Rules & Regulations

Food and Drink Pricing

This information is part of the Pricing and Charging topic.
In this topic:

• Pricing and charging
• Pricing rules for serviced accommodation
• Pricing for food and drink
• Pricing for ticket sellers

In addition to the pricing legislation described in Pricing and charging businesses that sell food and drink (as opposed to businesses that provide food and drink as part of service, eg breakfast with a room) must also comply with the Price Marking (Food and Drink Services) Order 2003. These regulations do not apply to any quotes you may prepare to order for customers (eg for a function or private party) or to any food you agree to supply to a customer at their special request (eg something you don't normally serve).

BERR (formerly the DTI) produce a fairly readable guidance leaflet on food and drink pricing, titled: Guidance Note On The Price Marking (Food And Drink Services) Order 2003

Fairness, clarity and honesty

As with the Consumer law, the intention is to make your food and drink pricing open, fair and honest, with no nasty surprises for the consumer.

Clear, inclusive prices

You must price your food and drink inclusive of everything that is compulsory, like VAT, service charge, cover charge etc. Where you can't include a change in a menu item price, because, for example, you calculate service as 10% of the total spend or your cover charge is dependent on the number in the party, then you must clearly state how these calculations are made and that they will apply in addition to the menu price. These additional charges must be displayed equally and as prominently as your menu items. In other words, you can't use a small font and put them at the bottom. They must be obvious.

Clearly displayed

You must display your prices so that customers can see them before they actually sit down, order or take food and drink from you. This means displaying prices at the table, at the counter where a customer might order, at a self-service display where they might take food, at the till and also, for most establishments outside. The requirements oblige you to make your prices visible at your entrances - all of them - and you can do this by displaying your menu through a window, or, where planning permissions and local by-laws allow, on all weather chalk boards or in weather-proof display cabinets.

Prices by description, weight, quantity or volume and combination

You must describe your items clearly including, where appropriate by weight, quantity or volume, eg 'Shepherd's Pie', '8oz rump steak', '6 oysters', 'a pint of beer', 'Milk (250ml glass)', '2 scoops of ice-cream'. If a customer can order a different weight or quantity and the price is proportionate, eg 4 scoops of ice-cream instead of 2, and the price simply doubles or half a pint of beer and the price halves, then you do not need to list these prices separately. If a combination of items is simply the price of the individual items added together, then you do not need to list these separately, for example if a gin and tonic is the price of a shot of gin and a bottle of tonic. However if different quantities or combinations result in different prices you must list these eg '2 scoops of ice cream, £1.95, 3 scoops £2.25', 'dash of lemonade or mixer when ordered with a spirit, 50p'.

If you are a sandwich bar, for example, you don't have to list every possible sandwich combination, provided the pricing structure is clear eg, 'baguettes with one filling £1.75, with two fillings £2.05, three filling...' etc or 'tuna or prawns 80p, crab or smoked salmon £1.05, cheese 60p, ham 75p...' etc.

Fixed price meals

Fixed price meals must be clearly priced and their contents listed. If variations are possible these must also be listed with their price indications.
Comprehensive menus
The regulations are quite specific about menus. Ideally you should have a full menu that states all your items and prices (apart from anything this is good customer service). The regulations state the minimum menu should be:

• If you offer up to 30 items (excluding wine) you must list and price them all
• If you offer more than 30 items (excluding wine) you must list at least 30 of them and at least 5 of those should be soft drinks (this was an amendment to the original legislation following complaints from consumers)
• If you divide your menu into categories you should list at least 5 items in each category (or the actual number if you sell less than five), and 5 soft drink prices
• If you sell wines, you should list at least five of your wine items in addition to the thirty other food and drink items

Also in this topic:

• Pricing and charging
• Pricing rules for serviced accommodation
• Pricing for ticket sellers

More from the Toolkit

• Also see Online Selling and E-marketing Regulations