Is a Cafe shop or restaurant?

Understanding Changes in Use Classes

Over the years, we’ve faced this dilemma on several projects. We decided to address it here to clarify and explain the process as thoroughly as possible.

There has been extensive discussion and numerous white papers about changes to residential and permitted development rights aimed at improving housing provision. Despite this, some areas, particularly on High Streets, still face unmet demand for A3 uses.

This situation has led to an increase in A1 café units, now referred to as ‘A1 (food)’ by some agents. These tenants operate food businesses in premises intended for retail (i.e., sale of goods).

The Town and Country Planning (Use Classes) Order 1987 defines A1 use as “Shops, retail warehouses, hairdressers, post offices, pet shops, undertakers, travel and ticket agencies, sandwich bars, domestic hire shops, showrooms, dry cleaners, funeral directors, and internet cafes.”

On the other hand, A3 use is designated for cafes, shops, or restaurants primarily selling hot food and drink for consumption on-site. A5 use allows for hot food takeaways where food is delivered or collected for off-site consumption. The distinction between A3 and A5 uses can be confusing, especially when determining whether a café, shop, or restaurant falls under A1 or A3. This ambiguity complicates how some premises operate and how local authorities classify these uses.

Determining A1 Use

The statutory definition provides no additional guidance on what constitutes an A1 use beyond retail. Ancillary uses, such as seating, which would normally fall under A3, can also be part of the A1 use. To determine if a use is lawful under A1, assess the proportion of seating and cold food sales. Generally, 15% seating is a good starting point, but this can vary based on cold food and takeaway sales. High street chains have struggled with this balance. For instance, Caffé Nero faced backlash and had to apply for A3 use in some locations after operating in A1 units.

Heating food on-site, depending on the quantity and method, does not necessarily constitute a change of use. The overall food offer, including on-site and off-site sales, must be considered to make this determination.

Many A1 units now operate as cafes, such as Starbucks and Costa. Since the A use class was subdivided, these operations often fall into a mix of A1, A3, and sometimes A5 categories. Given the increasing number and demand for such uses, should central and local governments encourage them, especially in High Streets with many vacant units?

Mixed and Temporary Uses

Some councils, like Westminster, oppose the loss of A1 units. However, they sometimes approve mixed-use changes if an A1 frontage is maintained and suitable controls are implemented. Temporary permissions of 5-10 years can also be granted, eventually reverting to A1 use. The concern is that such permissions might set a precedent, leading to a broader decline in high street retail.

Given the recent closures of major retailers, there’s an abundance of empty retail units and a shortage of restaurant/café spaces. Local authorities could address this by relaxing regulations or adopting a more informed approach to changing and conditioning uses.

Operators might seek certainty before committing to a long lease. Applying for a certificate of proposed lawful use can provide this assurance, although the process can be time-consuming and may delay finding a tenant.

Sale and Purchase of Alcohol (A4 Use)

The sale of alcohol in A1 units often raises questions. Retail units can obtain a premises licence under the Licensing Act 2003. However, some councils, including Westminster, only grant licences where alcohol is sold with food, particularly in areas like the West End. This policy can conflict with A1 use, leading to potential issues.

Planning authorities rarely comment on licensing applications, as they are separate regimes. Operators must balance the ancillary nature of alcohol and food sales within this context.

Outdoor Seating for Cafés and Restaurants

Planning consent for outdoor seating, such as tables and chairs, is usually granted separately from a highways and transport licence. However, this consent can highlight the A3 use of the unit, raising questions about whether the use remains within A1.

Contact Us

4D Planning can discuss your potential change of use project and advise on the best way to achieve your goals. Get in touch for a FREE phone consultation to discuss your requirements.