Starting any small business comes with plenty of challenges, but opening a new restaurant business can take a lot of work. Restaurant startups operate in a competitive space, so entrepreneurs must ensure they’ve prepared for whatever might come their way.
If you plan to enter the restaurant industry but aren’t sure what you need to begin your restaurant startup journey, we’re here to lend you a hand with helpful tips. Keep reading for a step-by-step guide to opening a restaurant.
You’ll need to take several steps before you can open the doors of your restaurant startup and carry out your first food-service run. Follow these 10 steps to open your own restaurant.
The first decision you’ll need to make is what type of restaurant you’ll want to open and what cuisine you’ll serve. This is an important first stage because it will help you make other decisions about your restaurant, such as your operation model and branding.
A quick-service restaurant (QSR) is a good option if you want to serve fast food, while a fine-dining restaurant is a better option if your preferred cuisine is high quality.
Consider whether you want to offer a takeout service — this is usually better suited for casual-dining establishments than high-end eateries. If you want to operate on a purely takeout basis, a food truck might be better than a brick-and-mortar restaurant, as your operating costs may be lower.
Choose a cuisine and restaurant concept and make other business decisions with this in mind.
A restaurant business plan should include a detailed description of your proposed restaurant startup, a financial plan for your restaurant startup costs and food costs, and your projected annual turnover.
A thoroughly written business plan should tell you (and any potential investors) everything you need to know about your restaurant. You’ll need one if you want to apply for a small business loan, but they’re also a great way to put the details of your business proposal down on paper.
When funding is secured, you can search for a commercial space for your restaurant startup.
Look for a space that matches your restaurant’s concept and has enough square feet for your kitchen and dining room.
If you’re opening a fast-food restaurant, finding a space in an area with high foot traffic is vital to ensure customers come through the doors. If your restaurant concept is more high-end, you may be able to find a space outside of your town or city center because customers don’t mind traveling for top-quality food — just make sure you have room for cars to park!
Restaurant owners are responsible for acquiring the necessary business licenses for a food business. You’ll also need a liquor license if you plan to serve alcohol.
Be careful when you research what licenses you need. The rules in Los Angeles might not be the same as those in New York, for example, so check your local regulations and apply for anything you’ll need to operate in your area.
One of the most important jobs for any new restaurateur is designing the menu and choosing which menu items to sell and for how much.
Ensure that each item on your menu fits in with the overall concept you’ve chosen for your brand. For example, if you’re opening a QSR, your menu should consist of fast food and comfort food options — tacos, burgers, pizzas, fries, and so on. If you’re opening a fine-dining restaurant, food like this won’t be appropriate.
When you have a list of food you want to sell, design a menu that’s appealing to customers and makes it easy for your diners to see what’s available. It should incorporate your restaurant’s name and logo and follow your chosen color scheme.
You can only purchase kitchen equipment when you know what you’re going to cook. For example, if you plan to serve fried foods, you’ll need to ensure you have a fryer in your kitchen space.
Look at the menu you’ve written and consider how likely it is that this will change. Buy any kitchen items you need and work with your chef to create a dynamic kitchen layout that works well during a busy service.
Setting up a restaurant ordering system is a crucial part of opening a restaurant, but many restaurateurs overlook it. You’ll need to decide precisely how your wait staff will take customer orders and relay them to the kitchen.
A formal restaurant with a sit-down dining room will be best suited to table service, while QSRs tend to work better under a counter-service model. Either way, you’ll need to choose the right point-of-sale system (POS system) for your restaurant.
Square’s Restaurant POS lets you manage orders efficiently and process cash and credit card payments. It also works seamlessly with self-service kiosk software like KioskBuddy. This is a fantastic option for counter-service or takeout restaurants that want to process many orders quickly. Your customers can place and pay for orders themselves, leaving your staff free to focus on food preparation.
By this point, you’ll be almost ready to open the doors to your restaurant startup — but you’ll need a team of staff to work on front-of-house (FOH) and back-of-house (BOH) operations.
FOH staff are your servers, hosts, and bartenders — anybody who interacts with your customers. BOH employees are people working in the kitchen or back office who don’t interact with your diners but play an essential role in your restaurant operations.
Choose a team of experienced employees and train them to meet your restaurant standards.
Marketing is critical for successful restaurant startups, so don’t neglect this step. Start by developing a restaurant brand and use it as a theme across all your marketing materials.
Restaurant branding can help you attract and be recognizable to customers. It’s like creating a personality for your company, and it can include the following:
A color scheme
A logo
The name of your restaurant
A tone of voice to use when writing about or advertising your restaurant
If your budget allows, working with a dedicated restaurant marketer can help you spread the word about your restaurant effectively — but don’t worry if your funds don’t stretch that far. Social media marketing is a fantastic (and free!) option that makes marketing easy.
When you’re ready to open your restaurant to the general public, it’s time to invite the first customers in.
A soft launch can be an excellent way to start if your staff members are still in training. They’ll get to practice with real customers ahead of your grand opening, and you can get feedback on how things are going before your hard launch.
Opening a restaurant startup is an exciting challenge. You’ll have a lot on your plate, but it’s a fantastic business opportunity. With the right equipment and software, you can enjoy a smooth launch and start earning money quickly.
KioskBuddy is an ideal tool for restaurant startups that want self-service kiosks. It’s quick and easy to set up — all you need is a tablet and a Square Kiosk mount to let customers place and pay for their own orders.
Download KioskBuddy today to hit the ground running!