How to Start a Restaurant Business in 10 Steps

Whether you agree or disagree, we have all fantasized about owning a restaurant in our lives. Stop thinking and start doing, as the saying goes. Gone are the days when operating a restaurant required a large sum of money and many employees. The stairs have altered.

With a growing urban population and shifting eating patterns, the restaurant industry is one of the most thriving in the world right now.

This is the ideal time in history for you to operate a restaurant. As more people go out to eat and try fresh foods, now is an excellent moment to expand your food business. Patience and tenacity are required in the restaurant business, so hold on tight until things fall into place.

Here are the ultimate 10 steps in the restaurant business you must keep in mind.

1. Select a restaurant type.

There are as many varieties of restaurants as there are culinary genres – okay, maybe not quite as many. However, there are a variety of restaurant kinds to pick from, including:

Restaurants that serve fast food

Fast food, sometimes known as quick service restaurants, is all about speed. Because the majority of the cuisine is designed for takeout, many establishments have limited seating alternatives.

Quick-service restaurants

Fast casual restaurants are a hybrid of casual dining and fast food. They’re as quick as fast food, but there’s a greater emphasis on the quality and freshness of the ingredients. Although there are limited seating options, there is no table service because many customers take their food to go.

Restaurants that provide casual fare

Casual dining establishments provide full table service at an affordable price. These restaurants provide a pleasant setting where you can enjoy good food and service whether you’re dressed up or down.

Restaurants for Families

Family eating establishments are like casual dining establishments in that they cater primarily to — you guessed it — families. As a result, these establishments are more likely to provide menu options for all three meals of the day. They may also serve fewer or no alcoholic beverages.

Restaurants that serve fine dining

Fine dining establishments seek to be the best of the best. These restaurants have an elegant setting and gourmet cuisine. They provide the best service at the most expensive costs.

How to Establish a Franchise Restaurant

Opening a franchise restaurant allows you to benefit from the long-standing marketing and name recognition of a large restaurant chain while still being your boss and putting your spin on things. The stages for launching a franchise restaurant differ depending on the restaurant, but almost all of them begin with the same step: finance. To be a franchisee, you must provide an upfront investment and show that you have the financials to back it up.

2. Create a restaurant concept.

You probably already have a few concepts of how your restaurant should appear and feel. These are your restaurant ideas. Your restaurant concept will influence practically every aspect of your establishment, whether you’re operating a tiki burger joint or a family-style pizza restaurant. Your restaurant idea will influence your name, menu options, customer service, decor, marketing, and all aspects of your branding, from your logo to your uniforms.

3. Plan your meals.

Start working on your menu once you’ve locked down your concept. The finer details can always be worked out later, but start with your main dinners, appetizers, and desserts. Your menu items will assist you to decide what equipment to purchase and which food suppliers to work with.

Consider your ideal clientele, as well as the foods and pricing points they’ll be interested in while designing your menu. Consider a few specialties (these are the items you expect to see frequently on Instagram and Yelp).

4. Make a business plan.

We’re sorry to take you away from the creative aspects of opening a restaurant, but it’s time to get some paperwork done. Throughout the launching process, your restaurant business plan will serve as a guide, keeping you on track, on budget, and on time. Here’s what you should include:

• Executive summary
• Overview and description of the restaurant
• Restaurant concept and menu sample
• Management structure and personnel requirements
• Market and spite of interest
• Analyze the competition
• Marketing and advertising strategy
• Financial forecast and summary

5.  Raise funds for your restaurant.

You assessed your starting and operating costs when creating your business plan.

You understand how you want to generate income and have a decent understanding of how long it will take to break even and turn a profit. You only need the money to make it happen.

How to Start a Restaurant Without Money

If you’re like other restaurateurs, you’ll need to look into funding possibilities from investors, the SBA, or a short-term loan or business line of credit from your bank.

You can also get equipment financing, or purchase gently used machinery. Remember that you’ll need to buy everything you’ll need to make and serve your meals, as well as extras for takeout, ambience, and managing your overhead (like point-of-sale and payroll software).

What does it take to operate a small restaurant?

It is determined by the type, concept, and location of your business. Restaurant startup costs range from $175,500 to $750,500.

6. Locate and lease a restaurant location.

When looking for a location for your restaurant, look for one with good visibility from the street and lots of space for parking and foot traffic. You should rent a location that is close to your target clients but far from your competition.

Finally, assess the space’s interior. Is there enough space for you to build the back-of-house and front-of-house places you’ve imagined?

7. Get all required restaurant permits and licenses.

Restaurants are subject to a variety of federal, state, and local restrictions to protect the public from food-borne illnesses. Hiring an attorney to assist you in obtaining all necessary business licenses, such as liquor licenses and food handler’s permits, is an excellent idea.

You’ll also need to decide whether your firm will be a sole proprietorship, limited liability corporation, general partnership, S-corp, or C-corp.

When you’re ready, trademark your restaurant name and register your company with the IRS to get an Employer Identification Number (EIN), which will allow you to pay federal, state, and local taxes. Hire an accountant to assist you in making sense of all the company taxes.

8. Get the correct insurance for your restaurant.

There are a lot of risks involved in running a restaurant, from spilt food trays to shattered glass. Protect your restaurant with the essentials of business insurance. These are some examples:

General liability insurance protects your company from the financial implications of third-party physical harm, property damage, or personal injury.

Professional liability insurance shields your company from the costs of third-party claims of professional negligence.

Business equipment protection covers all the expensive restaurant equipment you bought.

General liability insurance is combined with commercial property insurance and business interruption insurance in the Business Owners Policy.

You should also look at other types of restaurant insurance, such as liquor liability insurance or catering insurance.

9. Recruit employees.

The people you hire will make your restaurant concept a reality, whether it's the excellent service offered by your waitstaff, the delectable food prepared by your cooks, or the smooth coordination behind the scenes. Hire for the following restaurant positions, and don't forget to familiarize them with restaurant slang to ensure seamless communication and teamwork:

• Chef de cuisine
• Front-of-house supervisor
• Head chef
• Line cooks
• Prep cooks
• Dishwashers
• Sous chefs
• Servers
• Food couriers
• Bussers
• Bartenders
• Hosts

10.  Promote your restaurant.

Finally, it’s time to consider bringing customers in through the doors. From social media marketing to word of mouth, there are a variety of marketing strategies that work well for restaurants. You could:

To generate excitement, have a soft opening for influencers and the press (and give your staff a test run)

• Give discounts to locals and first-time clients.
• Create a Yelp and Google My Business profile.
• Accept OpenTable and Resy reservations.
• Publicize your grand opening in the local publications.

Final Words

Despite the past year’s difficulties, the restaurant business will continue to play an important role in our economy and culture. As foodservice trends continue to vary, opportunities for exceptional new eateries to enter the market and capitalize on new consumer interests arise. Buy the best quality of commercial restaurant equipment & supply |Kitchenal to ensure the effective implementation of your one-of-a-kind restaurant business. If that’s the case, we’re overjoyed! You can refer to this post whenever you need help.

Best wishes on your new restaurant venture!