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The Mayor of London may soon have new powers to overturn decisions by local councils to deny late-night licensing applications. If approved, the change could make applying for extended opening hours easier, paving the way for more al fresco dining during the warmer months.
While the initiative is still in its early stages, it presents a valuable opportunity for hospitality businesses to explore new ways of operating during longer, lighter evenings. We’ll walk you through what the proposed changes mean for your business, how to take full advantage of late-night trading and ways to manage costs with summer-savvy strategies.
What are the proposed changes?
The new pilot scheme is set to give Sir Sadiq Khan the authority to intervene in local licensing decisions, particularly in areas seen as vital to the night-time economy, and potentially overturn rejected applications for extended opening hours.
This initiative should open the door to more flexible licensing for restaurants and bars, especially during the summer months when al fresco dining and outdoor service are in higher demand. It’s all part of a wider effort to boost London’s £46 billion night-time economy, with a focus on increasing footfall, supporting hospitality businesses and making the capital a more vibrant place after dark.
And while the Late Night Levy remains in place in several boroughs – and continues to present challenges for businesses trading past midnight – the broader shift toward extended opening hours should mean more customers and increased footfall.
However, these things might also come with higher operating costs – from staffing to supplies to business electricity costs. As a result, the key to success will lie in balancing the opportunity presented by late-night hours with smart, efficient restaurant operations to keep costs under control.
Offer al fresco dining during late-night opening hours
As always, hospitality owners must think strategically and adapt their operations to meet changing customer habits and expectations, which is where our latest restaurant trends report can help.
According to UKHospitality, 85% of UK diners say the overall experience is key to where they choose to eat, and 72% are willing to spend more on a memorable experience. That means every detail, from menu to atmosphere, counts – especially during extended summer hours when diners are more likely to linger.
To make the most of late-night trading:
- Adapt your menu to suit later hours. Think light bites, share plates or nightcap cocktails. Consider adding premium snacks or dessert-led items that appeal to people looking for a special end to their evening.
- Rework staff schedules. Ensure you have enough cover during peak late-night hours without overstaffing during quieter periods.
- Create inviting spaces for longer visits. Low lighting, comfortable seating and background music can encourage guests to stay longer and spend more.
One immediate opportunity is al fresco dining London style – think street-side tables, terrace seating and flexible pop-ups. To run smoothly, these areas often require a portable payment system that’s just as mobile as your team. That’s where Square Terminal comes in: a compact, wireless device that lets your staff take secure payments wherever your customers are. Plus, it connects via WiFi or hotspot, making it ideal for pavement or garden setups.
If the pilot scheme is adopted long-term, being prepared to take advantage of late-night opening hours throughout the year and not just in summer will be essential. And while it’s important to keep costs in check, a small investment in outdoor essentials – like weatherproof cover, lighting and heating – can help you make the most of the outdoor space you’ve already created. By extending its use into the colder months, you’re not just saving money – you’re making your investment work harder, season after season.
Measure the impact of late-night trading
Right now, running a hospitality business in London is especially challenging. Energy bills are rising, suppliers are under pressure and staffing remains a constant juggling act. While the Mayor’s changes aim to ease the load by helping to unlock longer trading hours and outdoor flexibility, the real key to success lies in how efficiently your business can scale without sending costs spiralling.
Business electricity costs might be a concern when staying open later. More lighting, heating, and equipment running into the night can quickly eat into your margins. That’s why it’s crucial to know whether extended hours are paying off – and where you might need to adjust.
With Square Point of Sale (POS), you can monitor the impact of late-night trading in real time by letting you:
- Monitor staff productivity during extended shifts to ensure you’re not over-scheduling
- Understand if your menu is profitable and identify top-performing items by time of day, so you can rethink what’s not moving
- Compare gross sales and net margins by the hour, helping you understand which nights are worth the extra overhead
- Analyse customer footfall patterns so you can align resources with actual demand
Say you want to experiment with staying open later only on Thursdays? With Square, you can compare week-on-week performance and even drill down by staff member or location – perfect for testing new ideas while controlling your spend.
Plus, Square’s cloud-based dashboard gives you access from anywhere, meaning you don’t need to be on-site to stay on top of operations. And, thanks to automated reporting, inventory tracking and shift management, longer opening hours don’t need to equal more hours spent doing administrative tasks.
The pilot scheme offers hospitality businesses a much-needed opportunity to bring in new revenue and attract customers with vibrant al fresco dining. So get ready to unlock the potential of London’s late-night economy and, as the city stays out late this summer, make sure your business rises to the occasion.
From Square Terminal for flexible, on-the-go payments to Square Point of Sale for real-time insights and reporting, our tools are designed with hospitality in mind – helping you focus on what matters most: your food, your team and your guests.
