Introduction
Opening a coffee shop involves far more than finding the right premises and sourcing good beans. Before you serve your first customer, you need to satisfy a set of legal requirements and the licensing side of things is where many first-time owners get caught out.
Some licences are mandatory for every coffee shop. Others depend on what you plan to offer. Getting them wrong, or missing them entirely, can result in fines, forced closure, or a delayed opening. This guide sets out exactly what you need, when you need it, and what it typically costs.
For a complete overview of setting up your business, see our guide on how to start a coffee shop in the UK.
Do You Need a Licence to Open a Coffee Shop in the UK?
Yes, though the specific licences required depend on what your coffee shop does.
Every coffee shop in the UK must register as a food business. Beyond that, the licences you need depend on whether you plan to sell alcohol, play music, offer outdoor seating, or operate after 11pm. A straightforward daytime café serving coffee and food has a lighter compliance burden than one offering evening events, live music or a wine list.
The key distinction to understand early: some requirements are mandatory and universal, others are triggered by specific activities. Knowing which is which saves time and money.
Food Business Registration
This is the single most important step and the one that applies to every coffee shop without exception.
Under the Food Safety Act 1990, any business that prepares, stores or sells food must register with its local authority as a food business. This includes coffee shops of every size and format.
The key facts:
- Registration is free of charge
- You must register at least 28 days before opening
- It is done online through your local council
- Failure to register is a criminal offence, regardless of the fact that it costs nothing
Once registered, your local authority will arrange a food hygiene inspection. Inspectors assess your food handling processes, storage conditions and staff training against UK food safety standards. The result is a Food Hygiene Rating — the score displayed in your window. A rating of 4 or 5 is what most customers expect to see.
If your menu includes meat, fish, dairy or egg products, you may also need food premises approval in addition to basic registration. Check with your local council before opening.
Do You Need a Premises Licence?
Not every coffee shop needs a premises licence, but many do, and the consequences of operating without one when required are serious.
A premises licence is required if your coffee shop plans to:
- Sell alcohol at any time including wine with afternoon tea or spirits in cocktails
- Serve hot food or hot drinks between 11pm and 5am
- Provide regulated entertainment - live music, recorded music for dancing, film screenings or similar
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A standard daytime café serving coffee and food with background music does not automatically require a premises licence. However, the moment alcohol appears on the menu, even occasionally, one becomes mandatory.
If you do need a premises licence, you must also appoint a Designated Premises Supervisor (DPS), a named individual who holds a personal licence and takes responsibility for the licensable activities. This can be you, provided you obtain a personal licence first.
Applications go to your local licensing authority. Allow several weeks for the process and plan for possible objections from local residents or other authorities.
Music and Alcohol Licences
Music licensing catches many coffee shop owners off guard. If you play music in your café — whether that is a Spotify playlist, the radio, or a live performer — you are likely to need licences from both PPL and PRS for Music. These are separate organisations that represent different rights holders, and both licences are typically required.
The cost varies based on the size of your venue and how music is used, but combined annual fees for a small independent café are generally modest. The key point is that streaming services like Spotify do not include a commercial licence; playing a personal account in a business setting without PPL/PRS cover is a breach of copyright.
Alcohol licensing is a more involved process. In addition to the premises licence, any staff member who directly supervises or authorises alcohol sales needs a personal licence, obtained by passing the Level 2 Award for Personal Licence Holders (APLH). If you only plan to serve alcohol at occasional events rather than regularly, a Temporary Event Notice (TEN) may be a more proportionate route; up to 15 TENs per premises per year are permitted.
Planning Permission
Planning permission is a separate matter from licensing and one that is frequently overlooked until it causes a problem.
If your chosen premises is already operating as a café or restaurant, you are unlikely to need planning permission. However, if the building is currently used for retail, office or another purpose, you will need to apply for a change of use to Class E (which covers cafés, restaurants and similar uses in England).
You should also be aware that:
- Outdoor seating on the pavement requires a pavement licence from your local authority, separate from any planning considerations
- Significant structural changes to the building new signage, external alterations — may require planning consent
- Listed buildings carry additional restrictions that affect what you can alter
Check with your local planning authority before signing a lease or committing to a fit-out. A planning issue discovered after contracts are exchanged is considerably more expensive than one identified beforehand.
How Much Do Coffee Shop Licences Cost?
| Licence or registration | Typical cost | Notes |
|---|---|---|
|
Food business registration |
Free |
Must be completed 28 days before opening |
|
Premises licence application |
£100–£1,905 |
Varies by rateable value of property |
|
Premises licence annual fee |
£70–£500+ |
Ongoing; varies by local authority |
|
Personal licence (for alcohol) |
£37–£70 |
Plus APLH training course: ~£100–£150 |
|
PPL music licence |
£100–£300/yr |
Depends on venue size |
|
PRS for Music licence |
£100–£300/yr |
Required alongside PPL |
|
Pavement licence |
£100–£500 |
Set by local authority |
|
Temporary Event Notice |
£21 per notice |
Up to 15 per premises per year |
The total licensing cost for a straightforward daytime café without alcohol is relatively modest, primarily the music licences and any pavement licence if you have outdoor seating. Adding alcohol to the mix increases both the complexity and the cost significantly.
Common Mistakes When Applying for Licences
Leaving food business registration too late.
The 28-day requirement is fixed. Registering the week before you want to open is not possible, and opening without registration is an offence.
Assuming a premises licence covers music.
A premises licence and a music licence are different things issued by different bodies. One does not replace the other.
Playing music without PPL and PRS cover.
This is one of the most common compliance oversights in hospitality. A streaming subscription is not a commercial licence.
Not checking the existing use class of your premises.
Signing a lease on a retail unit and then discovering you need planning permission for change of use can delay opening by months.
Forgetting the Designated Premises Supervisor requirement.
If you plan to serve alcohol, someone on the team needs a personal licence before the premises licence can be granted – not after.
Pro Tip: Start Licensing Early
The single most effective piece of advice for any prospective coffee shop owner: start the licensing process earlier than you think you need to.
Food business registration has a 28-day minimum lead time. Premises licence applications typically take several weeks and can attract objections that extend the process further. Planning applications for change of use can take eight to thirteen weeks. None of these timelines are negotiable, and they all run in parallel with everything else you are trying to do before opening.
Map out your licensing requirements on the same day you identify your premises. Then work backwards from your target opening date to confirm that each deadline is achievable. The founders who open on time are almost always the ones who started this process first.
How Livingstones Accountants Can Help
Licensing is the legal foundation of your coffee shop, but it sits alongside a set of financial and compliance obligations that are equally important to get right from the start.
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Chartered Certified Accountants
The structure you choose for your business affects how much tax you pay and how you pay yourself. VAT rules for food and drink are more complex than most new owners expect. Payroll, PAYE and auto-enrolment all carry penalties if mishandled.
At Livingstones, we work with coffee shop owners from the point of incorporation through to ongoing compliance. We help with business structure and tax setup, VAT registration and advice, payroll management and cash flow planning so that the financial side of your business supports your operation rather than complicating it.
020 8903 9538
Conclusion
The licensing requirements for a UK coffee shop are manageable — but only if you approach them systematically and in good time. Food business registration is non-negotiable and free. Music licences are widely missed and legally required. Alcohol adds a layer of complexity that demands separate planning.
Understanding what applies to your specific concept before you sign a lease or commit to a fit-out is the difference between a smooth opening and an expensive delay. Start early, check each requirement against your planned offering, and take advice where the rules are unclear.
FAQ
Every coffee shop must register as a food business with its local authority — this is free and mandatory. Additional licences depend on your offering: a premises licence if you sell alcohol or operate after 11pm, music licences if you play background music, and a pavement licence if you have outdoor seating.
Yes. Food business registration is free of charge and is completed online through your local council. You must register at least 28 days before opening. Failing to register is a criminal offence regardless of the fact that there is no fee.
Not automatically. A premises licence is required if you plan to sell alcohol, serve hot food or drinks after 11pm, or provide regulated entertainment such as live music. A standard daytime café without alcohol does not require one.
No. Playing music in a commercial setting requires licences from both PPL and PRS for Music. A personal streaming subscription does not cover commercial use, and operating without the correct music licences is a breach of copyright.
Several weeks at minimum, and potentially longer if objections are raised during the consultation period. Apply as early as possible ideally at the same time as you begin your fit-out.
