4 min read

Everything You Need to Know to Start a Restaurant

Starting a restaurant requires careful planning and becomes easier when broken down into several steps. Here are 9 steps to succeed.

Table of contents
Favrit Team

1. Choose type of restaurant and concept

If you've dreamed of opening your own restaurant, you've likely already thought a lot about the concept you want. The first thing to consider is perhaps the type of cuisine. Will you start with burgers? An Italian restaurant? Or perhaps a sophisticated fine dining establishment? There are many different types of restaurants.

2. Create a business plan

Starting a restaurant requires a solid business plan. This can be challenging if you're not familiar with how to write a good and professional business plan. Business plans for your restaurant should be divided into sections describing all aspects of your new business, from concept to finances.

The purpose of the plan is to help you summarize your business for potential investors. When applying for a loan for the restaurant, the business plan serves as evidence that your enterprise has a significant chance of success.

3. Secure Financing

Most of us don't have enough capital required to open a restaurant without financial help. Securing financing from external sources will be crucial to realizing your restaurant dream.

Start by estimating the total startup costs for the restaurant and what you think you'll need for daily operations. Use this information to create a budget and predict the total cost of running your restaurant in the next year.

With your restaurant budget in hand, compare the total cost to the amount of capital you have available to determine how much financing you will need. Remember to include costs for licenses, equipment, building repairs, and employee wages. Here are some ways to secure financing for your new restaurant: Traditional bank loans, Investors, or Crowdfunding.

4. Choose a legal structure and register the company

To make purchases and sell goods, you need an organizational number. Find out what is the best structure and requirements in the market you are present.

5. Find the perfect location - with the right placement

In addition to having a location that suits the type of restaurant you want, there are a few key factors to consider when choosing the location for your restaurant.

  • Visibility and Accessibility - Choose a location with good visibility, whether it's an area with a lot of car or pedestrian traffic.
  • Demographics - Your restaurant's target audience should match the demographics of the area, especially in smaller places. In larger cities, you can attract travelers to a greater extent.
  • Local Competition - You can learn a lot by looking at competing restaurants in your area. The key is to choose a location where similar restaurants are successful but avoid a neighborhood saturated with restaurants directly competing with your concept.

6. Complete necessary applications

Check which applications apply in your country and ensure that they are in place. For instance applications for serving food, alcohol or having an outdoor seating area.

7. Recruit skilled staff

Key individuals and managers are often where you will start, so you can build the team you want together. Then, make a list of all restaurant positions you need to run your restaurant. Consider how many days you want to be open during the week and how many shifts you want each day.

The most common positions in a restaurant include:

  • Management Team - General Manager, Head Chef, Bar Manager, and Maître d'
  • Kitchen Staff - Head Cook, Sous Chef, Cooks, Dishwashers
  • Front of House Staff - Waiters, Sommeliers, Runners
  • Bar Staff - Bartenders
  • Other: Larger establishments may also need to hire marketers and accountants.

8. Find a good Point of Sale (POS) system that fits your needs

The choice of a POS system is critical for the daily operation of the restaurant, so it's worth investing time in research and testing before making a final decision. Things to look out for are user-friendliness, good reporting, speed, and a company with good support. Many modern players have entered the market, making life easier for you as the restaurant manager.

9. Marketing and Opening:

Last but not least - let people know about your new fantastic restaurant! Successful marketing should create enthusiasm around your brand and make people want to visit your restaurant. Here are some tips on how to market your restaurant:

  • Create a good website
  • Use social media actively
  • Work to get press coverage and good reviews.