4 Foundational Alcohol Compliance Tips Every Business Owner Should Know
As a business owner in the food and beverage industry, losing the ability to serve alcoholic beverages or sell alcoholic products can be a devastating blow. This is why many business owners invest heavily in alcohol compliance training and preventative solutions. In simple terms, having a staff that is well-trained in alcohol compliance means having a staff that operates legally according to federal and local alcohol regulations.
There is a lot to learn about alcohol compliance, but there are several foundational tips that can help business owners begin their journey toward alcohol compliance excellence.
Thankfully, business owners who have learned the hard way offer many valuable lessons through their past compliance failures. The four foundational tips below address key areas of alcohol compliance including employee training, enforcement strategies, monitoring performance, and technology solutions.
#1: Training and Education for Employees Is a Must
Without proper education and training, employees are not set up for success and may become a risk to business continuity. For example, if employees are not trained to properly validate identification, minors may illegally consume alcoholic beverages or purchase tobacco and vape products.
There are many negative outcomes when businesses serve minors. With multiple infractions, business owners risk losing their license to sell alcohol, tobacco, or vape products, which can ultimately shut down their operations.
Training—both in formal classroom settings and through on-the-job instruction—is vital for businesses that want to reduce over-serving, eliminate the risk of serving minors, and equip employees with tactics to intervene in high-risk situations.
For instance, several businesses in a Minnesota community failed municipal stings and blamed their compliance issues on staffing shortages. While staffing may contribute to the issue, stronger employee education and training programs could help prevent these failures. At a minimum, employees responsible for selling alcohol must consistently request identification at the point of sale.
#2: Enforcement Strategies Should Be Added to an Alcohol Policy
According to Stinger Compliance Founder Cliff Crider in a recent interview, employees at his local restaurant and bar must sign an alcohol policy before beginning employment.
An alcohol policy is a document outlining the minimum compliance requirements for employees who serve alcoholic beverages. For example, policies may require employees to request identification from anyone who appears under the age of 40. The policy may also outline disciplinary procedures depending on the severity of any compliance violations.
This policy establishes how alcohol compliance will be enforced within the business and sets clear expectations for both management and staff. It ensures incidents are escalated appropriately and resolved quickly.
By requiring employees to sign an alcohol policy upon hiring, business owners communicate that compliance with local and federal alcohol regulations is a top priority. Violations of this policy are addressed with swift disciplinary action to maintain compliance standards.
#3: Tech Solutions Are Not Enough
Some business owners attempt to improve alcohol compliance by introducing technology solutions such as ID scanners that verify customer age and detect fraudulent identification. While these tools can be helpful, they cannot replace proper employee training and ongoing monitoring.
For example, if an employee scans an ID but fails to visually inspect it, they may unknowingly serve a minor who is using an older sibling’s ID. Visual inspection remains a crucial part of the verification process and cannot be replaced solely by technology.
Technology works best when combined with well-trained employees. Tools like ID scanners can increase service speed and help identify fake IDs, but human judgment is still required.
Security personnel at a local bar in Woodstock, Georgia also emphasize this point. While tools like blue-light flashlights can help confirm the presence of holograms on identification cards, employees must still determine whether the hologram is authentic for that specific ID.
#4: Employees Should Be Routinely Monitored for Alcohol Compliance
Beyond training and written policies, employees should be routinely monitored to ensure alcohol compliance procedures are consistently followed. This is the primary reason municipal sting operations exist—to catch employees selling age-restricted products to underage customers.
Unfortunately, failing a municipal sting often results in serious financial or legal consequences for both the business owner and the employee involved.
An alternative solution is to hire a compliance service that monitors businesses through scheduled private stings. Companies like Stinger Compliance offer risk-free private stings conducted by trained individuals known as Stingers. All Stingers are over the age of 21 and visit establishments to evaluate whether employees request identification during the sale of age-restricted products such as alcohol, tobacco, or cannabis.
These stings can be conducted regularly to monitor employee behavior and provide management with detailed reports. Business owners should be able to answer important compliance questions such as:
- Are my employees consistently asking for IDs?
- Are employees visually inspecting identification?
- How often are we out of compliance with alcohol regulations?
- Are certain employees posing compliance risks to the business?
By monitoring employee behavior and reinforcing training, businesses can reduce compliance risks and protect their licenses.
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