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RestauRant businessGuideline for establishing a café or restaurant abC

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Published and produced by:NewCo YritysHelsinki

Layout: Unikuva/Mats Vuorenjuuri

Photographs:Jussi Hellsten/Visit HelsinkiMats Vuorenjuuri/UnikuvaKuvatoimisto Rodeo

www.newcohelsinki.fi

© NewCo YritysHelsinki 2015All rights reserved.

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RestauRant business abC

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Plan well to get a fasteR staRt in businessThe practical advice in this booklet will help you to start your business faster. Establishing a restaurant or café is a complex process that in-volves a lot of mandatory rules and regulations, licences and authorities.

This guide focusses on the key as-pects involving the authorities. Care-ful preparation, well-made plans and proceeding in the correct order ensure success. By following the advice in this guidebook, you will be able to start your business faster.

The list of useful contacts and links on the last page will help you to find more detailed information on other issues involved in setting up a busi-ness.

The guidebook was compiled by NewCo YritysHelsinki, a service centre for aspiring entrepreneurs and entrepreneurs already in busi-ness. It is a one-stop-shop source of business advice for entrepreneurs, starting from the development of a business idea.

Contents

1. Business plan for a solid foundation 6

2. Acquisition of business premises and taking the premises into use 11

3. other issues related to the business, subject to a permit 22

4. Useful sources and links 27

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Main stePs when setting uP a RestauRant oR Café

Refining the idea, formation of business idea

establishing a company and newCo

YritysHelsinki

Finding business premises, and a lease agreement

selection of de-signer and design

of premises

Building control permits

Requirements of the food safety authori-

ties and permits required for the

serving of alcoholic beverages

Permits required by the fire and

rescue services

Permits required for the use of

music

Construction and equipment of the business premises after the building permit is granted

Instructions regarding operations

and personnel

Launch of business

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1. business Plan foR a solid foundation

A clear business idea and carefully prepared business plan are the prerequisites for running a success-ful business. The required customer flow and sales are based on the choice of location, a business idea that attracts customers, and profes-sional implementation. Helsinki Ur-ban Facts can provide background information to help with planning, e.g. on the population profiles of various urban regions.

Other factors that influence the profitability and viability of busi-nesses include the required invest-ments, the cost structure and its flexibility, and the financing required to cover the initial operating ex-penses and seasonal fluctuations at

a later stage. It is extremely impor-tant to ensure adequate funding. When you start a business, you must have sufficient capital to cover the costs until you are able to man-age on the basis of the business's income.

The various elements of a business plan include the calculation of the finances required for starting up the business, other resources, and an estimate of sales development and financial performance. You can pre-pare a business plan free of charge online and gain advice and sparring from a NewCo YritysHelsinki busi-ness advisor in an advisory discus-sion session. The business plan will provide an excellent basis for discus-sions with financiers.

www.liiketoimintasuunnitelma.com

It is extremely important to

ensure adequate funding.

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1.1 Alternative ways of starting a business You can enter the restaurant and café business by purchasing a com-pany that is already in the business, or the operations or a share of such a business. A transaction of this kind requires careful familiarisation with the object of purchase and clear agreements. The use of an impartial expert (e.g. an accountant, auditor or business lawyer) or a professional agent specialising in the restaurant business is recommended. Trade literature is a source of good advice.

The start of a new enterprise and its business operations requires the

usual measures involved in estab-lishing a business. Furthermore, in the restaurant and café business, the requirements set for the busi-ness premises, regulations on food, health and safety, the serving of alcoholic beverages, and many other issues, require contacts and transac-tions with a number of local authori-ties. A professional head designer is an invaluable partner in such issues.

By paying attention to the issues in this guide, you will be able to start your business as smoothly as pos-sible, without surprises, and coop-eration with the authorities will run smoothly from the word go.

You can enter the restaurant and café

business by pur-chasing a company that is already in the business, or

the operations or a share of a company.

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Example of funding calculation (limited liability company) CAPITAL REQUIRED EUR

Immaterial assets registration costs 380

others, shareholder agreement, licences to sell alcoholic beverages etc. 2,000

Machinery and equipment IT 500

production equipment acquirements 15,000

apport property (computer and accessories) 0

vehicle

furniture 10,000

telephone/fax/internet incl. installation 200

installations of machines and equipment 2,000

renovation of the business premises 2,000

Movables of the company office supplies 500

other devices 5,000

Working capital (3 mths) Initial advertising/brochures 3,000

Costs of the premise rent and rent deposit 7,500

Costs of equipment equipment rental/leasing 600

Salaries Personnel costs 12,000

Entrepreneur’s personal living costs 15,000

Sales and financial assets Initial inventory 8,700

Working capital reservation/cash reserve 620

CAPITAL REQUIREMENTS IN TOTAL 85,000

CAPITAL SOURCES EUR

Equity share capital 2,500

personal funds invested

personal production tools and equipment 0

others

Loan capital shareholder loan 35,000

bank loan 41,000

Loan from Finnvera

others

loans from suppliers 500

Other sources of finacing Loan from parents 6,000

Difference 0

SOURCES OF CAPITAL IN TOTAL 85,000

CalCulations

A business plan in writing and calcu-lations can be prepared for the res-taurant to be established, using the free-of-charge www.liiketoimin-tasuunnitelma.com service. The funding calculation assesses the capital requirements and sources of funding required when establishing a business. The profitability calcula-tion evaluates the profitability of the business per month and year, and calculates the sales targets per day and hour. The calculation of project-ed sales estimates sales volumes per month. The service will automatically calculate projected sales for a three-year period.

The sample calculations have been created for an imaginary restaurant with 50 seats, to be opened in a Helsinki suburb. The company is a limited liability company run by two entrepreneurs. In addition to them, the staff comprises two full-time employees. The restaurant offers lunch, à la carte meals, desserts, café products, non-alcoholic and alco-holic beverages and cigarettes. It is open five days a week from 11 a.m. to 10 p.m. The rent is EUR 1,500 per month + 24% VAT, the rent deposit is two months' rent. The restaurant pays an average of EUR 400 + 24% per month for water and electricity.

In the funding calculation, the costs of immaterial goods are entered in the items regarding the required funds, reservations are made for machines and equipment, the costs of movable business property are entered, working capital for approx-imately three months is reserved, and the need for current assets and liquid assets is defined. Sources of capital comprise EUR 2,500 of share capital, EUR 35,000 in shareholder loans, EUR 41,000 in bank loans, a loan of EUR 500 from the suppliers

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Example of profitability calculation: (Ltd, 2 entrepreneurs)

Month Year (12 mths)

= Result target (net) 10 120

+ instalments of loans (loan period 5 yrs. amount EUR 41,000) 683 8,200

INCOME AFTER TAXES 693 8,320

+ community tax 20% 173 2,080

= Capital requirements 867 10,400

+ interest on loans (5%) 171 2,050

A. OPERATING MARGIN (required) 1,038 12,450

+ Fixed costs (VAT 0%)

Self-Employed Persons' Pension Act 23.7% (income level EUR 24,652, discount 22%) 380 4,557

other insurance policies 200 2,400

salaries 4,000 48,000

salary related costs 50% 2,000 24,000

the entrepreneur's own salary 5,000 60,000

salary related costs for the entrepreneur 3% 150 1,800

costs of business premises 1,900 22,800

leasing payments 200 2,400

communication costs (telephone, Internet etc) 100 1200

accounting, auditing, tax declaration etc. 200 2,400

office costs 50 600

travel and car expenses, daily allowances 200 2,400

marketing costs 300 3,600

education, books, magazines 150 1800

fixing and maintenance 150 1,800

unemployment fund (premiums) 28 336

other costs (Teosto, Gramex, MaRa, Hki Entrepreneurs, uniform, cleaning) 250 3,000

B. FIXED COSTS TOTAL 15,258 18,093

REQUIRED SALES MARGIN (A+B) 16,296 195,552

+ purchases (materials and supplies) (VAT 0%) margin 60% 10,864 130,368

REQUIRED TURNOVER 27,160 325,920

- other net income

+ VAT 15.4% 4,183 50,196

TOTAL SALES / INVOICING REQUIREMENTS 31,343 376,116Monthly invoicing target 11.5 months 20,341 32,706

Daily invoicing target 21 days 1,349 1,557

Hourly invoicing target 11 h 123 142

PRODUCT Lunch buffet €9

À la carte portions €15 Desserts €7

Non-alcohol-ic beverages

€4

Alcoholic beverages

€7Cigarettes

€7

EUR/month

(VAT 0%)

unit price 7.90 13.16 6.14 3.51 5.65 5.65

- costs 3.40 4.70 2.50 1.50 2.30 5.05

= margin 4.50 8.46 3.64 2.01 3.35 0.60

Customer group pcs Total pcs Total pcs Total pcs Total pcs Total pcs TotalEUR total

per month

Daytime customers 945 4,253 42 153 420 844 105 352 10 6

Evening customers 1,218 10,304 420 1,529 630 1,266 840 2,814 30 18

Sales margin total 4,253 10,304 1,682 2111 3,166 24 21,539

Product sales total 945 7,466 1218 16,029 462 2,837 1,050 3,686 945 5,339 40 226 35,582

example of calculation of sales (month):

and a loan of EUR 6,000 from the entrepreneurs' parents. The funds required and sources of funding are precisely balanced, at EUR 85,000. The entrepreneurs will pay off the loan of EUR 41,000 to the bank, with the bank charging a total of 5% of the borrowed sum in interest and expenses. The partners will begin to pay off their shareholder loan and the loan to their parents later, insofar as possible. In the profitabil-ity calculation, no account is there-fore taken of the costs of manag-ing these loans. The loan from the supplier will not be paid back as it is an advance volume discount for the restaurant.

The profitability calculation begins with a definition of the result target. As this is set at EUR 10 per month, the business makes a small profit. Initially, it is sensible to know how high the minimum sales must be in order to cover the costs of the restaurant. The operating margin is around 60%, which means that the use of raw materials totals more than EUR 130,000 per year. The restaurant pays 24% VAT on sales of alcohol and cigarettes, and 14% on sales of food and non-alcoholic bev-erages. The average percentage of VAT in the calculation is the calcu-lated figure of 15.4%. The restaurant is closed for two weeks per year, i.e. it is open for 11.5 months per year. The restaurant is open 21 days a

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REQUIRED SALES MARGIN Month Year Turnover (VAT 0%) 35,582 409,191

Total costs -14,043 -161,496

Sales margin total 21,539 247,695

Required sales margin in the profitability calculation 11.5 mths 17,005 195,552

DIFFERENCE (possible additional sales required) 4,534 52,143

Difference -% (target is to obtain difference -%) < 80%) 79%

79%

GROWTH PERCENTAGE PER YEAR Year 2 Year 3Income 15% 10%

Costs 10% 5%

3 YEARS PERFORMANCE PLAN Year 1 Year 2 Own estimate Year 3 Own estimate

Sales proceeds 470,569 541,154 595,268

VAT 61,378 70,585 77,643

Turnover 409,191 470,569 517,625

Materials and equipment 161,496 177,645 186,527

Personnel costs 138,357 152,192 159,801

Rents 22,800 25,080 26,334

Marketing 6,600 7,260 7,623

Other operating costs 18,336 20,169 21,177

Operating margin 61,602 88,223 116,163

Financing costs 2,050 1,640 1,230

Taxes 10,425 16,203 22,151

Financing performance 49,127 70,380 92,782

Depreciation 7,425 5,568 4,176

Result 41,702 64,812 88,606

month. The daily turnover must be at least EUR 1,349, i.e. there must be EUR 1,557 in the daily till/account in order for the restaurant to cover its costs.

The figures are entered in the sales calculation without value-added tax. The average price of each product category is entered in the product category units. For instance, custom-ers pay between EUR 7 and 22 for à la carte meals, but the estimated average price is EUR 15. Customers are divided into day and evening customers. The entrepreneurs esti-mate that the restaurant will sell 45 lunches per day, 945 per month, 58 à la carte meals per day, 1,218 per month, 22 desserts/café products per day, 462 per month, 50 non-al-coholic beverages per day, 1,050 per

month, 45 alcoholic beverages per day, 945 per month, and 40 packets of cigarettes per month. The com-pany's result is EUR 4,534 per month in comparison with the result of EUR 10, which means that the company's profit will be higher than estimated.

If the figure were negative, the restaurant would have to raise its prices, cut costs or sell more in order to achieve a positive result.

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2. aCquisition of business PReMises and taking the PReMises into use

Renting is the most common way to acquire business premises for a restaurant or café. The rental agree-ment must be made in writing, and for a sufficiently long period. In most cases, the agreement is signed for a fixed term of 5–10 years so that it continues after the term until further notice, with an agreed period and terms of notice. The agreement should be made for a period long enough to allow the repairs and modifications, acquisition of furnish-ings and marketing investments for the business premises to be amor-tised during the contract period. On the other hand, if the rental agree-ment is too long, it may become a burden. The premises must be large enough to accommodate a sufficient number of seats for customers and enough work and storage space to house the intended business.

A fixed term agreement is binding on the tenant for the entire contract period. By law, when a tenant sells the business, the rental agreement can be transferred to the buyer. However, it is common practice to include a condition in the rental agreement that requires the land-lord's consent for such a transfer, to allow an advance check on the new tenant's background. The rental agreement includes an agreement that the premises will be used as a café or restaurant. It also includes an agreement on the rent, respon-sibility for the costs of the use and maintenance of the property, and the terms concerning how and when the rent can be raised. When you purchase business premises, the corresponding specifications regard-ing the purpose of use, restrictions, if any, maintenance charges etc. should be prepared carefully.

The lessor, seller and agent of busi-ness premises must provide infor-mation about major renovations of water pipes, the facade or anything similar in the property that may impede the business of the café or restaurant.

2.1 The premises must be suitable for use as a restaurant or café When acquiring business premises, you must ensure their suitability for use as a food establishment, i.e. an establishment where the intended

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restaurant or café business may be run: food may be prepared, stored, sold or served. Even if a restaurant or café had previously operated on the premises, it is possible that they are not suitable for the new business as such. You should ensure suitabil-ity before signing the rental agree-ment or contract of sale, or include a reservation for possible modifica-tions in these documents.

If the premises are not authorised by Building Control for use as a restau-rant or café, a change of the purpose of use, approved by Building Con-trol, is needed before the premises are taken into use. The word of the property company or housing cooperative or property manager is not enough on its own to authorise a restaurant or café business on the

The premises must be approved or

ready for approval as a food estab-lishment for the

purposes of running a café or restaurant

business.

full or result in costly modifications on the business premises. You must ensure the possibility to implement such modifications in advance.

Even if the company that operated on the premises before had the required permits, it is best to review the situation with the competent authorities. The new company may be required to meet new, changed requirements in order to be able to continue the business on the premises. This is the case not only with Building Control requirements, but also for those concerning Food Control and the Rescue Department. More detailed information on these is given in this booklet. Even if you purchase a restaurant, you should carefully check the rental agreement and compliance with regulations.

premises. Many requirements related to the building and building serv-ice technology, hygiene, safety and accessibility, city plan and cityscape, and other relevant requirements may prevent the intended operations in

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2.2 Alterations require a building permit from Building Control All renovations and alterations more extensive than light repairs and indoor furnishing and decoration require a building permit in most cases. A building permit is required regardless of the number of cus-tomer seats or other specifications of the restaurant. Outdoor terraces, service counters, fences, furnishings, advertising signs etc. often require separate planning permission for minor construction or other permits for their placement. No permit is re-quired if the operations comply with the Building Control Department's instructions for outdoor catering.

When you decide to undertake al-terations, you should employ a com-petent lead designer and contact the Building Control Department to find out whether the required altera-tions can be made on the business premises. Helsinki is divided into areas by district. The area's permit secretaries will advice you on how to proceed. www.rakvv.hel.fi

The owner or holder of the plot (property company or housing cooperative) applies for change to the use of the premises, and build-ing permit, but may also authorise the company to file applications on their behalf. The property com-pany or housing cooperative may set requirements or restrictions on the business and alterations, for instance as regards opening hours, noise, smoking, the facade, and the use of yard and pavement areas. All such restrictions should be reviewed and put in writing as the lease agreement is made.

Documents and plans required for a building permit• Application • Proxy (authorisation, unless the

property company, when acting as the applicant, signs the appli-cation), declaration of proprietary rights and the minutes of the Board meeting

• Approval of designers (form) • Two sets of design drawings

required for the permit • Plot plan on which detailed plan

markings and regulations are set out

• Layout plans• Cross-sectional plans • Facade plans • Photograph of the building to be

altered

• Change in the number of customer seats

In addition, the following docu-ments are required• HVAC plans and drawings • Structural drawings if the struc-

tures are to be altered

The Building Control Department's building technology division super-vises the building process and per-forms the inspections mentioned in the permit: notification of initiation / meeting, inspection of structures, inspection of sanitary engineer-ing, inspection of air conditioning, and final inspection. The premises cannot be taken into use before the final inspection is completed.

2.3 Use a competent designer The building permit and related dealings with the authorities require the participation of a competent lead designer. Plans for alterations must take account of a range of requirements, including those on building regulations, hygiene and noise levels, rescue and occupation-al safety regulations. Design work requires a qualified professional who can also assist in managing the permit processes and transactions alongside Building Control.

When the plans and drawings submitted to the Building Control Department are created by an ex-pert and take account of the vari-ous requirements in question, the required permits can be granted smoothly and alteration work can be

undertaken quickly. Everything hap-pens on schedule and the business can open its doors as planned.

Good plans make it easy to request tenders from building contractors and suppliers of furnishings and equipment, and to reach a clear agreement with them on installa-tions, schedules etc.

A number of building, safety and food control regulations apply to restaurant and café premises. Many of these requirements depend on the approved number of customer seats.

The next pages present key issues that must be taken into account when planning a restaurant or café.

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Outdoor terraces, service counters,

fences, furnishings, advertising signs etc. often require separate planning

permission for minor construction or other permits relating to their

placement.

Deliveries of food and supplies

Dry and cold storage rooms

Terrace and outdoor catering areas

Advertising equipment and awnings

City plan

Protected building

Accessibility

Fire safety

Exits

Entrances

Staff facilities

Cleaning and waste management

Toilet facilities

Smoking (not compulsory)

Vestibule and cloakroom

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Air conditioning

Sanitary engineering and equipment

Lighting

Soundproofing, noise

Public premises

Restaurant room

Kitchen

issues to ConsideR when ConveRting PReMises into a RestauRant oR Café

A building permit is required for the conversion of business premises for use as a restaurant or café, or a major renovation or alteration.The owner of the property, or a company operating on the premises and acting under the authorisation or with the permission of the property company, applies for a building permit.

A building permit requires the use of an approved lead designer and supervision during the construc-tion process. The costs incurred must be taken into account in the calculations.

Any conservation regulations applicable to the building must be complied with.

Example of a plot plan

kt 8

sr-2ilm

v1

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1

32

34

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4007

tr k

k

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5030

316

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22

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4K100

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kt

kt

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kt

kt

kt

kt

kt

kt

kt

Last

kt

ilm

rs

kt

1

21 0

17 521 0

18 3

20

1

21

18 5

3

16

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15

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6184

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9162

18 7

17 8

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17 7

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5005

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Liiker k

Liiker k

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2

District/Village Block/Estate Plot/Building no. Entries by the authorities

Building number/Numbers of buildings/Building code/Building codes

Construction measure

Building project

Planner’s contact information: company, address and telephone number

Work number

Plan area File

Drawing code Alteration

Lead designer: name, qualification, signature and date

Type of drawing

Content of drawing Scale

Consecutive no.ALTERATION MASTER PLAN

GENERAL ARRANGEMENT DRAWING

Amendments to space arrangements on the 1st floor

1:500

CITy PLAN MARkINGS AND REGuLATIONS

Block for business and office buildings. Facilities to be placed at street level: shops, restaurants, cafés or other cus-tomer service premises. Residences may be placed on the highest floors of the buildings, on the precondition that good housing conditions are secured.

A line that is 2 m outside the border of the planning zone.

Dividing line between block, part of block and area.

Dividing line between sectors.

Normative site boundary.

When a marking is crossed over, it is deleted.

District number.

Block number.

Number of normative site.

Permitted building volume in gross floor area square metres.

The total of the sequence of numbers indicates permitted building volume, in gross floor area square metres, in the block area. The first figure indicates the gross floor area permitted on the floors overground. The second figure indicates the gross floor area permitted on the floors underground for meeting rooms, fitness centres and business premises. The premises can be implemented on the condition that they can be partly lit with direct or indirect natural light.

The Roman number indicates the highest permitted number of floors for buildings, a building or part thereof.

Building area.

Manhole to be left in the building.

Space with glass roofing. The minimum area of glass roofing is 300 m2. Open-ings to the lower floor must be at least 35 m2.

Protected building. Because the building is a valuable element in the cityscape, it may not be demolished, nor amended or extended in a way that would spoil the value or style of the facades facing the street.

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Example of a layout plan

The following must be indicated in the drawings enclosed with the permit appli-cation:• the change in the use of the premises,

and outline of the area • the number of customer seats (in a res-

taurant, at least 1 m2/per customer seat) • the equipment and fixtures required

for cooking, and the method of heating (electricity/gas)

• serving facilities and their surface areas • smoking room and its area (not compul-

sory)• grease duct• area to be altered (indicated by dash line) • structures to be demolished (indicated by

dotted line) • former structures (indicated in bold or

with a double line, one of the lines must be thicker)

• new structures • outline of fire compartments • accessible route • advertising equipment

HVAC and electricity designs and installa-tions must be commissioned from experts.

ENTRANCE

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District/Village Block/Estate Plot/Building no. Entries by the authorities

Building number/Numbers of buildings/Building code/Building codes

Construction measure

Building project

Planner’s contact information: company, address and telephone number

Work number

Plan area File

Drawing code Alteration

Lead designer: name, qualification, signature and date

Type of drawing

Content of drawing Scale

Consecutive no.ALTERATION

SHOP

SHOP

SHOP

SHOP

APK

JK PK.

ET

.

EI 60 EI 60

MI

PP

AREA TO BE MODIFIED

RESTAuRANT 42 CuSTOMER SEATS, 66 M2

CLEANING

CLEANING

STOVE

STOVE

OVEN

SOCIAL FACILITIESSOCIAL FACILITIES

kITCHEN

TOILET

TOILET

STORAGE

STORAGE

STORAGE

STORAGEDISABLED TOILET

MASTER PLAN

LAyOuT PLAN 1:100

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Fire and rescue requirements must be complied with. Res-

taurants or cafés with more than 50 seats must always have a rescue plan.

As a rule, every restaurant is re-quired to have two exits. The exit doors must open without a key at all times when people are inside the premises. Exits must always be ac-cessible. No items may be stored by the exits. The exits must be marked with signal lights or fluorescent exit signs.

The fire compartments of the premises must be built in compli-ance with regulations. Connections to housing premises and stair halls must be equipped with fire doors. The indoor surfaces and decoration materials must be flame-retardant. Decorations may not pose a danger or cover signs. Candles and other naked flames must be avoided or carefully supervised.

For primary fire extinguishing pur-poses, the restaurant's dining room must be equipped with an approved 6 kg portable fire extinguisher and the kitchen must have a correspond-ing portable fire extinguisher and a fire blanket within easy reach.

If the restaurant's floor area exceeds 300 m2, stricter safety regulations and equipment requirements will apply.

Restaurant and café businesses may cause noise problems for residenc-es in the property. Noise insulation against residences and other sur-roundings must therefore comply with building regulations. In some cases not even that is sufficient, as the nuisance caused by noise is assessed from the perspective of housing health. Live music and disco music is assessed in different ways

and stricter noise level limits apply at night than during the day. For instance, music or bass sounds that can be heard in residences at night almost always exceed the limits set for noise levels.

entrance must be arranged through a double-doored

entrance or other structure that prevents draughts.

The restaurant or café must be accessible. The require-

ments for accessibility include 800 mm doorways, ramps with an angle of 8% (1:12.5) at most, the required railings and handles and thresholds of 20 mm at most. Planning and im-plementation of new buildings com-ply with the principle of accessibility, which is also the guiding principle in renovations. For restaurant and café premises with more than 25 seats for customers, as a rule the entrance must be designed to be accessible and the toilet must be suitable for the disabled.

APK

JK PK.

ET

.

EI 60 EI 60

T

MI

PP

AREA TO BE MODIFIED


CLEANING

CLEANING

STOVE

OVEN

SOCIAL FACILITIESSOCIAL FACILITIES

SHOP

SHOP

SHOP

SHOP

kITCHEN

TOILET

TOILET

STORAGE

ENTRANCE

STORAGE

STORAGE

STORAGE

DISABLED TOILET

APK

JK PK.

ET

.

MI

PP


CLEANING

CLEANING

STOVE

OVEN

SOCIAL FACILITIES

kITCHEN

TOILET

TOILET

STORAGE

STORAGE

STORAGE

STORAGE

DISABLED TOILET

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Food preparation and the handling of dirty dishes and

waste must be separated.

Cooking equipment must be placed under a ventilation hood equipped with a grease filter, from where exhaust air is led through a separate duct that meets fire regulations to above the building's roof. If the duct runs outside the building, a building permit is required.

If the number of portions served is more than 50 (in a heating kitchen, 100) per day, a grease trap must be installed in the sewer. Instructions for restaurants on the topic (in Finn-ish) www.pytty.fi/files/3398/Rasvaesite_VVY_2014_verkkoversio.pdf

There must be a separate water supply for the preparation of food, pre-wash of dirty dishes, and wash-ing of dishes.

Kitchen staff must have a separate handbasin in the kitchen.

Adequate dry storage and refrig-eration facilities must be provided for the storage of food ingredi-ents, food and drinks.

The kitchen where food is prepared must be equipped with a grease duct and grease filter (except if there is only a pizza oven, a combi oven or a fan-assisted oven). The filter must be washed at least every week, and the ducts cleaned an-nually. The restaurant must have a certificate of cleaning.

Regulations on the use and stor-age of liquid gas and flammable liquids

must be complied with. Up to 25 kg of liquid gas may be stored indoors, and composite LPG cylinders are recommended. The use of liquid gas should be negotiated with the fire and rescue authorities.

Restaurants and cafés can minimise their environmental impacts in many ways, by means such as pay-ing attention to the choice of ingre-dients and minimising the waste of food products, the quantity of waste in general, the energy consumption of equipment and fixtures, and the use of chemicals and water.

The requirements set with respect to the food hygiene regulations, air conditioning and sewerage of the kitchen are defined on the basis of the scope of the business and the kitchen appliances used.

Kitchen types can be categorised as follows:• A preparation kitchen is a room

where food is prepared by bak-ing it in a pan, on a grid pan, in an oven or in an immersion

boiling device (e.g. French fries). Examples of preparation kitch-ens include restaurant, café and staff canteen kitchens, and many pizzeria and kebab restaurant kitchens.

• A heating kitchen is a room where pre-cooked or ready-cooked meals are prepared by heating them in an oven, in a water bath, or by cooking them.

• A plating kitchen is a room where meals, transported from another location, stored hot or cold, are placed on plates.

employees must be provided with a separate dressing room,

washing and toilet facilities, separate-ly for men and women if necessary.

Food establishments must have separate, appropriately equipped facilities for the storage and main-tenance of cleaning equipment. Separate cleaning cupboards are rec-ommended for customer and kitchen premises. If the space is shared, the cleaning equipment for kitchen use must be well marked.

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outdoor catering areas require the permission of the

property company and, when in public areas (e.g. a street or park), a permit from the Building Control Department. Outdoor catering open-ing hours in a residential property in the immediate vicinity of hous-ing are restricted to 22.00, unless a special permit is in force. A notifica-tion must be submitted to the police about any outdoor catering area.

Issues to consider when imple-menting an outdoor catering area: • it is operationally connected to

the restaurant or café and man-aged from there

• at most, a street separates it from the establishment

• it may not impede access to the property, accessibility, traf-fic or the use of public spaces in general

• the serving of alcoholic bever-ages requires that the licence to serve alcoholic beverages covers the outdoor catering area, and that the area is clearly marked

and controlled• half of the number of customer

seats is taken into account when calculating the number of toilets

• other requirements for hygiene and waste management must be complied with

The outdoor serving area must be implemented with structures as light as possible • demarcation, for instance with

a fence made of light ropes or open steel structures, 90 cm max.

• no floor podium, canopy or wall elements

• high quality furnishings suitable for the environment (no white plastic chairs or wooden com-binations of table and benches), parasols are permitted

• no advertisements

Outdoor catering: mobile kiosksA mobile kiosk is a registered motor vehicle or trailer from which food is sold (‘Food Truck’). The Building Control Department grants permits for mobile kiosks and a notification

of the initiation of a business must be submitted to the Environment Centre.

Structures other than those men-tioned herein require a planning permission for minor construction or a building permit.

Smoking can be permitted on a ter-race on condition that the cigarette smoke does not drift indoors.

Advertising equipment is subject to separate instructions. They may require planning permission for mi-nor construction due to the look or placement, and permission should be applied for in connection with the building permit for alterations. If you comply with the instructions published by the Building Control Department, you do not need to apply for a permit. In most cases, advertising equipment also requires the approval of the property com-pany.

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toilet facilities must be provided in relation to the

number of customer seats, in ac-cordance with the presented table. Access to toilet facilities cannot be provided through the kitchen or storeroom and the toilet doors may not open directly into a room where food is prepared. Employees must be provided with an appropriately equipped toilet facility. Depend-ing on the nature of the business, the employees and customers may use the same toilet facility, for instance in small cafés if the toilet is equipped with a tap that does not need to be touched.

Customer seats outdoors, e.g. on the terrace, must be taken

Toilet facilities in relation to customer seatsCustomer seats Ladies/seat Men/seat + urinalMax 6 toilet not required7-25 one unisex toilet*26-50 1 151-100 3 1+1101-150 4 1+2151-200 4 2+2201-250 5 2+3251-300 5 2+4301-400 6 3+4Larger establishments on a case by case basis

* If the establishment mainly serves alcoholic beverages, separate toilet facilities for men and women must always be provided, regardless of the number of customer seats. If the toilet is shared by em-ployees and customers, a non-touch tap must be provided.

smoking is prohibited on all public and work premises. It is not compul-sory to organise a smoking room.

Smoking is permitted in a smok-ing room or cabin, which must be a space of at least 7m2, underpressu-rised and structurally separate from the rest of the premises. Air must be ventilated from the space separately or into an exhaust air duct, so that it cannot circulate back into the room. Without exception, building permits are required for smoking rooms.

Special regulations apply to the num ber of persons allowed in the room, fire safety, accessibility, access.

No food or drinks may be served in the smoking room or consumed there. No games may be placed in the room, nor may employees work there. The smoking room must be well ventilated before cleaning.

More detailed instructions on build-ing a smoking room are available on the Building Control Department's website www.rakvv.hel.fi

into account when dimensioning the toilet facilities as they add to the toi-let facilities by a factor of 0.5, which means that one half of the customer

seats on the terrace must be taken into account when dimensioning the number of persons for whom toilet facilities will suffice.

ENTRANCE

APK

JK PK.

ET

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MI

PP


CLEANING

CLEANING

STOVE

OVEN

SOCIAL FACILITIES

kITCHEN

TOILET

TOILET

STORAGE

STORAGE

STORAGEDISABLED TOILET

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A number of requirements regarding health, safety and the environmental impacts of the business apply to the restaurant and café business. The product range of foodstuffs, their handling and preparation and the number of customer seats influence the requirements for sanitary facili-ties, air conditioning, the number of water supply points, exits and safety equipment.

3.1. Food control In Helsinki, a notification must be submitted to the Environment Centre about a new restaurant or café four weeks before the begin-ning of the operations. During the processing of the notification, fur-ther information will be requested about the business, if necessary, and a certificate will be provided on the

3. otheR issues Related to the business, subjeCt to a PeRMit

processing of the notification. Res-taurants and cafés will be inspected, based on a risk-assessment, within 1–3 months of the business open-ing. The notification may be submit-ted online at https://asiointi.hel.fi (notification of food premises). The processing and inspection of the

notification are subject to a charge. More information: www.hel.fi/ymk

Pursuant to the Food Act, restau-rants and cafés must have sufficient and truthful information about the food they produce, refine and dis-tribute. The company must prepare a self-supervision plan in writing, according to which the company itself controls the quality and safety of foodstuffs and the appropriate-ness of the operating conditions. For the purposes of self-supervision, both the results and measures un-dertaken to remedy faults must be recorded in writing.

The materials and entries pursuant to the self-supervision plan must be available for the supervising author-ity during control visits. In addition

Good food hygiene reduces the health

risks associated with food and can also reduce wast-

age in the business.

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The Oiva evaluation scale comprises four smileys:

excellent: operations comply with requirementsGood: There are small issues with the operations, which do

not impair food safety or mislead consumers.

to be corrected: There are issues with the operations,

which impair food safety or mislead consumers. These issues must be rectified within a set deadline.

Poor: There are issues with the operations, which jeopardise

food safety or considerably mislead consumers. These issues must be rectified with immediate effect.

More information and instructions: www.oivahymy.fi

All persons who handle unpackaged, easily perishable foods at work in the food establishment, must have a Food Hygiene Proficiency Certificate, i.e. a Hygiene Passport, and a certifi-cate of their health status pursuant to the Communicable Diseases Act.

Good food hygiene reduces the health risks posed by food and can also reduce wastage in the business.

to control, the implementation of self-supervision and the quality of foodstuffs is monitored through sam-ples taken by the authorities and the establishment itself.

The self-supervision plan must be kept updated. The operations must comply with the plan. The plan must include the following: • stages of operations that may

involve risks to food hygiene • the methods for supervising

these stages and thresholds for measures to be taken, e.g. meas-uring the temperature and limits for temperatures

• corrective measures if the thresh-olds for measures are exceeded

• records of measurements, inves-tigations and reports, corrective measures performed and notifi-cations to the authorities

• persons in charge.

Perishable food products must be stored at the temperatures specified by law. Any cases of food poison-ing must be reported to the Envi-ronment Centre without delay, by telephone or online at www.hel.fi/ymk

The food control authorities perform inspections of restaurants and cafés on a regular basis. The checks com-ply with the Oiva system. The results of inspections will be recorded in an inspection report and and Oiva report. The inspection report lists the observations, deadlines etc. in detail, and the Oiva report lists the results evaluated on a scale based on smileys. Only the Oiva report will be published online at www.oivahymy.fi and it must be dis-played close to the entrance of the restaurant or café.

Various aspects of hygiene proficien-cy are required of persons working with food: microbiology, food poi-sonings, hygienic work methods, per-sonal hygiene, purity requirements and sanitation, self-supervision and legislation.

Further information on self-super-vision and the Hygiene Passport is available from Evira's website, the Environment Centre, catering busi-ness educational institutions and the Finnish Hospitality Association MaRa. www.evira.fi, www.mara.fi, www.hel.fi/ymk

3.2 Serving alcohol and the ‘alcohol passport’ The commercial serving of alcoholic beverages is subject to a licence. Applications must be submitted to the Regional State Administrative Agency. The serving licence is spe-cific to the trader and the premises. Requirements for licensing include appointing a qualified responsible manager, a personnel plan, and the definition of the serving area.

The premises must meet the re-quirements set for a catering es-tablishment and facilitate sufficient control. A licence to serve alcohol granted to a restaurant in business will not automatically be transferred to the new entrepreneur when the business is sold. The Regional State Administrative Agency AVI will always check that the responsible manager meets the set require-ments.

Further instructions are available on the websites of Valvira, the National Supervisory Authority for Welfare and Health, and the Regional State Administrative Agencies (AVI). www.valvira.fi, www.avi.fi

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A planning permission for minor construction or a building permit is not required if the outdoor catering area is implemented with as few structures as pos-sible, without borders or fences, and no structures other than the ones listed in the instructions below are in place:

• if fencing in is required, the area should be marked off from the street area e.g. with light ropes or open steel frame railings, painted in a dark colour, maximum height 90 cm

• furniture must be placed directly on the street surface

Persons responsible for serving alcohol (in establishments with an A and B licence) must have the nec-essary professional skills for the role, acquired either through education or practical experience. In addi-tion to professional skills acquired through practical experience, a so-called alcohol passport (anni-skelupassi) is required. On licensed premises with a C licence, an alcohol passport is enough.

3.3 Smoking and sales of tobacco products In Helsinki, the city's Environment Centre grants licences for the retail of tobacco products. The require-ments for a licence to sell include an acceptable arrangement for the point of sale, sales supervision and an approved self-supervision plan. A licence to sell tobacco is specific to the enterprise and point of sale. Instructions regarding licences to sell and self-supervision, as well as an online application form, are avail-able from the website of Valvira, the National Supervisory Authority for Welfare and Health www.valvira.fi

Smoking is not permitted indoors unless a closed smoking room or cabin equipped with a separate air conditioning system is provided. It is not compulsory to organise a smoking room.

A smoking room is intended for smoking only. It is prohibited to

consume food and drinks or play games in a smoking room and the room does not form part of the licensed premises. Working is not permitted in a smoking room, with the exception of tasks necessary to maintaining order and safety, and the room must be thoroughly aired out before it is cleaned.

without any floor platform, use high quality furnishings suitable for the environment (no white plastic chairs or combinations of tables and benches made of weather-proof wood)

• no canopies and walls may be erected, the open character of the street must be pre-served

• to protect the area from sun and rain, parasols with no advertisements may be used, which have a form, colour and structure suitable for the building and environment

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Smoking can be permitted on a ter-race or other outdoor area occupied by the restaurant. The smoke may not drift indoors through doors, windows or the air conditioning system. Advance arrangements must be made with the property company regarding an outdoor smoking area.

3.4 Rescue plan and safetyA rescue plan with instructions for emergencies must be prepared for restaurants with over 50 customer seats. The marking of exits, the pro-vision of extinguishing equipment in compliance with regulations, the appropriate storage and handling of flammable and other hazardous substances, and general good order and cleanliness are easy ways of im-proving safety. Further information is available on the website of the Helsinki City Rescue Department: www.hel.fi/pel

3.5 Terraces and other types of outdoor catering Outdoor catering areas are subject to the landowner's permission. In cities and urban areas, the owner is usually the local authority or a property or housing company. Outdoor catering must take place in the immediate vicinity of the restaurant or café. Outdoor cater-ing requires planning permission for minor construction issued by the Building Control Department or a building permit for fixed structures, and compliance with the regulations of the Environment Centre, includ-ing the number of customer seats, the product range sold and other requirements concerning hygiene, toilet facilities for customers and waste management.

The serving area must be marked clearly so that it is easy for custom-ers to discern its boundaries and the

area can be supervised. Noise from the outdoor terrace or music played there may disturb residents in the surroundings and subject to restric-tions. The use of audio systems outdoors is subject to a licence issued by the Environment Centre. Royalties for playing music must be paid to the Finnish Composers' Copyright Society Teosto and the Copyright Society Gramex.

Serving of alcoholic beverages in the outdoor catering area is subject to approval by the Regional State Administrative Agency (AVI), unless the original licence to sell alcohol also covers the outdoor area. For areas owned by the City of Helsinki, applications for licences to sell out-doors are submitted to the Building Control Department.

3.6 Licences to play musicIf you play music in your restaurant or café or the adjacent terraces, you will need a licence. A licence is re-quired for playing background music

from sources such as the radio, televi-sion, records or computers, and for playing live music if you arrange a gig or concert in your restaurant or café.

Teosto sells licences to make use of music and collects royalties for composers, lyricists, arrangers and publishers of music. Gramex sells li-cences and collects royalties for per-formers (musician, singer, conduc-tor) and record producers. Teosto collects royalties for both recorded and live music, Gramex for recorded music only.

If you play music that has been saved, for instance on the hard disc of your computer or from your iPhone, mp3 player or other such device, you will also need a record-ing licence. A licence is also required for the public use of music bought online. Gramex sells such licences.

Teosto and Gramex negotiate and agree the prices for playing music with restaurant and café entrepre-

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neurs and the umbrella organisa-tions representing them, such as the Finnish Hospitality Association MaRa. Without Teosto and Gramex, you would have to agree separately on the rights to play music – and royalties and their payment to copy-right holders – with each party. www.teosto.fi ja www.gramex.fi

3.7 Personnel and the entrepreneurGood restaurant and café employ-ees are professional and know how to serve customers well. Depend-ing on the position in question, the aforementioned hygiene and alcohol passports, or for instance approval by the police as a person in charge of maintaining order, may be required from employees.

The safety training and first aid skills of employees are a key part of the practical skills necessary during emergencies. The focus of occupa-tional health and safety issues in restaurants include protection from noise and tobacco smoke in particu-lar.

You should sign employment con-tracts in writing with your employ-ees, taking account of the generally binding collective agreement for the hospitality sector.

The employer is obliged by law to arrange occupational health care for employees, and to take care of safety at work.

You can also acquire employees from a staff leasing agency. Some of these specialise in leasing kitchen and service staff for the hospitality sector.

Entrepreneurs must also take care of personal social security, pension contributions and unemployment security. You should chart the related risks alongside an insurance com-pany and agree on insurance policies for the business and operations.

Further information is available on the websites of the authorities, insurance companies and Service Union United PAM, the Finnish Hos-pitality Association MaRa and guides by Restamark.

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NewCo YritysHelsinki www.newcohelsinki.fi

Business plan www.liiketoimintasuunnitelma.com

City of HelsinkiBuilding Control Department www.rakvv.hel.fi

Environment Centre www.hel.fi/ymk

Real Estate Department www.hel.fi/kv

Public Works Department www.hel.fi/hrv

Rescue Department www.hel.fi/pel

4. useful souRCes and links

Urban Facts www.hel.fi/tietokeskus

City Planning Department www.hel.fi/ksv

Helen (electricity) www.helen.fi

Wholesale Market www.heltu.fi

Other authoritiesRegional State Administrative Agency AVI www.avi.fi

Finnish Food Safety Authority Evira www.evira.fi

National Supervisory Authority for Welfare and Health Valvira www.valvira.fi

One address for citizens' services www.suomi.fi

OthersThe Regional Organisation of Enterprises in Helsinki www.yrittajat.fi/helsinginyrittajat

Finnish Hospitality Association MaRa www.mara.fi

Hotel and catering equipment Restamark www.restamark.fi

Service Union United PAM www.pam.fi

Teosto, Finnish Composers' Copyright Society www.teosto.fi

Gramex, Copyright Society www.gramex.fi

Tel. +358 (0)9 310 36360 Ensi linja 1P.O.Box 4500, FI-00099 City of Helsinki Opening hours: 8:30 – 16:30E-mail: [email protected] www.newcohelsinki.fi