How to Start a Restaurant

From concept to grand opening in 6–9 months.

Time: 6–9 monthsBudget: $100k – $500k+ depending on format10 steps

Restaurants have the highest failure rate of any small business — mostly because people skip the boring steps. This roadmap forces the boring steps in order.

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  1. 1

    Define the concept

    Validation

    One-line concept, target ticket, target neighborhood, and format (QSR, fast-casual, full-service).

  2. 2

    Write a real business plan

    Menu, sourcing, labor model, break-even math, 24-month P&L. Investors and landlords will ask.

  3. 3

    Form an LLC and get an EIN

    Restaurants almost always run as an LLC or LLC + management entity. Talk to a CPA about the structure.

  4. 4

    Sign a lease with an exit clause

    Have a restaurant broker or attorney review — never sign a personally guaranteed lease with no termination rights.

  5. 5

    Permits: health, liquor, signage, occupancy

    Start these on the day the lease is signed. Liquor licenses can take 60–120 days.

  6. 6

    Website with online ordering

    Website

    A branded website with a menu and reservation link is the #1 marketing asset. Hostinger's builder plus a Toast/Square ordering embed is the fastest way.

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  7. 7

    POS + inventory + payroll

    Operations

    Pick a modern POS (Toast, Square for Restaurants, or Clover). It becomes your operating system.

  8. 8

    Marketing systems

    Marketing

    Email list, reservation platform, Google Business Profile, and one paid channel. Semrush helps you find the exact 'best X near me' queries you should rank for.

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  9. 9

    Hire and train the opening team

    Two weeks of paid training before day one. Comp your first 20 guests and iterate on the menu.

  10. 10

    Soft open, then grand open

    Soft-open for two weeks at 60% capacity. Grand open with press only after service is smooth.

FAQ

Do I need a business plan for a small restaurant?
Yes — banks and landlords require one, and it forces the unit economics conversation.
What's the biggest hidden cost?
Buildout — construction, kitchen equipment, and permit delays regularly blow budgets by 30–50%.