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:

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:

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:

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:

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:

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 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.

Make sure your business name is unique

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:

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

Common hygiene failings include:

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:

📍 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:

🔸 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:

2. Meet sustainability standards:

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

Upcoming UK and EU regulations in 2025 to know

🔸 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:

🔸 Legal documents:

🔸 Intellectual property:

🔸 Weights and measures:

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.

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