Restaurants with seating for 50 or more may apply to serve liquor without food in a lounge area that would accommodate 40 people or 20 per cent of the main interior "person capacity" of the restaurant, whichever is less. (You may have two lounges - one indoor and one outdoor - provided the total number of people using them does not exceed the number allowed for your restaurant as a whole.)
The lounge area must be distinct from the primary dining area, and the primary dining area must be open the same hours as the lounge. Food service, including appetizers and entrées, must also be available in the restaurant lounge. Restaurants with a lounge endorsement may advertise that they have a lounge.
If you are applying for a new food-primary licence, you do not need to apply separately for a lounge endorsement, and there is no additional fee. Simply indicate your intention in the appropriate section of the food-primary licence application form, and mark the lounge area on the floor plans you submit with your application.