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Business Opportunity ProfileBOP021 · August 2014 Restaurants typically serve a range of at-table menus throughout the day. Most are licensed toserve alcoholic drinks.Changes in licensing regulations and the introduction of extended opening hours have ledto increased competition in the eating-out sector. For example, many pubs and nightclubshave been forced to differentiate their services and increasingly offer banqueting and dining,and competition from fast-food chains and casual dining operators such as Nando's has alsoincreased the competition faced by independent restaurants.
This profile provides information about starting up and running a restaurant. It describes theskills required, the training available, the current market trends and some of the key tradingissues. It also identifies some of the main legislation that must be complied with and providessources of further information.
What qualifications and skills are required?
While there are no mandatory qualifications required to start up and run a restaurant, proprietorsand their staff require an up-to-date understanding of food-related legislation and practical foodhygiene issues. Experience in the hospitality and catering sector and culinary and food serviceskills at a managerial level will be an advantage.
Suitable courses for a start-up restaurateur and their staff include: • The Level 3 Restaurant Management distance learning course run by Reed, which covers topics including restaurant layout and equipment, regulations, advertising and marketing.
The course involves approximately 110 hours of study and costs around £400. Go to(www.reed.co.uk/courses/restaurant-management-level-3/24555) for more information.
• The Food and Beverages Management Course run by Stonebridge Associated Colleges, which covers topics including food and beverage equipment, nutritional values andrequirements, and marketing. The online course involves 117 hours of self-study and costsaround £230. Go to www.stonebridge.uk.com/course/food-and-beverages-management formore information.
• The Customer Service course run online by Flow Hospitality Training, which covers welcoming customers, creating the right ambience, working as a team and dealing withcomplaints. Go to www.flowhospitalitytraining.co.uk/training/customer to request moreinformation and details of training course prices.
• A range of one-day Chefs' Skills courses run by Leiths School of Food and Wine, which cover topics such as poultry and game, culinary creativity, and preserves and terrines. The coursesare held regularly at the school in London and cost £165 (www.leiths.com/enthusiasts-courses/chef-skills).
BOP021 · Restaurant Cobweb Information Ltd, 2014 • The two-day Wine & Spirit Education Trust (WSET) Level 1 Award in Wine Service, designed for front-of-house staff, which covers matching wines with food, and presenting and pouringwine. The course costs from around £240 and is held at the London Wine & Spirit School. Goto www.wsetschool.com/which-course/classroom-courses/level-1-award-in-service for moreinformation.
• The two-day Introductory Sommelier Certificate, which is run by the Court of Master Sommeliers and is held at venues across the UK. The course covers topics such as grapevarieties and wine classifications, technical skills of wine service, matching wines with food,and the importance of social skills. Go to www.courtofmastersommeliers.org/qualifications/introductory-sommelier-certificate-3-days/ for more information about the course and torequest details of forthcoming course dates, venues and costs.
• The Level 2 Award in Barista Skills accredited by City & Guilds, which covers topics such as ingredients and equipment, preparing and serving hot and cold drinks, and customerservice skills. Courses are delivered by training providers across the UK and fees vary. Go towww.cityandguilds.com/Courses-and-Qualifications/hospitality-and-catering/hospitality-and-catering/7102-barista-skills for more information and to find local training centres.
Restaurateurs or staff who serve or handle food products and prepare drinks must be ableto demonstrate appropriate food hygiene knowledge. Although a formal qualification isnot mandatory, obtaining a certificate in food hygiene is a good way of demonstrating thisknowledge. Suitable courses include: • The Chartered Institute of Environmental Health (CIEH) accredited Level 3 Award in Supervising Food Safety in Catering. It covers food hazards, techniques for monitoring foodsafety, understanding cross-contamination issues, the role of temperature in food safety andthe importance of supervising high standards of cleanliness. Course costs vary according tolocation and training provider (www.cieh.org/training/level_3_food_safety.html).
• The Level 2 Award in Food Safety in Catering accredited by the CIEH, which is suitable for restaurant staff. The course covers temperature control, refrigeration, food handling andsafety and hygiene hazards. Courses are delivered at training centres across the UK and feesvary. Go to www.cieh.org/training/level_2_food_safety.html to search for a training providerand request details about fees.
• The Level 2 Award in Principles of Hazard Analysis and Critical Control Point (HACCP), which is also accredited by the CIEH, covers the principles and purpose of HACCP and is aimed atanyone who prepares, handles or serves food or drinks. Go to www.cieh.org/training/level-2-award-in-principles-of-haccp.html to search for a training provider and request details aboutfees.
• Online food hygiene and safety training at levels 1, 2 and 3 provided by the Nationwide Caterers Association (NCASS). The Level 3 course costs £125 (excludingVAT) for non-members and is free to members (www.ncass.org.uk/content/level_3_online_food_safety_training.aspx).
• Other online courses run by the NCASS including First Aid for Caterers, Developing HACCP (Hazard Analysis Critical Control Point) Training, and Health and Safety in Catering. Coursescost between £25 and £100 (excluding VAT). Go to www.ncass.org.uk/training-area for moreinformation.
BOP021 · Restaurant Cobweb Information Ltd, 2014 By law, restaurant proprietors supplying alcohol in England and Wales must employ a DesignatedPremises Supervisor (DPS), while in Scotland they must employ a Premises Manager. Both DPSsand Premises Managers must obtain a Personal Licence, which requires them to hold a Level 2Award for Personal Licence Holders (APLH) or a Scottish Certificate for Personal Licence Holders(SCPLH) respectively.
These qualifications involve between eight and ten hours of study, culminating in a one-hourmultiple choice examination. They cost from about £100 and are run by various accreditedproviders who are listed at www.gov.uk/government/publications/accredited-personal-licence-qualification-providers.
In Northern Ireland, restaurant proprietors supplying alcohol must hold a Liquor Licence. LiquorLicences are issued by county courts, which require applicants to demonstrate that they are fitto hold a licence. Although there are no mandatory qualifications, the court will take accountof the proprietor's qualifications and experience or, if they are intending to employ a managerto run the business on their behalf, the qualifications and experience of the manager. Go towww.nidirect.gov.uk/law-on-licensed-premises-and-registered-clubs for more information aboutlicensing requirements in Northern Ireland.
Anyone starting up a restaurant will benefit from training in general business and enterpriseskills. Suitable courses include: • Free webinars provided by HM Revenue & Customs (HMRC) covering topics including business expenses, self assessment online, VAT, self employment and becoming anemployer. Go to www.hmrc.gov.uk/webinars/topics.htm for more information.
• The Stonebridge Associated Colleges online or paper-based distance learning course entitled Contracts of Employment, Recruitment and Selection, which may benefitrestaurateurs new to recruiting staff. The course costs £69. Go to www.stonebridge.uk.com/course/contracts-of-employment-recruitment-and-selection-byte-size for information.
• Practical Training Professionals (PTP) runs a one-day Introduction to Buying course, which covers topics such as negotiation skills and understanding value and costs. The course isdelivered regularly at training centres around the country and costs £450 (excluding VAT).
Go to www.ptp.co.uk/training-courses/introduction-to-buying for more information.
• The Digital Marketing Institute online social media marketing course, which costs £349. The course covers the latest trends in social media marketing and using Facebook, Twitter andLinkedIn for business. Go to http://digitalmarketinginstitute.com/uk/courses/social-media-marketing for more information.
Industry awareness and product knowledge
Restaurateurs can keep up to date with news and developments in their sector and improvetheir awareness of trends by attending events and reading trade journals and industry resources,including: • Big Hospitality (www.bighospitality.co.uk), which is an online trade publication for the hospitality and catering industry that provides news about product developments andmarket trends.
• News and information about the hospitality industry and restaurant sector, which is published online by the British Hospitality Association (BHA) and its subsidiary, theRestaurant Association (www.bha.org.uk/?post_type=bha_news).
BOP021 · Restaurant Cobweb Information Ltd, 2014 • 'Essential Catering' (www.essentiallycatering.co.uk), which is a quarterly trade journal covering topics such as equipment, events and market trends affecting catering servicesincluding restaurants.
• 'The Restaurateur.com' (www.the-restaurateur.com), which is an online resource that covers topics of interest to restaurateurs such as a suppliers' directory and news and informationabout legislative issues.
• 'Eat Out' magazine (www.eatoutmagazine.co.uk), which is an online resource and a monthly trade journal suitable for restaurant proprietors, featuring news, opinion, expert articles andproduct news for the out of home dining market.
• 'Restaurant' magazine (www.bighospitality.co.uk/Info/Restaurant), which is a trade publication, aimed at owners and managers of restaurants, featuring trade news, updatesand reviews.
• 'The Caterer' (www.thecaterer.com), which is a trade publication aimed at business owners and managers in the hospitality industry, including restaurants.
• The Food & Drink Innovation Network (www.fdin.org.uk/seminars), which provides news and holds regular seminars for food business proprietors about topics including health andnutrition, managing hygiene and packaging.
• The Restaurant Show (www.therestaurantshow.co.uk), which is a trade event held each October at Earls Court, London. It features suppliers of china, cutlery, lighting, cateringequipment and ingredients.
• The London International Wine Fair (www.londonwinefair.com), which is an annual trade event held each May at Olympia, London, showcasing new products and providingopportunities to network with suppliers.
What are the key market issues and trends
Some of the key current market issues affecting restaurants are as follows: • According to the UK Restaurant Market Report 2014 published by Allegra Foodservice, it is estimated that the value of the UK restaurant market will reach £48.2 billion in 2014 and riseto £52 billion by 2017. Branded eateries are forecast to grow by 6.5% over the next threeyears to reach a value of £17.6 billion by 2017. In particular, fast food outlet sales are forecastto grow by 12.4% and numbers of outlets are expected to increase by 7.6% between 2013and 2014, with McDonald's and KFC leading the growth. The report also revealed that themost active consumers in the restaurant sector are aged 18 to 24, indicating opportunitiesfor restaurateurs to engage better with older consumers (www.bighospitality.co.uk/Trends-Reports/Value-of-restaurant-market-to-reach-52bn-by-2017).
• A related study published by Allegra Foodservice in July 2014 indicated that independent restaurants are expected to suffer as consumers switch to branded chains, and thetotal restaurant sector, including independents, is forecast to grow by just 1.7% in 2014(www.bighospitality.co.uk/Business/Independent-restaurants-could-suffer-as-eating-out-market-grows).
• According to a 2014 consumer survey by the NPD Group, the annual traffic in fast casual dining restaurants, such as Nando's and Wagamama grew by 11% between 2009 and the BOP021 · Restaurant Cobweb Information Ltd, 2014 year ending March 2014. This is equivalent to an increase of 47 million restaurant visits.
Affordability is one factor that has been attributed to the growth of fast casual dining, withthe average bill per visit for one person at this type of eatery working out at £11.90. Thereport also revealed that the casual dining sector is often the choice for family visits, whichaccount for 36% of visits to casual dining restaurants at dinner time. More than 10% ofsurvey respondents said that they visited casual dining outlets because they are popularwith children (www.bighospitality.co.uk/Trends-Reports/Casual-dining-restaurants-are-increasing-in-popularity).
• More than a third of the UK's leading restaurants are struggling to survive, according to a market report published in July 2014 by industry analyst Plimsoll. Of the 800 restaurantsreviewed in the report, Plimsoll gave 335 firms a 'danger' rating, indicating that they arestruggling financially and at risk of going out of business, with a further 72 receiving a'caution' rating. Despite this, 255 restaurants were awarded a 'strong' rating for their financialhealth (www.plimsoll.co.uk/marketreports.aspx?market=restaurants).
• According to a 2013 report by the Payments Council, spending by UK consumers on entertainment, such as going out for meals and to the cinema, has risen from £37billion in 2001 to £58 billion in 2011. Spending in restaurants and cafés has almostdoubled since 2001, an increase of 102% (www.paymentscouncil.org.uk/media_centre/press_releases/2013_archive/-/page/3046/).
• The performance of the tourism industry is important for restaurateurs as many are located in popular tourist destinations. In 2013, almost 33 million overseas visitors (a record number)came to the UK, a rise of 5.6% compared to 2012 (www.visitbritain.org/insightsandstatistics/visitoreconomyfacts).
• According to a 2012 report by Deloitte entitled 'Taste of the Nation', generational divisions have emerged in terms of the frequency with which individuals go out to eat and drink.
Despite financial pressures created by the economic downturn, 18 to 34-year-oldsare driving the market by eating out more - on average 31 times a month, up from25 times a month in 2011. This is nearly double the rate among 35 to 54-year-oldsand more than three times that of people aged 55 and over, who eat out on averagejust 11 times per month. Londoners also tend to eat out the most at over 25 times amonth, an 11% increase from 2011 (www.deloitte.com/view/en_GB/uk/industries/thl/43ef03869ef4b310VgnVCM2000003356f70aRCRD.htm).
• There has been a recent increase in the popularity of home cooking in the UK, which has been attributed to the success of television series such as Masterchef and TheGreat British Bake Off, and this could potentially affect demand for restaurant meals.
According to a report by Mintel, in the year to February 2014, sales of pots and pansexperienced a value growth of 17.6%, while bakeware experienced 6.8% growth(www.brandview.com/2014/06/11/kitchen).
• According to the Menurama analytical database of nationwide menus, the foods that dominated most restaurant and pub menus in 2012 were traditional meatdishes, with the beef burger securing the top spot, followed by the chicken burger,rump steak, sirloin steak, grilled chicken and roast chicken. (www.hrzns.com/mint/pepper/tillkruess/downloads/tracker.php?url=http://www.hrzns.com/files/Consumer_eating_out_trends_10_things_you_need_to_know.pdf&force&inline).
BOP021 · Restaurant Cobweb Information Ltd, 2014 • According to Key Note, the number of premium vegetarian restaurants in the UK increased by 50% in a five-year period to reach 30 in 2012. Although the vegetarian restaurant marketis comparatively small, vegetarian dishes appeal to a wide market such as non-vegetarianhealth-conscious diners (www.foodservicefootprint.com/news/veggie-restaurants).
• Independent restaurants face intense competition from hotels, pubs, take away and fast food establishments in their locality. According to a report by VoucherCodes.co.uk, the UKspends £29.4 billion on takeaways every year. The report also revealed that British peoplespend 34% of their entire food budget on fast food, and the average person eats 84 fast foodmeals over the course of a year and a further 64 ready meals, the equivalent of spending£1,304 over 12 months (www.huffingtonpost.co.uk/2014/03/26/takeaways-british-favourite-fast-food-spending_n_5033233.html).
• In July 2014, there were over 59,000 restaurants listed on Yell.com in the UK, including around 8,300 Indian restaurants, over 4,200 Italian restaurants, over 3,600 Chineserestaurants, around 3,000 traditional restaurants, 1,500 English restaurants and around 780French restaurants, indicating the highly competitive nature of this sector.
What are the main trading issues?
Some of the main trading issues faced by restaurant proprietors include: Food business registration
Under EC Regulations 852/2004 and 853/2004, all business premises where food and drinkis prepared, served, handled or displayed must be registered with the environmental healthdepartment of the local authority in the area where they are located.
A restaurant proprietor must submit an application for registration at least 28 days before theybegin trading. There is a guide to registering as a food business at http://food.gov.uk/business-industry/caterers/startingup.
As part of the registration process, proprietors must produce a written Food Safety ManagementSystem (FSMS). The system must be based on Hazard Analysis Critical Control Point (HACCP)principles, which require the restaurant proprietor and any staff who prepare or serve food ordrink to follow procedures that ensure it is safe to consume. Go to www.food.gov.uk/business-industry/caterers/haccp for information.
Following registration, a local authority environmental health officer will inspect the kitchen,serving, eating and proposed preparation areas, as well as the storage areas where supplies arekept. They will continue to inspect the premises, and any statutory documentation systems, on aregular basis.
The Food Standards Agency (FSA) has published a guide to 'Food Hygiene for Businesses' atwww.food.gov.uk/business-industry/caterers/food-hygiene and has a 'Safer Food Better Business'initiative aimed at small caterers. Go to http://food.gov.uk/business-industry/caterers/sfbb formore information.
Other food safety requirements
Restaurant proprietors must comply with strict rules regarding the safety, presentation,traceability and withdrawal and recall of food products such as ingredients for starters, salads, BOP021 · Restaurant Cobweb Information Ltd, 2014 meat and fish for main courses and ready-made desserts or cheeses that they have purchasedfrom other suppliers. In England the Food Safety and Hygiene (England) Regulations 2013 apply,and in Scotland, Wales and Northern Ireland the General Food Regulations 2004 and FoodHygiene Regulations 2006 apply (http://food.gov.uk/enforcement/regulation/foodlaw).
To comply with the Regulations, proprietors must keep detailed records of their suppliers. Thesetraceability records should include the name and address of the supplier, the nature and quantityof the order and the date of the supply. There is FSA guidance about food safety, traceability,product withdrawal and recall at www.food.gov.uk/multimedia/pdfs/fsa1782002guidance.pdf.
Food labelling regulations
The Food Labelling Regulations 1996 in Great Britain and separate but similar legislation inNorthern Ireland require restaurant proprietors to ensure that all pre-packed food sourced fromexternal suppliers, for example wrapped bread and complimentary chocolates for diners, arelabelled with a name, ingredients (including allergens), best before date, storage instructions andthe name and address of the manufacturer, packer or retailer.
However, from December 2014 the Food Information Regulations 2014 will require informationabout allergens to be provided on menus, including, for example, where bread is provided onthe table. Go to http://food.gov.uk/science/allergy-intolerance/label, www.food.gov.uk/business-industry/allergy-guide and http://ec.europa.eu/food/food/labellingnutrition/foodlabelling/proposed_legislation_en.htm for details.
Information about allergens can be provided on menus on a voluntary basis before theFood Information Regulations 2014 legislation comes into force. The FSA has published bestpractice guidance about voluntary provision of allergen information for non-packaged foods atwww.food.gov.uk/business-industry/guidancenotes/labelregsguidance/nonprepacked.
Gluten-free products are also subject to strict labelling rules and any food product described on amenu as being gluten free must comprise no more than 20 parts per million of gluten. For moreinformation about the labelling of gluten-free or low-gluten products, go to www.food.gov.uk/business-industry/allergy-guide/gluten.
Local authority trading standards officers in the area where the restaurant is located enforcethe Regulations and can be contacted for guidance about food labelling and informationrequirements. For an example, go to www.cornwall.gov.uk/default.aspx?page=22151.
Under the Organic Products Regulations 2009, food products supplied and marketed in the UKas organic must originate from growers, processors and importers who are registered with anapproved organic 'Control Body' (CB) such as Soil Association Certification (www.sacert.org).
Imported organic ingredients and foods must have been produced and inspected to standardsequivalent to those in the UK. There must also be full traceability of organic ingredients.
Restaurants serving food and drink, prepared by staff in the restaurant kitchen using organicingredients, which is described on menus and served as organic, must also be registered with aCB and subject to an annual inspection to maintain their organic certification.
Foods such as cakes and desserts must contain certain proportions of organic ingredients if theyare to be awarded organic certification. Go to www.gov.uk/organic-certification-and-standardsfor more information.
BOP021 · Restaurant Cobweb Information Ltd, 2014 Food hygiene ratings
The Food Hygiene Rating Scheme (FHRS, www.food.gov.uk/business-industry/caterers/hygieneratings) is currently run by almost all local authorities in England and Northern Irelandand is mandatory in Wales under the Food Hygiene Rating (Wales) Regulations 2013.
All food retail, catering and hospitality services (including restaurants) located in local authorityareas that participate in the FHRS are inspected and issued with a rating based on their standardsof hygiene and food safety.
As part of the FHRS, all restaurant proprietors are subject to inspections of their equipment,premises where food and drink are stored, and food hygiene systems to ensure they meetthe standards required by food hygiene laws. Following inspection by a food safety officer,restaurants are given a rating from zero to five.
In Wales, proprietors are required to display their rating on the premises in a prominent placethat is clearly visible to customers. Proprietors of restaurants in England and Northern Ireland arenot required to display their rating, but it is considered good practice to do so.
In Scotland the Food Hygiene Information Scheme (FHIS, www.food.gov.uk/scotland/safetyhygienescot/foodhygieneinfoscot) operates with similar requirements and inspections.
The AA runs a quality assurance scheme for restaurants, known as Rosette Awards.
Restaurants are visited by an AA Rosette Hotel and Restaurant Inspector, who assessesthe menu, ingredients and quality of cooking, as well as the overall dining experienceand customer service and issues a Rosette rating of one to five (www.theaa.com/travel/accommodation_restaurants_grading.html#tabview%3Dtab3).
Coeliac UK also runs an accreditation scheme and provides advice and guidance for restaurateursseeking to achieve gluten-free accreditation for their restaurant. Go to www.coeliac.org.uk/food-industry-professionals/caterers-and-restaurateurs/accrediting-your-business for moreinformation.
Various tourism accreditation bodies and organisations also run quality assurance schemesfor restaurants. For example the Taste Lancashire Accreditation Scheme promotes quality'eating establishments' that must undergo a rigorous annual assessment of the quality of theirfood and service, and must be able to demonstrate that they promote and use local produce.
Go to www.marketinglancashire.com/opportunities/quality-accreditation/taste-lancashire-accreditation-scheme for details.
Alcohol licensing legislation
The Licensing Act 2003 established a single licensing system for licensable activities in Englandand Wales. Licensable activities include the retail sale of alcohol and the provision of late-nightrefreshment.
In Scotland the sale and supply of alcohol is regulated under the Licensing (Scotland) Act 2005 asamended by the Alcohol etc. (Scotland) Act 2010.
In Northern Ireland the sale and supply of alcohol is regulated under the Licensing (NorthernIreland) Order 1996.
BOP021 · Restaurant Cobweb Information Ltd, 2014 Types of alcohol licence
In England, Wales and Scotland local authorities act as Licensing Authorities and control thelicensing system and process applications for alcohol licences. For more information, go towww.gov.uk/alcohol-licensing and www.scotland.gov.uk/Topics/Justice/law/Licensing/alcohol.
In Northern Ireland the county courts act as the licensing authority.
There are two main types of licence authorising the sale or supply of alcohol in England, Walesand Scotland: • Premises Licence. This is required to authorise the sale or supply of alcohol from business premises on a permanent basis. A restaurant proprietor applying for a Premises Licence mustname in the licence application a Designated Premises Supervisor (DPS) in England andWales or a Premises Manager in Scotland, who must hold a valid Personal Licence and whowill be named on the Premises Licence.
The DPS or Premises Manager is the key person responsible for day-to-day managementof the licensed premises. They provide a point of contact for Licensing Authorities, andthey also authorise the sale of alcohol by other staff that do not hold personal licences. Goto www.gov.uk/government/uploads/system/uploads/attachment_data/file/98116/role-designated-premises-super.pdf for details about the role of the DPS.
Premises Licence initial application fees vary from £100 to £1,905 in England and Wales andfrom £800 to £2,000 in Scotland. Annual fees for Premises Licences range from £70 to £1,050in England and Wales and from £155 to £788 in Scotland.
• Personal Licence. This qualifies an individual to authorise the sale or supply of alcohol (by themselves or by other staff who are not Personal Licence holders) in any business that holdsa Premises Licence.
Personal Licences are issued subject to the applicant holding an accredited qualification andbeing aged 18 or over. As Personal Licences are individual licences, a Personal Licence holdercan be appointed as a DPS or a Premises Manager for any licensed premises.
Applications for a Personal Licence in England and Wales must also be accompanied bya criminal record check. In England and Wales, this is known as a Disclosure and BarringService (DBS) check. Individuals cannot apply directly for DBS checks, but can obtain basicchecks via 'umbrella bodies', such as APCS CRB Checks (www.criminalrecordchecks.co.uk).
Go to www.gov.uk/find-dbs-umbrella-body for details.
In Scotland a separate criminal record check is not required, although applicants mustprovide details of any relevant convictions on their application form.
At the time of writing, the initial application fee for a Personal Licence is £50 in England,Wales and Scotland.
In Northern Ireland, the proprietor of a restaurant must hold a Liquor Licence in order to sellalcohol, and the applicant must demonstrate that they are fit to hold a licence and that theirpremises are suitable for the sale of alcohol. Go to www.nidirect.gov.uk/law-on-licensed-premises-and-registered-clubs for more information about liquor licensing in Northern Ireland.
In August 2014 the initial application fee for a liquor licence in Northern Ireland was £432.
BOP021 · Restaurant Cobweb Information Ltd, 2014 Serving alcohol to under 18s
The sale of alcohol to anyone aged 17 or under is prohibited across the UK, however in England,Wales and Scotland it is an offence for an adult to purchase alcohol for a child to consume in arestaurant, unless: • The child is aged 16 or 17.
• And the alcohol is wine, beer, or cider.
• And the alcohol is being consumed with a meal in a restaurant set apart from a bar for eating • And in England and Wales, the adult who purchases the alcohol is seated with the child at Staff aged under 18 may serve alcohol to customers unsupervised, as long as it is being providedfor consumption with a table meal.
Excise duty on alcohol
Wines and spirits imported from the EU are classed as 'excise goods' and are subject to exciseduty. Restaurateurs directly importing wine or spirits themselves must ensure they pay thecorrect excise duty to HMRC. For more information, go to www.hmrc.gov.uk/rates/alcohol-duty.htm.
Restaurateurs purchasing wine or spirits from an importer are not responsible for payingexcise duty on it but they can still be fined if they are found to be storing or supplying winethat has not had duty paid by the importer. They should check for 'duty stamps' to indicatethat the correct amount of duty has been paid. For more information about duty stamps,go to http://customs.hmrc.gov.uk/channelsPortalWebApp/channelsPortalWebApp.portal?_nfpb=true&_pageLabel=pageVAT_ShowContent&id=HMCE_PROD1_027217&propertyType=document.
Weights and measures
The Weights and Measures Act 1985 and the Weights and Measures (Intoxicating Liquor) Order1988 (as amended) regulate the quantities in which alcohol is sold or supplied. In NorthernIreland the Weights and Measures (Northern Ireland) Order 1981 applies.
Under the legislation alcohol may only be sold and served in prescribed measures as follows: • Draught beer and cider in measures of a 1/3 pint, 1/2 pint or a multiple of 1/2 pint.
• Gin, rum vodka and whisky in measures of 25ml, 35ml or multiples of either.
• Wine by the bottle, or by the glass in measures of 125ml, 175ml or multiples of either, or in carafes in measures of 250ml, 500ml, 750 ml or 1 litre. Wine can also be sold in quantities ofless than 75ml as a sample taster.
Glasses used to serve wine, beer and cider in a restaurant should be marked by a crown symbol(known as 'stamped') to indicate the glass has been independently checked for volume accuracy.
BOP021 · Restaurant Cobweb Information Ltd, 2014 Most suppliers of equipment for restaurants sell stamped glasses. Restaurant proprietors mustmake customers aware of the measures used in relation to the supply of wine, beer, gin, rum,vodka and whisky by the glass, carafe or bottle as appropriate, usually by indicating these on themenu or on a notice displayed where it can be seen easily, for example beside or above the bar.
The Consumer Protection from Unfair Trading Regulations 2008 also require traders to provideclear and accurate information to consumers about prices and descriptions of food and drinksupplied. For example consumers must not be misled into purchasing a drink described as aspecific brand of alcohol, such as Bacardi, if the drink supplied is not that exact brand.
Advice and guidance about weights and measures and consumer trading legislation is providedby local authority Trading Standards departments, which also enforce the legislation. Go towww.tradingstandards.gov.uk for more information and to find details of local Trading Standardsoffices.
Restaurant proprietors must comply with UK no-smoking laws and must display no smokingsigns and ensure that smoking is not allowed in the dining or in any communal area of theirpremises. Information on smoke-free environments for hotel proprietors that is also useful forrestaurant proprietors has been published by Breckland Council at www.breckland.gov.uk/sites/default/files/legacy_files/hotel_fact_sheet_oct_2008.pdf.
Premises and business rates
A restaurant proprietor will need to budget for the costs associated with leasing or buyingpremises including solicitor's costs, rent, utility bills, water rates and business rates. Dependingon location, both indoor and outdoor seating areas may be required.
The location of the restaurant is important, as it will be necessary to attract a mix of regularcustomers and passing trade. It will need adequate access or parking for deliveries and a storagearea large enough for both perishable and non-perishable stock.
In England and Wales the Valuation Office Agency is responsible for determining the rateablevalue of commercial premises based on their size and rental value, and this figure is used by localauthority valuation officers to set local business rates (www.2010.voa.gov.uk/rli).
In Scotland this is the responsibility of the Scottish Assessors (www.scotland.gov.uk/Topics/Government/local-government/17999/11199/brief-guide) and in Northern Ireland it is dealtwith by Land & Property Services (LPS), part of the Department of Finance and Personnel(www.dfpni.gov.uk/lps/index/property_rating.htm).
Change of use planning permission may be required if the premises were previously used otherthan as a restaurant or café classified under the official 'Use Class A3'. Planning permission willalso be required if tables and chairs are to be placed on the pavement outside the restaurant. Goto www.planningportal.gov.uk/permission/commonprojects/changeofuse for more information.
Signage and pavement furniture licensing
Restaurant proprietors often display signage (such as A-boards) on the pavement outside theirpremises.
BOP021 · Restaurant Cobweb Information Ltd, 2014 Under the Highways Act 1980, restaurant proprietors must be granted permission from their localauthority before displaying A-boards on the public highway.
The Town and Country Planning (Control of Advertisements) Regulations control the display ofoutdoor advertising and, in certain circumstances, require proprietors to obtain permission fromtheir local authority planning department before displaying outdoor advertisements such asfascias.
Go to www.gov.uk/government/uploads/system/uploads/attachment_data/file/11499/326679.pdf for a guide to displaying outdoor signs.
Restaurant proprietors intending to place tables and chairs on the pavement outside theirpremises must first have been granted planning permission and must then apply for a licenceor permit from their local authority authorising them to do this. Licence fees vary according tothe local authority but are typically around £350. Go to www.nelincs.gov.uk/business/transport-streets-and-parking/permits-and-licences/placing-tables-chairs-public-highway for an exampleof one local authority's licensing procedures and fees.
In addition to an alarm system and security features such as grilles and roller shutters it may benecessary to install CCTV to protect the premises, depending on location. The British SecurityIndustry Association (BSIA) provides details of suppliers at www.bsia.co.uk/company-finder.
A safe (from around £75) can be used to keep small amounts of cash secure up to the limitsof insurance cover for cash held on the premises. Typical policies provide cover for £1,000kept in a safe and a further £500 out of the safe. Cash should be banked regularly to keep theamount on site to a minimum. For examples of suppliers of safes go to www.securesafe.co.uk andwww.acesafes.co.uk.
Restaurant fixtures, fittings and equipment
Restaurant proprietors need to budget for the cost of fixtures, fittings and equipment for theirpremises.
A typical budget (excluding VAT) for restaurant fixtures and fittings includes: • A double sink unit (costing from £400) and a separate wash-hand basin in the work area or very close to it (from £50).
• A reception service counter (from around £250).
• A dumb waiter or Maître d'hôtel service stand (from around £250 to £320).
• Tables and chairs (depending on quality and design, from around £40 to £85 for a dining chair and £90 to £120 for a dining table).
• Commercial fridge freezer (from around £550 to £1,000).
• Commercial dishwasher (from around £850 to £1,000).
• Commercial filter coffee machine (from £350 to £700).
• Heated deli display counters (from around £800 to £1,000).
• Refrigerated deli display counters (from £900 for an open-fronted unit).
BOP021 · Restaurant Cobweb Information Ltd, 2014 • Commercial water boiler (from £270 to £700).
• Commercial under-counter and bottle cooling fridges (from £250 to £1,200).
• Chiller cabinets (from about £250 to £4,000).
• An ice-maker (from around £150 to £500).
• Optics and spirit measures with wall brackets (between £8 and £15 each).
• Wine rack (from £10 to £60).
• Ice bucket (from £6 each).
• Branded beer and lager glasses (from around £5 to £15 for a pack of four).
• Shot glasses (from around £5 for six).
• Wine glasses (from around £50 for 24).
Specialist suppliers of restaurant equipment and fixtures include: • Dining chairs UK (www.diningchairsuk.com).
• Caffe Society (www.caffesociety.co.uk).
• Cater Equip (www.caterquip.co.uk).
Suppliers of restaurant seating and tables also include www.cafereality.co.uk,www.furniturerealm.co.uk and www.onlinereality.co.uk.
Cups, saucers, glassware and other crockery can also be sourced from catering and hospitalitywholesale suppliers such as Direct Tableware (www.directtableware.com) and RestaurantSupplies (www.pattersons.co.uk).
There are details of catering equipment suppliers on the website of the Catering EquipmentSuppliers Association (CESA, www.cesa.org.uk).
Examples of suppliers of glasses and bar accessories for restaurants include www.drinkstuff.comand www.a1barstuff.co.uk.
Suppliers of bar and cellar equipment also include www.barequipmentdirect.co.uk,www.barmans.co.uk and www.ascotwholesale.co.uk/bar-equipment.
There are specialist shopfitters that supply and install pub and restaurant bars such asHarvey Shopfitters Limited (www.harveyshopfitters.co.uk/pubs_bars.htm), Andy Thornton(www.andythornton.com/en-UK/portfolio/12-traditional-pubs), Matcon Shopfitting(www.matconshopfitting.com) and Bluecrow Projects (www.bluecrowshopfitting.co.uk/Pub_Refurbishment_and_Fit_Out). Prices usually vary according to the premises layout and areavailable on request from suppliers.
Proprietors will also need to source appropriate workwear for kitchen staff, including aprons,caps and protective wear to prevent injuries, for example from hot ovens. Uniforms and formalworkwear will also be required for waiting staff and restaurant managers. Examples of cateringand formal workwear suppliers include: • Matrix Uniforms (www.matrixuniforms.co.uk).
BOP021 · Restaurant Cobweb Information Ltd, 2014 • NextGen Clothing (www.nextgenclothing.co.uk).
• Alexandra (www.alexandra.co.uk).
Sourcing supplies and consumables
Restaurant proprietors need to budget for and source a wide range of supplies and ingredientsfrom reliable trade suppliers, some of which may specify minimum order levels.
Ingredients for cold starters such as cooked continental meats, cheeses for cheese boards, orcatering-sized packs of tea and coffee, fresh fish, meat, butter and cooking oil can be sourcedfrom national wholesalers such as Booker (www.booker.co.uk), Bestway (www.bestway.co.uk)and Costco (www.costco.co.uk), which have outlets throughout England, Wales andScotland. Musgrave Marketplace is an example of a wholesaler based in Northern Ireland(www.musgravemarketplace.ie).
Examples of national suppliers of chilled dairy, groceries, vegetables, frozen goods and otheringredients for meals include www.brake.co.uk, www.hillsfinefoods.co.uk and www.reynolds-cs.com. Some restaurants use frozen ready-made meals and desserts. Suppliers include WindsorFood Service (www.windsorfoodservice.co.uk) and KK Fine Foods (www.kkfinefoods.co.uk).
Specialist wholesale suppliers of ethnic foods and ingredients include Oriental Treasure(www.orientaltreasure.co.uk), J. D. Corporation (www.indianspicesngroceries.com) and Jay Brand(www.jaybrand.co.uk).
Some restaurants use local suppliers to source fresh ingredients and differentiate their menus.
Typical supplies that can be sourced locally include salmon, cheese, milk, eggs, cream, bread andartisan bakery products. The Sustainable Restaurant Association (SRA) maintains a directory oflocal suppliers at www.thesra.org/suppliers/supplier-directory.
Fairtrade tea and coffee suppliers include Cafeology (www.cafeology.com) and Pennine(www.pennineteaandcoffee.co.uk).
Beer, lager and cider are typically sourced from specialist trade wholesalers such as MatthewClark (www.matthewclark.co.uk), Beer Trading (www.beertrading.co.uk) and LWC (www.lwc-drinks.co.uk). Most wholesalers supply beer in kegs or barrels, typically of 9 or 18 gallons. Bottledbeer, cider, lager, wine, spirits, alcopops and soft drinks are also available from wholesalers. Thereis directory of drinks wholesalers at www.nationaldrinks.com/index.php?page=suppliers.
Wine, bottled and cask beer and other drinks can be sourced from wine merchants,microbreweries and specialist wholesalers. Examples include The Oxford Wine Company(www.oxfordwine.co.uk) and Drinks Shop (www.drinks-wholesale.co.uk).
Personalised menu covers with the restaurant's name printed on the front cost between £2 and£12 per unit and are available from suppliers such as Menu Shop (www.menushop.co.uk) andForemost Products (www.foremostproducts.co.uk/product_category/menu-covers).
Typically, for the first few months' trading, trade suppliers and wholesalers will only deal withnew trade customers using pro forma invoices. Payments must be made on purchase and beforedelivery of stock. Suppliers usually carry out credit checks on new customers applying for tradeaccounts. This includes taking up references, reviewing published accounts (if available) andchecking public registers such as County Court Judgments.
BOP021 · Restaurant Cobweb Information Ltd, 2014 Restaurant proprietors must register for VAT once their turnover reaches the mandatorythreshold and must then ensure that prices charged for drinks, meals and other items includeVAT at the appropriate rate.
Non-alcoholic beverages including tea, coffee, milk and milk shakesare zero-rated for VAT, however alcoholic drinks, mineral and spa waterand carbonated soft drinks are standard-rated for VAT. Go to http://customs.hmrc.gov.uk/channelsPortalWebApp/channelsPortalWebApp.portal?_nfpb=true&_pageLabel=pageVAT_ShowContent&id=HMCE_CL_000118&propertyType=documentfor more information.
Most baked products are zero-rated for VAT, with the exception of some confectionery includingbiscuits wholly or partly covered in chocolate. Cakes, including sponge cakes and fruit cakes, arezero-rated for VAT. HMRC provides guidance and examples on the definition of 'cake' for VATpurposes at www.hmrc.gov.uk/manuals/vfoodmanual/VFOOD6200.htm.
Various VAT accounting schemes are available that can be used as an alternative to the standardmethods of accounting for VAT by a VAT-registered business. VAT accounting schemes can helpcertain types of business save time and money.
There is a specific VAT scheme available for caterers and catering services, includingrestaurants. More information about this has been published by HMRC at http://customs.hmrc.gov.uk/channelsPortalWebApp/channelsPortalWebApp.portal?_nfpb=true&_pageLabel=pageLibrary_PublicNoticesAndInfoSheets&propertyType=document&columns=1&id=HMCE_CL_000139#P271_23607.
A till (from £150) will handle basic transactions. Go to www.cashregistergroup.com for examples.
Specialist electronic point-of-sale (EPOS) systems, typically including spill-proof touch-screenterminals and software that gives detailed inventory and stock reports are available from around£2,000. Examples of suppliers include South West Systems (www.southwestsystemsuk.com) andGlobal Retail (www.global-retail.co.uk).
A Chip and PIN machine with portable handsets will be required to process credit and debit cardpayments. Examples of providers include www.lloydsbankcardnet.com, www.streamline.comand www.chipandpinsolutions.com. Alternatively, they can be leased from banks. Equipmentrental costs between £15 and £35 a month (prices vary according to the supplier and whether theterminal is portable or fixed on the countertop), plus per-transaction charges of around 2%.
Restaurants are increasingly taking payment via smartphone apps and keypads. Examplesof providers include iZettle (www.izettle.com), which charges variable rates on a percentagebasis depending on sales figures, and WorldPay Zinc, which charges around £60 for a chip andpin keypad and 2.75% per payment with no monthly fees. Go to www.worldpayzinc.com fordetails. PayPal Here also provides a free app, which requires a card reader costing £99. A fee of2.75% applies to all payments accepted with chip and pin cards or via 'PayPal Check-in'. Go towww.paypal.com/uk/webapps/mpp/merchant for more information.
There are a number of restaurant reservation management software packages thatallow staff to enter customer reservations onto a calendar. Examples include MICROS BOP021 · Restaurant Cobweb Information Ltd, 2014 (www.micros-systems.co.uk/en-GB/Solutions/Restaurants-and-Catering.aspx) and Resdiary(www.resdiary.com). Prices start from around £80 per month for a restaurant taking up to 350bookings a month.
Online reservation software that allows customers to make their own reservations via therestaurant's website is also available. Examples include Kernow Software's e-restaurant package(www.kernow-software.co.uk).
Tips and gratuities
Some customers leave tips for restaurant proprietors or their staff and the proprietor mustcomply with the tax and National Minimum Wage (NMW) issues involved. Staff do not have topay income tax via their wages on tips given directly to them by customers but are responsiblefor declaring tips to HMRC, which may affect the employee's tax code. However, if the tip ispassed on via the employer, tax must be deducted from staff pay under the Pay as You Earn(PAYE) system.
Tips and service charges cannot be used to make up employees' NMW pay. For more information,go to www.hmrc.gov.uk/payerti/payroll/special-pay/tips.htm.
Music and entertainment licences
Restaurants require various licences depending on the services they provide: • Restaurant proprietors may be required to apply for licences from PRS for Music and the Phonographic Performance Limited (PPL) if they play background music in the restaurant.
PRS licence fees for restaurants vary according to the type of music playing device used.
For example for a room with a capacity of up to 30 seats the annual fee for a standardroyalty licence is £122 for a TV or radio, £185 for a video player, £215 for a CD player and£244 for a music centre or an audio juke box. A 10% discount is applied to the combinedfee for two or more devices. Go to www.prsformusic.com/users/businessesandliveevents/musicforbusinesses/restaurantsandcafes/Pages/restaurantscafes.aspx for more information.
PPL licences cost from around £126. Go to www.ppluk.com/I-Play-Music/Businesses/How-much-does-a-licence-cost/Business-type-122 for more information.
• An entertainment licence may also be needed if the restaurant provides entertainment such as live music or dancing. This licence is required when a charge is made forentertainment and applies to private functions, such as weddings and parties, as well aspublic entertainment. Restaurant proprietors should contact the licensing department oftheir local authority for more information. However, changes made under the Live MusicAct 2012 mean that a range of live music performances that previously required a licenceno longer need one. They include those taking place between 8am and 11pm, those held inpremises that are licensed to supply alcohol and those with an audience of fewer than 200people. Go to www.gov.uk/entertainment-licensing-changes-under-the-live-music-act fordetails.
Disabled diners' access
Under the Disability Discrimination Act (DDA) 1995 (as amended by the Equality Act 2010) itis unlawful for any service provider in the UK, including restaurant proprietors, to refuse toprovide a service to someone due to their disability, offer a lower standard of service or providea service on less favourable terms. As well as prohibiting restaurant proprietors from refusing BOP021 · Restaurant Cobweb Information Ltd, 2014 to accommodate disabled diners, the DDA stipulates they cannot make additional charges for areason related to a guest's disability. For example, they cannot charge for the extra space neededto store a wheelchair.
Restaurant proprietors must also make reasonable adjustments to the way they provide theirservices for disabled people. For example, restaurant toilets should be fitted with rails, and diners'information must be provided in an accessible format for people with impaired vision.
The Equality and Human Rights Commission (EHRC) publishes guidance to the Equality Act2010 for service providers, including restaurant proprietors. To view this guidance, go towww.equalityhumanrights.com/private-and-public-sector-guidance/organisations-and-businesses/businesses/hotels-restaurants-cafs-and-pubs.
Depending on the scale of their activities, restaurant proprietors employ a range of staff such aschefs, kitchen porters, waiting staff, a maître d'hôtel, sommelier and bar staff.
Typical salaries for professional chefs range from £13,500 for a basic commis chef to £22,000 for achef de partie, depending on their level of expertise and training.
Restaurant proprietors can advertise vacancies and search for individuals on specialist hospitalityjobs boards such as Caterer (www.caterer.com), Hcareers (www.hcareers.co.uk) and HospitalityStaff (www.hospitalitystaff.co.uk).
Temporary or seasonal staff such as cleaners, bar tenders and waiting staff can be sourced viaspecialist recruitment agencies such as Berkeley Scott (www.berkeley-scott.co.uk) and hospitalityrecruitment jobs boards such as Barzone (www.barzone.co.uk).
Some restaurant proprietors contract with specialist cleaning services. Directories of contractcleaners include www.cleaningdirectory.co.uk.
Under the Environmental Protection Act 1990 and the Controlled Waste (Duty of Care)Regulations (Northern Ireland) 2002, restaurant proprietors have a duty of care to ensure that anytrade waste they produce in the course of their business is properly and safely disposed of.
Some local authorities provide collection services for general trade waste produced byrestaurants. Alternatively, a licensed waste carrier can be contracted directly to do this. Thereis a directory of licensed waste carriers at http://epr.environment-agency.gov.uk/ePRInternet/SearchRegisters.aspx.
Used cooking oil from fryers should be kept separate from general trade waste and collectedby a licensed waste carrier. Specialist waste carriers for cooking oil include Arrow Oils(www.arrowoils.co.uk) and Envirogroup (www.envirogroup.co.uk).
Under the Water Industry Act 1991, all waste water produced by restaurants is classed as 'tradeeffluent' and, depending on the scale of their activities, proprietors may require formal consentfrom their water company to dispose of waste water on their premises.
In England and Wales restaurateurs should find out whether they need trade effluent consentby contacting their local water company, for example Northumbrian Water (www.nwl.co.uk/business/trade-effluent.aspx) or Welsh Water (www.dwrcymru.com/en/Business/Trade- BOP021 · Restaurant Cobweb Information Ltd, 2014 Effluent.aspx). In Scotland this is handled by Scottish Water (www.scottishwater.co.uk/business/our-services/compliance/trade-effluent) and in Northern Ireland by Northern Ireland Water(www.niwater.com/trade-effluent-charges).
Health and safety
According to the Health and Safety Executive (HSE), the main risks associated with running afood business establishment are slips and trips, burns, dermatitis, musculoskeletal conditions andinjuries caused by knives. The HSE has published a guide to health and safety for catering servicesat www.hse.gov.uk/catering/index.htm.
Under the Management of Health and Safety at Work Regulations 1999, all employers, includingthose who are self employed, are required to undertake a risk assessment of their workplaceand provide employees with adequate health and safety training. The HSE has published anexample risk assessment for food preparation and service at www.hse.gov.uk/risk/casestudies/foodprep.htm.
Under the Control of Substances Hazardous to Health Regulations 2002 (COSHH) in Great Britainand equivalent legislation in Northern Ireland, restaurant proprietors must have health andsafety measures in place to protect themselves, any employees and customers from health risksarising from exposure to potentially harmful substances, such as cleaning products that containchemical irritants.
According to guidance from the HSE, restaurant proprietors must ensure areas used for storingcleaning products are well organised and well ventilated. Containers should be clearly labelledand heavier containers stored on lower shelves. Go to www.hse.gov.uk/pubns/guidance/ocm8.pdf to view the guidance.
Proprietors and staff who prepare drinks and meals, and therefore wash their hands frequently,are at increased risk of dermatitis and skin conditions through regular contact with water andsoap. The HSE provides guidance about preventing dermatitis at www.hse.gov.uk/skin.
The Provision and Use of Work Equipment Regulations 1998 and the Personal ProtectiveEquipment at Work Regulations 1992 set out requirements regarding the use and maintenanceof work equipment and protective clothing and the training of employees to use them safely.
The proprietor of a restaurant should ensure that kitchen staff wear protective clothing such asaprons, and gloves when appropriate. There are guides to the Regulations on the HSE's websiteat www.hse.gov.uk/pubns/indg174.pdf and www.hse.gov.uk/pubns/indg291.pdf.
Under the Health and Safety (First-Aid) Regulations 1981, restaurateurs are required to providefirst aid equipment, such as a first aid kit, in case of employee illness or injury. Kits generally costfrom around £10 and can be sourced from online suppliers such as First Aid Direct (www.firstaid-direct.co.uk) and Safety First Aid (www.safetyfirstaid.co.uk).
Membership of a trade association can provide a wide range of business benefits. Relevantassociations include: • The British Hospitality Association (BHA), which incorporates the Restaurant Association, represents the UK hospitality industry. Membership benefits include a BHA certificate,plaque, window sticker and membership card, advice about food hygiene and fire safety andpreferential card processing fees. Go to www.bha.org.uk for details about membership costs.
BOP021 · Restaurant Cobweb Information Ltd, 2014 • The Institute of Hospitality (www.instituteofhospitality.org), which is a professional organisation representing managers working in the hospitality, leisure and tourism industry.
Membership benefits include networking opportunities, business and legal support, andtraining. The membership fee is £150.
• The BII (www.bii.org), which is a membership association representing individuals and enterprises in the licensed retail sector. Members benefit from legal advice and access todiscounts on training. Individual membership starts from £105 per year (excluding VAT), withan initial joining fee of £45 (excluding VAT).
• The Scottish Licensed Trade Association (SLTA, www.theslta.co.uk), which represents the licensed trade in Scotland. Membership benefits include access to legal and recruitmentadvice and discounts on insurance. Membership for licensed premises selling alcohol to beconsumed on site costs from around £206 (including VAT) per year.
• Pubs of Ulster (www.pubsofulster.org), which represents the licensed trade in Northern Ireland including restaurants. Members benefit from access to a legal helpline and discountson major drinks brands. Individual membership costs from £170 (including VAT) per year.
Opportunities for promoting a restaurant include: • Advertising in specialist directories such as: • Pubs and Restaurant Listings (www.pubandrestaurantlistings.co.uk), which provides a free basic listing.
• Restaurants (www.restaurants.co.uk), which provides a free basic listing.
• Listing in the specialist food supplier directory published by 'Speciality Food' magazine.
Listings cost from £65. Go to www.specialityfoodmagazine.com/directory/signup.php fordetails.
• Offering discounts and promotions such as set menus to encourage repeat business. Many restaurants offer a limited menu for a fixed price between set hours. Supper clubs typicallyprovide a three-course meal and a glass of wine for a set price.
• Participating in discounts and voucher schemes for restaurants in the UK. Examples include the Gourmet Society (www.gourmetsociety.co.uk) and Groupon (www.grouponworks.co.uk).
• Adding the restaurant's details to review websites to allow customers to rate the food and service and to attract new customers. Examples include TripAdvisor (www.tripadvisor.co.uk/Owners-t4), Restaurants (www.restaurants.co.uk/reviews.php) and Yell (www.yell.com/reviews), all of which allow restaurant proprietors to sign up to a free business account.
• Participating in OpenTable, which allows customers to make table reservations online • Holding 'themed' nights and exclusive events for certain customer groups, such as business clubs or women's groups.
• Making individual dining rooms or the whole restaurant available for private hire parties such as birthday parties and corporate events.
BOP021 · Restaurant Cobweb Information Ltd, 2014 • Creating a five-minute video tour of the restaurant, uploading it onto online video sharing websites such as YouTube and including a link back to the business' website. Go towww.youtube.co.uk and enter 'restaurants UK ' in the search box for examples of otherrestaurants doing this.
• Creating a Facebook business page to encourage customer referrals. Facebook pages can be customised with the restaurant's name, logo and other information and regularlyupdated with photos, special offers, events and promotions. Go to www.facebook.com/Zaza.Restaurants and www.facebook.com/MoreRestaurant.
• Advertising in the hard copy and online versions of local business directories such as Yellow Pages (www.yell.com) and Thomson (www.thomsonlocal.com). Google Places(www.google.com/lbc) and Yahoo Local (https://uk.search.yahoo.com/yp) provide freelistings for restaurants by location.
A restaurant requires a number of insurance policies, including: • Public liability insurance, which covers a business against claims from customers, suppliers and members of the public injured or adversely affected as a result of its activities.
• Employers' liability insurance, which is mandatory as soon as the restaurant employs staff.
• Cover for any vehicles used for business purposes, which must include a minimum of third party cover.
• Cover for the theft of stock or cash by staff as well as cover for the loss of cash and cheques from the premises.
• General commercial cover, which will be needed to cover the business's premises, equipment and stock against spoilage, accidental damage, fire, flood, theft and any businessinterruption arising as a result.
Specialist insurance for restaurants including assault cover for staff, as well as cover for winesand spirits, freezer and food stock and loss of licence is available from insurers and brokers suchas Marsh & Co (www.marshcompany.co.uk/restaurants-pubs-insurance) and Premierline Direct(www.premierline.co.uk/restaurant-insurance).
This section is intended as a starting point only. It provides an introduction to some of the keylegislation that regulates the activities of a restaurant. Professional advice about the impact oflegislation should always be obtained before making any business decisions. Relevant legislationincludes: • EC Regulation 852/2004 and 853/2004 covers food hygiene, registration of premises, cleanliness, provision of equipment and facilities and temperature control. It introduced theconcept of Hazard Analysis Critical Control Point (HACCP), which involves documenting foodsafety management practices.
• The Food Safety and Hygiene (England) Regulations 2013, and the General Food Regulations 2004 and Food Hygiene Regulations 2006, which apply in Scotland, Wales and NorthernIreland, require that food provided by food business establishments such as restaurants BOP021 · Restaurant Cobweb Information Ltd, 2014 is safe, that labelling and presentation does not mislead customers, that the proprietorcan trace the origin of their supplies and that they withdraw or recall any unsafe food. InNorthern Ireland the General Food Regulations (Northern Ireland) 2004 apply.
• The Food Labelling Regulations 1996 set out the requirements for the labelling of food in Great Britain. A separate but similar law applies in Northern Ireland; the Food LabellingRegulations (Northern Ireland) 1996. As from 13 December 2014, new food labellingrequirements will come into force under the Food Information to Consumers Regulation (EU)1169/2011(EU FIC), replacing the 1996 Regulations.
• The Food Information Regulations 2014, which are to be introduced in the UK in stages between 2014 and 2016 will extend current food labelling laws and place additional legalobligations on restaurants in relation to the provision of allergen and nutrition informationon loose products, improved date marking and clarity and legibility of information providedon food and drink labels and menus.
• The Licensing Act 2003 (England and Wales), the Licensing (Scotland) Act 2005 and the Licensing (Northern Ireland) Order 1996 govern the licensing of premises used to sell alcoholacross the UK.
• The Weights and Measures (Intoxicating Liquor) Order 1988 (as amended) regulates the volumes in which alcohol can be sold. In Northern Ireland the Weights and Measures(Northern Ireland) Order 1981 applies.
• The Organic Products Regulations 2009 outline details of the registration and inspection system for organic food produced and sold in the UK, define 'organic' and implement the EUdirective on labelling and storing organic food products.
• The Management of Health and Safety at Work Regulations 1999 require employers and self- employed people in Great Britain to carry out health and safety risk assessments and provideadequate health and safety training for employees. In Northern Ireland the Regulations arethe Management of Health and Safety at Work Regulations (Northern Ireland) 2000.
• The Control of Substances Hazardous to Health Regulations 2002 (COSHH) require employers in Great Britain to reduce the risk posed to employees and customers byidentifying health hazards, introducing controls and monitoring their effectiveness. InNorthern Ireland, the Control of Substances Hazardous to Health Regulations (NorthernIreland) 2003 (COSHH) apply.
• The Provision and Use of Work Equipment Regulations 1998 apply in Great Britain and require equipment used in the workplace to be suitable for its purpose, maintained in goodworking order and inspected regularly. Employees should be trained to use equipmentsafely. The Provision and Use of Work Equipment Regulations (Northern Ireland) 1999 applyin Northern Ireland.
• The Personal Protective Equipment (PPE) at Work Regulations 1992 apply in Great Britain and specify the circumstances in which protective equipment must be supplied and used,such as in situations where employees may be at risk from exposure to hot temperatures orcontact with corrosive materials such as cleaning products. In Northern Ireland, the PersonalProtective Equipment at Work Regulations (Northern Ireland) 1993 apply.
• The Highways Act 1980 applies in England and Wales and gives local authorities in charge of public highways the power to require traders to seek permission to place A-boards or BOP021 · Restaurant Cobweb Information Ltd, 2014 outdoor furniture outside the premises. Similar but separate legislation applies in Scotlandand Northern Ireland.
• The Environmental Protection Act 1990 applies in Great Britain and governs the handling and disposal of trade waste. In Northern Ireland, relevant legislation includes the ControlledWaste (Duty of Care) Regulations (Northern Ireland) 2002.
For practical start up and small business tips, ideas and news, go to:Website: www.enterprisequest.com To access hundreds of practical factsheets, market reports and small business guides, go to:Website: www.scavenger.net UK Market Synopsis 9 Eating Out BOP 16 Contract CatererBOP 85 Fast Food TakeawayBOP 86 Mobile TakeawayBOP 140 Sandwich ShopBOP 295 Sandwich Delivery ServiceBOP 391 Coffee Shop Institute of HospitalityTel: (020) 8661 4900Website: www.instituteofhospitality.org British Hospitality Association (BHA)Tel: (020) 7404 7744Website: www.bha.org.uk British Institute of Innkeeping (BII)Tel: (01276) 684449Website: www.bii.org.uk The Scottish Licensed Trade Association (SLTA)Tel: (0131) 272 2773Website: www.theslta.co.uk DISCLAIMER While all reasonable efforts have been made, the publisher makes no warranties that this
information is accurate and up-to-date and will not be responsible for any errors or omissions in the information
nor any consequences of any errors or omissions. Professional advice should be sought where appropriate.
Cobweb Information Ltd, Unit 9 Bankside, The Watermark, Gateshead, NE11 9SY.
Tel: 0191 461 8000 Website: www.cobwebinfo.com
BOP021 · Restaurant Cobweb Information Ltd, 2014
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