sterile, corporate drinking spaces?
There’s obviously a genuine concern that loosening these laws could open the floodgates for massive chains like Wetherspoons to dominate the market, undercutting local bars and homogenising nightlife. And yes, for many current licence holders, that licence is a valuable asset they’ve invested in. But the system is broken. Instead of celebrating the novelty of a Lidl pub, we should be asking why our licensing laws continue to favour corporations over communities.
It’s time to rethink how we approach licensing in Northern Ireland. Not to throw the doors wide open for corporate giants, but to create a fairer system that gives independent businesses a fighting chance. Because our local bars deserve more than just survival, they deserve to thrive. So next time you’re grabbing a pint (whether it’s from Lidl or your local), think about the bigger picture. Support your local watering hole. Fight for fair reform so the people with dreams of opening a new jazz bar, karaoke club, listening lounge, roller-disco bar or whatever kind of establishment they can think of can do so. Keep supporting the nightlife scene that reflects the creativity, diversity, and spirit of the people who actually live and drink here.
And of course, Follow and support Free The Night and the brillaint work they are doing to try and change things here for the better.
But scratch beneath the headlines, and you get hit with the fairly depressing wall of Northern Ireland’s antiquated and restrictive licensing laws. Known as the 'Surrender Principle', it continues to stifle local independent bars and entrepreneurs while big businesses navigate the system with ease and big bank balances.
Licensing laws in the north cap the number of alcohol licences in the region. This means if you want to open a new bar, you can’t just apply for a licence - you have to buy one that already exists. This "Surrender Principle" forces new businesses to strike deals with existing licence holders to transfer their licence. In Lidl’s case, they could afford to do just that. For small, independent bars or anyone with a fresh idea for a new venue, though, this process can be prohibitively expensive. Licences can cost upwards of six figures, and that’s before you’ve paid rent, fitted out your premises and poured your first pint.
To put it in perspective, as of December 2022, there were 1,089 liquor licences for public houses in Northern Ireland, down from 1,193 in December 2021 - a decrease of 104 licences in just one year.
(communities-ni.gov.uk)This decline highlights the increasing scarcity and value of these licences.
For years, independent hospitality businesses and advocacy groups like Free the Night have fought to change these outdated restrictions. But pushback from vested interests (those who already hold licences and benefit from the scarcity) has kept the system locked in place. The results mean it’s harder for new, innovative venues to emerge, especially in an economic climate where margins are already razor-thin. Meanwhile, multinational corporations with deep pockets and legal teams can breeze through the process, snapping up the few available licences and reshaping the hospitality landscape to suit themselves.
Lidl should be able to open a bar if they want to. It’s not about them. It’s about the fact that while innovative local bars and independent venues are being squeezed by licensing constraints, a major retailer can now sell cheap pints inside a supermarket. What does that mean for how people socialise? Will it put more pressure on smaller publicans already struggling to keep their doors open? Will we lose the charm and character of our independent nightlife scene, replaced by sterile, corporate drinking spaces?
There’s obviously a genuine concern that loosening these laws could open the floodgates for massive chains like Wetherspoons to dominate the market, undercutting local bars and homogenising nightlife. And yes, for many current licence holders, that licence is a valuable asset they’ve invested in. But the system is broken. Instead of celebrating the novelty of a Lidl pub, we should be asking why our licensing laws continue to favour corporations over communities.
It’s time to rethink how we approach licensing in Northern Ireland. Not to throw the doors wide open for corporate giants, but to create a fairer system that gives independent businesses a fighting chance. Because our local bars deserve more than just survival, they deserve to thrive. So next time you’re grabbing a pint (whether it’s from Lidl or your local), think about the bigger picture. Support your local watering hole. Fight for fair reform so the people with dreams of opening a new jazz bar, karaoke club, listening lounge, roller-disco bar or whatever kind of establishment they can think of can do so. Keep supporting the nightlife scene that reflects the creativity, diversity, and spirit of the people who actually live and drink here.
And of course, Follow and support Free The Night and the brillaint work they are doing to try and change things here for the better.