The new scores-on-the-doors scheme is being introduced to drive up food standards in Hartlepool.
It will see premises given a star rating and their results published on the internet.
The plan - which got the green light from council officials - comes after the Mail revealed last year how one in eight takeaways and food outlets in Hartlepool failed strict tests.
Under the new scheme, businesses will undergo inspections and then be given star ratings.
They rate from zero stars for poor hygiene to five stars for extremely good hygiene. Businesses will also be given a certificate showing their rating and asked to display it on their premises.
Ralph Harrison, the council's head of public protection, said it will be a scores-on-the-doors philosophy.
He added: "The message is that if businesses reach the standard that is expected then they will get better publicity and more customers."
A news letter will be sent to all businesses in Hartlepool next month highlighting the scheme. Most food businesses in the town believe the scheme is a good idea and said it will make them work harder to improve hygiene standards.
The food hygiene award scheme was given the go-ahead at a Hartlepool Borough Council adult and public health portfolio.
The project forms part of a wider Tees Valley initiative.
Mr Harrison, pictured above with the leaflets, added: "It is an opportunity to publicise food hygiene in the form of a star rating to enable the public to make a more informed choice about where they purchase food and to drive up standards."
Since 2005 improvement notices have been served on six premises in the town for food hygiene offences and two premises have been closed in order to protect the public.
All food premises will be included in the food hygiene awards scheme, that comes into force on April 1.
Initially, businesses will be given a provisional certificate based on their last inspection.
The council will continue carrying out premises inspections as it does at the moment and those inspections can take place anywhere between every six months or every three years, depending on the risk associated with a specific business.
However, this will be the first time the results of such inspections will be published.
Officers are looking for a high standard of cleanliness, together with the correct preparation and cooking of food and competent management.
The council is also in the process of consulting with businesses and so far have spoken to managers from 61 outlets.
Of those, Mr Harrison said 97 per cent agreed the food hygiene award scheme is a good idea and said they would try to improve their hygiene standards to increase their star rating.

HOW THE RATING WORKS

They are based on how well the premises are managed, food hygiene compliance and structural compliance (the state of maintenance and repair of the premises and fittings).
The scores for each element are then totalled and the final figure is placed in the most appropriate banding from 0 stars to 5 stars.
- Five stars is an excellent rating. It means very good standards of compliance with food safety legislation.
- Four stars is a rating of very good and means a high standard of compliance with food safety legislation.
- Three stars is good and means a good level of compliance with only minor food safety issues not addressed.
- Two stars rates as fair and means an average standard, showing the premises are mainly compliant with food safety legislation, and have a reasonable understanding of food safety.
- One star is poor and means some non-compliance with food safety legislation as well as more effort and improvements needed.
- No stars means major improvements are needed. It shows a general failure to comply with legal standards and little or no appreciation of food safety.