Chip shops, sandwich bars and restaurants will soon start displaying nutritional information about the products they sell, including fat, salt, sugar and calorie content, the new head of Britain's food watchdog reveals today. The move is intended to encourage healthy eating and tackle rising obesity.

Details will be displayed on menus and behind the counter or on prepacked foods such as sandwiches in a 'highly visible' way. Currently Yo! Sushi is the only restaurant chain to give details.

Tim Smith, recently appointed chief executive of the Food Standards Agency, told The Observer, in his first interview since becoming head of the UK-wide watchdog in April: 'The current situation, where a few of these outlets carry such information on their website or in a leaflet, isn't good enough. We need action here and we need it quickly.'

The initiative is designed to warn people of the 'hidden calories' in the food they buy during working hours or in their leisure time, Smith said. A coffee and muffin can have as many as 1,000 calories, for example.

But the British Hospitality Association, which represents major restaurant chains and contract catering companies, said it had grave reservations. There were questions over how information could be displayed, or calculated, a spokesman said.