Every Contract a Restaurant Needs in the UK (2025)
Last updated: February 2025
Legal Requirements for a Restaurant
UK restaurants must comply with food safety legislation including the Food Safety Act 1990, the Food Safety and Hygiene (England) Regulations 2013, and EU-retained Regulation (EC) 852/2004. The Food Information Regulations 2014 require allergen information to be provided. A premises licence under the Licensing Act 2003 is needed for alcohol and late-night refreshment. Employment law including the National Minimum Wage Regulations 2015 applies, with specific rules on tip distribution under the Employment (Allocation of Tips) Act 2023. Commercial lease terms are governed by the Landlord and Tenant Act 1954.
Essential Contracts
The single biggest financial commitment — must address rent reviews, break clauses, permitted use, alterations, and Landlord and Tenant Act 1954 protection or exclusion
Required from day one under the Employment Rights Act 1996, with specific considerations for tips, tronc schemes, split shifts, and the hospitality sector's flexible working patterns
Contracts with food and beverage suppliers covering quality standards, delivery schedules, allergen information provision, and pricing terms
Legally required documented food safety management procedures based on HACCP principles under Regulation (EC) 852/2004
Recommended Contracts
Terms with Deliveroo, Uber Eats, or Just Eat covering commission rates, menu pricing, delivery standards, and liability for food quality
Formal documentation for tip distribution under the Employment (Allocation of Tips) Act 2023 — must be fair, transparent, and consistently applied
Terms for private dining, event catering, and venue hire covering deposits, cancellation, minimum spend, and liability
Common Legal Risks for a Restaurant
- Lease obligations exceeding the restaurant's financial capacity without adequate break clauses or rent review caps
- Food safety prosecution and closure by Environmental Health Officers for non-compliance
- Employment tribunal claims for unpaid wages, holiday pay, or unfair tip distribution
- Allergen incident liability under the Food Information Regulations 2014 — potentially criminal prosecution
- Delivery platform disputes over commission rates, pricing control, and responsibility for food quality issues
Industry-Specific Notes
The Employment (Allocation of Tips) Act 2023 requires restaurants to distribute tips, gratuities, and service charges fairly and transparently. A written tipping policy must be available to workers. The Licensing Act 2003 premises licence conditions must be strictly complied with — breach can result in licence revocation. Consider whether the commercial lease is inside or outside the Landlord and Tenant Act 1954 — this affects renewal rights.
FAQ
What are a restaurant's legal obligations for allergen information?
Under the Food Information Regulations 2014 (Natasha's Law), restaurants must provide written allergen information for all pre-packed and pre-packed for direct sale food, listing all 14 regulated allergens. For non-prepacked food (meals served in the restaurant), allergen information must be available on request, either on the menu, a separate allergen matrix, or verbally with a written notice directing customers to ask. Failure to provide accurate allergen information can result in criminal prosecution and, in the worst cases, manslaughter charges.
How does the new Employment (Allocation of Tips) Act 2023 affect restaurant contracts?
The Act requires employers to distribute qualifying tips, gratuities, and service charges fairly among workers. Employers must have a written tipping policy, keep records of tip distribution for 3 years, and make these available to workers on request. The allocation must be fair — meaning relevant factors can include role, seniority, and hours worked, but the employer cannot retain any portion. Workers can bring employment tribunal claims for unfair allocation. Tronc schemes operated by an independent troncmaster remain an option.
Should a restaurant lease be inside or outside the Landlord and Tenant Act 1954?
A lease inside the 1954 Act gives the tenant automatic renewal rights at the end of the lease term, providing security of tenure. A lease outside the Act (contracted out) gives no renewal rights — the landlord can require the tenant to leave at lease end. For restaurants, where location is critical and significant fit-out investment is made, being inside the Act is usually preferable. However, landlords often insist on contracting out. The decision significantly affects your exit strategy and negotiating position at renewal.
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