Quick service restaurants - bite size guide to licensing

Quick Service Restaurants (“QSRs”) are designed around the rapid preparation and supply of food, typically with limited or no table service. They provide one of the clearest examples of how operator models and patterns of consumer behaviour have evolved significantly in the last ten years, in ways not envisaged by the Licensing Act 2003 when it came into force in 2005. This article explores some of the licensing challenges faced by quick service restaurants, and how operators can navigate a legislative framework that was developed before the rapid growth and evolution of the modern QSR sector.

QSRs and the changing consumer landscape

The QSR model has changed beyond recognition in the last ten years. The traditional QSR model was based on the customer attending the site, ordering their food which was provided quickly, and either eating in or taking it away to eat off site. Today’s QSR can be part restaurant, part takeaway and part logistics hub, for multiple delivery platforms, with customers ordering online, collection taking place at the door and delivery drivers coming and going throughout the night. Customers need not set foot in the premises at all.  

These changes were undoubtedly accelerated by Covid, when operators had to change how they provided food and drink to their customers or risk the loss of their business. These changes proved popular with customers and operators alike, and have become permanent with the expectation that operators will offer hybrid models of supply.

QSRs and licensable activities

First, a quick recap of when QSRs are likely to fall within the scope of the Licensing Act 2003 (“the Act”).

The Licensing Act 2003 regulates a set of "'licensable activities"' that are considered capable of impacting the public, namely late-night refreshment, the sale of alcohol (on and off sales), and the provision of regulated entertainment (and of which there are several types, including the playing of amplified recorded and live music).

Where these activities take place, they will require authorisation under a premises licence (this article does not consider club premises licences) unless one of a narrow range of exemptions apply. A premises licence sets out what activities can be carried on, when they can take place and the conditions that must be complied with to promote the four licensing objectives: the prevention of crime and disorder, public safety, the prevention of public nuisance and the protection of children from harm. Licensed premises are regulated by the local licensing authority and are subject to scrutiny from a range of responsible authorities, including the police, environmental health and fire authorities, helping to ensure ongoing compliance and the promotion of the licensing objectives. In addition to applying the statutory regime, licensing authorities will also publish their own local licensing policy, which they – and the responsible authorities – will have regard to when conducting their statutory duties.

Late Night Refreshment ("LNR")

Of the three categories licensable activities under the Licensing Act 2003, the one most commonly relevant to QSRs is late night refreshment ("LNR"). Many QSR operators do not offer regulated entertainment (at most playing background level recorded music only) or sell alcohol, meaning they can often avoid some of the additional regulatory requirements associated with alcohol licences, such as appointing a Designated Premises Supervisor (DPS), ensuring a personal licence holder authorises alcohol sales and ensuring Challenge 25 is adopted by all staff and third-party delivery services.

LNR is, broadly speaking, the supply of (or holding oneself to being willing to supply) hot food or hot non-alcoholic drink to the public between the hours of 23:00 - 05:00. The supply can be made on or from any premises, and for consumption on or off the premises. There are some statutory exemptions, but they are unlikely to apply to the QSR model. The "‘supply"’ takes place when the hot food or hot drink is actually supplied (or handed to) the customer (and not when an order, or the payment, is made).  

So, if a QSR sells only cold food or cold non-alcoholic drinks (at any time), or does not sell hot food or hot non-alcoholic drinks between 23:00 – 05:00, then their supply of refreshment will not fall within the scope of the Act.

LNR came under its current regulatory control because the Licensing Act 2003 was particularly concerned with the traditional late-night takeaway and takeaway vans, and the historical link between such LNR premises and alcohol-related crime and disorder, particularly where late-night food outlets attract people leaving pubs and nightclubs. Of course, then, LNR was based on the customer being supplied 'in person'.

The Licensing Act 2003 was not concerned with whether the late-night transaction originated through an app, or whether a third-party courier (or even the premises’ own employee) collected and delivered the food to the customer.  The growth of delivery-only kitchens, click-and-collect services, third- party delivery platforms, and hybrid trading models was not envisaged at the time.

Nevertheless, the concept of "supply" is sufficiently broad to encompass modern fulfilment methods, including third-party delivery services. It is generally the act of supplying the hot food or drink that matters, rather than where the order was placed, where payment was taken or whether the customer ever attends the premises.

Things have certainly changed since 2003 and, as a result, so have the licensing issues arising from different ways in which customers can now order and receive food and drink. The challenge now – for operators and authorities – is the application of an old regulatory framework to a distinctly modern way of doing business.

Late-night QSRs and licensing challenges

While many of the traditional licensing considerations remain relevant, the rapid growth of today's modern QSRs has created new licensing challenges, requiring operators, licensing authorities and local communities to navigate issues that were barely contemplated when the Licensing Act 2003 was introduced. The operational impact of a late- night QSR will attract scrutiny where they have the potential to undermine one or more of the licensing objectives. Public nuisance is likely to be the obvious battleground, but crime and disorder can also become relevant depending upon the location and operation.

Late-night QSR operators should be alive to the fact that residents and responsible authorities – especially Environmental Health teams - are increasingly focused on the impacts associated with delivery-led trading models. Few sectors illustrate the tension between commercial innovation and residential amenity more clearly than the QSR market.  Well-organised resident groups, often supported by readily available data and evidence, are increasingly willing to challenge applications and seek reviews where they perceive delivery activity to be causing nuisance or disturbance. QSR operators should expect close examination of any trading model that relies heavily on late-night deliveries or customer collections.

So, what should late-night QSRs consider from a licensing perspective?

Addressing licensing concerns in the new age of QSRs

Whilst the legislation is effectively silent on new QSR operating models, councils increasingly recognise the risks posed by late- night QSRs. They are using their Statements of Licensing Policy to confirm how they will approach applications and regulate late- night QSRs under the statutory framework.

There is an expectation that QSR operators will risk assess their operation and take the necessary steps to mitigate licensing risks. Some councils have a model set of conditions that late- night QSR operators should consider adopting. Nevertheless, each application has to be determined on its individual merits within the statutory framework. The modern delivery-only late- night QSR presents a quite a different risk profile from the traditional late-night takeaway. Therefore, any conditions on a premises licence should be tailored to the risks specifically identified in relation to the business, rather than simply importing a standard late-night takeaway and customer delivery conditions package.

Conclusion

The Licensing Act 2003 was designed to regulate a late-night world in which the customer went to the restaurant or the takeaway. Many QSRs work the other way around, with the food going to the customer.

The licensing challenge is therefore not simply deciding whether a premises should be licensed for late night refreshment. It is understanding what a modern QSR actually does, how its customers and delivery network interact with the surrounding area, and whether the licensing controls proposed genuinely address the risks created by that operation. Conditions should be proportionate, evidence-based and directed at the risks identified without imposing unnecessary restrictions that could undermine the operational viability (such as a requirement that deliveries are by bicycle only). They should also focus on matters within the control of the premises licence holder, recognising that not every issue associated with an independent third-party delivery driver or customers once they have left the site will necessarily be a licensing problem attributable to the premises.

Ultimately, successful late-night QSR operations are built on more than licensing compliance alone. Operators who understand their operating model, assess risks realistically and adopt proportionate control measures will be better placed to navigate not only the Licensing Act 2003, but also the wider regulatory landscape of planning, statutory nuisance and food hygiene compliance.

Author: Claire Morris

This publication is intended for general guidance and represents our understanding of the relevant law and practice as at September 2026. Specific advice should be sought for specific cases. For more information see our terms & conditions.