Learn about all of the legal requirements to open a restaurant in the UK.

legal requirements for restaurants, restaurant legal requirements

This guide is a general overview of the legal requirements – all the essential rules, regulations, and licences required to help you get started on the right foot. It will also answer the most frequently asked questions on the topic, and provide official government resources for restaurant legal requirements.

Starting a restaurant business in the UK can be an exciting venture, but it requires navigating a maze of legal requirements for the restaurant industry. We have also provided the official resources for restaurant legal requirements.

1. Business Structure

First, decide on the legal structure of your restaurant. You can choose from several options:

Sole Trader: A simple structure where you run the business on your own.
Partnership: A business run by two or more people sharing responsibilities and profits.
Limited Company (Ltd. or LC): A more complex structure with limited liability for its owners.

Learn more about choosing the right business structure for your restaurant.

Register your business with HM Revenue and Customs (HMRC) for tax purposes, and if you’re setting up an Ltd. company, register with Companies House.

TIP: Go through this checklist to make sure you’re all set before registering your business.

2. Licences and Permits

To operate legally, you need various legal requirements like licences and permits:

Food Business Registration: Register your food business with your local authority at least 28 days before opening.
Premises licence or alcohol licence: Required if you plan to sell alcohol, provide entertainment, or serve hot food and drinks between 11 pm and 5 am. Food premise approval is obtained through your local authority.
Personal Licence: At least one person needs the personal license if your restaurant sells alcohol. You can obtain it by taking a training course and applying through your local authority.
Music Licence: Obtain licences from PRS for Music and PPL if you plan to play music.

3. Health and Safety

Ensure your food business complies with the legal requirements of health and safety standards:

Food Safety: Follow the Food Standards Agency (FSA) guidelines for food storage, preparation, and handling. Follow labelling rules and provide allergen information. Your local council will inspect your premises and issue a food safety certificate and rating based on compliance to food hygiene regulations.
Health and Safety at Work: Comply with the Health and Safety Executive (HSE) regulations to ensure a safe environment for employees and customers. Conduct risk assessments and provide appropriate training.

4. Insurance

Adequate restaurant insurance coverage is crucial for protecting your restaurant. Consider the following types:

Public Liability Insurance: Covers claims made by customers for injuries or illnesses.
Employer’s Liability Insurance: Mandatory if you have staff, covering workplace injuries or illnesses.
Property Insurance: Protects against damage to your building and contents.

5. Fire Safety

Adhere to fire safety regulations to protect your restaurant and customers:

Fire Risk Assessment: Conduct and regularly update a fire risk assessment – findings must now be recorded for all premises, regardless of the number of employees. Identify potential hazards, implement safety measures, and ensure clear evacuation routes.
Fire Safety Equipment: Install and maintain fire alarms, extinguishers, and emergency lighting. Train staff in fire safety procedures.

6. Employment Law

Comply with employment laws when hiring staff:

Right to Work: Verify that all employees have the legal right to work in the UK.
Contracts and Policies: Provide written contracts and outline policies on working hours, wages, and workplace behavior.
Minimum Wage: Pay at least the National Minimum Wage or National Living Wage, depending on the employee’s age.

7. Taxation

Understand and comply with tax obligations:

Value Added Tax (VAT): Register for VAT if your turnover exceeds the threshold (currently £85,000). Charge and pay VAT on applicable goods and services.
Corporation Tax: Pay corporation tax on your business profits if you’re an Ltd. company.
Payroll Taxes: Deduct and pay income tax and National Insurance contributions for your employees. Register for PAYE to ensure your employees’ taxes are correctly withheld.

8. Planning Permission

Ensure you have the correct planning permission for your restaurant premises:

Change of Use: Apply for planning permission if you’re changing the premise’s use (e.g., from a retail shop to a food business).
Building Regulations: Comply with building regulations for any structural alterations or refurbishments.

9. Events License

If you plan to host events at your restaurant, you might need some legal requirements:

Premises License for Events: Required for hosting live music, dancing, or similar events. Apply through your local council well in advance of the event date.
Temporary Event Notice (TEN): For smaller, occasional events, you can apply for a TEN. Submit the notice at least ten working days before the event. Each premises can have up to 15 TENs per year, covering a total of 21 days.

10. Miscellaneous Legal Requirements

Pavement licence

Pavement licence is granted by your local authority in case you plan on selling and serving food outdoors, like a patio-style dining. Another related requirement is a “Pavement or Street Display Licence” for placing ads and signs outside your restaurant. Check with your local authority to secure the proper pavement and A-Board permits.

Environmental Regulations

Waste Management: Implement efficient systems for recycling, food waste, and general refuse.
Noise Control: Ensure noise control measures are in place to minimize disturbances to neighboring properties.
Accessibility Requirements: Make sure your restaurant is accessible to all individuals, including those with disabilities. (Equality Act 2010)

Marketing and Advertising Compliance

Advertising Standards: Ensure all advertising materials are honest and not misleading, following ASA guidelines.
Accurate Food Descriptions: Provide clear and truthful descriptions of your menu items. List all ingredients and potential allergens to inform customers accurately.
Promotional Terms: Clearly define the terms and conditions of any promotional offers or discounts.

Resources

Food Standards Agency (FSA) – Information on food hygiene ratings, online training, food safety practices, and regulations.
HM Revenue and Customs (HMRC) – Details on registering your business, tax obligations, and VAT.
Health and Safety Executive (HSE) – Guidelines on workplace health and safety regulations for the hospitality industry.
Fire safety regulations in the UK – Guides for building and premises legal requirements
Companies House – Information on registering a limited company and company structures.

Check out other guides on starting a restaurant business in the UK:

Get your free restaurant marketing plan here and start your restaurant business strong.

Features	Shared Portals	eTakeaway Max™
Online branding	Nope	Absolutely. Our web design team works closely with you to create your very own custom site. No bog-standard templates here.
Social media promotion	Nope	Yep. We’re big believers in the power of social media. Building a presence is pretty easy too – people love seeing your food pics.
Email marketing	Nope	Included. Email newsletters are great for luring in customers with your new deals. It’s hard to turn down a freebie.
Coupons and loyalty points	Nope	Sure. Not too long ago we developed a loyalty point system – perfect for upselling and making sure customers always come back.
Commissions	Yep. Upwards of 11%!	Never have, never will.
Promotions (Including Google ads)	Another nope.	£600 worth of promotional material included in each package.

10 Legal Requirements to Open a Restaurant in the UK