Start a hospitality business: licences, food safety, and compliance

Not every hospitality business needs the same licences. A cafe serving only coffee and cake has far fewer requirements than a restaurant selling alcohol with live music. Before you sign a lease, understand which of the following apply:

• Premises licence -- required if you sell alcohol, provide late-night refreshment after 11pm, or host regulated entertainment
• Food business registration -- required for all businesses handling food, at least 28 days before opening
• Music licence -- required if you play recorded or live music in your venue

Specialist licences for gaming machines, wedding venues, and outdoor trading may also apply.

If your business handles food in any way -- including reheating, preparing, or storing it -- you must register with your local authority at least 28 days before opening. Registration is free and cannot be refused, but it triggers your obligation to have a documented food safety management system in place from day one.

For most hospitality businesses, this means implementing HACCP (Hazard Analysis and Critical Control Points) or using the FSA's Safer Food, Better Business pack. You must also comply with the 14-allergen labelling rules and, if you sell pre-packed food made on your premises, Natasha's Law requirements.

The Regulatory Reform (Fire Safety) Order 2005 requires every hospitality premises to have a written fire risk assessment before opening. As the "responsible person," you must identify fire hazards, ensure escape routes are clear, install appropriate detection and warning systems, and train your staff. If your venue includes sleeping accommodation, additional requirements apply.

Beyond fire safety, the Health and Safety at Work Act 1974 requires you to assess and manage workplace risks. Common hospitality hazards include slips and trips, manual handling, burns and scalds, knife injuries, and violence from customers.

Looking ahead: if your venue will have a capacity of 200 or more, be aware of Martyn's Law (the Terrorism (Protection of Premises) Act 2025) - its preparedness duties are not yet in force but are expected to commence in 2027, regulated by the Security Industry Authority. Monitor GOV.UK and ProtectUK.

Hospitality has sector-specific employment risks that go beyond standard employer duties. You must conduct right to work checks before anyone starts -- including trial shifts. Hospitality is a Home Office enforcement priority sector, and civil penalties reach 60,000 pounds per illegal worker.

The Employment (Allocation of Tips) Act 2023 requires you to pass all tips and service charges to workers fairly, maintain a written tipping policy, and keep records. You must also ensure that tips do not count towards National Minimum Wage calculations, and that any accommodation offset stays within the legal limit.

If you play any recorded or live music in your venue -- even background music from a streaming service -- you need TheMusicLicence from PPL PRS. This is separate from your premises licence and covers copyright. Live music for audiences of no more than 500 is deregulated between 8am and 11pm, but you still need the copyright licence.

Hospitality compliance is not a one-off exercise. Licences need renewing, fire risk assessments need reviewing, food safety records need maintaining, and employment law obligations are checked by multiple enforcement bodies throughout the year. Establishing an annual compliance calendar from the start will help you stay on top of your obligations and avoid penalties.