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Hospitality Business - 21 Espace Bien-Etre - Case Study Example

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The paper "Hospitality Business - 21 Espace Bien-Etre" is a perfect example of a business case study. The business name will be 21Espace bien-être. The business will be focused on customer satisfaction and ensuring that it meets the leisurely needs. The services provided by 21Espace bien-être will be food, beverages and accommodation…
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Hospitality Business Name Class Unit Table of Contents Table of Contents 2 Introduction 3 Building regulations 3 Commercial kitchen and bar 4 Planning permits 5 Third party insurance 6 Health & Safety regulations 6 Liquor licence regulations 6 GST registration 7 Taxation requirements 8 Legal advice required 8 Compliance needs for the business 8 The risks, penalties and consequences of non-compliance 9 Specialists advice and recommendations 9 References 10 Introduction The business name will be 21Espace bien-être. The business will be focused on customer satisfaction and ensuring that it meets the leisurely needs. The services provided by 21Espace bien-être will be food, beverages and accommodation. The location at Melbourne has been selected due to its disposable incomes and proximity to the customers. The business will be covered by the prescribed accommodation regulations since it will be providing bed and breakfasts for more than five peoples and self-contained accommodations. There will also be compliance with liquor licensing authority. The business aims at meeting and satisfying all the government regulations in Melbourne (Foodsafety.com.au, 2016). Building regulations The business building premises will start by complying with the Building Act of 1993. This is an Act that governs the buildings in victoria and sets out the legislative framework. The Act outlines the building regulations, standards, maintenance and the safety features. The main aim of following this Act is to ensure that health and safety of the customers is protected (Vic.gov.au, 2016). It will also ensure that the amenities are enhanced and that the buildings are energy efficient. The building hosting the business will be environmentally friendly, energy efficient and the plumbing must follow the national standards (Melbourne.vic.gov.au, 2016). The business premises will also follow the Building Regulations of 2006. These are derived from the Act and contain the building permits, inspections, occupancy permits, regulations and maintenance. Through this, it becomes possible to adopt the Building Code of Australia (BCA). In case of any construction work, nuisance will have to be minimised. This is based on the Activities Local Law of 2009. This includes minimizing dust, noise and vibrations that causes nuisance to the public. The national construction code ensures that all the constructions requirements are in a single code (Vic.gov.au, 2016). Also, the Building Code Australia (BCA) will set the useful technical provisions during the business premises design and construction. At this point, the business will be in constant contact with the Victorian Building Authority. This will ensure that there is building control and the premises are liveable, sustainable and environmental friendly (Melbourne.vic.gov.au, 2016). The online details for compliance on building code are on: http://www.melbourne.vic.gov.au/building-and-development/planning-and-building-services/construction-development/legislation-guidelines/Pages/building-act-1993-building-regulations-2006.aspx Commercial kitchen and bar The second step is coming up with a commercial kitchen and bar. The business will acquire a commercial kitchen and associate business planning permit. This will be gained from the local council. The council will also be provided with the health permits for the operation of the commercial kitchen. This will also include a food safety plan in addition to a kitchen design. The first step in the design will be a visit to the council and explain to them what the business will involve in and have the design approved by the environmental health officer. The building permit will be paid for and planning permit organized with the help of the architect. This will be based on the Australian standards. The two standards to be used in the design of the kitchen are AS 4674-2004 which is based on design and fittings in a commercial kitchen and AS 1668 parts 1&2 which are based on the extraction systems. The design of the kitchen will also have to follow the gas and electrical safety regulations. To ensure that there is full compliance, there will be involvement of a qualified commercial kitchen contractor (Hospitalitydesign.com.au, 2016). The estimated costs for kitchen design and expansion will be $8,000. The details on commercial kitchen compliance are found online at: http://www.hospitalitydesign.com.au/sheet-9-obtaining-approvals/ Planning permits The third step is getting planning permits. In Melbourne, starting a new hospitality business requires one to have a planning permit. The permit will be applied from the city of Melbourne to prove that it has approved the development of the property. Since the business aims at provisions of food and accommodation for more than five people, the permit is a requirement (Business.vic.gov.au, 2016). The permit will also ensure that the alteration of the building and any extensions carried are protected by the law. The business will be registered by the local council based on the Health (Prescribed Accommodation) Regulations 2001 and Victorian Food Act 1984. The business name will be registered through the Consumer Affairs victoria and the Australian taxation office. The fees to be paid for this permit are $1240.70 (89 fee units) (Melbourne.vic.gov.au, 2016). The details on online permit application are found on: www.melbourne.vic.gov.au/building-and-development/planning-and-building-services/forms-fees-checklists/Pages/planning-building-fees.aspx Third party insurance The fourth step is gaining third party insurance. The business aims at insuring the property as well as third party. The public liability will be obtained at a cost of $10 million. This will cover all paying guests and customers. There will also be product liability which will cover the food and other products given to the guests. The business will also take the Victorian Work Cover Authority insurance which is a mandatory insurance for all employees. This will be based on the employees’ contributions to cater for employees’ injuries and sickness. This is a decision based on the fact that the business will be paying more than $7,500 a year in rateable remuneration (Business.vic.gov.au, 2016). The details on third party insurance application are found on: www.business.vic.gov.au/setting-up-a-business/how-to-start-a-business/find-the-right-insurance Health & Safety regulations The business will comply with the Food and Safety laws as a fifth step. This is based on the Food Act 1984 to ensure that food offered is safe. Being in an industry that employs most of the young and inexperienced workers, there will be a lot of efforts to ensure that the workplace is safe. The business will comply with the Work Safe guidance (Worksafe.vic.gov.au, 2016). This includes the code of conduct, guidance and Occupational health and safety (OHS). The OHS act 2004 will be followed based on principles, duties ad rights in the workplace. The business will also follow new regulations on health and safety that may arise (Business.vic.gov.au, 2016). Liquor licence regulations To be able to sell liquor, the business will apply for liquor license which is the sixth step. This is based on the Liquor Control Reform Act 1998. The fees will be paid to the Victorian Commission for Gambling and Liquor Regulation. The fees paid will be renewable annually and amounts to $452 and will be based on annual renewal fees. The business will apply for a renewable club license since it has no set trading hours. This will allow the business to provide drinks to the guests on the premises and point of sale. This will ensure that the business is able to control abuse and misuse of alcohol and there is responsible drinking culture (Victorian Commission for Gambling and Liquor Regulation, 2016). The application of liquor license will be done online at: www.vcglr.vic.gov.au/home/laws+and+regulations/legislation+and+regulations/liquor+legislation/ GST registration The seventh step is GST registration. GST registration will be carried out using the online business portal. This will be carried out using the Australian Business Number (ABN). The GST will be based on the projected turnover. This is due to fact that the turnover is expected to be over $75,000 for the next 11 months (ATO.gov.au, 2016). The steps to be followed by 21Espace bien-être are: Determining the required type of GST. Completing the e-learning course. Submitting the GST registration. Waiting for GST processing (about 10 working days). Notification. GST online application will be done at: https://www.ato.gov.au/Business/GST/Registering-for-GST/ Taxation requirements The taxes that will be complied with are; Company income tax, Capital gains tax, and goods and services tax. To be able to comply, the business will keep its details updated and verified. This includes the business legal name, owner, and type of entity, contact details and the main business activities (ABR.gov.au, 2016). Legal advice required The business will rely on Law Institute of Australia for legal advice. This will help in obtaining the required information on the industry related issues, dispute resolution, regulations and permits. There will also be use of business mentorship to ensure that the business learns from the experienced mentors. This will also help in gaining information on the existing employment law and protect the business from avoidable legal disputes. The legal costs are estimated to be $1200 (Liv.asn.au, 2016). Compliance needs for the business The compliance needs for the business are: Registering business name. Food and safety regulations. Liquor licensing (Victorian Commission for Gambling and Liquor Regulation, 2016) Accreditation. Compliance with workplace OHS. Australian Business Number (ABN) - this will be a key for the business when identifying with the Australian tax office (ATO) (ABR.gov.au, 2016). Tax File Number (TFN)-helps the governments in administering tax. Fringe Benefits Tax (FBT) - this is due to fact that the business will be providing the employees with fringe benefits such as health insurance. The risks, penalties and consequences of non-compliance Failure to comply attracts penalties and fines. Lack of compliance with OHS leads to provision of notices from the health and safety representatives (HSRs), prosecution and fines. The OHS Act provides the maximum penalties of $1,365,030 for corporations and $273,006 for individuals. In addition to fines, the business owner can face imprisonment based on the issue (WorkplaceOHS.com.au, 2016). Failure to comply with the liquor legislation attracts penalties, fines and license suspensions. The penalties are determined from time to time. License cancelation can also be carried out if the business is found selling unlicensed liquor, underage drinking or processing liquor in unlicensed premises. Sexually explicit entertainment in the liquor business will lead to a fine of up to $71,548.30 based on the number of times for non-compliance (Victorian Commission for Gambling and Liquor Regulation, 2016). The risks and penalties applicable are found online at: http://workplaceohs.com.au/legislation/vic-legislation/vic-penalties and www.vcglr.vic.gov.au/home/laws+and+regulations/legislation+and+regulations/liquor+legislation/ Specialists advice and recommendations According to the specialist advice, the liquor licences in Australia have been getting expensive. This may require the business to ensure that they cater for license that will give them maximum returns. It will also require having responsible person at all times to monitor compliance. This will save the business from high non-compliance penalties and fines. The business must ensure that there is compliance with the OHS and Safe Work Act (Worksafe.vic.gov.au, 2016). Compliance is the most important aspect that ensures the business is safe from unnecessary lawsuits and costs. References ABR.gov.au. (2016). Update your ABN details | Australian Business Register. [online] Available at: https://abr.gov.au/For-Business,-Super-funds---Charities/Updating-or-cancelling-your- ABN/Update-your-ABN-details/ [Accessed 22 Nov. 2016]. ATO.gov.au. (2016). Registering for GST. [online] Available at: https://www.ato.gov.au/Business/GST/Registering-for-GST/ [Accessed 22 Nov. 2016]. Business.vic.gov.au. (2016). Find the right insurance | Business Victoria. [online] Available at: http://www.business.vic.gov.au/setting-up-a-business/how-to-start-a-business/find-the- right-insurance [Accessed 22 Nov. 2016]. Business.vic.gov.au. (2016). Licences and registrations | Business Victoria. [online] Available at: http://www.business.vic.gov.au/setting-up-a-business/how-to-start-a- business/licences-and-registrations [Accessed 22 Nov. 2016]. Foodsafety.com.au. (2016). Everything You Need to Know about Starting a Food Business. [online] Available at: https://www.foodsafety.com.au/resources/articles/everything-you- need-to-know-about-starting-a-food-business [Accessed 22 Nov. 2016]. Hospitalitydesign.com.au. (2016). Hospitality Design Melbourne Commercial Kitchens » SHEET 9 – OBTAINING APPROVALS. [online] Available at: http://www.hospitalitydesign.com.au/sheet-9-obtaining-approvals/ [Accessed 22 Nov. 2016]. Liv.asn.au. (2016). Home - Law Institute of Victoria. [online] Available at: https://www.liv.asn.au/ [Accessed 22 Nov. 2016]. Melbourne.vic.gov.au. (2016). Building Act 1993 and Building Regulations 2006 - City of Melbourne. [online] Available at: http://www.melbourne.vic.gov.au/building-and- development/planning-and-building-services/construction-development/legislation- guidelines/Pages/building-act-1993-building-regulations-2006.aspx [Accessed 22 Nov. 2016]. Melbourne.vic.gov.au. (2016). Planning and building fees - City of Melbourne. [online] Available at: http://www.melbourne.vic.gov.au/building-and-development/planning-and- building-services/forms-fees-checklists/Pages/planning-building-fees.aspx [Accessed 22 Nov. 2016]. Vic.gov.au. (2016). Building regulations & codes | Victorian Government. [online] Available at: http://www.vic.gov.au/property-planning/building-construction/building-regulations- codes.html [Accessed 22 Nov. 2016]. Victorian Commission for Gambling and Liquor Regulation. (2016). Liquor legislation and regulations - VCGLR. [online] Vcglr.vic.gov.au. Available at: http://www.vcglr.vic.gov.au/home/laws+and+regulations/legislation+and+regulations/liq uor+legislation/ [Accessed 22 Nov. 2016]. WorkplaceOHS.com.au. (2016). Workplace OHS | OHS Penalties in Victoria | Victorian Legislation | OHS Legislation. [online] Available at: http://workplaceohs.com.au/legislation/vic-legislation/vic-penalties [Accessed 22 Nov. 2016]. Worksafe.vic.gov.au. (2016). Your legal duties. [online] Available at: http://www.worksafe.vic.gov.au/safety-and-prevention/your-industry/hospitality/your- legal-duties [Accessed 22 Nov. 2016]. Read More
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