Drinks, Hospitality & Leisure Solicitors

The complex nature of the industry means that hospitality businesses face a unique set of legal challenges. Some of the most common include:

• Licensing and regulatory compliance: Restaurants, bars and hotels must comply with a wide range of local and national regulations. These can include licensing for alcohol and entertainment, health and safety laws, food safety and noise Regulation
• Employment law issues: The hospitality sector has a high employee turnover rate and many staff are engaged on part-time, flexible or zero hours contracts. Issues such as employee disputes, wage and hour concerns, working conditions and discrimination claims can be tricky to navigate
• Commercial contracts and vendor agreements: Hospitality businesses rely heavily on vendors for supplies, services and equipment. Managing and negotiating these contracts can be complex, particularly when disputes arise over terms or payment
• Property and lease agreements: Many businesses operate under leases or own commercial properties. Legal issues often arise related to lease negotiations, rent reviews, service charges and tenant obligations
• Brand protection: Brand is a key asset for many businesses. Protecting and exploiting your brand and enforcement of intellectual property rights can be vital. Equally important is brand promotion through advertising and sales promotion
• Data protection: With increased reliance on digital systems for customer data and payments, hospitality businesses must be vigilant about data protection.

The industry is subject to various regulations that govern its operations. Some of these include:

• Health and safety: Ensuring employee and guest safety through safety standards, food handling and sanitation laws
• Labour laws: Complying with the national minimum wage, working time regulations, right to work checks, employment rights and anti-discrimination regulations
• Consumer protection: Ensuring truthful advertising and fair treatment of guests, as well as customer rights and data privacy.
• Environmental laws: Adhering to waste management, sustainability and energy efficiency standards
• Licensing: Obtaining the appropriate licences to operate, including alcohol licences, temporary event notices (TENs) and late night refreshment licenses
• Accessibility: Providing accessible services in accordance with the Equality Act.

Start by understanding the relevant laws in your area and industry. Develop a clear health and safety policy that outlines procedures and responsibilities for your employees. Conduct regular risk assessments to identify potential hazards and implement measures to minimise them.

Ensure to provide ongoing safety training to staff, covering emergency procedures and equipment use. Always keep equipment well-maintained and your premises organised to prevent accidents.

Regularly review and update your policies to stay compliant with changing regulations and seek specialist advice from our hospitality solicitors to ensure full compliance. 

Our expert in hospitality law, Leo Skinner, Partner explains why you might consider hiring one of our lawyers to support your hospitality business:

"Seeking the appropriate legal advice is crucial for protecting your business in an industry with so many regulatory and operational complexities. From navigating licensing laws to negotiating  contracts and commercially addressing liability concerns, a hospitality lawyer's expertise ensures that your business remains compliant and well-prepared for any legal challenges."

The Licensing Act 2003 applies in England and Wales.

However, Licensing Authorities are all legally required to publish a Statement of Licensing Policy which details how the Licensing Authority will promote the four licensing objectives. This will include relevant details specific to the area, including the existence of a CIZ, in the event that a CIZ exists this raises a rebuttable presumption that new licence and variation application in the designated location will be refused and so requires special consideration.

It's important to minimise delays in negotiating lease agreements by agreeing a standard set of model terms which avoids repeating instructions, to understand compromise positions and client's "red lines" to encourage swift negotiation and settlement of documents

Include flexibility wherever possible to allow occupiers to maximise the freedoms to reflect operational requirements of tenants. It is important to understand that operational requirements includes the ability to rebrand and refit premises as brands go in and out of fashion.

It's also key to have clear exit strategies to allow flexibility in managing potential closures and restructuring of businesses. Seek specialist advice from our hospitality lawyers to help navigate the documentation.

If you are a buyer it is important to consider whether you are going to continue trading without a break or whether you are going to close for refurbishment.

If you are a seller it is important to consider what assets are yours to sell and how you procure services from suppliers. You should also seek advice from our specialist hospitality tax lawyers regarding VAT and Capital Allowances and to prepare properly for a sale.

Issues to consider might be how to deal with bookings and deposits, supply contracts, transfer of the premises licence and any gaming permit, TUPE consultation of employees, transfer of website and social media accounts, VAT opt to tax, Capital Allowances S.198 elections, transfer of wet and dry stock, as well as transfer of loose trade furniture, effects, plant and equipment.