How to start a restaurant business

Want to Start You Own Restaurant Business?

In any busy environment, starting a resturant business can be lucrative as long as the zoning permits such business there. If you are considering starting a restaurant business, the tips in this article will be useful for you. So, what do you need to do? Follow the steps below among others:

Choose your concept

Before you set up a restaurant business, you need to decide on the concept you like to adopt. There are different categories of restaurants. Each category has its own target market. The popular categories are listed below:

Fast food restaurants: This type of restaurant sells primarily fast food with minimal table service. They usually prepare their food in bulk in advance and kept hot. The food is available for take away. Seats are made available for those that want to eat in the restaurant.

Family dining restaurant: These are the restaurants that have fixed menu and fixed price. People walk in and order for food and sit to enjoy their meals

There are other types like casual dining restaurants and ethnic restaurants.

Therefore, your concept should be properly defined as this will define your decor, ambience and styles.

Choose a location

The location of a restaurant plays a key role in determining whether the business will succeed or not. You should carry out a demographic survey of the location of the restaurant to determine the ages, occupation, level of income, ethnic group (especially if you are starting ethnic restaurant) and the size of the market. If you find it difficult to locate a good place, it is advisable not to start until you are able to find one. Some of the things you need to consider include the following:

  • It has to be in a safe neighbourhood
  • The location must be zoned for that type of business
  • Easy accessibility

Write a business plan

The importance of a business plan cannot be over-emphasized. The business plan should be comprehensive enough to cover all aspects of the restaurant business. For more information, you can read how to prepare a good business plan.

Source for capital

Restaurant business does not fall within businesses you can start without capital. You need capital to start a restaurant business. The capital you require will largely depend on the concept and location you choose for your restaurant.

Read Also: How to Source Capital for Small Businesses

Obtain approval/permits from regulatory authority.

Food related businesses are usually regulated. You need to apply for and obtain permits from relevant regulatory authority. The types of licences and permit you will obtain will depend on the legislation existing in your country or locality. Processing of permits can take several weeks to complete. Therefore, it is advisable you file your application on time so that this will not hinder you from starting on time.

Hire Staff

To run a restaurant business successfully, you need people. You cannot do the business alone. Starting a restaurant can be exciting. At the same time, it is time consuming. You will not only need people that can prepare good and delicious meal, your staff should be good at customer service.


When you open your restaurant, you will expect that people should start streaming through your door. It does not happen that way. You need patience with a bit of marketing. A good way to market your restaurant is to provide a teaser informing the neighbourhood that the restaurant is opening soon. If you are sure and certain about your opening date, it will be a good idea to let people know. With this, you can expect to make a good sales right from the first day of opening.

More importantly, the quality of your service will go a long way in helping you capture the market.

Read Also: How to Develop Market Strategy for Your Business

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