{"id":2370,"date":"2021-01-29T05:20:34","date_gmt":"2021-01-29T05:20:34","guid":{"rendered":"https:\/\/whiz-consulting.com\/au\/blog\/legal-obligations-of-starting-a-food-business\/"},"modified":"2026-03-05T12:35:24","modified_gmt":"2026-03-05T12:35:24","slug":"legal-obligations-of-starting-a-food-business","status":"publish","type":"post","link":"https:\/\/www.whizconsulting.net\/au\/blog\/legal-obligations-of-starting-a-food-business\/","title":{"rendered":"Legal Obligations of Starting A Food Business"},"content":{"rendered":"

A food business is quite attractive business provided\u00a0a\u00a0low barrier in terms of knowledge and costs requirement. You can start a food business like a food truck at\u00a0an\u00a0investment as low as A$10,000, with this being said the overall investment is hugely dependent on what type of food business you want to pursue and the location. In food businesses like restaurants and cafes, location\u00a0plays an\u00a0essential\u00a0role and could make or break your business. Apart from this,\u00a0many other factors\u00a0could impact your business viability, such as your food menu, quality of service provided, ambience. The ability to market your business,\u00a0manage payroll, record all business transactions,\u00a0run numbers\u00a0to track business performance\u00a0while staying tax compliant\u00a0are also some complex task food business owners struggle with.<\/p>\n

As a restaurateur,\u00a0you can outsource\u00a0a\u00a0few\u00a0important tasks like marketing, payroll, taxation, legal compliance, and accounting,\u00a0making the overall process slightly less overwhelming.\u00a0Outsourced accounting services<\/strong><\/a>\u00a0can be\u00a0beneficial for restaurant business owners,\u00a0especially if they are new to the business and have\u00a0no prior business financial knowledge. This is of great help as it is\u00a0challenging\u00a0to\u00a0find\u00a0an expert\u00a0restaurant accountant\u00a0with prior experience in the same domain.<\/p>\n

All the above tasks we talk about are operational tasks, but there is one preliminary task that many business owners dread:\u00a0legalities. There are\u00a0many\u00a0legal requirements\u00a0and obligations that you must fulfil before you start your business,\u00a0as food\u00a0has to be safe\u00a0to be consumed\u00a0by customers.\u00a0The\u00a0legalities\u00a0and obligations\u00a0are simply in existence\u00a0to\u00a0protect you,\u00a0your customers, staff, and everyone related to your business.<\/p>\n

Let us understand each of these legalities in detail in this article.<\/p>\n

Food Business\u00a0Licenses<\/h3>\n

Let\u00a0us\u00a0delve into the first and foremost\u00a0important legality that is registering for\u00a0the\u00a0business\u00a0license.\u00a0First, get in touch with your local council for\u00a0a\u00a0business\u00a0license\u00a0and inform\u00a0them\u00a0which type of\u00a0food business you have decided\u00a0to\u00a0go ahead\u00a0with.\u00a0Restaurants, Cafes, Mobile food units like a food truck or other type of food businesses, there are many more that you can opt for and you need to zero down on a particular type.\u00a0You might be asked\u00a0about the type of food that will be served\u00a0and whether you will be selling pre-packaged food, so on and so forth.<\/p>\n

Council Certificates<\/h3>\n

Now that you are clear about\u00a0your\u00a0food business licenses,\u00a0you must also get\u00a0a\u00a0few\u00a0certificates\u00a0from the council which is\u00a0vital for\u00a0your business’s operation.\u00a0These are mainly the ones that are linked to the physical space from where you are operating your business. It includes a zoning certificate, building certificate, construction certificate, compliance certificate, regulated water system registration,\u00a0fire safety certificate,\u00a0and much more.<\/p>\n

Food Safety\u00a0Standard<\/h3>\n

Food safety standards are drafted & outlined by\u202fFood Standards Australia New Zealand (FSANZ). It applies to every business involved in handling food for sale, and\u00a0restaurant businesses must follow the food and safety regulations.\u00a0All food businesses in Australia must\u00a0follow\u00a0the\u00a0food safety\u00a0standard.\u00a0It is mandatory for certain food businesses with high risk\u00a0to have a food safety program\u00a0based on HACCP principles.<\/p>\n

Certain state or territory also makes it\u00a0necessary\u00a0to nominate a Food Safety Supervisor (FSS).\u00a0Your Food Safety Supervisor must have proper training\u00a0and\u00a0gained specific\u00a0competency units\u00a0under the\u00a0National Vocational Education Training system from Registered Training Organisation (RTO).\u00a0Your Food Safety Supervisor\u00a0could\u00a0be\u00a0a part of your full-time staff or\u00a0an external contractor. You need to develop a Food Safety Program in consultation with your Food Safety Supervisor. The Food\u00a0Safety Program\u00a0you developed needs to be verified by your local council\u00a0regarding\u00a0whether it meets\u00a0the\u00a0standard of the council’s food laws and regulations.\u00a0Your local government can audit your Food Safety Program\u00a0at any time, and\u00a0in case of non-compliance,\u00a0you\u00a0may\u00a0face\u00a0a\u00a0penalty.<\/p>\n

Generally, your food business must have a Food Safety Supervisor if you serve ready to eat food, pre-packaged\u00a0food\u00a0that is not sold or served in its original package, or potentially hazardous food. If your business is based in New South Wales, Queensland, South Australia, Victoria, or the Australian Capital Territory, it is mandatory to have a Food Safety Supervisor as a staff member available at the premise all time.<\/p>\n

Outdoor Dining<\/h3>\n

The legalities of business having outdoor dining where businesses allow\u00a0customers to dine outside\u00a0in\u00a0the\u00a0open is simple. Firstly,\u00a0you must provide appropriate tables and chairs\u00a0for\u00a0an\u00a0outdoor setting,\u00a0and in case you own a cafe\u00a0business,\u00a0you must\u00a0obtain an outdoor dining\u00a0license\u00a0from\u00a0your\u00a0local council.<\/p>\n

Liquor License<\/h3>\n

If you\u00a0provide alcohol to your customers,\u00a0you may require\u00a0an On-Premises license,\u00a0and Liquor Approved Manager license. You\u00a0will\u00a0also need\u00a0a\u00a0National Police Certificate\u00a0which includes\u00a0a\u00a0criminal record check before applying for a liquor license. Serving alcohol also requires that\u00a0all your employees involved\u00a0in serving alcohol have Responsible Service of Alcohol (RSA) training and have\u00a0the\u00a0certificate for the same.<\/p>\n

Legal\u00a0Employment\u00a0Obligation<\/h3>\n

You must understand your business structure and its implication on wages and the mandatory benefits required to be provided to your employees. Your staff is entitled to a\u00a0specific\u00a0minimum wage,\u00a0and then\u00a0you must ensure that you provide a work environment that will\u00a0be\u00a0safe and free from harassment or discrimination.<\/p>\n

Music License<\/h3>\n

Music is a vital part of the food business offering dine in, but that does not mean you can play any song without a music license. You will need a music license if you want to play copyrighted music at your food business premise. You can take the license from OneMusic\u00a0Australia depending on the type of business you are operating.<\/p>\n

For\u00a0better clarity of each state and territory law and regulation,\u00a0we suggest you read\u00a0the\u00a0information on the following site.<\/p>\n