Disclosure: This article is written by Shaun McManus, founder of SmartPubTools and creator of the Restaurant Console. All operational claims reflect genuine experience at Teal Farm Pub, Washington.
What Licences Does a UK Restaurant Need in 2026?
Key Takeaway: Any UK restaurant selling alcohol must hold a Premises Licence under the Licensing Act 2003 and must have a named Designated Premises Supervisor (DPS) who holds a Personal Licence. Operating without a licence risks prosecution, fines up to £20,000, and closure. Background music, late-night food, and specific entertainment types also require licence conditions to cover them.
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By Shaun McManus | Last Updated: May 2026
Licensing compliance is one of the most consequential areas for any restaurant operator. A breach — whether operating outside permitted hours, selling to under-18s, or failing to maintain required records — risks licence review, suspension, or revocation. This guide covers the core requirements under the Licensing Act 2003 and what you must have in place.
The Four Licensing Objectives
All licensing decisions in England and Wales are made against the four licensing objectives under the Licensing Act 2003: the prevention of crime and disorder; public safety; the prevention of public nuisance; and the protection of children from harm. Your premises licence conditions will be designed to promote these objectives — know them, because any review of your licence will be argued against them.
What Licences a UK Restaurant Needs
| Licence type | Required for | Issued by | Cost |
|---|---|---|---|
| Premises Licence | Selling alcohol, regulated entertainment, late-night refreshment (food after 11pm) | Local Licensing Authority | £100-1,905 (based on rateable value) |
| Personal Licence | DPS must hold one; also authorises other personal licence holders to sell alcohol | Local authority | £37 (one-off) |
| Food Business Registration | Any food business — must register with local authority 28 days before opening | Local Environmental Health | Free |
| Music licence (PPL PRS) | Playing recorded music to the public (background music) | PPL PRS Ltd | From ~£200/year depending on venue size |
| TV licence | Any TV equipment or BBC iPlayer use on premises | TV Licensing (BBC) | £174.50/year (2026) |
Designated Premises Supervisor (DPS) — What This Means
The DPS is the named person responsible for the day-to-day management of the premises in relation to the sale of alcohol. There must be one DPS per premises licence. The DPS must hold a Personal Licence (requires Award for Personal Licence Holders — APLH — qualification and a Disclosure and Barring Service check).
The DPS does not need to be on the premises at all times — but they are legally responsible. If the DPS leaves the business, the licence holder must apply to substitute a new DPS within a reasonable time. Operating without a DPS in place is a breach of licence conditions.
Premises Licence Conditions — What You Must Comply With
Your premises licence will contain mandatory conditions (set by law — cannot be altered) and conditions attached by the licensing authority at grant. Read your licence conditions carefully. Common conditions for restaurants include: Challenge 25 policy (proof of age requested for anyone appearing under 25), CCTV requirements, preventing supply of alcohol to intoxicated persons, and specific hours for different licensable activities.
Mandatory conditions include: no irresponsible promotions, free tap water must be provided on request, a Challenge 25 age verification policy must be in place, and measures to prevent the alcohol being passed to someone under 18.
Annual Licence Fee and Review
Premises licences have an annual fee based on rateable value — ranging from £70/year (Band A, rateable value up to £4,300) to £350/year (Band D, rateable value £33,001-87,000). Late payment of the annual fee results in the licence lapsing — which means you cannot sell alcohol until it is reinstated.
Any responsible authority (police, environmental health, local authority) or any person can apply for a licence review if they believe the premises is not promoting the licensing objectives. A review can result in modification of conditions, suspension, or revocation. Keep records — including refusals of service, Challenge 25 refusals, and incident logs — as evidence of good management.
Licensing and Your Compliance Records
Your premises licence compliance links directly to your broader food safety and health and safety obligations. See the EHO inspection checklist for how licensing documentation fits into the wider inspection framework, the fire safety checklist for premises safety compliance, and the restaurant opening checklist for daily operational compliance checks.
The Restaurant Console Safety Deck module covers full compliance including licensing, H&S, and EHO preparation — with the Annual Compliance module tracking 6-monthly and annual compliance tasks including licence fee renewal dates.
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Frequently Asked Questions
What licence does a restaurant need to sell alcohol in the UK?
A Premises Licence under the Licensing Act 2003, with a named DPS who holds a Personal Licence. Operating without a licence risks prosecution, fines up to £20,000, and closure.
What is a Designated Premises Supervisor (DPS)?
The named person responsible for day-to-day alcohol sales management. Must hold a Personal Licence (APLH qualification + DBS check). One DPS per premises licence — if they leave, a replacement must be applied for promptly.
How much does a UK restaurant premises licence cost?
Application: £100-1,905. Annual fee: £70-350. Both based on rateable value. Personal Licence: £37 one-off. Late annual fee payment causes the licence to lapse.
What is the Challenge 25 policy for restaurants?
A mandatory licence condition — request proof of age from anyone appearing under 25. Accepted ID: passport, photocard driving licence, PASS-accredited card. Refusals must be recorded.
Does a restaurant need a food business registration?
Yes — register with local authority Environmental Health at least 28 days before opening. Free and cannot be refused. Without it, no scheduled EHO inspection and no food hygiene rating.
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