Decide whether to trade as a sole trader or limited company.
Location is crucial - consider footfall, parking, and competition.
Food businesses: Register before you open
All food businesses must register with their local authority Environmental Health department before opening, ideally at least 28 days before. This applies whether you're running a restaurant, cafe, takeaway, mobile food van, or even preparing food from home to sell.
Registration is free and can usually be done online through your council's website. After registration, you'll receive a food hygiene inspection, typically within 28 days of opening. The inspection determines your Food Hygiene Rating (0 to 5). Displaying the rating sticker is mandatory in Wales and Northern Ireland, and voluntary (but encouraged) in England.
Applies to: All businesses preparing or selling food directly to consumers, including restaurants, cafes, takeaways, caterers, food trucks, and home-based food businesses
Official guidance (opens in a new tab)
You must register with your local authority at least 28 days before opening.
Food hygiene rating
After registration, you'll be inspected and given a food hygiene rating. Here's how it works.
Rating scale
0 to 5
Rating 5
Very good - hygiene standards are very good
Rating 4
Good - hygiene standards are good
Rating 3
Generally satisfactory
Rating 2
Improvement necessary
Rating 1
Major improvement necessary
Rating 0
Urgent improvement necessary
Display requirement (England)
Voluntary
Display requirement (Wales/NI)
Mandatory by law
Staff handling food need appropriate food safety training.
Hospitality businesses: Alcohol licensing for on-premises sales
If you plan to sell alcohol for consumption on your premises (pub, restaurant, bar), you need a Premises Licence from your local council under the Licensing Act 2003. This is separate from food hygiene registration and takes longer to obtain.
You'll also need a Designated Premises Supervisor (DPS) who holds a Personal Licence. The DPS is responsible for alcohol sales and must be named on your Premises Licence. Application fees vary by rateable value (£100-£1,905) plus ongoing annual fees. Allow 8-12 weeks for the application process, including a 28-day consultation period.
Even if you only plan to serve alcohol with food, or offer BYO, you still need a licence. Late-night refreshment (hot food/drink between 11pm-5am) also requires licensing.
Applies to: All premises selling alcohol for on-premises consumption (restaurants, pubs, bars, hotels, clubs), and businesses serving hot food/drink between 11pm-5am
Official guidance (opens in a new tab)
Apply early - licensing can take 8+ weeks. You need both premises and personal licences.
Hospitality licences and permits
Hospitality businesses may need various licences beyond alcohol. Here's what to consider.
Premises licence scope
Covers sale of alcohol, regulated entertainment, and late-night refreshment (11pm-5am)
Designated Premises Supervisor
Required for all premises selling alcohol. Must hold personal licence.
Licence duration
No expiry unless revoked or surrendered. Annual fee payable.
Age requirement
Anyone over 18 can apply for a premises licence.
Apply for a premises licence (opens in a new tab)
Complete a fire risk assessment - essential for premises with cooking equipment.
Fire safety for restaurants
Kitchens present specific fire risks. Here's what you need to know.
If you are the responsible person for non-domestic premises you must carry out a fire risk assessment, review it regularly and keep a written record of it. The responsible person is the employer, owner, landlord or occupier, or anyone else with control of the premises, such as a facilities manager or managing agent. Where there is more than one, you must work together. The Order also applies if you have paying guests, for example in a bed and breakfast, a guesthouse or a self-catering property.
Fire risk assessment
Required for all non-domestic premises
Written record
Required whatever the number of employees (from 1 October 2023)
Review
Regularly, and if you suspect it is no longer valid or the premises change significantly
Non-domestic premises
Workplaces, commercial premises, premises the public can enter and the common areas of multi-occupied residential buildings
As the responsible person you must:
carry out a fire risk assessment of the premises and review it regularly tell staff or their representatives about the risks you have identified put in place, and maintain, appropriate fire safety measures plan for an emergency give staff information, fire safety instruction and training
Fire safety in the workplace (opens in a new tab)
Start with the insurance the law requires: if you employ anyone, you must have employers' liability insurance with at least £5 million cover, and business vehicles need motor insurance.
Insurance for restaurants
Restaurants face specific risks from food preparation, customer injuries, and equipment. Here's what insurance you might need.
The insurance your business needs depends on what it does. Some types are required by law. Some are required by professional regulators. The rest are not required by law, but you may still need them for contracts or to protect your business. Each type below starts with its legal status, so you can see which group it is in.
Employers' Liability
Required by law if you employ anyone, with at least £5 million of cover. Covers claims from employees injured or made ill at work.
Motor Insurance
Required by law for any vehicle used for business on roads or in other public places. Driving uninsured is a criminal offence. Covers claims from accidents in vehicles used for work.
Professional Indemnity
Required by some professional regulators, for example for many solicitors, financial advisers and architects. Covers claims of negligent advice.
Public Liability
Not required by law, but clients and landlords often require it in contracts. Covers claims for injury to other people or damage to their property.
Products Liability
Not required by law, but essential if you make or sell goods. Covers claims from defective products.
Business Contents
Not required by law, but recommended if you have equipment or stock. Covers business assets against theft, fire and damage.
Business Interruption
Not required by law, but recommended if a fire or flood would stop you trading. Covers lost income when you cannot trade.
Cyber Insurance
Not required by law, but recommended if you hold personal data or rely on IT. Covers data breaches, ransomware and regulatory fines where insurable.
Key Person
Not required by law, but worth considering if your business depends on a few people. Covers the business if one of them dies or is incapacitated.
Choosing the right cover Do you employ anyone? Employers' Liability is required by lawDo you use vehicles for work? Business motor insurance is required by law for use on roads or in other public placesAre you in a regulated profession? Check whether your professional regulator requires Professional Indemnity, and how muchDo you deal with customers or visit other premises? Public Liability is not required by law, but clients and landlords often require itDo you make or sell physical products? Products Liability is not required by law, but essential
Every employer in Great Britain must ensure, so far as is reasonably practicable, the health, safety and welfare at work of its employees, and must not put other people at risk.
Health and safety essentials
Restaurants have specific health and safety requirements. Here's what you need to do.
Written policy (5+ employees)
Required in writing
Risk assessment
Required for all employers
Employers' Liability insurance
£5 million minimum cover
First aid provision
Equipment and people, based on assessed needs
Accident book (RIDDOR)
Record injuries; report specified incidents to HSE
HSE - Getting started with health and safety (opens in a new tab)
Set up as an employer - PAYE, pensions, and employment contracts.
PAYE for employers
Before your first employee starts, you need to register with HMRC.
Make sure you're paying at least the legal minimum - rates depend on age.
You must register for VAT when your taxable turnover passes the registration threshold in any rolling 12 months, or when you expect it to pass the threshold within the next 30 days alone.
Food businesses: Allergen information requirements
Since 2021 (Natasha's Law), all food businesses selling prepacked for direct sale (PPDS) food must provide full ingredient lists and allergen labelling. This includes sandwiches prepared on-site, bakery items packaged before sale, and any food packed before the customer orders it.
The 14 major allergens must be emphasised in the ingredient list (bold, capitals, or different colour). Even if you don't sell PPDS food, you must still provide allergen information for non-prepacked food (verbally, written menu, or clear signage). This applies to all 14 allergens: cereals with gluten, crustaceans, eggs, fish, peanuts, soybeans, milk, nuts, celery, mustard, sesame, sulphites, lupin, molluscs.
Applies to: All food businesses selling food directly to consumers, including restaurants, cafes, takeaways, bakeries, and catering businesses
Official guidance (opens in a new tab)
You must provide allergen information to customers - it's the law.
Menu claims, pricing, and promotions - know the advertising rules.
Food business registration
Before you open your restaurant, you must register with your local authority as a food business operator. Here's what you need to know.
All food businesses in the UK must register with their local authority's environmental health department at least 28 days before starting to trade. Registration is free and is a legal requirement under food safety law. This applies whether you operate from commercial premises, home, a market stall, or as a mobile caterer.
Registration cost
FREE
Registration deadline
At least 28 days before trading
Registration validity
Permanent (notify of changes)
Processing time
Immediate confirmation, inspection scheduled later
Home-based businesses
Must register (same as commercial premises)
Mobile food businesses
Register once, with the local authority where the vehicle or equipment is normally kept
Food hygiene rating
Issued after first inspection (rating of 0 to 5)
Who needs to register Commercial premises: Restaurants, cafés, pubs, hotels, takeaways, shops, bakeries, manufacturersHome-based: Home baking businesses, childminders providing food, food sold online from homeMobile: Food trucks, market stalls, mobile caterers, ice cream vansTemporary: Pop-ups, event catering, farmers markets (register even for occasional trading)Separate from premises licence Food business registration is separate from premises licences for alcohol. Restaurants serving alcohol require both free food registration with environmental health AND a premises licence (£100-£1,905) from the licensing authority. Both are usually departments within the same local council.
Register a food business (England and Wales) (opens in a new tab)
Register a food business (Scotland) (opens in a new tab)