Umih Proposes New Measures for Hospitality Sector Sustainability

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Umih Proposes “Entrepreneur’s Permit” and Regulatory Shifts to Stabilize French Hospitality Sector

The French hospitality industry is facing a critical juncture where the survival of local commerce depends on more than just passion—it requires rigorous professional preparation and regulatory flexibility. The Union des Métiers et des Industries de l’Hôtellerie (Umih) recently presented a series of strategic proposals to deputies Laurent Lhardit (Bouches-du-Rhône) and Jean-Pierre Vigier (Haute-Loire) aimed at reducing premature business failures and preserving the diversity of local shops.

Key Takeaways:

  • Entrepreneurial Training: Proposal for a mandatory 35-hour “permis d’entreprendre” for new business owners.
  • Rural Support: A push for relaxed norms in rural areas to facilitate business transmission, and longevity.
  • Market Balance: Implementation of a “numerus clausus local” to prevent commercial saturation.
  • Labor Mobility: Integrating seasonal housing into social housing quotas to attract and retain staff.

Professionalizing Entry: The “Permis d’Entreprendre”

One of the most significant hurdles for new entrants in the hospitality sector is the high rate of early business failure. To combat this, Franck Chaumes of Umih proposed the creation of a “permis d’entreprendre” (entrepreneur’s permit). This initiative is designed to accompany individuals during the opening or takeover of an establishment.

Professionalizing Entry: The "Permis d’Entreprendre"
Hospitality Sector Sustainability Professionalizing Entry

The proposed permit would require 35 hours of specialized training focusing on two critical pillars: management and hygiene. By ensuring that business owners possess basic operational and financial literacy before launching, Umih aims to stabilize the sector’s foundation. To avoid redundancy, individuals who already hold professional diplomas—such as a CAP, bac pro, or degrees from hospitality schools—would be exempt from this requirement.

Preserving Rural Commerce and Business Transmission

Maintaining a presence in rural areas is essential for local economic health, but rigid regulations often make it tricky for small establishments to survive or be handed over to new owners. Drawing on the work of the rurality commission, Umih is advocating for the easing of standards in rural zones. This flexibility is seen as a necessary lever to simplify the transmission of businesses and ensure that rural villages don’t lose their essential hospitality hubs.

Regulating the Market and Ensuring Fair Competition

To protect the diversity of local commerce and prevent market saturation, Umih has suggested two primary regulatory mechanisms:

The challenges of sustainability on the Hospitality Sector
  • Numerus Clausus Local: This would allow for greater control over the change of use for commercial premises. By regulating the number of similar businesses in a specific area, the government can maintain a balanced commercial ecosystem.
  • Combatting “Paracommercialisme”: Umih is calling for stricter enforcement of alcohol licenses and better framing of subsidized “marchés gourmands” (gourmet markets). The goal is to ensure that permanent restaurateurs, who bear higher overhead costs, are not undercut by temporary or subsidized competitors.

Infrastructure and Labor Logistics

Beyond business management, Umih highlighted structural issues that hinder operational efficiency and staffing:

Harmonizing Fire Safety

Current fire safety norms are often applied inconsistently across different departments. Umih argues that harmonizing these applications is essential to eliminate disparities in how establishments are treated and to provide a clear, predictable regulatory environment for owners.

Solving the Seasonal Housing Crisis

Staffing remains a perennial challenge for the hospitality industry, particularly for seasonal roles. Umih proposes a pragmatic solution: integrating seasonal employee housing into social housing quotas. By treating worker housing as part of the social housing mandate, the industry can improve employee mobility and make seasonal positions more attractive to a wider talent pool.

Looking Ahead

While the official report date has not yet been announced, Umih is actively lobbying for these solutions to be integrated into the final legislative recommendations. The focus remains clear: professionalize the entry point for entrepreneurs, protect rural assets, and modernize the logistics of labor and safety.

Frequently Asked Questions

Who is exempt from the proposed entrepreneur’s permit?
Individuals holding professional diplomas, including CAP, bac pro, and graduates from hospitality schools, would not be required to complete the 35-hour training.

What is a “numerus clausus local”?
It is a proposed mechanism to control the allocation and change of use of commercial spaces to prevent an oversupply of a single type of business in one area, thereby preserving commercial diversity.

How would seasonal housing changes help the industry?
By including seasonal housing in social housing quotas, it becomes easier for employers to provide affordable accommodation, which is a primary barrier to recruiting seasonal staff.

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