Sales Contract Template for Hospitality Businesses (UK 2025)
Last updated: February 2025
Why Hospitality Businesses Need a Sales Contract
Hospitality sales contracts formalise major catering agreements, corporate dining contracts, event series arrangements, and hospitality supply agreements where the ongoing value justifies a formal contract. These must address menu pricing with provisions for ingredient cost fluctuations, minimum volume commitments, quality standards and compliance requirements, and the logistical complexities of large-scale or multi-event catering. The contract should also address staff welfare provisions when the hospitality provider's team works on the client's premises.
Key Clauses for Hospitality
- Menu pricing with ingredient cost adjustment mechanism
- Volume commitments and minimum order guarantees
- Quality standards, compliance requirements, and audit rights
- Staff welfare provisions for team working on client premises
Common Mistakes
- Not including a mechanism for adjusting menu pricing when ingredient costs fluctuate significantly, locking in unsustainable prices
- Failing to address staff welfare including break facilities, changing rooms, and parking when the hospitality team works on client premises
Template Sections
- Menu pricing and cost adjustment mechanism
- Volume commitments and order scheduling
- Quality standards and compliance audit provisions
FAQ
How should a hospitality sales contract handle food price inflation?
Include a price review mechanism triggered either quarterly or when a specified ingredient cost index changes by more than a defined percentage, typically 5-10%. The mechanism should reference an independent index such as the CPI food and drink component, require notice before implementing increases, and allow the client to request menu modifications to manage costs while maintaining quality standards.
What quality standards should a hospitality sales contract specify?
Define quality standards by reference to food hygiene ratings with a minimum acceptable score, specific accreditations required such as Soil Association or Red Tractor, agreed supplier lists for key ingredients, and presentation standards documented with photographs. Include the client's right to conduct announced and unannounced quality audits, and specify remediation procedures and timelines for any standards failures.
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Get Started FreeThis is guidance for UK businesses, not legal advice. Templates are illustrative. Consult a solicitor for complex matters.
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