Opening your very own café and smelling that rich aroma of brewed coffee might be your dream come true, but before we get there, there’s a mountain of paperwork to get through to legally operate in the UK.
Today, there are over 7,700 cafes and coffee shops in the UK, giving people of all ages their caffeine fix. However, there are stringent legal requirements that apply to cafes. In this guide, we’re going to go through all of the licences and forms you need to fill in.
Are there legal requirements to opening a cafe business in the UK?
Starting a coffee shop is a business venture with lots of potential. As the UK alone drinks 95 million cups of coffee daily, there’s always room for a brand-new café. But before you can start serving this market, there’s an array of legal requirements you must meet.
Some of these include getting a premises licence, registering with the local authorities, and ensuring you’ve got a selection of hygiene and safety certifications. Determining where to begin is often the biggest challenge for brand-new owners, but thankfully, when you understand the process, it’s pretty straightforward.
What licences do you need to open a café or coffee shop in the UK?
Licensing is your first step to opening your doors to the public. Some licences are required, but others are optional and depend on what you want to do.
The first licence you’ll need to acquire is a premises licence. This is the key to opening your doors for the first time and requires filling in some forms and paying the fees. Your local council will review your application to ensure you fulfil all the criteria. If so, you have the licence needed to open. This must also be paired with a personal licence, which is vital if you plan on serving alcohol.
The second thing you’ll need to do is register your business with the local authorities. Since cafes qualify as food businesses, this is an unavoidable step. Unlike a premises licence, you don’t need to pay a thing to register. Plus, the whole process can be done online. The only caveat is that you’ll need to do it at least 28 days before you open your doors.
Your local council will then schedule a visit to your café to conduct a food hygiene inspection. This is done through your local council in partnership with the UK Food Standards Agency. Generally, the inspection is easy enough to pass as long as you can prove that your food preparation processes meet UK food safety laws.
Optional licences and permits
Some cafes may need to apply for extra licences and permits, depending on what they do.
If you have any public outdoor seating, you’ll need to apply for a pavement licence. This allows you to set up tables and chairs for your clientele. However, remember that you’ll also need to ensure the pavement is clear for pedestrians. Not all cafes will be suited to have outdoor dining.
Also, if you plan on offering any alcoholic beverages, you’ll need to obtain an alcohol licence, just like any pub.
Finally, some cafes may need a music licence. Consider getting this licence if:
- You are hosting live music events.
- You intend to play recorded music, including through Spotify and TV music channels.
Want to Make the Move and Open your Cafe?
How much do licences cost when opening a cafe?
Licence costs depend on various factors, including things like the rateable value of your property. Here’s a range of how much each licence could cost:
- Premises Licence – £100 – £635
- Personal Licence – £37
- Local Registration – Free
- Pavement Licence – Capped at £100
- Music Licence – £100 – £350 per year
- Alcohol Licence – Dependent on business rate.
We go into more detail about the cost of opening a cafe in our guide if you’d like to know more.
Legal considerations when opening a cafe
Legal considerations are a vital part of managing any UK business; and coffee shops are no exception. Here are the key areas you must focus on before we drill deeper into the rules and regulations that apply to cafes.
- Employment Law – Hiring and managing staff means complying with key responsibilities, including providing written contracts, complying with working time regulations, and complying with the National Minimum Wage (NMV).
- Health and Safety Regulations – Like any workplace, you must comply with the UK’s health and safety regulations to protect employees and customers. This includes safe storage and food handling and providing proper training in food safety procedures.
- Copyright/IP – Ensure you comply with copyright laws when designing your café and its brand. This includes selecting music for your café playlist and ensuring you have all the necessary licensing in place. It also means protecting your own unique branding.
- Data Protection – If your café collects personal information, this applies to you. That includes payment information, names and email addresses.
Beyond these key legal areas, there are more specific issues to contend with before you can begin operating.
Food safety and hygiene regulations for a cafe
Before you can begin serving, you must comply with the UK’s Food Safety Act and set up Hazard Analysis and Critical Control Points (HACCP) to maintain the high standards of food safety that your customers expect. Under an HACCP system, you monitor for potential allergens and contaminants and provide a training regime for your staff.
So, what is the key to a good food hygiene rating? It’s recommended that you follow the four Cs:
- Cleaning
- Cooking
- Chilling
- Cross-contamination
Adhere to these practices, and you’ll keep your guests safe and avoid costly legal penalties or even the loss of your licence further down the line.
Insurance regulations when opening a cafe
Protecting yourself is critical because anything can happen.
The first policy you’ll need is a public liability policy. This will cover your business against legal costs and compensation if anyone is injured on your premises. The second is an employer’s liability insurance policy. The law states that if you employ at least one person, this insurance policy is a legal requirement.
Thankfully, many insurance providers have dedicated packages for all your coffee shop insurance needs. You’ll often see these packages branded as “café insurance” or “coffee shop insurance.” They’re not dedicated types of insurance but packages of several standard policies that protect your business and ensure legal compliance.
