Key Legal Considerations When Setting Up a Cafe in the UK

Setting up a cafe in the UK can be an exciting and rewarding experience. However, amidst the enthusiasm for creating a unique space, knowing the relevant legal framework is crucial. Complying with the applicable legal requirements is essential to ensure a smooth and successful cafe business. This article will explore the key legal considerations aspiring cafe owners should consider when setting up their establishments in the UK.  

1. Business Type and Registration

The first step in establishing a cafe is to decide on the most suitable business structure. Common options include: 

• sole proprietorship;
• partnership; or 
• limited company.  

Each structure has advantages and disadvantages regarding liability, taxation, and legal obligations.

Once you decide which structure to use, you must register the cafe with the appropriate authorities. Depending on the chosen business entity, this may be Companies House and HM Revenue & Customs (HMRC).

2. Licencing and Permits

Operating a coffee shop in the UK requires obtaining the necessary licences and permits. The primary licence needed is the premises licence the local council grants. This licence covers selling food and non-alcoholic beverages and any live entertainment or late-night refreshments.

You may require additional licences for: 

• serving alcohol;
• playing recorded music; or 
• hosting outdoor seating. 

It is essential to consult the local council and familiarise yourself with the specific licencing requirements in your area.

UK Startup Manual

LegalVision’s Startup Manual is essential reading material for any startup founder looking to launch and grow a successful startup.

Download Now

3. Health and Safety Regulations

Compliance with health and safety regulations is paramount in the food and drinks industry.  

Cafe owners must adhere to strict guidelines to ensure the well-being of both customers and employees. This includes the same practices for hot food businesses, such as: 

• maintaining a clean and hygienic environment;
• implementing proper food storage and handling practices; and 
• providing adequate ventilation.

Fire safety measures such as fire escape routes and extinguishers should also be in place. Furthermore, implementing adequate employee health and safety policies and providing training is crucial to ensure a safe working environment. For example, teaching staff the safe use of espresso machines, which involves heating and pouring liquids at high temperatures, is imperative.

The local authority will conduct regular health inspections to ensure compliance with these regulations.

4. Food Standards

Cafes must meet the food hygiene and safety standards set by the Food Standards Agency (FSA) and the Food Hygiene Rating Scheme. This involves: 

• implementing procedures to prevent contaminating coffee beans and food items;
• proper labelling of allergens; 
• appropriate temperature control for food storage; and 
• training staff in food safety practices.

Obtaining a Food Hygiene Rating Scheme certificate is advisable, as it provides reassurance to customers and demonstrates compliance with hygiene regulations.

5. Employment Laws and Regulations

Hiring and managing employees in a cafe requires complying with various employment laws and regulations. This includes: 

• ensuring fair employment contracts;
• adhering to minimum wage requirements;
• providing a safe and inclusive working environment; and 
• understanding the rules governing working hours, breaks, and holiday entitlements.

6. Intellectual Property (IP) Protection

Protecting your cafe’s Intellectual Property (IP) is crucial to safeguard your brand and reputation. Consider registering trademarks for the: 

• cafe’s name;
• cafe’s logo; and 
• any unique branding elements.  

This will help prevent others from using similar marks that could confuse customers. It is also essential to respect the IP rights of others and avoid infringing on existing trademarks, copyrights, or patents.

7. Data Protection and Privacy

Data protection and privacy considerations come into play with the increasing use of technology in cafes, such as online ordering systems and customer databases.

Cafe owners must comply with the General Data Protection Regulation (GDPR) and ensure that personal data collected from customers is stored securely and used only for its intended purpose.  Implementing appropriate data protection policies and obtaining customer consent for data processing is essential to avoid legal repercussions.

Eight – Accessibility and Disability Discrimination 

Cafes should strive to provide equal access and services to individuals with disabilities. Under the Equality Act 2010, cafe owners must make reasonable adjustments to ensure their premises are accessible to everyone. This may include installing ramps, accessible toilets, and providing alternative menu formats. 

Key Takeaways

When setting up a cafe in the UK, entrepreneurs must navigate a complex legal landscape to ensure compliance with various regulations. These legal considerations relate to the following: 

• health and safety;
• IP rights; 
• business registration; 
• employment law; 
• data protection; and 
• licencing.

By understanding and addressing these legal obligations, UK cafe owners can establish a strong foundation for their business, fostering growth and ensuring long-term success in the competitive cafe industry in the UK.

However, there is also a business side to setting up a cafe in the UK, which includes preparing a business plan and focusing on attracting a large customer base through advertising and social media. There is often a high degree of local competition for new cafe owners, so it is a good idea to figure out the best way to target customers before launching your new business.

If you need legal assistance setting up a cafe in the UK, our experienced business structure lawyers can assist 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 0808 196 8584 or visit our membership page. 

Frequently Asked Questions