How to Open a Restaurant Business

Restaurant businesses have a high failure rate. In spite of this fact, many entrepreneurs dream of opening and operating their own restaurant. Restaurants come in many shapes and styles: fast food franchises, coffee houses and upscale dinner houses. There are ethnic restaurants, family run restaurants and large corporate restaurants. Some restaurants hire highly skilled and talented chefs to prepare their menus, and others train teenage employees to man the grill. If you've decided to open a restaurant, here are a few steps to consider.

Difficulty:

Challenging

Instructions

1. Decide the menu you will be serving. This will determine the type of location you will need, along with the type of restaurant equipment you must obtain to prepare and serve the menu.

2. Find a suitable location. If you plan to serve alcohol some locations will not be suitable. For example, some local codes do not allow liquor served within a certain proximity to a school or church.

3. Educate yourself on the type of restaurant equipment you will need. If you are serving fried or grilled foods, you will need an overhead hood with an exhaust system. This is expensive to install, which means you are often better locating a commercial building that is already set up as a restaurant.

4. Attend to the business of business. As with all businesses, you will need to obtain a business license, insurance, workers compensation insurance, consider incorporation to limit your liability, arrange for a payroll service and hire a business accountant and attorney.

5. Arrange for funding. There are different funding options available when starting a restaurant, which will vary, depending on if you are leasing, purchasing or building. Unless you have prior restaurant experience you may have difficulty obtaining financing.

6. Locate vendors. You will need to locate restaurant vendors. These are usually separate companies, including dairy, bread, liquor, cleaning supplies and general foods.

7. Meet with the local health department. You will need a local health permit. Many areas require restaurant employees take and pass a food handler's course.

8. Make a list. There are numerous tasks to complete before opening a restaurant. They include: decorating the dining room, setting up the kitchen, hiring and training employees, setting up a cash register or computer ordering system, marketing and ordering menus and dishware.