{"id":2142,"date":"2022-01-30T23:15:34","date_gmt":"2022-01-30T23:15:34","guid":{"rendered":"https:\/\/uk.legalvision.com.au\/?p=2142"},"modified":"2026-01-14T11:54:23","modified_gmt":"2026-01-14T11:54:23","slug":"key-contracts-hospitality","status":"publish","type":"post","link":"https:\/\/legalvision.co.uk\/commercial-contracts\/key-contracts-hospitality\/","title":{"rendered":"Five Key Contracts for a Hospitality Business"},"content":{"rendered":"<p><span style=\"font-weight: 400\">As a hospitality business, you will know that the pressure is always high to deliver a top-quality service. That is why it is very important to get the right contracts in place to ensure you can deliver the best level of service to your customers. A wide variety of contracts are available to help you perform your business\u2019 functions in the hospitality industry. In this article, we will be outlining five important contracts that you may come across as a hospitality business.\u00a0<\/span><\/p>\n<h2><span style=\"font-weight: 400\">What is the Hospitality Industry?\u00a0<\/span><\/h2>\n<p><span style=\"font-weight: 400\">The hospitality industry is an umbrella term used to describe businesses that operate in the service industry. Those organisations can include:\u00a0<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\"><a href=\"https:\/\/legalvision.co.uk\/startups\/start-cafe-restaurant\/\">restaurant chains<\/a>;<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\"><a href=\"https:\/\/legalvision.co.uk\/startups\/legal-hotel\/\">hotel operators<\/a>;\u00a0<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\"><a href=\"https:\/\/legalvision.co.uk\/startups\/event-planning-start-up\/\">event planners<\/a>;<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">theme parks; and\u00a0<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">travel and tourism businesses.\u00a0<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400\">The hospitality industry reaches across a broad range of services. Therefore, hospitality operators will inevitably require a variety of different contracts depending on what sort of franchise they are running.\u00a0<\/span><\/p>\n<h2><span style=\"font-weight: 400\">Catering Contracts<\/span><\/h2>\n<p><span style=\"font-weight: 400\">The industry uses catering contracts primarily in the restaurant and events industry. Specifically, catering companies secure work at events like weddings, corporate functions and celebrations through these contracts.<\/span><\/p>\n<p><span style=\"font-weight: 400\">Importantly, catering companies will usually have to tender to secure a valid contract. In short, \u2018tendering\u2019 means submitting a prospective quote for how much your business expects the client to pay for organising an event\u2019s catering. If your tender is accepted, you will have the foundation of a legally enforceable contract which will need to be written up and signed before its terms can be enforceable.<\/span><\/p>\n<p><span style=\"font-weight: 400\">If your business is negotiating a catering contract, there are several elements you should look to include before you agree on the contract\u2019s terms. The contract must set out:\u00a0<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">your estimate of the extent and nature of the catering services you will provide;<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">the time, date and address of the event\u2019s venue;<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">the menu, and any guest dietary requirements to be clear on your expectations;\u00a0<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">how much the service will cost;\u00a0<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\"><a href=\"https:\/\/legalvision.co.uk\/disputes-litigation\/5-tips-getting-paid-on-time\/\">how you expect to be paid<\/a>, including your bank account details; and<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">termination clauses.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400\">When drafting written contracts, it is very important to be very clear about the nature of the services. Additionally, you should also set out the expectations you and your clients have over the services you will provide. <\/span><\/p>\n<div class=\"box box--icon box--info\">\n<p><span style=\"font-weight: 400\">The more detail you can include in those contracts, the easier it will be to provide those services and enforce the terms of the contract if there is a dispute.\u00a0<\/span><\/p>\n<\/div>\n\n<a href=\"#content-next\"\n   class=\"block p-4 mt-10 text-xl font-bold text-center text-white no-underline bg-gray-800 rounded-t-xl\">\n    Continue reading this article below the form\n    <i class=\"text-xl fa-regular fa-arrow-down\"><\/i>\n<\/a>\n<div class=\"px-6 pt-10 pb-12 mb-10 text-center bg-gray-100 rounded-b-xl sm:px-12 test\">\n    <div class=\"mb-8 text-2xl font-bold text-orange\">\n        Need legal advice?\n        <br>\n        <span class=\"text-lg not-prose\">\n                            Call <a href=\"tel:+448081968584\" class=\"not-prose\">0808 196 8584<\/a> for urgent 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Hospitality companies are often made up of several teams of workers who perform different tasks to ensure the successful running of your business.<\/span><\/p>\n<p><span style=\"font-weight: 400\">To ensure those operations are carried out to a satisfactory standard, hiring the right people for those positions is key. From waiters to chefs, having clear and appropriate employment contracts in place can help you protect your business and hire and motivate top-quality workers.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400\">Employers must note that it is a legal requirement for them to clearly state the basic contract terms of employment in an employment contract. That means there are several things you will want to state in your employment contracts, including the:\u00a0<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">nature and description of the job and the job title;\u00a0<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">start date;\u00a0<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">employee\u2019s location or place of work;\u00a0<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">hours and days of work, including the times the employee is meant to be working if appropriate;\u00a0<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">details on probationary periods and employee assessments;\u00a0<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">employee\u2019s salary and bonuses;\u00a0<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">details on claiming expenses;\u00a0<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">terms on <a href=\"https:\/\/legalvision.co.uk\/employment\/too-many-sick-days\/\">annual leave and sick pay<\/a>;<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">employee\u2019s notice period; and\u00a0<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">termination clauses or provisions on ending the contract.\u00a0<\/span><\/li>\n<\/ul>\n<h2><span style=\"font-weight: 400\">Lease Agreements<\/span><\/h2>\n<p><span style=\"font-weight: 400\">Lease agreements are an essential contract to get right if you are working in the hospitality business. For restaurant and pub owners, it is impossible to run a viable business without a premises to operate from.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400\">Disputes can often arise between landlords and their tenants. It is wise to ensure that you and your landlord agree to a clear and concise lease agreement to create an enforceable contract when you find the right building or plot of land. That contract should state:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">the duration of your lease;\u00a0<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">what business operations you can and cannot run from the property;<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">the rent for that lease;\u00a0<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">how you can renew the agreement;\u00a0<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">the notice period and termination clauses of that lease; and<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">the landlord\u2019s duties to repair and make changes around the property as needed.\u00a0<\/span><\/li>\n<\/ul>\n<h2><span style=\"font-weight: 400\">Supplier Contracts<\/span><\/h2>\n<p><span style=\"font-weight: 400\">Similar to catering contracts, supplier contracts are useful for restaurants and pubs who need to source new groceries for their food menus continually. Having a supplier contract in place can be a more efficient way to source goods and may also be a great way to save money if you regularly buy from one source.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400\">Importantly, you should include a frustration clause if you are using a supplier contract. A frustration clause is a term inserted into a contract to protect both parties if an unforeseeable event occurs, preventing them from performing their functions under the contract. For example, a supplier may not be able to deliver the promised goods because of the COVID-19 pandemic. In that case, frustration clauses in the contract will protect both parties from taking any losses.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400\">You should also remember that the price of goods might change throughout the year. Therefore, you may want to factor how a certain set of goods may fluctuate in price. By doing this, you can avoid having to pay disproportionate sums of money for the goods you purchase.<\/span><\/p>\n<h2><span style=\"font-weight: 400\">Subcontractor Agreements<\/span><\/h2>\n<p><span style=\"font-weight: 400\">Many hospitality companies need to rely on third parties to help them run certain aspects of their business. For example, restaurant managers may need to outsource cleaners to clean their kitchens, while theme park operators may need to employ external mechanics if a ride breaks down.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400\">Subcontractor agreements are a great way to <a href=\"https:\/\/legalvision.co.uk\/ecommerce-online-business\/outsourcing-legal-issues-ecommerce-business\/\">outsource work<\/a> to other parties and can ensure those parties perform the required services to the best possible standard. Those contracts should include detailed provisions on the subcontracted services, the price for the delivery of the services, and provisions around liability to ensure the main contractor has an indemnity against any future losses caused by the subcontractor.\u00a0<\/span><\/p>\n<h2><span style=\"font-weight: 400\">Key Takeaways\u00a0<\/span><\/h2>\n<p><span style=\"font-weight: 400\">As the hospitality industry encompasses a broad range of businesses, hospitality operators should use a wide variety of contracts in their daily operations. Hospitality owners will find themselves using:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">employment contracts;<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">subcontractor agreements;<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">catering contracts;\u00a0<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">lease agreements; and<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">supplier contracts.\u00a0<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400\">If you use one of these agreements to run your day-to-day operations, you should remember that the contract\u2019s terms must be clearly set out. Doing this will ensure you and the parties you are dealing with are aware of the obligations and rights the contract is giving you. It is also advisable to get a lawyer\u2019s advice when drafting or negotiating hospitality contracts. If you need more information, our <a href=\"https:\/\/uk.legalvision.com.au\/contract-lawyers-lp\/\">experienced contract lawyers<\/a> can assist you as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents. Call us today on <a href=\"tel:+448081968584\" class=\"AVANSERnumber dynamic-number\">0808 196 8584<\/a> or visit our <a href=\"https:\/\/legalvision.co.uk\/membership\">membership page<\/a>.<\/span><\/p>\n<h2><span style=\"font-weight: 400\">Frequently Asked Questions<\/span><\/h2>\n\n\n<div class=\"schema-faq wp-block-yoast-faq-block\"><div class=\"schema-faq-section\" id=\"faq-question-1643584358811\"><strong class=\"schema-faq-question\">What are the main contracts in the restaurant industry?\u00a0<\/strong> <p class=\"schema-faq-answer\">The main contracts you will likely come across in the restaurant industry are employment contracts, lease agreements and supplier contracts.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1643584368981\"><strong class=\"schema-faq-question\">What are the main types of contracts in the hotel industry?<\/strong> <p class=\"schema-faq-answer\">Hotel owners will likely come across subcontractor agreements, supplier contracts and employment contracts.\u00a0<\/p> <\/div> <\/div>\n","protected":false},"excerpt":{"rendered":"<p>As a hospitality business, you will know that the pressure is always high to deliver a top-quality service. That is why it is very important to get the right contracts in place to ensure you can deliver the best level of service to your customers. A wide variety of contracts are available to help you<a href=\"https:\/\/legalvision.co.uk\/commercial-contracts\/key-contracts-hospitality\/\">Continue reading <span class=\"sr-only\">&#8220;Five Key Contracts for a Hospitality Business&#8221;<\/span><\/a><\/p>\n","protected":false},"author":13324,"featured_media":625,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_relevanssi_hide_post":"","_relevanssi_hide_content":"","_relevanssi_pin_for_all":"","_relevanssi_pin_keywords":"","_relevanssi_unpin_keywords":"","_relevanssi_related_keywords":"","_relevanssi_related_include_ids":"","_relevanssi_related_exclude_ids":"","_relevanssi_related_no_append":"","_relevanssi_related_not_related":"","_relevanssi_related_posts":"1843,1966,874,2339,2110,860","_relevanssi_noindex_reason":"","editor_notices":[],"footnotes":""},"categories":[37],"tags":[20,359,378,489,490],"class_list":["post-2142","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-commercial-contracts","tag-small-business","tag-business-contract","tag-contract-terms","tag-hospitality","tag-catering-contracts"],"acf":[],"yoast_head":"<!-- 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| LegalVision UK"},{"@type":"BreadcrumbList","@id":"https:\/\/legalvision.co.uk\/commercial-contracts\/key-contracts-hospitality\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/legalvision.co.uk\/"},{"@type":"ListItem","position":2,"name":"Commercial Contract Articles","item":"https:\/\/legalvision.co.uk\/category\/commercial-contracts\/"},{"@type":"ListItem","position":3,"name":"Five Key Contracts for a Hospitality Business"}]},{"@type":"WebSite","@id":"https:\/\/legalvision.co.uk\/#website","url":"https:\/\/legalvision.co.uk\/","name":"LegalVision UK","description":"LegalVision is a commercial law firm in the UK with a commitment to 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He has two years experience working at a City firm in London, and is a qualified journalist with the Press Association. While Eddie has experience working in Commercial Law, he has special expertise in Medical Law and Health Care practice having completed a Master's in Law with Medicine and Health Care at the University of Liverpool. Qualifications: Master of Laws (LLM), University of Liverpool; Law with Philosophy (LLB Hons), University of Liverpool; NCTJ Level 5 Diploma, Sports Journalism, Press Association.","sameAs":["https:\/\/www.linkedin.com\/in\/eddie-carruthers-4a72a2b2\/"],"url":"https:\/\/legalvision.co.uk\/author\/edwardcarruthers\/"},{"@type":"Question","@id":"https:\/\/legalvision.co.uk\/commercial-contracts\/key-contracts-hospitality\/#faq-question-1643584358811","name":"What are the main contracts in the restaurant industry?\u00a0","acceptedAnswer":{"@type":"Answer","text":"The main contracts you will likely come across in the restaurant industry are employment contracts, lease agreements and supplier contracts.","inLanguage":"en-GB"},"inLanguage":"en-GB"},{"@type":"Question","@id":"https:\/\/legalvision.co.uk\/commercial-contracts\/key-contracts-hospitality\/#faq-question-1643584368981","name":"What are the main types of contracts in the hotel industry?","acceptedAnswer":{"@type":"Answer","text":"Hotel owners will likely come across subcontractor agreements, supplier contracts and employment contracts.\u00a0","inLanguage":"en-GB"},"inLanguage":"en-GB"}]}},"_links":{"self":[{"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/posts\/2142","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/users\/13324"}],"replies":[{"embeddable":true,"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/comments?post=2142"}],"version-history":[{"count":8,"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/posts\/2142\/revisions"}],"predecessor-version":[{"id":195558,"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/posts\/2142\/revisions\/195558"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/media\/625"}],"wp:attachment":[{"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/media?parent=2142"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/categories?post=2142"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/tags?post=2142"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}