How to Open a Restaurant: The Essentials
Opening a restaurant is one of the most exciting—and demanding—ventures in the food world. From shaping your concept to serving your first guest, the journey is packed with decisions that can make or break your success. While passion fuels the dream, it’s focus, planning, and execution that turn it into reality—and into a lasting success story.
This guide breaks down the essentials every aspiring restaurateur needs to get right, from finances and compliance to team-building and atmosphere. Let’s dive in.
Get Real Experience Before You Dive In
Before you invest in a lease or start designing your dream menu, spend time working inside a functioning restaurant—ideally in multiple roles. Watching shows like Restaurant: Impossible might be entertaining, but they often reveal a hard truth: many failed restaurants were started by well-meaning people with no prior industry experience. Passion is important, but it’s not a substitute for knowledge.
You need to understand how a restaurant actually runs—what food costs really look like, how labor impacts your bottom line, how to portion food correctly, and how roles are divided between front-of-house (FOH) and back-of-house (BOH) teams.
Watch episodes of Restaurant Impossible. Almost all the failing restaurants featured on that show fit your profile of ‘no restaurant experience.’ You need to understand food cost, labor cost, and how to portion the food appropriately. Mike Bausch, owner of Andolini’s Pizzeria
Get familiar with the business side, too. That means knowing how to set up a basic bookkeeping system, read a profit and loss (P&L) statement, and track key metrics regularly—not just when something goes wrong.
Working in someone else’s restaurant for six months to a year will give you insight no course or consultant can replicate. It will also help you spot what works, what doesn’t, and whether the pace and pressure of restaurant life are really for you.
This may delay your plans, but it is almost always worth the waiting time – failing in this business has many upfront and hidden costs, which you should try as much as possible to minimize.
Start with a Clear Concept
Before you sign a lease (which can be very difficult and expensive to get out of) or hire your first chef (unless you’re taking on that role yourself), make sure your vision is crystal clear. What kind of food will you serve? Who’s your ideal guest? Are you creating a fast-casual lunch spot, an elegant fine dining experience, or a relaxed neighborhood café?
Your concept will influence every decision—from location (opening a fine dining restaurant in a working-class neighborhood is rarely a winning move) to layout, lighting, staffing, service style, and pricing.
Build a brand that flows naturally from your concept. Choose a name, logo, and design identity that feel authentic and memorable. A cohesive brand isn’t just about looking good on Instagram—it helps your restaurant stand out and remain consistent across every guest interaction.
We should have put more funds and time into defining who we were. Four and a half years later, we’re still educating people on what a browsery is and what we offer and who we are we’re a mother-daughter locally owned business which is kind of rare in this industry. Michele Roche, Owner of The Brasserie in Camillus, New York
And don’t try to do it all alone. It’s unrealistic to expect yourself to excel at everything—menu development, team hiring, brand building, and more. Bring in professional help where it counts; it can make the difference between a solid launch and a shaky one.
Know Your Costs—and Cut the Right Ones
Restaurant margins are notoriously tight—averaging just 3% to 5% for full-service restaurants, while quick-service restaurants (QSR) see margins closer to 17%. Before you pour a single drink, create a realistic startup budget that includes rent, licenses (we’ll cover these in more detail later), equipment, payroll, initial inventory, and at least 3–6 months of operating expenses.
You watch your money just be spent before you’re having any income… It was the smaller stuff that really caught up—chairs, silverware, plates, bar tools—the things you don’t even think about. Michele Roche, Owner of The Brasserie in Camillus, New York
Cut unnecessary costs, but don’t skimp on the essentials—like food quality, staff compensation, and safety. If you’re not experienced in the industry, it’s crucial to hire people who are. Competent, seasoned professionals can help you avoid costly mistakes. Cutting corners in these areas often leads to bigger problems down the line—in both reputation and revenue.
Licenses, Permits & Compliance
You can’t open your doors without checking all the legal boxes. Start early with local health departments and city officials. Common requirements include:
- Business license
- Food service permit
- Fire and building inspections
- Health and safety certifications
- Liquor license (if you plan to serve alcohol)
You’ll also need liability insurance, worker’s comp, and coverage for theft or fire. Set reminders for renewal deadlines—compliance is ongoing, not one-and-done.
Set Up Your Tech Stack
Your POS system is the heart of your front-of-house operations. It should handle ordering, payments, receipts, reporting, and—ideally—integrate with inventory and staff scheduling tools.
In today’s market, guests expect digital convenience:
- Online reservations
- Contactless payments
- QR code menus
- Third-party delivery or in-house ordering
On the backend, invest in tools that save time and reduce error—like scheduling platforms, food cost calculators, and digital logbooks. Tech should support your team, not slow them down.
Vendor Relationships Matter
Suppliers can make or break your operation. Look for vendors who deliver on time, communicate clearly, and offer competitive (but sustainable) pricing. Build lasting partnerships with your food and beverage reps, linen services, waste removal, and cleaning providers.
Consistency matters more than constantly hunting for better deals—especially when your menu relies on specific ingredients or delivery timelines.
Hiring & Training Your Team
No matter how talented you are, you can’t run a restaurant alone—and hiring kitchen staff is notoriously challenging. Be prepared to stay in permanent hiring mode: staff turnover is high across the industry (around 80%), and maintaining a reliable team requires constant attention.
Start by hiring key roles: cooks, servers, front-of-house leads, and a reliable manager. Prioritize attitude and dependability over perfection on paper—skills can be taught, but mindset is harder to train.
Once hired, give your team the tools to succeed. Offer structured onboarding, clear expectations, and feedback loops. Strong training reduces turnover and builds a service culture that guests feel immediately.
Check out our latest story on wages to understand how much kitchen staff earn across the country.
Test Your Menu—Don’t Guess
Big menus slow kitchens down and inflate food waste. Start lean. Focus on a few dishes that showcase your concept and execution.
Before opening, run tastings with friends, industry peers, or soft-launch guests. Use their feedback to adjust portion sizes, prices, prep times, and presentation. A tight, well-tested menu will serve you far better than one that tries to do too much.
Curate the Atmosphere
Food gets guests in the door, but atmosphere and service keep them coming back. You’re not just selling meals — you’re in the hospitality business. Exceptional service and a memorable atmosphere are what turn first-time diners into regulars.
Consider how lighting, seating, sound, and layout affect the dining experience. A bright, energetic space suits breakfast and lunch; dim lighting and low music support a more intimate, evening vibe.
Create a space that reflects your concept—and enhances it.
Get Music Licensing Right
Music sets the tone, but using Spotify or personal playlists in a commercial space is a copyright risk. In the U.S., you’ll need a license from ASCAP, BMI, or SESAC to play music legally. Alternatively, services like SoundMachine handle licensing and playlist curation, saving you the legal headache.
Build a Culture of Cleanliness
Food safety isn’t just about passing inspections—it’s about earning trust.
Create clear systems for cleaning, storage, labeling, and hygiene. Train your team on handwashing, allergen handling, and cross-contamination prevention. Post visual reminders and run daily checks. A clean kitchen is a professional kitchen.
Your Digital Presence Is Crucial
Today’s diners will Google you and check your social media before ever walking through the door.
Make sure your Google Business Profile is claimed and up to date — including your address, hours, phone number, and website. Build a simple, mobile-friendly website that features your menu, online ordering (if applicable), and reservation links.
Social media — especially Instagram, and increasingly TikTok — acts as your visual storefront. Use it to showcase your dishes, team, and behind-the-scenes moments to generate buzz and attract new guests.
Understand Payroll & Labor Laws
Hiring staff comes with responsibility. You’ll need to register for tax IDs, follow labor laws (including breaks and overtime), and stay current on wage regulations.
Use payroll software tailored for hospitality, or work with a provider who understands tip pooling, shift differentials, and service charges. Be clear with your team about schedules, breaks, and pay periods from day one.
Location Still Matters
Even in a digital age, your address can drive—or kill—your traffic.
Visit prospective neighborhoods at different times of day. Look at foot traffic, parking, nearby businesses, and local sentiment. Is this a place people want to visit? What does the foot traffic look like? Are there major employers nearby? Will your concept fill a real need in the area?
The right location supports your growth organically, with less reliance on paid advertising.
Launch Soft, Then Build Hype
Skip the high-pressure grand opening. Instead, opt for a soft launch—invite friends, family, and local supporters to try the menu and provide feedback.
When you’re ready to go public, build momentum with:
- Teasers on social media
- Local influencer visits
- Community events or fundraisers
- Press releases and outreach
The goal is a thoughtful rollout that builds buzz without overwhelming your team.
Measure, Learn, and Adapt — Especially Through the Slow Seasons
Success in the restaurant business isn’t about hitting it big on opening night—it’s about staying sharp, consistent, and resilient. From day one, track your metrics carefully. The numbers tell the real story of what’s working—and what’s not.
Here are key performance indicators (KPIs) you should monitor consistently:
- Food cost percentage: Are you pricing dishes correctly based on ingredient costs?
- Labor cost vs. revenue: Is your staffing efficient relative to daily sales?
- Table turnover: How quickly are you serving and re-seating customers?
- Average guest spend: Are guests ordering more than just the basics?
Don’t rely solely on instinct or vibes—use your data to spot patterns, catch problems early, and adapt operations as needed. This mindset of continual refinement is often what separates successful restaurants from short-lived ventures.
But numbers alone aren’t enough. You also need perspective.
“You’ve got to go in with the mindset that some days are going to be awesome and others really slow. Don’t panic in the first week of January when no one shows up—it’s normal.”
— Chef Alex Iaccarino, Amano Kitchen & Bar, Syracuse
Every market has its own rhythm—peak seasons, holiday booms, and mid-winter lulls. Learning those ebbs and flows is crucial. Plan smart: build financial cushions for slower months, schedule promotions strategically, and use high-traffic periods to attract new guests who’ll return during the off-season.
Final Thought
Restaurants don’t succeed by luck—they succeed by doing the fundamentals really well. Know your market. Hire the right team. Serve consistently excellent food. Create an experience people want to return to.
You don’t need to do everything at once. Start small. Stay focused. Learn fast. And above all—stay true to your vision.
