Starting your own restaurant is an exciting step.
Starting your own restaurant is an exciting step in in the food industry. A leap like that starts with a small step, and learning exactly what you need to do to open your restaurant is a good start. There are some aspects of starting the restaurant that are state specific. For these requirements you will want to contact your state's department of revenue or business division. According to Entrepreneur magazine, more than 900,000 food service businesses operate in the United States.
Instructions
1. Develop your restaurant concept. The restaurant concept does not need to be fully fleshed out to start with. Have an idea of what type of cuisine you will serve and a few rough ideas of the menu, sources for food and decor. Pick a level of dining as well. Are you looking to start a casual restaurant or franchise, or do you have something more gourmet in mind?
2. Write a business plan. A business plan provides details about the restaurant, menu, target demographics, short- and long-term business goals, how you intend to reach goals, and estimated costs and expenses. You can go even more in-depth on a business plan. This is the framework for your entire business, and it's also the document you use to gain capital and business loans. Business plan templates or software, free or paid, are found online.
3. Choose and register your business name. You register a business name as a fictitious name with the state's department of revenue. This is the name that all business accounts, payments, and taxes go through. Some states allow you to register your business name online, as well as instantly checking to ensure no one else has your business name.
4. Pick a location, which can make or break a restaurant. You need a good idea of how much space you need in the building, parking requirements and the safety of the location. You could have the best food in the world, but no one's going to eat on crime alley. Most real estate agencies have commercial real estate divisions to point you in the right direction. According to Entrepreneur, many restaurants don't make it past the first year. Renting or leasing instead of buying will work out better in many cases. Make sure that the property is zoned commercial, or can be zoned commercial.
5. Register for all licenses that your state requires to open a restaurant. An example of typical state requirements includes a sales tax ID, a liquor license, and a food service handler license. The restaurant will also be examined by health inspectors for compliance of food safety regulations, although health inspectors are usually around after opening. You will also need to register for a federal tax ID, known as an EIN.
6. Purchase all kitchen and front of the house supplies that you need. Specifics vary depending on the type of restaurant that you are opening. Kitchen appliances, dinnerware and flatware, tables, chairs and food supplies are the main areas of inventory to take care of first.
7. Hire employees. A new restaurant needs to start off strong, and a thorough training program will help you in the long run. Write down the training methods in a manual. Write up an additional manual that has all recipes and menu items detailed.
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