How to open a cafe or restaurant in England: a step-by-step plan

Opening a café or restaurant in England is doable, but it follows a clear sequence of permits and rules. Go through them in order and you will not miss anything. Here is the roadmap: from the business and premises to licences, staff and safety. Rules differ a little in Scotland, Wales and Northern Ireland, and most permits are issued by the local council.

1. The business and the premises

First register the business with HMRC — as a sole trader or a limited company. Then the premises. A key point is the planning use: cafés and restaurants fall under commercial Use Class E, but a hot-food takeaway is separate (sui generis), and a change of use or a powerful extraction system may need planning permission. Check with the council’s planning department and make sure the lease allows the use.

2. Register the food business

Register the premises as a food business with the council — free, and no later than 28 days before opening. You must follow hygiene rules, build HACCP-based procedures (hazard analysis), train staff in food hygiene (usually Level 2), and be ready for inspection and a hygiene rating (0–5). Under “Natasha’s Law” and the general rules you must provide allergen information for your dishes.

3. Alcohol and music

If you plan to serve alcohol you need a premises licence and a responsible person with a personal licence (DPS), plus a Challenge 25 policy. If music plays in the room — recorded or live — you usually need a music licence (TheMusicLicence from PPL PRS), and late-night entertainment may need a separate permission.

4. Tables outside

To put tables and chairs on the pavement, get a pavement licence from the council.

5. Staff

Check every worker’s right to work, give written contracts, and pay at least the minimum (from April 2026, £12.71 an hour for those 21+). Register as an employer for payroll tax (PAYE), set up pension auto-enrolment, and follow working-time and holiday rules. Since 2024, by the tipping law all tips must be passed on to workers in full.

6. Safety

This part is compulsory. Carry out a fire risk assessment (a legal duty of the owner), ensure an annual gas safety check by a Gas Safe engineer, electrical safety, a first-aid kit and trained staff, and strict allergen procedures. The premises itself must meet the hygiene standards for a kitchen.

7. Insurance, waste, tax

Take out insurance: public liability, compulsory employers’ liability, and buildings and contents. Arrange a commercial waste contract and fit a grease trap. Register for VAT if your turnover tops £90,000 a year, and do not forget business rates on the premises.

The order is simple: a business plan and start-up money (fit-out, equipment, deposit), premises with the right planning use, food business registration, then the licences — alcohol, music, tables. Before opening, go through each point with your local council: it issues the permits and inspects venues. This is general information, not personal legal or financial advice.