Food & Hospitality

How to Start a Restaurant

To start a restaurant you need a business plan, food service licenses and permits, a commercial location, kitchen equipment, a menu, and trained staff. Most restaurants open in 6–12 months with $100,000–$500,000 in startup capital.

Startup cost: $100,000 – $500,000 Timeline: 6–12 months 8 steps

Step-by-Step Guide

1

Write a restaurant business plan

Define your concept, target market, menu, pricing, competitive analysis, and financial projections for the first 12 months.

2

Secure financing

Fund your restaurant through bank loans, SBA loans, investors, or personal savings — most lenders require 20–30% equity contribution.

3

Choose and lease a location

Find a space with proper zoning, adequate parking, and kitchen infrastructure; negotiate a lease with tenant improvement allowances.

4

Obtain licenses and permits

Secure a food service license, liquor license (if applicable), business license, sign permit, and health department approval before opening.

5

Design and build out the space

Work with a contractor to install commercial kitchen equipment, dining area fixtures, restrooms, and HVAC that meet health codes.

6

Develop your menu and pricing

Cost out each dish to target 28–35% food cost, design a menu that fits your concept, and establish consistent recipes and portions.

7

Hire and train staff

Recruit a chef, line cooks, servers, and front-of-house manager; train on food safety, service standards, and POS systems.

8

Market your opening

Build buzz with social media, local press, a soft opening, and grand opening promotions to drive first-month traffic.

Find vetted providers for your restaurant

BizResCo connects you with verified professionals for every step of starting and growing your business.

Frequently Asked Questions

Startup costs range from $100,000 for a small fast-casual concept to $500,000+ for a full-service restaurant, covering lease, build-out, equipment, and inventory.

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