It follows the death of 15-year-old Natasha Ednan-Laperouse, who had an allergic reaction after eating a Pret A Manger baguette containing sesame in 2016.
Under current regulations foods such as packaged sandwiches and salads made on-site by staff are not required to carry allergen labels, but customers can ask in-store for information.
But the proposed rules could see full ingredient labelling required by law.
Food businesses and those with allergies are being invited to have their say on four possible options: enforcing full ingredient labelling, allergen-only labelling, mandatory ‘ask the staff labels’, or promoting best practice around communicating allergy information to consumers.
The hospitality industry has come under fresh scrutiny over its management of allergens over the last few years. In 2016 restaurant owner Mohammed Zaman was jailed for six years for manslaughter after the death of a customer with a peanut allergy in what was thought to be the first case of its kind.
Last year Pret began introducing a full list of ingredients and allergens on its products, and installing prominent signs in stores.
The Government consultation is running until 29 March, to find out more click here.