7 Tips to Start a Food Business in 2025 [Step-by-step Guide]

Starting a food business in the UK in 2025 is an exciting opportunity, especially as the industry evolves to meet new sustainability, safety, and innovation standards. From food trucks to home-baked goods, the possibilities are vast.

But before you serve your first meal or sell your first batch of granola bars, there are legal, logistical, and strategic steps you must follow. 

This guide breaks down everything you need to know, from different types of food businesses, compliance requirements, and practical advice for success.

1. Choose your food business model wisely

The UK food industry accommodates a wide range of business types. Choosing your model influences your costs, legal obligations, target audience, and startup logistics.

Home-based food businesses

Ideal for small-scale bakers, meal preppers, and caterers working from their kitchens, this model is perfect if you want to start small with minimal upfront costs. 

With many consumers seeking local, handmade, and niche food products, home-based food businesses are thriving.

🔸Example: Selling cakes, gluten-free snacks, or ready-made meals from home via Instagram, Etsy, or local Facebook groups.

🔸 What you need:

• Register your home kitchen with your local authority.
• Ensure your kitchen meets hygiene and structural standards.
• Get a Level 2 Food Hygiene and Safety certificate.
• Check your mortgage or tenancy agreement for restrictions.
• Consider public liability and product liability insurance.

Restaurants, cafes, and takeaways

This is the most traditional route and also the most demanding in terms of setup and operations. The high street is still buzzing with opportunities, especially for niche and experience-driven concepts (e.g., plant-based cafes, experiential dining).

🔸 Example: Opening a fast-casual Thai takeaway in a city center or launching a small neighborhood brunch cafe.

🔸 What you need:

• Secure premises and ensure it has the right planning permission.
• Apply for a Premises License (if serving alcohol or operating late).
• Register with your local authority.
• Undergo a health and safety inspection.
• Install appropriate ventilation, refrigeration, and hygiene facilities.

Food trucks and market stalls

Mobile food businesses offer flexibility and lower overheads. You can test your concept in different areas, participate in festivals, and operate seasonally.

🔸 Example: A gourmet grilled cheese truck or a vegan food stall rotating between London and Brighton markets.

🔸 What you need:

• Register your business and each vehicle or stall.
• Obtain a Street Trading License from each local authority you plan to operate in. (If you trade without a licence, your fine can be up to £1,000)
• Set up proper food storage and handwashing facilities.
• Arrange for commercial waste disposal.
• Get public liability insurance.
• Mobile, lower overheads, high flexibility.

Online/Delivery-only models

Ghost kitchens, meal kit deliveries, and food subscription services are increasingly popular. You won’t need a customer-facing premises, but must still follow all food safety regulations.

🔸 Example: A dark kitchen selling gourmet vegan burgers exclusively on UberEats or Deliveroo, or a home-based business delivering custom cakes locally.

🔸 What you need:

• Register your premises (even if it’s your home).
• Implement allergen labeling and packaging standards.
• Ensure your website or ordering system complies with consumer law.
• Include business name, contact details, and allergen information.

2. Register your food business

No matter your business type, registration with your local authority is mandatory under the Food Safety and Hygiene (England) Regulations 2013. You must register at least 28 days before trading.

🔸 Key reminders:

• Register each location you operate from.
• Register vehicles used for storage or distribution.
• You cannot be refused registration, but you must comply with safety standards.

Consequences of skipping this step are fines, enforcement notices, and even business closure.

📍 Tip: Keep a copy of your registration confirmation and inspection reports for insurance and business partners. Also, when registering, you may encounter the following terms:

• The food business operator is the individual, charity, or company responsible for making key decisions about the food business. They determine what food is offered and how the business is managed.

The establishment refers to the physical location or site where your food business operates. For mobile food businesses, this should be the place where the vehicle or unit is usually kept overnight. If your business operates from a home address, you need to provide that postcode.

Use a business name checker tool to make sure your desired business name is not taken yet. We have such tool of our own, and it may even suggest you some options if your initial idea is already taken. Give it a try:

3. Understand and apply food safety standards

Food safety is essential – it forms the foundation of public trust and is a legal obligation you must uphold.

You must:

• Implement a food safety management system based on HACCP (Hazard Analysis and Critical Control Points).
• Identify risks (e.g., cross-contamination, incorrect storage) and put controls in place.
• Train staff in food hygiene appropriate to their role.

You can look for online training providers like High Speed Training or NCASS, which offer accredited certifications.

Common hygiene failings include:

• Dirty or poorly maintained premises
• Inadequate allergen controls
• Unlabelled food storage, 

So make sure everything is in proper order.

4. Know the licenses and permits you may need

Licensing depends on what, where, and how you operate:

• Food Business Registration (Mandatory): Required for all businesses handling food, including online and home-based models.
• Premises License: Required if you plan to serve hot food after 11 pm or sell alcohol. For example, a bistro offering wine and staying open until midnight must apply.
• Street Trading License: Essential for food trucks or market stalls operating in public spaces. Note that each local authority has its own rules.
• Food Premises Approval: If you’re dealing with high-risk foods (e.g., dairy, fish, meat), especially for wholesale supply or export.
• Temporary Event Notice (TEN): If you’re trading at festivals, private events, or hosting pop-up dining experiences.
• Music License (PPL PRS): Playing copyrighted music in a public space (restaurant, café) requires a license to compensate rights holders.
• Planning Permission: If you’re changing how a property is used (e.g., converting a retail shop into a bakery or takeaway).

📍 Tip: Reach out to your local council early in your planning phase. Licensing delays can stall your launch.

5. Choose the right business structure

Choosing the wrong structure can cost you – literally. It affects how you're taxed, who’s liable, and how easy it is to grow.

Sole trader:

✅ Easy and cheap to set up

✅ Suitable for home-based businesses, solo caterers, or single-owner food trucks 

❌ Full personal liability for business debts

Limited company:

✅ Liability is limited to the company, not you personally 

✅ Often more tax-efficient 

✅ More credibility with investors, partners, and banks 

❌ Requires annual accounts and more admin

Partnership:

✅ Shared responsibility and pooled resources 

✅ Great for family-run restaurants or friend-owned cafés 

❌ Each partner is liable for the others’ mistakes if not properly structured

🔸 Example:

If you're launching a small dumpling stall solo, a sole trader setup might be enough. But if you're building a delivery-only brand with two chefs and want to attract investors, consider a limited company.

💡 Pro tip from ANNA

If you're operating as a sole trader, register with HMRC. If you’re starting a limited company, you’ll need to register with Companies House – or skip the hassle entirely and let ANNA handle it for free when you choose any of the three plans!

✅ Same-day company registration

✅ Instant business account setup

✅ Certificate of incorporation within hours

✅ Launch with up to 4 directors (or more with support)

Helpful Add-ons from ANNA:

🔹 Virtual Office Address – Prime London address + same-day mail scans to your inbox — from £15/month

🔹 Taxes+ – ANNA takes care of income tax, VAT, and more — £3/month for 3 months, then £24/month

🔹 VAT Registration – ANNA submits your HMRC application — £39.90 one-off

🔹 Confirmation Statement Filing – File annual returns accurately and on time — £49.90 per filing

🔹 PAYE Registration – ANNA sets up your payroll registration — £39.90 one-off

🔹 Director Management – Add or remove company directors legally — £29.90 one-off

🔹 Company Cancellation – Don’t need your company anymore? ANNA will close it for you — £49.90 one-off

🔹 Share Management – ANNA handles share transfers and updates — £79.99 one-off

ANNA makes it easy to form, run, and manage your business, especially if you’re just getting started!

6. Handle food labelling and allergen laws

Labelling has gone a long way from just being pretty and eye-catching; it’s a legal and safety requirement. As of 2025, incorrect or unclear labelling is one of the most cited causes of enforcement action by EHOs.

You must include:

• The product name
• Complete ingredient list in descending weight order
• Bolded allergens (e.g., milk, eggs, nuts)
• Net quantity (in metric units)
• Best before/use-by date
• Storage conditions
• Name and contact details of your business

🔸 Natasha’s Law:

This law applies to Prepacked for Direct Sale (PPDS) food. If you pack and sell items on the same premises (like sandwiches or cakes) it must have full ingredient and allergen labeling.

🔸 Delivery businesses:

Even if you operate online, you must provide allergen information clearly in writing, such as via a printed label or digital confirmation.

7. Stay compliant, sustainable, and protected

To run a modern food business in the UK, it’s not enough to make great food –you must also meet legal obligations, environmental expectations, and risk management standards.

1. Be inspection-ready:

Environmental Health Officers (EHOs) can visit without notice. Maintain:

• A HACCP-based food safety plan
• Fridge/freezer temperature logs
• Cleaning schedules
• Staff training records
• Ingredient traceability documents

2. Meet sustainability standards:

From March 2025, any business generating more than 5kg of food waste weekly must:

• Separate food waste from general waste
• Use licensed waste contractors
• Log waste reduction efforts

Upcoming UK and EU regulations in 2025 to know

• Corporate Sustainability Reporting Directive (CSRD): From 2025, larger companies must disclose sustainability data in financial reports.
• EU Deforestation Regulation (EUDR): Products entering the EU must be proven deforestation-free. Full compliance starts Dec 2025 (2026 for SMEs).
• HFSS Restrictions (UK): From October 2025, bans on TV ads before 9 pm and paid online ads for high-fat, salt, and sugar products.
• UK Retail Movement Scheme: From July 2025, stricter labeling on goods moving between Great Britain and Northern Ireland.
• Updated Novel Foods Guidance (EU): From Feb 2025, includes new rules for plant-based and cultivated products.

🔸 Example: A vegan snack brand exporting to the EU must now trace all ingredients for deforestation compliance and align with new labeling laws.

Protect yourself legally and financially

Food businesses face legal risks ranging from food poisoning claims to allergic reaction lawsuits.

🔸 Insurance:

• Public Liability Insurance – Covers injury to a customer on your premises
• Product Liability Insurance – Covers food-related illness
• Employers’ Liability Insurance – Required if you employ staff

🔸 Legal documents:

• Employment and supplier contracts
• NDAs for proprietary recipes

🔸 Intellectual property:

• Trademark your brand name and logo
• Copyright original content (e.g., recipes, packaging)

🔸 Weights and measures:

• Use metric labels (e.g., 250g)
• Ensure scales are Trading Standards-approved

Final thoughts

If you're starting a food business in 2025, you're stepping into a space with high standards and big potential.

To stay focused on the work that matters, you need tools that simplify the rest. 

ANNA helps you register your company, open a business account, and manage compliance without wasting time.

• You can sort out your company registration and account in under ten minutes.
• Automate your invoices, sort your receipts, file taxes, and stay on top of payroll with no hidden costs. 
• Use smart pots to set aside money for VAT or Corporation Tax. Keep everything clean, accurate, and in line with HMRC rules.
• And so much more.

ANNA is not an add-on. It’s part of a serious foundation.