How to start a restaurant

Mar 15, 2025

How to start a restaurant

You’ve always wondered how to start a restaurant. Or maybe the idea just hit you out of nowhere. Either way, you’re already taking an important step — learning what it really takes.

A great idea is one thing, but turning it into a reality requires planning, budgeting, and a bit more.

That’s exactly what you’ll learn in this guide:

  • Choosing a restaurant concept that works 
  • Understanding startup costs and funding
  • Finding the right location or going delivery-first
  • Creating a profitable menu
  • Navigating licences and legal requirements
  • Hiring and training staff
  • Marketing to attract and retain customers
  • Successfully launching and growing your restaurant

Whether you dream of a cosy café, a fast-food spot, or a delivery-only kitchen, we’ll break it all down — step by step.

P.S. No matter your setup, delivery service is a must-have to reach more customers, boost sales, and stay ahead.

Key takeaways

  • Market research is essential — knowing your audience, competition, and trends helps position your restaurant for success.
  • A business plan is your roadmap — it defines your concept, strategy, budget, and operations.
  • Startup costs vary — depending on location and concept, they range from €15,000 for a ghost kitchen to over €450,000 for fine dining.
  • Funding options exist — small business loans, investors, crowdfunding, and grants can help cover startup expenses.
  • Adapt for long-term success — restaurants that evolve with customer feedback, menu changes, and operational improvements stay competitive.
10 steps to start a successful restaurant

1. Concept and planning

Every successful restaurant is more than just food — it’s an experience people want to return to. And that starts with a solid concept and a clear plan.

Before building your restaurant, define the kind of establishment you want to run.

Restaurant concept

Restaurant concept

Your restaurant concept will shape everything — from your operations and menu to branding, marketing, and customer experience.

To define your concept, ask yourself:

  • Who’s your audience? (families, commuters, students?)
  • How will you operate? (dine-in, takeout, delivery?)
  • What’s your price range? (budget-friendly, mid-tier, premium?)
  • What makes your place unique? (menu, vibe, service style?)

The responses to these questions will clarify which restaurant setup aligns with your vision. Below are some common restaurant concepts:

  • Café/bakery – coffee, pastries, and light meals, often community-driven.
  • Ghost kitchen (dark kitchen) – delivery-only, low overhead, no dining space.
  • Food truck – mobile, flexible, great for testing concepts.
  • Quick service restaurant – higher-quality ingredients, minimal table service.
  • Casual dining – full-service, relaxed vibe, broad menu.
  • Fine dining – premium ingredients, upscale service, higher prices.
  • Pop-up restaurant – temporary dining concept.
  • Buffet – self-serve dining with a variety of dishes.
  • Themed restaurant – a dining experience with a unique concept.
  • Ethnic or speciality cuisine – sushi bar, taqueria, Korean BBQ, etc.
  • Healthy, vegan, or plant-based – organic, vegetarian, or vegan-friendly menu.

Define your target market

Knowing who you’re serving is just as important as what you’re serving — because your menu, pricing, and overall experience should align with their needs and expectations.

Let’s take a closer look at your target market — this will be crucial down the road.

Ask yourself:

  • Who are they? (families, students, professionals, tourists?)
  • What do they value? (convenience, affordability, quality, experience?)
  • How do they eat? (dine-in, takeout, delivery, late-night, on-the-go?)
  • What’s their budget? (affordable eats, mid-range dining, premium experience?)
  • What influences their choices? (trendy spots, dietary needs, social media?)

The answers to these questions will shape key decisions in your restaurant.

Create a restaurant business plan

Business plan

A business plan is a detailed roadmap that outlines your concept, goals, and strategy for running a successful restaurant.

Beyond mapping out your vision, it’s also crucial for pitching to investors and securing funding.

Here’s a step-by-step guide to creating a solid business plan:

1. Company description

This is where you introduce your restaurant in detail.

  • Your mission statement (why does your restaurant exist?).
  • Your business model.
  • Your restaurant’s location.
  • The legal structure (LLC, partnership, sole proprietorship).

2. Market research

We’ve already covered your target audience, but market research goes deeper. It helps you understand demand, competition, and industry trends.

What to include:

  • Target audience – who are your ideal customers?
  • Demand analysis – are people in your area looking for what you plan to offer?
  • Competitive analysis – who are your competitors, and how will you stand out?
  • Industry trends – does your concept align with current dining habits and trends?

3. Restaurant menu and food costs

What to include:

  • A sample menu with pricing.
  • Food costs – what are your ingredient expenses?
  • How your menu pricing supports profitability.

4. Restaurant costs and financial projections

What to include:

  • Startup capital – how much do you need to open?
  • Operating costs – rent, utilities, labour, kitchen equipment, food storage, and more.
  • Financial projections – expected monthly revenue, expenses, and profit margins.
  • Funding options – small business loans, investors, or personal savings.

5. Marketing plan

What to include:

  • Social media marketing plans (Instagram, TikTok, Facebook ads).
  • Local advertising (Google My Business, food blogs, PR).
  • Customer loyalty programs (discounts, referral incentives).
  • Opening promotions (soft opening*, influencer events).

*A soft opening is a trial run before the grand opening.

6. Operations and staffing plan

What to include:

  • Order and payment system — how will customers place and pay for orders? (restaurant POS system, app-based ordering, self-service kiosks).
  • Health and safety compliance — food safety, proper licensing, and compliance with local laws.
  • Staffing plan — how many employees you need and their roles.
  • Service style — will you offer table service, counter service, or app-based ordering?

2. Choose the right location

restaurant location

Location is key — whether it’s your restaurant, shop, or even your home.

If your restaurant is on a busy street, hundreds of potential customers will see it daily.

But a good location isn’t just about foot traffic — it’s about choosing a spot that aligns with your target audience. (See how every step in this process connects?)

  • Is your target audience nearby? — a high-end steakhouse in a student neighbourhood might struggle, while a budget-friendly café near a university could thrive.
  • Is there competition? — being close to similar restaurants can be a good sign (proving demand), but too many can make it harder to stand out.
  • Is it accessible? — parking, public transport, and ease of entry all impact customer convenience.
  • Is the rent sustainable? — prime locations cost more: will your expected sales cover expenses?
  • What are the local laws and regulations? — zoning laws, liquor licences, and business permits can affect operations.

Even if you’re running a dark kitchen, location still matters — delivery apps may show the nearest restaurants first, which can impact your orders.

3. Understand startup costs

Even the most minimal restaurant setup requires startup costs. Knowing what you’ll need to spend upfront helps you plan realistically, avoid financial surprises, and secure the right funding.

Some costs are obvious — like kitchen equipment and rent — but others, like permits, marketing, and staff training, can sneak up on you.

So, to avoid any surprises, let’s break it all down.

  • Rent and utility costs.
  • Licences and permits — business licence, health department approvals, etc.
  • Equipment and storage space — ovens, fridges, prep stations, food storage.
  • Restaurant systems — payment processing, order tracking, inventory management.
  • Interior design and furniture — tables, chairs, lighting, decor (if the place is dine-in).
  • Marketing and branding — website, social media, signage, promotions.
  • Food costs and initial inventory — ingredients for the first few weeks of service.
  • Employee wages and training — from the chef to service staff and kitchen workers.
  • Operating costs and emergency fund — utilities, insurance, and backup cash for unexpected expenses.

4. Obtain funding

Not all of us are lucky enough to have the full startup capital in our bank accounts.

Most of the time, you need financial assistance to open a restaurant.

The good news is that there are multiple ways to get it, whether through loans, investors, or creative financing strategies.

Risk tolerance and choosing the right option for your business model is key.

Funding options for restaurants

  • Small business loans — if you have a decent credit score and a prepared business plan, you can get a loan from your local bank. 
  • Investors and partnerships — private investors can fund your restaurant in exchange for equity or profit-sharing.
  • Crowdfunding — special platforms let you raise money from the public, an ideal approach for unique or community-driven concepts.
  • Grants and government programmes — some countries offer grants to small business owners, especially for sustainable or minority-led restaurants.
  • Personal savings and family support — avoids debt but comes with personal financial risk.
  • Equipment leasing — spread the equipment cost over time instead of paying upfront.

Licences and permits

As much as you’d love to jump right in and bring your restaurant idea to life, there’s one thing you cannot skip — legal requirements.

These regulations ensure food safety, health compliance, and business legitimacy. Failing to comply with even one could lead to fines, shutdowns, or costly delays.

Some of these permits take weeks or even months to acquire, so getting a head start is crucial. The process can be complex, so many restaurant owners hire a lawyer or a dedicated compliance specialist.

Essential licences and permits for restaurants

  • Business licence — required for any legal business operation.
  • Food service licence — ensures your restaurant meets health and safety regulations.
  • Health permit — confirms compliance with food safety laws (inspections required).
  • Liquor licence (if serving alcohol) — may need special training to obtain; requirements vary by location.
  • Building and zoning permits — verifies that your restaurant’s location is legally approved for food service.

Licence and permit requirements depend on location, so check local laws before applying. Even if you’re running a food truck, you’ll still need to acquire specific permits.

5. Create a menu

Menu creation

You know your concept and your customers — now, creating your menu is much easier.

But it’s not just about picking dishes you love.

Every menu item you add impacts costs, kitchen workflow, and customer expectations — so thoughtful menu planning is key.

  • Keep it focused — too many dishes may increase costs and slow service. Stick to a concise, well-curated menu that fits your concept.
  • Balance cost and pricing — price dishes with costs and profit margins in mind.
  • Optimise kitchen efficiency — use versatile ingredients to reduce waste and streamline preparation.
  • Cater to customer preferences — align menu choices with what your target audience wants.
  • Make it delivery-friendly — prioritise packaging, portioning, and travel-friendly foods for takeout and dark kitchens.

Start with a limited menu during a soft opening to gather feedback and refine dishes. Once operating, track sales, identify bestsellers, and adjust low-performing items.

Pricing your menu

Numbers drive everything — including your menu.

If the price is too high, customers will hesitate. If it’s too low, you may not cover your expenses. 

So, balance cost, value, and strategy to stay profitable.

  • Know your costs — keep food costs at 25-35% of the menu price.
  • Factor in overhead — rent, wages, and utilities impact pricing too.
  • Use pricing psychology — prices ending in .95 or .99 feel affordable.
  • Check competitors — stay competitive without undercutting your value.
  • Highlight high-margin items — guide choices using bold text, descriptions, or menu design tricks.

A smart way to boost profits without raising prices is bundling and upselling. Combo deals, add-ons, and premium upgrades encourage customers to spend more without feeling the extra cost.

See how Bolt Food helps restaurants increase sales with promotional offers.

6. Hire and train staff

Staff training

Your restaurant is only as good as the people running it.

Sometimes, a small team is enough, even owners stepping in to help. Other times, a bigger team is essential to keep things running smoothly.

Either way, having the right people in the right roles ensures efficiency, consistency, and a great dining experience.

  • Kitchen staff – from the head chef to line cooks, every role impacts food quality and speed.
  • Front-of-house – servers, hosts, and bartenders shape the customer experience.
  • Back-of-house support – dishwashers, food preppers, and stock managers keep operations running smoothly.

Great — you hired the right people, but great staff need proper training.

Here are the key areas to focus on:

  • Menu — ingredients, allergens, and pairings.
  • Service efficiency — optimising workflow to keep it fast.
  • Health and safety — food handling and cleanliness standards.
  • Customer service — handling orders, resolving issues, and creating a welcoming atmosphere.
  • Tech training — how to handle orders and process payments efficiently.

7. Market your restaurant

Customers often search, compare, and decide where to eat based on social media, online reviews, and food delivery apps.

But marketing isn’t just digital — traditional methods like local partnerships, word-of-mouth, and in-store promotions still significantly attract customers.

Here are common ways to advertise your restaurant:

  • Leverage social media — post high-quality food photos, engage with customers, and use Instagram, TikTok, and Facebook to build your brand.
  • Optimise for local search — claim your Google My Business listing so people can easily find your restaurant online.
  • Encourage online reviews — positive reviews on Google, Yelp, and TripAdvisor boost credibility and attract more customers.
  • Use food delivery platforms — maximise visibility with apps like Bolt Food to reach more customers.
  • Run promotions and events – host special deals, giveaways, or themed nights to generate buzz and foot traffic.
  • Offline marketing – local partnerships, flyers, and community events help build recognition beyond digital platforms.
  • Build customer loyalty – offer rewards, discounts, or exclusive perks to keep guests returning.

P.S. After signing up with Bolt Food, you’ll get access to ready-made marketing templates to make your social media posts stand out.

8. Open your restaurant

Restaurant opening

As the saying goes, walk before you run.

Instead of rushing to the grand opening, start with a soft opening — a trial run to fine-tune operations, train staff, gather feedback, and refine the menu.

Soft opening

A soft opening is a chance to test menu execution, service flow, and customer experience with a smaller, controlled audience.

  • Who to invite? Friends, family, local influencers, or VIP guests.
  • What to offer? A limited menu, discounted meals, or invite-only access to create a feeling of exclusivity.
  • Why it matters? Helps you identify and fix any issues before the real rush begins.

Grand opening

Once your team is ready, it’s time for the big launch.

A grand opening is your moment to generate buzz, attract new customers, and officially introduce your restaurant to the world.

  • Create an event — live music, giveaways, or special menu items can draw crowds and media attention.
  • Leverage marketing promote on social media, food blogs, and local press to maximise visibility.
  • Offer deals — discounts or limited-time specials can encourage first-time visits.

9. Offer delivery

Offering delivery isn’t just an extra perk — it’s a must.

31% of UK consumers have at least one takeaway a week, with 38% of them aged 18–24 ordering takeaways 2–3 times a week

Partnering with a delivery app like Bolt Food helps you:

  • Reach more customers.
  • Increase sales without adding extra seating space.
  • Boost visibility.
  • Offer a seamless experience with built-in payment, order tracking, and customer support.

Getting started is easy! Sign up, list your menu, and start accepting orders.

10. Keep your restaurant growing

Running a restaurant isn’t about reaching a finish line — it’s a marathon, not a sprint. Leave it as is, and it will stagnate or depreciate.

Sustaining and growing your business requires continuous effort, adaptation, and strategy.

  • Consistently improve customer experience — service, food quality, and ambience should evolve with customer expectations.
  • Listen to feedback — regularly check reviews, surveys, and social media to see what works and what needs fixing.
  • Refresh your menu — introduce seasonal specials, tweak low-performing dishes, and keep things exciting for regulars.
  • Invest in marketing — keep your restaurant visible with social media, local partnerships, and loyalty programs.
  • Streamline operations — optimise staff training, improve efficiency, and reduce waste to boost profits.
  • Expand strategically — consider catering, delivery, or a second location when the time is right.

Bolt Food gives you access to data on popular dishes, average order value, and conversion rates — helping you understand trends, optimise your menu, and grow your restaurant.

Frequently asked questions

How do I start a restaurant?

Starting a restaurant involves several steps: market research, writing a business plan, securing funding, getting permits and licences, finding a location, creating a menu, hiring staff, and launching a strong marketing plan.

How much does it cost to open a restaurant?

Costs vary based on concept, location, and size, but expect anywhere from €15,000 for a food truck to €450,000+ for a fine dining restaurant.

How do I start a restaurant with no money?

Look into small business loans, investors, crowdfunding, government grants, or partnerships. Starting small with a food stall, pop-up, or home-based catering business can help you build funds for a larger restaurant.

Who is the richest restaurant owner?

As of recent years, Tilman Fertitta (Landry’s, Inc.) is one of the wealthiest, with a net worth of over $5 billion. Other top earners include Gordon Ramsay and Wolfgang Puck, who built global restaurant empires.

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