How to Open a Restaurant in the UK: A Step-by-Step Guide for 2026

To open a restaurant in the UK you need a workable concept and funding, premises with the right planning use, a food business registration at least 28 days before you trade, a premises licence if you will sell alcohol, the right tax and insurance set-up, and staff whose right to work you have checked. Plan for 6 to 12 months from concept to opening night, and build your timeline backwards from the 28-day registration rule and the licensing process. This guide covers each step for England, with notes where Wales, Scotland and Northern Ireland differ.

Step 1: Concept, funding and business structure

Start with the numbers, not the menu. Decide who you serve, what an average guest will spend, how many covers a day you need to break even, and how much cash you need to survive the first months. Our restaurant business plan guide has a copyable outline and a worked covers-times-spend forecast, and the menu price calculator helps you set prices against a target gross profit.

You also need a legal structure. GOV.UK says most businesses register as a sole trader or a limited company:

• Sole trader: simplest to set up, but you are personally responsible for all the business's debts (unlimited liability). You register for Self Assessment if you earn more than £1,000 in a tax year.
• Limited company: legally separate from the people who own it, with liability limited to your investment, but directors must file accounts and company tax returns and follow rules on taking money out. You register before trading.

Companies pay Corporation Tax at 19% on profits of £50,000 or less and 25% on profits over £250,000, with marginal relief between. Many restaurateurs use a limited company because the lease, supplier credit and staff liabilities are significant, but take advice from an accountant on your own position.

Step 2: Premises, planning use and business rates

Most restaurants need to be in a unit with the right planning use. In England, under the Planning Portal's use classes, Class E(b) covers the sale of food and drink for consumption mostly on the premises, and Class E also includes shops and offices, so changing between those uses does not normally need planning permission. A hot food takeaway (mostly eaten off the premises) is "sui generis", as are pubs, wine bars and drinking establishments, so a change to those uses needs a planning application. Rules differ in Wales, Scotland and Northern Ireland, and your lease may restrict use further, so confirm both with the council and your solicitor before signing.

Before you sign a lease, check:

• the permitted use in the lease, and any restrictions on opening hours, extraction and music
• whether an extraction flue, grease trap and drainage can be installed or already exist
• who is responsible for repairs, and any rent-free fit-out period
• capacity for the covers your plan needs, plus fire exits and accessible toilets

You will also need a fire risk assessment for the premises.

Business rates (England). Your council bills business rates on the rateable value of the property. Since the 2026 revaluation, England has lower multipliers for qualifying retail, hospitality and leisure properties. For 2026/27 the government's notification to councils sets the multiplier at 38.2p for a hospitality property with a rateable value under £51,000 and 43.0p from £51,000 to £499,999, and the qualifying guidance lists restaurants, cafes, takeaways, pubs and bars. Illustration: a restaurant with a £30,000 rateable value at 38.2p pays £11,460 a year before any relief. Small business rate relief only applies below £15,000 rateable value. Scotland, Wales and Northern Ireland run their own systems. Check the property's rateable value on the Valuation Office Agency website before agreeing rent, because rates can be a large annual cost.

Step 3: Register your food business, hygiene and allergens

You must register with your local authority at least 28 days before you start trading. GOV.UK says to do this online through the registration portal, and the FSA says registration is free and cannot be refused. Wait until about 28 days before you expect to open rather than registering months early. Register each site separately.

Prepare these before the first inspection:

• A food safety management system. The FSA says you must use HACCP-based procedures, and its Safer Food, Better Business packs are the usual route. Our food hygiene rating guide explains how the inspection is scored and how to aim for a 5.
• Allergen information and training. Every non-prepacked dish needs allergen information for the 14 allergens. See our Natasha's Law guide and allergen matrix template.
• Traceability records of your suppliers and any businesses you supply.
• Pest control, cleaning schedules and temperature logs from day one.

Step 4: Alcohol and late-night licences

In England and Wales, selling alcohol needs a premises licence from your council under the Licensing Act 2003, and the person who will run day-to-day sales is named as the designated premises supervisor (DPS), who must hold a personal licence. GOV.UK's alcohol licensing guidance explains that you do not need a personal licence to be employed in a licensed venue, but the premises needs a DPS who holds one. Providing hot food or hot drink to the public between 11pm and 5am is "late night refreshment" and generally needs its own authorisation, even if you serve no alcohol (Licensing Act 2003, Schedule 2).

Fees are set nationally by the Licensing Act 2003 (Fees) Regulations 2005 and depend on the premises' rateable value band:

For premises used exclusively or primarily to sell alcohol for consumption on the premises, the Band D fees are multiplied by two and the Band E fees by three, so a pub-style Band E venue pays £1,905 to apply and £1,050 a year. A personal licence application costs £37, according to council fee schedules. A new premises licence application is advertised, and responsible authorities and local residents typically have 28 days to make representations, so start early. If there are relevant objections the council must hold a hearing. Scotland and Northern Ireland have separate licensing laws.

Step 5: Tax, insurance, payroll and right to work

VAT. Register if your taxable turnover over the last 12 months is over £90,000, or you expect to pass it in the next 30 days. HMRC's catering notice says supplies in restaurants and cafes, and hot takeaway food, are standard-rated at 20%, and a service charge is standard-rated, while a tip freely given above your total charge is not subject to VAT. See restaurant VAT.

PAYE. Register as an employer before your first payday. For 2026/27, employer National Insurance is 15% above a £5,000 a year secondary threshold, and the Employment Allowance can cut your bill by up to £10,500 a year if you are eligible.

Minimum wage. From April 2026 the National Living Wage is £12.71 an hour for those 21 and over, £10.85 for 18 to 20 and £8.00 for under-18s and apprentices. Work out your wage bill before you sign a lease; see restaurant labour cost percentage. If you collect tips or a service charge, you also need a written policy. See our tronc and tips guide.

Insurance. You must hold Employers' Liability insurance covering at least £5 million as soon as you employ anyone (the fine for being uninsured is £2,500 a day). Also arrange public liability, buildings and contents or tenant's cover, stock and equipment cover, and business interruption cover, and ask a broker about product liability for food.

Right to work. Check every worker's right to work before they start, using the online share code service, original documents or an approved identity service provider. Keep copies for the length of employment plus two years. You can face a civil penalty of up to £60,000 for each illegal worker if you did not carry out correct checks.

Step 6: Fit-out, systems and soft launch

Order long-lead items such as extraction and refrigeration early, and give your contractor a firm date for gas, electrical and fire sign-offs. Typical order of work: strip-out and services, ventilation and drainage, kitchen and bar fit-out, front-of-house finishes, then equipment and furniture.

Pick your booking, point-of-sale and payment systems before the fit-out ends, because they affect hardware positions and printer routing. TablePort runs POS, reservations, rotas and stock on tablets you already own, with the POS from £49 a month ex VAT per location, reservations at £49 a month ex VAT and no setup fees or per-cover fees; the 30-day free trial (no card required) lets you load your menu and test tickets before opening. Compare options in our restaurant EPOS guide and booking system guide.

Run at least two soft-launch services (friends and family, then a limited public night) with a reduced menu. Test the kitchen flow, card payments, printers, allergen process and fire alarm, and fix what breaks before the full launch.

What it costs: an illustrative budget

There is no reliable single national figure for restaurant start-up costs, because a fitted unit being taken over costs a fraction of a shell fit-out. The table below is illustrative planning ranges for a hypothetical 40-seat restaurant in a leased unit, not sourced benchmarks. Replace every line with real quotes. The licensing and registration line uses the statutory fees above.

The wide range is the point: it shows why the business plan and a cash-flow forecast come before you commit to a lease.

A pre-opening timeline

This guide is general information, not legal or tax advice; speak to a solicitor or accountant about your specific situation.