How to Open a Restaurant - Ultimate Checklist Guide
Intro + Table of Contents
Get ready! This is going to be a long post, but a very informative one!
Embarking on the journey of opening a new restaurant is an exciting and challenging endeavor. Aspiring restaurateurs must navigate a myriad of considerations, from conceptualizing the menu and designing the ambiance to hiring staff and securing funding. To help you stay organized and ensure no vital steps are overlooked, we have crafted a comprehensive checklist for opening a new restaurant. Whether you're a seasoned industry professional or a passionate food enthusiast with a dream, this guide will provide you with the essential steps and insights to set your restaurant up for success. So, grab your notepad and let's dive into the checklist that will transform your vision into a thriving dining establishment.
What we'll be covering in this guide:
Concept Development
Business Plan + Key Resources
Pick Your Financing
Licenses
Building Your Restaurant
Staffing & Training
Important Finishing Touches
Marketing Plan Tips
Next Steps Running the Business
Step 1: Concept Development
Let’s nail down your product! These are great starter questions for you to nail down the concept of your restaurant. Fill these in as best as you can, and don’t be afraid to write multiple versions. But once you have your concept 90% there, move on to the next steps!
What cuisines will we offer?
Who is our target customer? (age, ethnicity, income level, family vs single, etc.)
How much should a meal at my restaurant cost per person?
What restaurants are you going to try be like?
What are 3 restaurant name ideas?
Name 3 feelings that describe the ambiance of your restaurant in a nutshell?
Checklist: Business Plan + Key Resources to Start
OK – this part isn’t as fun for some but it’s critical to your success. Not having a proper business plan and the right resources in place is often a leading cause of restaurant failure within the first year. Don’t skip this step!
Document your business plan
Competitor Analysis
Your Target Customer
Marketing Plan to Promote
Operations & Financial Plan
What does success in year 1 look like?
Budget Plan 12 months before launch and 12 months after
Marketing Collateral
Website
Social Media
Google Listings
Important Resources
Commercial Real Estate Agent
Attorney
Graphic Designers
Side Note:
Remember to setup your EIN (Employer Identification Number)
Open a business bank account
Pick Your Financing Options
Pick one or a mix!
Personal Savings: Use your own savings to cover the initial costs of opening a restaurant, providing full control over the funds without the need for interest payments or external investors.
Bank Loans: Obtain traditional bank loans, such as small business loans or equipment financing, to secure capital for startup expenses, equipment purchases, and working capital by presenting a solid business plan, good credit score, and collateral.
Investors: Seek investment from individuals or groups interested in your restaurant concept, exchanging capital for a share of ownership or a return on investment, which brings expertise and networks but also entails sharing decision-making power and potential profits.
Crowdfunding: Utilize platforms like Kickstarter or Indiegogo to pitch your restaurant concept and gather financial contributions from individuals who believe in your vision, building buzz and a community around your restaurant.
Small Business Administration (SBA) Loans: Access loans specifically tailored for small businesses, including restaurants, offered by the U.S. Small Business Administration, featuring more favorable terms, lower interest rates, and requiring comprehensive financial information, business plans, and collateral.
Checklist for Licenses
Depending on your business you may need all of these or not! Don’t skip steps with this process! The paperwork takes time but it’s a must.
Rent or purchase your location
Purchase insurance
Get the applicable licenses and permits for your restaurant
Business license
Certificate of occupancy
Sign permit
Food service license
Liquor license
Building health permit
Employee health permit
Food safety certification
Seller’s permit
Valet parking permit
Dumpster placement permit
Live entertainment license
Music license
Resale permit
Checklist: Building Your Restaurant
Here’s where a lot of the capital you raised will go! Give yourself at least 12 months before opening to nail down these items. You may need some of all of these!
Create a floor plan
Purchase equipment and furniture
Kitchen
Ovens and grills
Ranges and ventilation
Freezers and refrigerators
Storage racks and shelving
Food processors
Mixers
Slicers
Knives
Storage containers
Sinks
Kitchen display system
(KDS)
Washing equipment
Microwave
Ice maker
Aprons
Dining area
Tables
Chairs/booths
Tableware
Utensils
Napkins
Lighting fixtures
Wall decorations
Outdoor furniture for patio
Order counter
Safety and health
Fire extinguishers
Wet floor signs
First aid kit
Hairnets
Gloves (dishwashing,
cut-resistant, freezer, etc.)
Slip-resistant mats
Hand sanitizer
Bathroom
Toilet paper
Paper towels
Hand dryers
Hand soap
Office (if there is one)
Pens
Paper
Computer
Desk
Begin sourcing food and beverage
Inventory
Identify and procure suppliers
Order and install outdoor signage
Checklist: Staffing & Training
Try to get this down 6 months before opening! 3 months at a minimum. Remember that as the owner you have to rely on working getting done through other people. Otherwise you’ll get burnt out very quickly if you find that you’ve hired the wrong people. People are your most valuable asset as an entrepreneur.
Determine staffing needs and begin to hire employees
Host
Restaurant manager
Assistant manager
Servers
Bussers
Dishwasher
Kitchen manager
Chef
Sous chef
Line cooks
Cleaning staff
Expeditor
Bartender
Cashier
Delivery driver
Develop staff training documentation
Cleaning procedures
Restaurant training manual
Staff onboarding process
Safety procedures
Cash handling
Note: as you get closer to opening remember to book an appointment with health inspectors
Checklist: Important Final Touches
Try to get this down 6 months before opening! 3 months at a minimum. Remember that as the owner you have to rely on working getting done through other people. Otherwise you’ll get burnt out very quickly if you find that you’ve hired the wrong people. People are your most valuable asset as an entrepreneur.
Restaurant Wifi
Restaurant Phone System
Setup POS (point-of-sale) System
Train employees on how to use it — this may take longer than expected!
Other restaurant tech considerations
Finalize Your Back-of-House
Test Recipes
Test Speed of Making Food
Test Food Quality
Finalize Ingredients List and Costs
Order Non-Perishable Foods
Finalize & Test Safety Systems
Smoke Alarms
Security Systems
Fire Extinguishers Setup
Final Marketing Touches
Create Yelp Listing
Create Google My Business Listing (needs to be verified via mail)
Pre-Launch Marketing Plan
Post-Launch Marketing Plan
Marketing Plan Tips
Pre-Opening Ideas
In addition to your marketing plan, try these 3 ideas to ensure success for your opening!
Engage with local influencers: Partnering with local influencers or food bloggers can help generate buzz and reach a broader audience. Invite them for a special tasting experience or offer exclusive deals for their followers. Their endorsements can significantly impact your restaurant's visibility and reputation.
Host a soft opening event: Organize a soft opening event for friends, family, and influential community members. Encourage them to share their experiences on social media, generating word-of-mouth marketing.
Collaborate with local businesses: Forge partnerships with nearby businesses such as hotels, theaters, or gyms. Offer special promotions or discounts to their patrons and establish cross-promotional opportunities to tap into their customer base. Imagine putting flyers and postcards at the front-desks of nearby businesses!
Post-Opening Ideas
Once your open and grooving, we consider these must-haves in addition to your current marketing plan:
Online Reputation Management: In today's digital age, online reputation plays a significant role in attracting customers. Monitor and respond to reviews on popular platforms like Google, Yelp, and TripAdvisor. Promptly address any negative feedback and express gratitude for positive reviews. Encourage satisfied customers to leave reviews, as positive testimonials can influence potential diners. Utilize social media platforms to engage with customers, share updates, and showcase the unique aspects of your restaurant. Engaging in online reputation management helps build trust, improve your restaurant's image, and attract new customers.
Capture contact info for patrons to remarket to them: Email marketing is a cost-effective and powerful tool for staying connected with your customer base. Develop a database of customer emails through online reservations, website sign-ups, or loyalty programs. Send regular newsletters featuring updates, promotions, and exclusive offers. Personalize your emails based on customer preferences and behavior, ensuring relevant and engaging content. Use enticing visuals and persuasive language to encourage repeat visits and word-of-mouth referrals. By leveraging targeted email marketing, you can nurture customer relationships, drive repeat business, and increase customer loyalty.
Final Checklist: Running the Business
Congratulations on realizing your long-awaited restaurant dreams! However, the grand opening was only the start of your journey. Now, it's crucial to maintain control over your finances, inventory, and customer service. Here are key considerations to bear in mind once your restaurant is open for business.
Staff Management is a Top Priority Every Week
Schedule 1-on-1 check-ins with staff members or middle managers if you’re a larger restaurant
Set a regular meeting cadence for your restaurants needs, such as pre-opening stand-ups to make sure everyone is aligned on any special items for the day.
Set a dedicated meeting for company updates and trainings
Keep a Close Eye on Reviews!
Keep a Consistent Social Media Presence!
Always iterate on the following
Cost of dishes and ingredients
Cost of waste in the kitchen / food waste
Labor costs
Menu items
Important Note: Remember that your business was launched off a lot of critical assumptions. Now that your restaurant (product) is launched, it’s critical to always iterate and make improvements as you receive feedback from customers. Don’t make knee-jerk reactions to customer feedback, but always be considering potential improvements! You’re always learning as an entrepreneur!
All done! What are you waiting for?
If you made it to the end of this blog post, you're ready to get started! Hopefully this was helpful and we wish you the best of luck in your journey. Check-out the Chowbus blog For more tips and guides on restaurant operations, marketing, finances, and more!
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