How to open a restaurant: the complete guide (20 steps)

Do you dream of opening a restaurant? Opening a food business can be a bit daunting. 

Here is a step-by-step guide to lead you to success!<br> 

Let's take it one step at a time...

Request a slice of wisdom

Nothing beats advice from the field. With over 660 000 restaurants in the US, experienced owners have wisdom to share. The right thing to do: ask them beforehand!

💡Nothing beats sharing experience! Learn from those who've been there to repeat their successes and avoid their mistakes.

Feel free to do your own research:

• Find out more online, read press articles or specialist media such as Malou ;
• Listen to podcasts from restaurateurs and watch webinars or testimonials on Tik Tok or Youtube ;
• Ask to talk to restaurant contacts around you;
• Join restaurant communities on social media.
• Join mentor or incubator networks such as Initiative and Réseau Entreprendre.

If you're looking for support in designing your restaurant, there are a number of incubators to help you!

🤓 Go and read our testimonial article "8 things you (absolutely) need to know before opening a restaurant..."

Obtain compulsory licenses and diplomas

It's a common question: do you need a diploma to open a restaurant? What training or permits are required?

💡The answer is no! It's not compulsory to have a diploma to open your own establishment.

👉 On the other hand, 4 training courses are compulsory to obtain certain permits:

• Business licence (sale of alcohol) ;
• Hygiene training ;
• Permit to sell alcohol ;
• Risks evaluation.
  

It makes sense: you have to offer impeccable hygiene and comply with the law on the sale of alcohol.

💡If you don't need a degree, keep in mind that becoming a restaurateur is a passionate profession. Very often, you have to be a manager, accountant, chef, marketing manager, HR manager, plumber... all at the same time.

Fortunately, there are thousands of short and long courses to help you!

Undergo a training program

If you'd like to undergo a training program or go back to school, that's also possible!

The most common ones are :

• Long-term training courses, starting at secondary school ;
• Classic training courses(Institut Paul Bocuse, Le Cordon Bleu);
• Short training courses;

Defining your concept

In the restaurant business, everything starts with an idea or a culinary concept.

There are hundreds of different types of establishments, from dark kitchens to food trucks, brunches, brasseries and even franchises!

Get to know the food trends that appeal to consumers For inspiration, we recommend 50 innovative (and profitable) restaurant concepts for 2025.

👉 The 2 most important things to keep in mind:

• Develop a solid concept and stick to it. Offering too many products and services, or having extended menus, is neither profitable nor sustainable. You can make your concept evolve as you go (understanding your customers' needs and desires better), but stay on a clear course.

Our advice: write down your mission statement. This is a clear, simple phrase that defines your identity. For example "Germinal is a bistronomic brasserie, both traditional and modern, focused on seasonal produce."

• Propose a differentiating concept. Mind you, this doesn't mean "unique", but rather "that makes a difference". If your neighborhood is full of Italian restaurants, is it really a good idea to create a new one? Or, if you decide to do it, what will you bring that's different?

Our advice: write down you think you are bringing to the table (litteraly). How are you different? What are your values, your philosophy? It could be an atmosphere, values, know-how, products, experience...

Identify your customers

For your offer to work, it has to meet a demand!

Who will your customers be? Their ages, genders, habits, desires, values...

Obviously, your most common clientele will be those in your neighborhood. We'll talk more about this in the "location" section 👇

Define your "personas". This is a marketing technique: portraits in the form of cards that embody your "typical customers". For each persona, explain why your concept might appeal to them and what they prefer about you.

All these details will appear in the first part of your business plan. We'll tell you more in the next step👇

Creating a business plan 

Once your restaurant's identity and objectives have been defined, it's time to move on to the financial and accounting aspects.

All these essential elements need to be written down in a business plan.

This classic entrepreneurial document, details a company's project and sets out a financial plan.

🤓 Everything you need to know is in our dedicated article"how to create a business plan for my restaurant".

According to a Harvard study, creating a business plan before you launch your business increases your chances of success by 16%!

👉 A business plan allows you to :

• Formulate your concept;
• Create a financial plan with all important margins and ratios (e.g. food cost);
• Estimate the project's profitability and your restaurant's sales;
• Establish a long-term strategy and guideline (your break-even point, for example);
• Convince a bank of your project's viability;
• Convince potential investors and obtain financing.

Add a report on the competition, your location, a simulations of your margins and ratios according to your project and your capacities (the figures are not the same for the sales of a restaurant with 10, 50 or 100 covers!).

Finding a location, buying business asssets

Location is the most important element of your restaurant. It will have a decisive impact on your sales, but also on your whole concept.

To find a business, you can go through :

• Specialized agencies ;
• Independent realters;
• Websites like Craigslist;
• Public help;
• local community (your surroundings);

In the restaurant business, there's a lot of leeway when it comes to price ! You can lower it by up to 30%, depending on the owner or vendor.

👉 On the location side, you can :

• Choose a high-traffic location. An excellent location, on a busy street in the heart of a popular district, but with the disadvantage of high rental costs;
• Choose a destination. A location on a less busy street, but far less expensive. This strategy works very well if you maximize your online visibility with  local referencing.

In all cases, it's essential to study your location.

Study your location

For your establishment to succeed, you need to meet the needs of your target clientele and bring something different to table.

For example: a restaurant aiming to maximize lunchtime activity is more likely to do so if it's close to corporate offices. 

👉 Be sure to study :

• Your customer potential. Who lives within 10 miles of your restaurant? Who would be interested in your concept?
• Your competition. What are the restaurants around you? Are you going to repeat an existing offer or propose something new? What could be missing in this neighborhood?
• Local products and business owners. Are you located near a wine route? A tourist spot? What products flourish around you? How can you incorporate them into your concept?
• The community. Talk to local shopkeepers, buy from them, do them favors, talk to neighboring residents, local players (associations, town hall).

Successful restaurant owners often have great people skills and know how to create and manage a network.

Define a budget

How much does it really cost to open a restaurant?

Of course, it all depends on your location and your concept. Opening a Michelin-starred restaurant in New York or a diner in Chicago are two different operations!

💡In the US, the average budget to open a restaurant is 200-600,000$

🤓 Good news: all the answers on the various costs are in our article what budget to open a restaurant?

👉 Opening costs to be anticipated :

• First rent, commercial lease and goodwill;
• Renovation work ;
• All technical equipment (approximately 15% of your budget);
• Payroll (your biggest expense);
• Food cost ;
• Digital marketing (to become profitable faster);
• Charges (insurance, electricity)
• Compulsory licenses and permits.

Pro tip: plan large and open up your project to investors!

Financing your project

Now that you know your budget, you have several options to finance it:

• Bank loans (some arespecific to restaurant owners with interesting rates);‍
• Public subsidies (regional, for example) and allowances;‍
• Business angels ;
• Participatory financing and fund-raising.

If you want to be financed, your project needs to be legit. That's where a good business plan comes in!

It's also very important to have a good head on your shoulders and understand t<b>he realities of the business</b> to convince an investor. If you've worked in hospitality before, even a small experience, don't hesitate to talk about it.

Don't hesitate to contact up to ten banks and compare their proposals. Finally, you should know that <b>an experience in hospitality</b> (even small extras or catering services) is very well regarded by a banking establishment or an investor !

Choosing a legal status

When you set up your own business, you choose the tax and social security system best suited to your project.

This is known as legal status.

In France, the majority of restaurants choose:‍

• ‍Thesole proprietorship (EI or EIRL) which includes the micro-enterprise, ideal for independent restaurateurs because simplified. Note: it is limited to a certain sales threshold;

• Limited liability company (SARL): more common for restaurateurs with several partners who wish to organize their liability according to their contributions.
• Simplified joint-stock companies (SAS and SASU): very similar to the SARL above, but much more flexible in its operation, they concern less than 10% of restaurateurs in France.

🤓 To find out more, read our article on how to choosing the legal status of your restaurant.

Requesting authorization for your terrace

Would you like to install an exterior ?

It's a great idea to increase your number of covers and welcome more customers.

Whether closed during the winter or open during the summer, a summer terrace can also generate additional income.

💡Don'tforget to mention the existence of your terrace in the attributes of your Google business listing.

👉 For all your legal requirements and scope for action, go directly to our guide to authorizing a restaurant terrace.

Recruiting a crack team

Recruitment is not an easy subject in the restaurant business. 

Good people are hard to find, turnover is high, and the job is difficult (hours, technicality, hardship, etc.).

But service quality is just as important as your concept and cuisine.

🤓 Fortunately, Malou offers you all her advice in the guide to recruiting restaurant staff

👉 What you should do:

• Create an employer brand (tone, values, benefits, career opportunities) ;
• Offer unbeatable benefits;
• Choose HR software like Combo to facilitate processes.

👉 To find your perfect match, visit platforms such as :

• Cookorico
• Extracadabra
• Brigad
• HospoJobs
• Restoteam
• Le Chef Recrute
• Emploi Resto.

💡Be careful not to "over-staff" nor  "under-staff". This frequently occurs when you open a restaurant and are not yet familiar with the pace of business. Initially, you'll want to "test your hours" to understand the flow of customers. 

Intelligent delegation

You're probably not an expert in accounting, real estate or construction.

Because opening a restaurant requires a multi-faceted approach, it's best to get help from people with experience!

On tasks you don't master, such as :

• The right craftsmen to carry out your project;
• A legal expert to make sure everything is up to code;
• An accountant (and accounting software) to guide you through your costs and help you become profitable quickly.
• An expert in digital marketing to attract a maximum number of customers from the moment you open and quickly become profitable.

You should also delegate tasks that you master but are a waste of your time.

Delegate tasks that don't add much value , and concentrate on the essentials. Ex : parts of the service, early morning shopping, etc.

Creating a brand identity

Brand identity refers to all the elements that flow from your concept.

Visual and graphic elements such as your logo, colors, font...

These visual elements must be present not only in your restaurant, but also in your online communication.

To anchor your visual identity even before your restaurant opens, you can follow Julien Sebbag's example and cover the front of your premises with customized posters.

Or, like Amagat, you can extend your brand image to include cutlery, posters, uniforms, goodies...

Create a Google business listing

Today, 8 out of 10 people choose a restaurant on the Internet.

The first place your potential customers will find you (and choose you!) is Google and other search engines.

The first thing people see is usually your company profile on Google My Business (Google Business Profile).

💡 Google My Business (now called Google Business Profile) is a free Google tool that shows your profile, adress, contacts, and more importantly, your average rating and reviews.

That's why your Google My Business listing (Google Business Profile) is so important: it embodies your e-reputation.

🤓 To learn how to create it from scratch, check out our complete guide on Google My Business listing (Google Business Profile)

Communicating before the restaurant opens

If you want to fill your restaurant as soon as it opens, you need to communicate about it in advance.  

🤓 Take advantage of our complete guide:16 essential tips for successful digital communication !

Start with:‍

• ‍Create your Instagram page well before the restaurant opens. Get inspired by the best restaurant Instagram accounts;
• Start with content on your storytelling, concept, history, values... You can also tease the work in progress.

• ‍Organize a photo shoot before the restaurant opens to post about future à la carte offerings, the atmosphere and the restaurant team. You'll inspire people to come and try the restaurant before it's even open!‍
• Plan your posts ! With the restaurant opening, you won't have the time to work Google and social media , even though they're inevitable for attracting customers. So take advantage of the construction phase to get your digital marketing strategy up and running. Anticipate and plan your posts before you have to worry about other operational matters.

You can go even further by creating creative videos on your premises while they're still under construction, as our Jolia customers do!

Be the first on Google

SEO allows you to be found on the Internet, especially on Google Maps.

To be seen, your restaurant needs to appear first on specific keywords. Mostly, keywords that match your concept, location and specialties. Local SEO is litteraly the name of the game!

For example "Indian restaurant Chicago", "top vegan brunch in Dallas", etc.

💡To get results in time, you NEED to start working on your SEO way before you open. First, because SEO takes time (at least 3 to 5 months), second, because it will help bring customers in the early days. 

Get an early start ! Download our complete guide to successful  SEO for restaurants and move up the search rankings!👇

Organize a soft opening and inauguration

First impressions are everything.

• Even if you're not quite ready yet, organize a "soft opening": a reduced menu and a limited number of covers to acclimatize the staff, test & adapt recipes or fine-tune internal organization;
• Then organize a grand opening party. Invite food journalists, influencers and investors, as well as shopkeepers and neighbors, to make your restaurant's opening viral. Finally, get ready to receive reservations ! Invest in a reservation system connected to your website.