Compliance in hospitality: a complete guide for business owners

Why is compliance important in the hospitality industry? 

In the hospitality industry, compliance is crucial for several reasons. It's not just about avoiding complaints and fines, but also about protecting your customers and staff from harm. For instance, food safety regulations ensure that the food you serve is safe to eat and doesn't pose a risk of food poisoning or allergic reactions. Health and safety regulations help prevent accidents and injuries to both staff and customers, which is important not only from a legal standpoint but also for your business's reputation in the wider world. 

Compliance is also critical for maintaining trust with your customers. Today's consumers are increasingly aware of the importance of ethical and sustainable business practices, and compliance with regulations and standards related to these issues can help build customer trust and loyalty. It shows that you care about their well-being and the impact of your business on the environment. 

In addition, compliance is a team sport, with all staff members having a role to play in ensuring the business complies with regulations and standards. From front-of-house staff ensuring that food is served safely and correctly, to kitchen staff preparing food hygienically, everyone has a responsibility to play their part in compliance. 

Compliance is important in the hospitality industry as it protects your customers and staff, builds trust and loyalty with customers, and ensures that your business is operating ethically and sustainably. By prioritising compliance, you can create a safer and more trustworthy environment for all involved. 

Areas of compliance you need to consider within your hospitality business 

As a hospitality business owner, it's essential to be aware of the areas of compliance that affect your business. Failure to comply with regulations and standards can lead to fines, legal implications and damage to your reputation.  

Here are some of the key areas of compliance to consider within your hospitality business and the legislation that covers them: 

Food safety  

If your business involves handling, preparing or selling food, you must comply with the Food Safety Act 1990 and related regulations. This includes ensuring that food is safe to eat, properly labelled and stored at the correct temperatures. Kitchen hygiene practices are also paramount and digital checklists are key to achieving the highest standards every day.

Allergens  

Allergen legislation has meant that businesses serving food have had to provide information on 14 specific ingredients that are the most common allergens. Additionally, as of October 2021 Natasha’s Law has required all food businesses to provide full ingredients labelling on food that has been pre-packed for direct sale. Find out more on our detailed explanation of allergen regulation and Natasha’s Law.

Failure to comply with allergen legislation and Natasha’s Law is a criminal offence that could incur severe financial penalties, so it’s essential to monitor the products you create and sell. Your menu management or purchasing system may feature allergen labelling software that can help you accurately monitor allergens in your products.  

Nutrition 

Since 2021, hospitality businesses of a certain size (by number of employees) have been required to provide calorie information on their menus. Failure to comply can result in a fine of up to £2500.

Software that can work out calorie calculations for you can be a massive help, such as our hospitality procurement software which automatically generates nutritional information and allergens for your recipes and products.  

Health and safety 

As a restaurant owner, it is important to ensure that your business operations comply with UK health and safety legislation to ensure the safety of your employees, customers and others affected by your business.

The primary legislation that covers health and safety in all workplaces is the Health and Safety at Work Act 1974. However, for the hospitality industry, there are additional specific regulations and guidelines to follow, such as the Food Safety Act 1990, the Food Safety and Hygiene Regulations 2013, and the Control of Substances Hazardous to Health Regulations 2002. Additionally, the Manual Handling Operations Regulations 1992 and the Health and Safety (First Aid) Regulations 1981 are also relevant.

To ensure compliance with the relevant regulations and best practices, restaurant owners and managers should follow guidance provided by the Health and Safety Executive (HSE) and the Food Standards Agency (FSA). It is important to carry out risk assessments, provide appropriate training, and maintain safe working conditions such as safe equipment, procedures in case of fire, and first aid equipment. 

Facility management compliance 

Part of health and safety is ensuring that your premises are safe. So, this means keeping the facilities suitable for use, such as regularly testing electrical equipment or making sure furniture is well kept, as well as maintaining water systems so they cannot harbour Legionella or other pathogens. Being able to produce evidence of regular maintenance is crucial for Environmental Health Inspections. 

Facility management compliance is covered by the Health and Safety at Work Act 1974 and the Management of Health and Safety at Work Regulations 1999. These regulations require employers to assess the risks associated with their work activities, including those related to facilities management, and take appropriate measures to control and reduce these risks. Other relevant legislation includes the Workplace (Health, Safety and Welfare) Regulations 1992 and the Regulatory Reform (Fire Safety) Order 2005, which requires employers to take measures to prevent and mitigate fire risks in the workplace. 

Alcohol Licensing  

Hospitality businesses in the UK need to comply with various legal requirements when it comes to selling alcohol. The Licensing Act 2003 is the primary legislation governing the sale of alcohol, and it requires businesses to obtain a premises license before they can sell alcohol to customers. Business owners must apply for the license with their local authority and provide details about their business and the proposed sale of alcohol. Personal licenses are also required for staff members who will be responsible for selling alcohol for the business, and these can be obtained from the same authority. 

There are also specific rules around the sale of alcohol, including age verification requirements to ensure that alcohol is not sold to underage customers, and restrictions on the sale of alcohol outside of licensed hours. License holders are also required to have a designated premises supervisor (DPS) who is responsible for the day-to-day running of the business and ensuring compliance with licensing conditions. 

In addition to the Licensing Act, there are other regulations that hospitality businesses must consider, such as the Code of Practice for the Responsible Retail and Promotion of Alcohol and the Mandatory Code for Alcohol Retailers. These codes provide guidance on responsible sales practices and advertising, as well as rules around the provision of free alcohol and promotions. 

Overall, hospitality businesses must be aware of these legal requirements and ensure that they are adhering to them in order to avoid potential fines or even the revocation of their licenses. 

Employment law 

Hospitality businesses must comply with various employment laws to ensure that their staff are treated fairly and the business operates within legal requirements. This includes minimum wage requirements, working time regulations, discrimination laws, and health and safety. 

Under the National Minimum Wage Act 1998, employees must be paid at least the minimum wage, which varies based on age and whether they are an apprentice. Working time regulations limit the number of hours an employee can work in a week and require employers to provide adequate rest breaks. Discrimination laws prohibit discrimination based on protected characteristics such as gender, race, age, and disability. 

In terms of health and safety, businesses must comply with the Health and Safety at Work Act 1974 and other specific regulations such as the Food Safety Act 1990, the Food Safety and Hygiene Regulations 2013, and the Control of Substances Hazardous to Health Regulations 2002. Employers have a duty to ensure the health and safety of their employees and customers, which includes carrying out risk assessments, providing appropriate training, and maintaining safe working conditions. 

Hospitality HR software and rota scheduling tools are useful for ensuring compliance with employment laws in the hospitality industry. They can automate payroll functions, monitor employee working hours, and create fair shift patterns, reducing the risk of burnout or injury. Additionally, these tools can help maintain accurate employee records and track compliance with health and safety legislation. Investing in these tools is an essential step for hospitality businesses looking to remain compliant with employment laws and regulations. 

Data protection  

If you collect and process personal data, you must comply with the General Data Protection Regulation (GDPR) which in the UK is implemented as the Data Protection Act (2018).

This includes ensuring that data is processed lawfully and transparently, and that appropriate security measures are in place to protect it. Modern systems such as booking software, customer relationship management systems and marketing tools collect huge amounts of data, so being compliant in this area is a must. You must also look after your staff data and if you have CCTV installed the recordings also count as data and must be kept securely. 

Tackling compliance in your business

In this article, we’ve outlined some of the most important legislation and guidance that you will have to follow as a hospitality business owner, operator or operations manager.

As a leading provider of checklist and LMS software, Access Hospitality understands the challenges that businesses face when it comes to compliance. Our software solutions are designed to automate tasks, simplify processes and help businesses raise compliance rates across the board. We have worked with a wide range of hospitality businesses, from small independent cafes to large hotel chains, and our software has proven to be effective in streamlining compliance processes.

If you’re looking for answers on how to ensure compliance in your operation, then look no further than this free guide from Access Hospitality that demonstrates how technology can help operators achieve compliance across their business and safeguard their operation.

Download the Complete Tech Guide to Hospitality Compliance today.