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The money, the rules, the people and the craft of hospitality — explained by the industry, for the industry.
Money
Tips and the Employment (Allocation of Tips) Act 2023Since October 2024 employers in Great Britain must pass on all tips, gratuities and service charges to workers in full, with no deductions beyond tax.Tronc schemesA tronc is a pooled fund for tips and service charges run by a troncmaster, who decides the allocation independently of the employer.Discretionary service chargeMost UK restaurants add a discretionary service charge, commonly around 12.5 percent, to the bill.Wages and the National Living WageThe National Living Wage is the legal minimum for workers aged 21 and over, with lower National Minimum Wage rates for younger workers and apprentices, and the rates usually rise each April on recommendations from the Low Pay Commission.Holiday pay for irregular-hours workersFor leave years starting on or after 1 April 2024, irregular-hours and part-year workers in Great Britain accrue holiday at 12.07 percent of hours worked in each pay period.Gross profit and menu engineeringGross profit, or GP, is what's left after the cost of the ingredients, usually shown as a percentage of the net (ex-VAT) selling price.Wine markupRestaurants usually price wine as a multiple of the trade price, and the multiple tends to be steepest at the bottom of the list, where house bottles carry fixed costs like glassware, breakage, storage and staff time.Cash handling and theftCash is now a small share of takings in many venues, but it is still where most opportunistic theft happens, alongside comps, voids, sweethearting and free pours.Stock controlStock control is the discipline of knowing what came in, what went out and what should still be on the shelf, so that the gap reveals waste, theft, over-portioning or plain mistakes.Rent and leasesFor most independents the lease is the biggest long-term commitment they will ever sign.Business ratesBusiness rates are a property tax based on a rateable value set by the Valuation Office Agency in England and Wales, with separate systems in Scotland and Northern Ireland.VAT in hospitalityMost food and drink sold in UK restaurants and bars carries the standard rate of VAT, while much cold takeaway food is zero-rated, which creates famous grey areas like hot versus cold and eat-in versus takeaway.Energy costsKitchens, cellar cooling, walk-ins, glasswashers, coffee machines and extraction make hospitality one of the most energy-intensive small-business sectors.Delivery platformsDelivery apps opened up a huge new audience for restaurants, but they come with commission rates that can wipe out the margin on a dish, and the platform rather than the restaurant usually owns the customer relationship and data.Funding a hospitality businessHospitality businesses are funded from a patchwork of sources: personal savings, friends and family, bank loans, asset finance for kitchen kit, government-backed lending schemes, crowdfunding through rewards or equity, angel investors and, sometimes, a landlord contribution to the fit-out.Labour cost percentageLabour cost as a percentage of net sales is one of the core numbers operators watch, alongside food and drink cost, and together they are often called prime cost.Menu pricing psychologyMenus are quietly engineered.ChargebacksA chargeback is when a guest disputes a card payment with their bank and the money is pulled back from you, often weeks later, with a fee on top.Card machine feesEvery card payment costs you something, usually a percentage plus sometimes a fixed fee per transaction.Energy contracts and brokersBusiness energy is not protected like domestic energy.Insurance for hospitalityIf you employ anyone, employers' liability insurance is compulsory by law, and the certificate should be available to staff.Business rates reliefBusiness rates are set from the rateable value of your premises, but many venues pay less thanks to reliefs.
People
Zero-hours contractsZero-hours contracts offer no guaranteed hours, and they are woven through hospitality, from banqueting teams to seasonal bars.Rotas and schedulingA good rota is a balancing act between labour cost, forecast covers and the fact that staff have lives outside the building.BurnoutBurnout in hospitality is best understood as a structural risk rather than a personal failing.Mental health in hospitalityHospitality workers report high levels of stress, anxiety and depression, linked to long and unsocial hours, insecure contracts, easy access to alcohol and a culture that has historically prized toughness over openness.Drinking culture and the staff drinkThe knock-off pint, the shift drink and the after-service session are part of hospitality folklore, a way of decompressing after a hard night together.Drugs in kitchensStimulants have a long and uncomfortable history in professional kitchens, used to survive brutal hours and the comedown that follows a late service.Sexual harassment and the duty to prevent itThe Worker Protection (Amendment of Equality Act 2010) Act 2023 brought in a duty, since October 2024, for employers to take reasonable steps to prevent sexual harassment of their workers.Unions in hospitalityUnion membership in UK hospitality has traditionally been low, held back by high staff turnover, small workplaces, unsocial hours and the fear of being seen as a troublemaker in a tight-knit team.Migrant workers and visasHospitality in the UK has always relied heavily on workers from overseas, and the end of free movement changed recruitment profoundly.ApprenticeshipsHospitality apprenticeships in England cover roles from commis chef and hospitality team member through to supervisor, senior chef and management, combining paid work with structured off-the-job training and an end-point assessment.Diversity and inclusionHospitality floors are among the most diverse workplaces in the country, bringing together people of every background, age and nationality.Staff mealsFamily meal, staff food or the staff tea is one of the most valued perks in hospitality, and its quality says a great deal about how a venue regards its people.Split shiftsA split shift is a working day broken into two, typically lunch service then a gap then dinner.Agency workersAgencies fill gaps for events, banqueting and sudden staff shortages, and some workers prefer the flexibility.Seasonal workSeaside towns, ski chalets, festivals and Christmas all run on seasonal staff.Neurodivergent staffHospitality has always attracted people who think differently, including those with ADHD, autism, dyslexia and dyspraxia.Social media for staffStaff posting from work can be the best marketing a venue never paid for, or a disaster.Night workers and sleepLate closes, overnight hotel shifts and early bakery starts all take a toll on the body.
Rules and law
The Licensing Act 2003The Licensing Act 2003 governs the sale of alcohol, regulated entertainment and late-night refreshment, meaning hot food and drink served between eleven at night and five in the morning, across England and Wales.Personal licence and the DPSIn England and Wales, any premises licensed to sell alcohol must name a Designated Premises Supervisor, and that person must hold a personal licence.Challenge 25 and underage salesChallenge 25 is a policy under which anyone who appears to be under 25 is asked for proof of age before buying alcohol.Food hygiene ratingsThe Food Hygiene Rating Scheme gives food businesses in England, Wales and Northern Ireland a score from 0 to 5 after an inspection by the local authority.Natasha's Law and the 14 allergensUK food law names 14 allergens that must be declared: celery, cereals containing gluten, crustaceans, eggs, fish, lupin, milk, molluscs, mustard, tree nuts, peanuts, sesame, soya and sulphur dioxide or sulphites above a set level.HACCP and food safety managementHazard Analysis and Critical Control Points is the system behind food safety: identify hazards, set critical control points, monitor them, act when things go wrong, and keep records.Health and safety at workThe Health and Safety at Work etc.Fire safetyIn England and Wales the Regulatory Reform (Fire Safety) Order 2005 places duties on a responsible person, usually the employer or whoever controls the premises, to carry out a suitable fire risk assessment and put proportionate measures in place, with equivalent legislation in Scotland and Northern Ireland.Martyn's LawThe Terrorism (Protection of Premises) Act 2025, known as Martyn's Law, places duties on certain public premises and events to prepare for terrorist attacks.Noise, planning and the agent of changeNoise is one of the commonest threats to a venue's survival.Music licensing: PPL PRSPlaying music in a business usually requires permission covering two separate rights: the sound recordings, managed by PPL on behalf of record labels and performers, and the underlying musical works, managed by PRS for Music for songwriters, composers and publishers.Employment contracts and written statementsIn the UK both employees and workers are entitled to a written statement of employment particulars from their first day, covering essentials such as pay, hours, holiday entitlement, place of work, notice periods, sick pay and any probation, with some details allowed in supplementary documents.The late-night levyThe late-night levy lets councils in England and Wales charge premises licensed to sell alcohol late at night a yearly fee towards the cost of policing and managing the night-time economy.Pavement licencesA pavement licence lets you put tables and chairs on the public highway outside your venue.Outdoor seating and smoking areasSmoking has been banned in enclosed and substantially enclosed public places and workplaces across the UK since 2006 and 2007, with England's rules in the Health Act 2006.TUPE when buying a businessIf you buy a restaurant, pub or hotel as a going concern, the Transfer of Undertakings (Protection of Employment) Regulations 2006, known as TUPE, will usually apply.Fake reviews and review extortionFake reviews hurt honest venues and mislead guests.
Safety
Drink spikingSpiking means adding alcohol or drugs to someone's drink, or injecting them, without their knowledge or consent, and it is already a criminal offence under existing laws.Ask for AngelaAsk for Angela is a widely adopted safety initiative that lets someone who feels unsafe, uncomfortable or threatened, perhaps on a date that has gone wrong, ask staff for Angela as a discreet signal that they need help.WAVE and welfare trainingWAVE, which stands for Welfare and Vulnerability Engagement, is training designed for people working in licensed premises and the wider night-time economy.First aid at workThe Health and Safety (First-Aid) Regulations 1981 require employers to assess their first aid needs and provide adequate and appropriate equipment, facilities and trained people.SafeguardingSafeguarding means protecting children and adults at risk from harm, abuse, neglect and exploitation.Lone working and closing safelyLone working is routine in hospitality: the opener receiving deliveries at dawn, the night porter in a hotel, the barista running a small cafe alone, or the last manager cashing up after midnight.Door supervision and conflictAnyone working as a door supervisor at licensed premises in the UK needs a licence from the Security Industry Authority, which requires approved training and identity and criminality checks; in-house staff and contractors are both covered.Allergen handling on the floorAllergen safety depends on the conversation at the table as much as the work in the kitchen.Gas safety and cellar CO2Gas safety in hospitality covers two different hazards.Kitchen heatKitchens in summer can be brutal, with ovens, fryers and dishwashers pushing temperatures far beyond what's comfortable.Manual handling and kegsHospitality is physically demanding.
Craft
Service as a craftGreat service is the art of anticipating needs without hovering.CocktailsCocktail craft is fundamentally about balance: spirit strength, sweetness, acidity, bitterness and dilution held in proportion, with measure, ice and technique controlling each one.CoffeeSpeciality coffee depends on a chain of small decisions: freshly roasted beans, an accurate grinder, consistent dosing, controlled extraction and well-textured milk.Wine serviceWine service covers far more than pulling a cork.Beer and cask aleCask ale is unfiltered and unpasteurised beer that finishes conditioning in the pub cellar, so its quality depends heavily on the cellar team.The kitchen brigadeThe brigade system, developed in classic French kitchens, organises cooks into a clear hierarchy so that a complex service runs like a machine.PlatingPlating is where cooking meets design, balancing height, colour, texture and negative space so a dish reads clearly the moment it lands.BreadBread is often the first thing a guest tastes and the last thing they forget, so it signals how much a kitchen cares.Butchery and nose-to-tailIn-house butchery lets a kitchen buy whole carcasses or primal cuts, control quality and ageing, and use every part of the animal.PastryPastry is the most precise corner of the kitchen.Hotel housekeepingHousekeeping is the invisible engine of every hotel.Menu writing and translationA good menu tells guests what they'll get, in a voice that sounds like the venue.
Operations
Opening a venueOpening a venue means juggling fit-out, licensing, supplier accounts, systems, hiring and training all at once, usually against a rent clock that has already started.Closing a venueClosing a venue is painful, and doing it well matters.No-shows and depositsNo-shows can wipe out a night's margin, particularly in small restaurants where two empty tables make the difference between profit and loss.Hotel revenue managementHotel revenue management is about selling the right room to the right guest at the right price at the right time.Ghost kitchens and dark kitchensA dark kitchen cooks only for delivery, with no dining room.Supplier relationships and credit termsYour suppliers can make or break a venue.Christmas and the festive seasonDecember can make a venue's year, or break its team.
Guests
ComplaintsMost complaints are a chance to turn an unhappy guest into a loyal one, provided they're handled quickly and calmly.Reviews: Google and TripadvisorOnline reviews drive bookings, and the way a venue responds shows future guests how it behaves.RegularsRegulars are the heartbeat of a venue, providing steady revenue on quiet nights, an atmosphere that new guests can feel and word of mouth that no advert can buy.Celebrities and VIPsFamous guests and VIPs mainly want what everyone wants: good food, good service and to be left alone to enjoy it.Dress codesA dress code can set the tone of a venue, but it has to be applied fairly.Accessibility for guestsUnder the Equality Act 2010, service providers must make reasonable adjustments so disabled people aren't put at a substantial disadvantage, and the duty is anticipatory, meaning venues should think ahead rather than wait for a complaint.Assistance dogs and reasonable adjustmentsAssistance dogs help people with sight loss, hearing loss, epilepsy, diabetes, autism and many other conditions.Upselling ethicsUpselling is part of good service when it genuinely helps: suggesting a wine that suits the dish, mentioning a special that's at its best, or offering a side the guest will love.
Culture
TikTok-famous venuesA single viral video can create queues around the block overnight, and that attention can disappear just as fast.InfluencersInfluencer visits can fill tables, but they come with rules.Awards and guidesGuides and awards shape reputations, bookings and careers.Food trendsFood trends move fast, from small plates and sharing boards to smash burgers, natural wine, fermentation, regional Asian cooking and plant-based menus.No and low alcoholDemand for no and low alcohol drinks has grown steadily, driven by health, driving, pregnancy, religion, cost and plain preference.Gen Z going out lessYounger adults are often described as drinking less and going out differently from previous generations, and operators feel it, especially in late-night bars and clubs.Pub culturePubs remain central to British life, acting as living rooms for communities, places to celebrate, mourn and meet neighbours.Hospitality and the night-time economyThe night-time economy covers bars, clubs, music venues, late-night restaurants and the transport, security and support that keep cities alive after dark.Cost of living and going outWhen household budgets tighten, eating and drinking out is among the first things people cut or trade down.
Technology
POS systemsA point-of-sale system is the till, but it's also the nerve centre of a venue.Booking systemsBooking platforms manage table plans, availability, deposits, guest notes and reminder messages, and many integrate with the POS to link spend to each guest.QR orderingQR ordering spread rapidly during the pandemic, when contactless service became a necessity, and it has stayed in many pubs, casual chains and busy venues.AI in hospitalityAI tools are arriving across hospitality: forecasting demand from weather and bookings, drafting rotas, answering phone and online enquiries, writing marketing copy, analysing reviews, predicting stock needs and even pricing hotel rooms.Scheduling appsScheduling apps let managers publish rotas, track hours, approve holidays and allow staff to swap shifts from their phones.Robots and automationRobots and automation are appearing in some hospitality venues, from burger-flipping machines and automated fryers to serving robots that carry plates to tables and conveyor dishwashers that clear racks with little human input.Guest data and UK GDPRBooking details, allergy notes, CCTV footage, loyalty records and marketing lists are all personal data under UK GDPR and the Data Protection Act 2018.Cashless venuesMany bars, cafes and festivals have stopped taking cash, citing speed, security and lower handling costs.
Sustainability
Food wasteFood waste costs hospitality money and carbon, and much of it is avoidable.Energy efficiencyEnergy is one of hospitality's biggest costs, and kitchens are especially hungry with ovens, fryers, extraction, refrigeration and dishwashers often running all day.Local sourcingLocal sourcing supports nearby farmers, growers, fishers and producers, keeps money in the community and gives a menu a story guests love.Packaging, refills and single-use plasticsRules on packaging have tightened steadily.
Careers
Career paths in hospitalityHospitality offers some of the most open career ladders in the economy.Progression and trainingTraining builds skills, confidence and loyalty, and venues that invest in it tend to keep staff longer.Leaving hospitality and coming backMany people leave hospitality for better hours, higher pay, family commitments or burnout, often moving into office jobs, retail, sales or other careers.Moving into managementThe jump from great bartender, chef or server to manager is one of the biggest in hospitality, and it's often made with no training at all.
Starting a business
Writing a business planA business plan sets out what a venue will be, who it's for and how it will make money.ConceptsA concept defines what a venue is, who it's for and why it should exist.Fit-outFit-out turns an empty unit into a working venue, and it's where budgets most often run away.Licensing a new siteIn England and Wales, selling alcohol, providing regulated entertainment or serving hot food late at night generally needs a premises licence under the Licensing Act 2003, while Scotland and Northern Ireland have their own systems.Hiring the first teamThe first team sets the culture of a new venue, so hiring well matters more than hiring fast.FranchisingFranchising lets you open under an established brand, using its recipes, systems, suppliers and marketing in return for an upfront fee, ongoing royalties and often a marketing levy.Buying a pub: freehold, leasehold and tiedThere are three main ways into running a pub.
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