Restaurant Law 101
The restaurant industry is one of the more heavily regulated sectors of business. As a restaurant owner, it is critical to be aware of the laws that affect your business’s operation. This article provides an overview of the legal concerns that are likely to affect any restaurant, from the corner deli to the most upscale fine dining establishment.
Labor Laws
Any business that has employees should be aware of labor laws, including but not limited to wage and hour laws, but restaurants get some of the closest scrutiny of any business when it comes to labor law compliance. One of the areas where restaurants are carefully monitored is child labor laws. The first rule is to know if you’re employing a minor; ignorance of an employee’s true age is no defense. If you are employing one or more minors, get familiar with the laws that govern the employment of children. If in doubt, consult your attorney.
Contract Law
Unless your restaurant is located on a farm that can source all your ingredients, you’ll have to engage third party suppliers. You may enter one or two supply contracts with major suppliers, or you may have multiple agreements with a variety of suppliers. Either way, the details of those agreements can have a major impact on your bottom line. You may think that all that matters is the price, but often a good price can be undermined by other contract terms that ultimately claw back those savings. A careful reading and analysis of each supply agreement is very important for the health of your business.
In addition to supply contracts, you may also have investor agreements and loans that require substantial documentation. Again, the language of each agreement can greatly affect the profitability and future of your restaurant. You will want to protect yourself from predatory lenders and investors who do not have your best interests in mind.
Food Safety Regulations
Restaurant owners will run into food safety and other health regulations at every level of government, from the federal Food and Drug Administration and the Department of Agriculture to the state’s Department of Health, all the way down to county and city regulations. Some of these regulations overlap and others are very distinct. Knowing which might apply to your operation is a necessary part of restaurant ownership, and that knowledge comes either from intensive personal study or close consultation with legal professionals. Failing to abide by food safety laws can spell a quick end to your culinary adventure.
Intellectual Property
The world of intellectual property is key to any restauranteur. Trademarks will protect your business name and logo, while trade secrets will protect your signature recipes, and copyright laws might apply to your menu. But these protections do not necessarily appear out of thin air. There are certain steps you must take to secure these interests and your best bet is to consult an attorney who can advise and help you with each of them.
Insurance and Liability Protection
Having enough insurance and the right type of insurance to protect you and your business is something that cannot be overlooked. You will want to thoroughly understand the exposure your business has to liability for injuries to patrons, from allergic reactions to food poisoning to slip and falls, and how to best prevent and protect yourself from all such catastrophes.
The above only begins to touch on the legal considerations faced by a restaurant owner. Having a law firm you can rely on to answer questions as they arise and help you plan is critical to the success of any restaurant. The attorneys at Beresford Booth can assist you from the opening of your venture through its daily operations and well into a successful and delicious future.
To learn more about Restaurant Law 101, please contact Beresford Booth at info@beresfordlaw.com or by phone at (425) 776-4100.