How to Start a Small Restaurant: The Steps to Take

In a world of chain stores and Starbuckses running amok, there’s a hope that consumers still long for more nuanced pleasures of a local dining experience.

Everyone has to eat, and providing a fantastic dining experience for your local community can be a great way to earn a living.

Of course, before you dive into the matter you’ll want to familiarise yourself with how to start a small restaurant. While running a small business like this can be rewarding, it can be challenging and difficult as well.

What are the factors that you need to keep in mind when deciding to start this kind of work? What steps should you take? Read on and we’ll walk you through what you need to know.

Table of Contents

Pick a Niche

When you first started thinking about opening a restaurant, there were likely a number of details that jumped into your mind. You’ve already thought of the vibe, the kind of people you’d be hoping to bring in, and of course, the food.

There are all sorts of different restaurants, but before you get started planning your own outlet, you’ll need to think about what kind of niche you’ll be occupying.

Is it a fast food place that serves burgers with a local twist? A health-conscious eatery for those looking to live a nutritional lifestyle? A Mexican joint that offers cheap drinks and good times?

No matter what type of food and environment catches your eye, it’s important to define it as early as you can in the process. It can be helpful to look around your area and see what kind of dining experience might be missing.

Do you come from a Colombian background and find that there’s nowhere to eat your favorite dishes in your community? You might be able to change that yourself and please a whole lot of people in the process.

Getting your niche as narrow as possible will help with all the steps that will come next.

Create a Business Plan

You wouldn’t start cooking up a dish without a recipe, and you wouldn’t open up a business without creating a plan you could follow. It’s important to take the time to put all of your plans on paper prior to starting any serious moves.

A business plan will be helpful for both yourself and your potential investors. It will force you to plan your future in precise detail, determining answers to questions and making key decisions.

It will also serve as a conversation starter between you and any number of people who will help make your restaurant dream a reality. You’ll have something to show and share that feels concrete, detailed, and can answer any questions someone might have about this new enterprise.

It’s near impossible to start a business without having this kind of plan in place. What should the plan consist of?

It should include a detailed breakdown of your intended audience, your competitors, and your intended location. In addition, it should lay out the costs you’ll face getting started as well as the profit you think you’ll be able to secure on the other side of the process.

If you have all of this outlined, both you and those who hope to work with you will feel more prepared to work into the unknown.

Register With the State Government

Ready to take the real plunge into this new enterprise? The first thing you’ll want to do is take time to register your business with the state government in which you decide to business.

You’ll have to register as a corporation or LLC. You should take the time to get familiar with the rules and regulations for these types of organizations in the state in which you reside.

Filing will take some time and money, so it’s important to plan ahead and do this step as early as you can in your process. Once successful, you’ll receive a tax identification number from the IRS.

This means you’re established and ready to go.

Secure Your Physical Needs

After all of this work, it’s finally time to make your restaurant into a physical reality. That means finding your location. You’ll want to scout far and wide for commercial property in your area to find a space that might be right for you.

Location will be key to your success, so make sure you’re as easily accessible as possible to your intended audience. Don’t make them go far out of their way or they might now show up!

Once you have a location, start working through a list of your equipment and furniture needs. Your kitchen will need a lot of equipment to work properly. It’s a good idea to look around town and see if any other restaurants are selling used equipment so that you can get started at a discount.

If you’re lucky, you might find some Commercial Dishwashers For Sale or other great deals.

You’ll also want to secure a great commercial insurance policy to protect these various purchases that you’ll be making! With all of these investments under your belt, you’ll just be some elbow grease away from opening to the public.