Legal Requirements and Considerations for Food and Beverage Management

CHAPTER 12
FOOD AND BEVERAGE
MANAGEMENT
LEGAL CONSIDERATION
PREPARED BY:
NORHASIMAH BINTI HAMIM
SCHOOL OF HOTEL MANAGEMENT
FACULTY OF HOSPITALITY AND TOURISM
MANAGEMENT

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LEARNING OUTCOMES
At the end of this chapter, students will be able to:
 Define the meaning of licenses
 Identify and explain the different types of licenses needed in food and
beverage management
 Learn about discrimination precautions in restaurant operations
 Determine the types of service often offered in a restaurant
 Discuss about customer property and customer debt in foodservice
establishment

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TOPIC OUTLINES
Introduction
12.1 Licensing
12.1.1 Licensing Act
12.1.2 Types of licenses
12.2 Legal Considerations
12.2.1 Contract
12.2.2 Sales of Good and Trade Descriptions
12.2.3 Discriminations
12.2.4 Providing Service
12.2.5 Customer Property and Customer Debt
12.2.6 Data Protection

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INTRODUCTION
 Legal requirements for food &
beverage operations included
 Company law
 Licensing regulations
 Employment law
 How these affect the relationship between the food & beverage operator
and the customer?

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Licensing framework
 Four key objectives:
1. the prevention of crime and disorder
2. public safety
3. the prevention of public nuisance
4. the protection of children from harm
12.1 Licensing

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12.1 Licensing
Requirements include:
 Display of a summary of the premises licence
 Drinks price lists to be displayed
 Restrictions on under-aged persons being served alcohol and
employed to serve alcohol
 The need for an authorised person (or the personal licence holder) to
be on site at all times

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12.1 Licensing
Licensing Act 2003, fundamental objectives
 the prevention of crime and disorder;
 public safety;
 the prevention of public nuisance; and
 the protection of children from harm.
Licensing Act 2003, UK (Guidelines, pdf.files)
12.1.1 Licensing Act

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12.1 Licensing
12.1.2 Types of licenses
24-hour licensing
 Operation hours
 The law does not set permitted
hours and applications may made
to local authorities

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12.1 Licensing
Dual Licenses
 Personal license: required for
those who are going to authorize
sales of alcohol at the premises
 Those wanting to supply liquor in
members club, provide regulated
entertainment or supply hot food
between 11pm to 5am will not
need a personal license

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12.1 Licensing
 Premises License: required for the provision of alcohol license. This
allows ‘licensable activities’ to be provided
 The sales of alcohol
 The supply of alcohol in qualifying club
 The provision of regulated entertainment
 The provision of late night
refreshment

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12.1 Licensing
Other types of licences include:
 Music (live or pre-recorded)
 Dancing
 Gambling
 Theatrical performance and television display
 Supervisor and the staff should be aware of the provisions and
limitations of the licences to ensure compliance

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 Health, safety and security
 Selling goods by weights and measures
 Contracts
 Selling good by description
 Avoiding discrimination
 Providing services
 Customer property and
customer debt
 Data protection

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Important of compliance
 Penalties for non-compliance can be severe, both for the business and
for the management and staff
 Important that all members of staff contribute to ensuring compliance
 The running of licensed premises is regulated by licensing authority and
other bodies concerned with regulatory crime issues; including Health
and Safety, Food Safety, Trading Standard, Disability Discrimination and
Door Security

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Health, safety and security
 Duty to care for all staff and lawful visitors and must not:
 Sell (or keep for sale) food and beverages that are unfit for
people to eat
 Cause food or beverages to be dangerous to health
 Sell food or beverages that are not what the customer is
entitled to expect, in terms of content or quality
 Describe or present food in a way that is false or
misleading

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 A foodservice operator must be able to demonstrate that steps have been taken
to ensure good food hygiene (due diligence)
 The Environmental Health department of a local authority will carry out
inspection of licensed premises.

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 Issues investigated included cleanliness of premises, risk assessment in relation
to the operation
 Environmental Health Officers are concerned with the cleanliness of kitchens,
the storage of food and the temperatures at which the food is maintained as well
as the chemicals used.

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 Under Food Safety Act, severe penalties
can be imposed if there are food and
beverage items for sale that are not of the
substance or quality demanded by the
purchaser.

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 There is a common law duty to care for all lawful visitors
 Establishment must NOT
 Sell food that is unfit for people to eat
 Cause food to be dangerous to health
 Sell food that isn’t what customer is entitled to expect, in terms of content or
quality
 It is important for foodservice operator to be able to demonstrate that steps have
been taken to ensure good food hygiene.
 The ‘due diligence defence’
 Understand the food hygiene regulation
 Notify management of any major illnesses
 Handling food in hygienic manner
 Familiar with fire exits and escape route in the building

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Selling goods by weights and measures
 Generally requires
 Display of the prices and the
measures used for all alcohol
served
 The food and beverage items for
sale to be of the quantity and
quality demanded by the customer
 The use of officially stamped
measures

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Liquid Measures
1 cup 8 fluid ounces 1/2 pint 237 ml
2 cups 16 fluid ounces 1 pint 474 ml
4 cups 32 fluid ounces 1 quart 946 ml
2 pints 32 fluid ounces 1 quart 0.964 liters
4 quarts 128 fluid ounces 1 gallon 3.784 liters
8 quarts one peck 32 cups 16 pints
4 pecks one bushel 128 cups 64 pints
1 gallon 128 fluid ounces 16 cups 4 quarts

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 Beer or Cider
 Unless sold in pre-packed container (quantity must be stated),
beer and cider may only be sold in quantities of 1/3 pint, ½ pint or
multiple of ½ pint
 In capacity measure
(such as lined glass)

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 Spirits
 Whisky, gin, vodka and rum must be sold in 25mls
or 35mls or multiples
 A notice must be displayed indicating the measure
being used in establishment
Bottle Size (1.5 Little)
Metric measure
60 x 25ml

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 Wines
 There is no specific quantity if the wine is sold in sealed container.
 Wine by glass must be sold in quantities of 125ml or 175ml or multiples
of either quantities

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Contract
 Made when one party agrees to the terms of an offer made by another
party; this can be written or verbal
 All foodservice establishments should be clear on:
 circumstances where the operation may seek compensation from
the customer
 taking care when dealing with minors (persons under 18)

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 This include
 Requirement of the table
 Number of pax
 Time
 What if?
 Customer fails to turn up
 Promised menu which is not available
 Customer falling ill
 Restaurant burn down

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Underage sales
 Children who under the age 16 are not allowed in premises that
exclusively or primarily sell alcohol for consumption on the premises.
 Children cannot consume alcohol in licensed premises. The only
exception is if the young 16 – 17 is having table meal and accompanied
by adult. Beer, Wine and cider only.

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Permitting drunkenness in licensed premises
 It is an offence to serve people who are drunk or to permit people who are
drunk to remain on licensed premises.

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Disability discrimination
 To make ‘reasonable adjustments’ the premises to afford access to disable
persons.

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Door Security
 A doorman or bouncer is an informal term for a
security guard employed at venues such as bars,
nightclubs or concerts to provide security, check
legal age, and refuse entry to a venue based on
criteria such as intoxication, aggressive behavior,
or other standards.
 All door staff must be trained and registered.

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Licensing Qualification
 National Certificate for Door Supervisors
 Professional Barperson’s Qualification

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Selling goods by description
 All food, beverages and other services provided must be:
 fit for purpose and of satisfactory quality in relation to price and
description
 accurately described in terms of size, quality, composition,
production, quantity and standard
 All statements of price must be clear and accurate
 Food, beverages and other services correspond to their description
 Times, dates, locations and nature of service are as promised
 Billing is fair, transparent and reflects the prices quoted

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 Sales and supply of Goods Act 1994
 According to the Act, customer can refuse to pay or can demand
replacement if;
 Good supplied do not correspond with the description
 A displayed item is not what it seems
 The goods are inedible

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To ensure compliance:
 Take care when:
 wording menus and wine lists
 describing items to customers
 stating if prices include local and/or
government taxes
 describing conditions such as cover
charges, service charges or extras
 describing the service provision

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Avoiding discrimination
 Discrimination Act: to legislate against discrimination on grounds of
ethnic origins, race, creed, sex or disability
 Acts relating to discrimination on grounds of ethnic origin, race, creed,
sex or disability
 Three types of discrimination:
 Direct discrimination
 Indirect discrimination
 Discrimination through victimisation

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Providing services
 Generally no specific requirement to serve anyone
 Important to be aware of:
 Circumstances where there may be a mandatory requirement to
provide services
 Valid reasons for refusal

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 Reasons for refusal to provide provision might be as follows
 There is no space left on the premises
 The person is intoxicated
 The person is under the influence of drugs
 the person does not comply with dress code
 the person underage
 The person unable to pay for admission charge
 The person is known as trouble maker

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Price lists
 Price Marking Order, prices of food and drink must be displayed in clear
and legible way by person selling by retail for consumption on the premises
 This does not apply:
 Where the supply is only to members of a club
 At staff restaurant or canteen
 At guest house where the supply is only to people staying there
 Catering function

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 The main provision of the Orders are:
 Prices must be displayed so as to be seen by customers before
reaching the eating area
 Table d’hote menu prices must be given
 Gov. Tax must be included and service and/cover charge must be
prominently shown as an amount or a percentage

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Customer property and debt
 Good practice to ensure:
 care is taken of customers’ property in order to minimise potential
loss or damage
 clear guidance on the procedures to follow if the customer is unable
or unwilling to pay
 If customer unable to pay, no right of lien except in inns (the right to
hold property against non-payment of an account). The only action
for the food service operators is civil proceedings.

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Data protection
 Customers right to expect that data about them is:
 kept secure
 only used for the published business purposes
 Operations must ensure data is:
 Kept up to date, fairly, lawfully and securely
 Not passed on to third parties without prior consent
 And that staff are aware of required procedures

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