Café legal issues

Café legal issues

What licences does a cafe need?In the United Kingdom, there are a number of legal issues that café owners need to be aware of. These include issues such as licensing, health and safety, and employment law. Café owners need to ensure that their premises are licensed appropriately and that they comply with all relevant health and safety regulations.

They also need to be mindful of their obligations under employment law, particularly with regard to the minimum wage and holiday entitlement. failure to comply with these legal requirements can have serious consequences, so it is important for café owners to seek professional advice if they are unsure about any aspect of the law.

There is a great deal of legislation and regulation to be aware of within the catering sector. If you run a cafe in the UK, you need to be aware of the information in this article. However, please note that this list is not designed to be exhaustive; you can always conduct ore research if you believe you need to do so.

What licences does a cafe need?

Food businesses need to be registered with their local environmental health departments since they store, prepare, and sell food. Your premises will be inspected and you will be guided on how to comply with food hygiene and safety regulations. In order to register in time, contact your local authority as soon as you begin planning. Registrants do not have to pay any fees.

A cafe business may also require the following, depending on the type and location:

  • In England and Wales – a licence for the sale of alcohol and, if applicable, hot food between 11 p.m. and 5 a.m. (‘late night refreshment’). On the Gov.uk website, you can learn more about alcohol licensing in England and Wales.
  • In England and Wales – certification that you or a designated responsible person (such as yourself, or a manager) is authorised to carry out the above activities.
  • In Northern Ireland – a county court license to sell alcohol. The NI Direct website has more information about alcohol licensing in Northern Ireland.
  • In Scotland – a Licensing Board licence is required to sell alcohol in a place of business. The Scottish Government website has more information about alcohol licensing in Scotland.
  • In Scotland – You must have a Licensing Board license. A personal licence holder is required to sell alcohol at all licensed premises in Scotland.
  • A licence from PPL PRS to use copyright music (such as background music). Screening films or TV shows requires an MPLC licence.
  • A ‘first sale’ fish buyer’s registration covering the purchase of fresh fish direct from fishermen. Marine Management Organisations (MMOs) or equivalent devolved regional organisations can arrange registration. More information can be found on the government website.

Get permission from your local authority if you plan to have tables outside on the pavement. Licences or permits for pavement cafes are probably required.

Premises – planning usage classes

It is important to choose premises with the appropriate planning usage classification when choosing premises. A premises’ classification can be changed, but planning consent is required. Some classifications are easier to change than others – for example, converting from serving food on the premises to serving hot food can be difficult.

These are the planning usage classes for cafes and restaurants:

  • A3 – restaurants and cafes (food and drink for consumption on the premises)
  • A4 – drinking establishments (pubs and wine bars, but not night clubs)
  • A5 – hot food takeaways (hot food for consumption off the premises)

Food safety

There is strict food safety legislation that must be followed by all businesses in the food industry. Registration with the local authority environmental health department is required before you open a business. In addition to providing advice and guidance on what you should install in your premises to ensure they are hygienic and in compliance with food hygiene regulations, your local environmental health officer will also be able to help you with compliance issues. The Food Standards Agency and Food Standards Scotland websites provide detailed information about all aspects of food safety legislation.

Alcohol licensing legislation

Regulations governing alcohol sales include:

  • The Licensing Act in England and Wales
  • The Licensing (Northern Ireland) Order
  • The Licensing (Scotland) Act

The licensing requirements and any other licensing conditions will need to be followed if you plan to sell alcohol. Throughout the UK, you can find information about alcohol licensing at:

  • The Gov.uk website (England and Wales)
  • NI Direct (Northern Ireland)
  • The Scottish Government website

Spirits duty paid tax stamps

To prove UK duty has been paid on wine and spirits above 30% alcohol by volume, a tax stamp must be attached to them. If the bottle is not marked in this way, it is illegal to stock or sell it.

Litter

All litter originating from retail activities around a business’s site should be discarded. This could include packaging for takeaway foods and drinks, ice cream wrappers, etc.

Workplace smoking ban

In public places such as restaurants, smoking is not permitted. Signs stating ‘No Smoking’ must be displayed appropriately. You should contact your local authority for details about how the ban applies to you since the law varies slightly in different parts of the UK. The HSE website also provides more information.

Price marking

Catering businesses are subject to special regulations, including indicating what is included and not included in their prices. If your business is affected by the regulations, you should contact your local Trading Standards Department for advice.

Asylum and immigration legislation

In the UK, businesses are prohibited from employing persons who are not legally entitled to work or live there as a result of controls on illegal immigration. In such cases, employers may be fined or imprisoned indefinitely. It is the employer’s responsibility to verify the validity of employees’ documents. On the website of Gov.uk, you can find more information about preventing illegal work.

Insurance for a cafe

Cafe owners need to be aware that they have correct insurance in place, to ensure this the best way is to contact an insurer or insurance broker and explain exactly how your business will operate. The broker will then explain what insurance cover you must have by law, and other cover you should consider.

This might include:

  • employer’s liability
  • public and product liability, including cover for food poisoning
  • premises, premises contents and stock
  • refrigerator/freezer breakdown
  • cash
  • business interruption
  • loss of licence
  • visitors’ belongings
  • failure of gas, water or electricity
  • motor insurance

Specially tailored restaurant packages are available providing comprehensive cover.

As a cafe owner, it’s important to make sure you have the right insurance in place to protect your business. One way to get access to specialist business insurance at discounted prices is to join a trade association. Trade associations for cafes offer members specialist business insurance services through its partner insurers, while the Nationwide Caterers Association (NCASS) offers insurance services to businesses like cafes and take-aways.

Bear in mind that not all trade associations offer business insurance, so it’s important to check whether this is something that would be of benefit to you before joining. Their website offers more information.

It’s important to be aware that when comparing insurance quotes, you should take them on a like for like basis.

Conclusion

Cafe owners need to be aware of legal issues including discriminating against customers, and the need to ensure staff are fully trained on any type of equipment you may have in your business. Owners of cafes need to ensure that the insurance they hold includes public liability to protect against any future legal issues from customers.

Lee Jones Profile Image
Business Finance Expert at PDQ Funding | + posts

Lee Jones is a seasoned Business Finance Specialist with over two decades of invaluable experience in the financial sector. With a keen eye for market trends and a passion for helping businesses thrive, Lee has become a trusted advisor to countless organizations seeking to navigate the complexities of finance.

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