{"id":18850,"date":"2024-11-27T07:00:41","date_gmt":"2024-11-27T13:00:41","guid":{"rendered":"https:\/\/www.escoffier.edu\/?p=18850"},"modified":"2025-05-22T14:47:24","modified_gmt":"2025-05-22T19:47:24","slug":"how-to-start-a-restaurant-with-little-to-no-money","status":"publish","type":"post","link":"https:\/\/www.escoffier.edu\/blog\/food-entrepreneurship\/how-to-start-a-restaurant-with-little-to-no-money\/","title":{"rendered":"How to Start a Restaurant: A Step-By-Step Guide"},"content":{"rendered":"<p><em><strong>Listen to This Article:<\/strong><\/em><\/p>\n<div id=\"elevenlabs-audionative-widget\" data-height=\"90\" data-width=\"100%\" data-frameborder=\"no\" data-scrolling=\"no\" data-publicuserid=\"d443feec80bf8c8f2e009e26dafa4118e6eb9f14056a5516af577c77d4404c4e\" data-playerurl=\"https:\/\/elevenlabs.io\/player\/index.html\" data-small=\"True\" data-textcolor=\"rgba(255, 255, 255, 1.0)\" data-backgroundcolor=\"rgba(153, 119, 85, 1.0)\" data-projectid=\"5JSEkvbQMEJNWpEArVpI\">Loading the <a href=\"https:\/\/elevenlabs.io\/text-to-speech\" target=\"_blank\" rel=\"noopener\">Elevenlabs Text to Speech<\/a> AudioNative Player&#8230;<\/div>\n<p><script src=\"https:\/\/elevenlabs.io\/player\/audioNativeHelper.js\" type=\"text\/javascript\"><\/script><\/p>\n<p>It can be thrilling to launch your own restaurant, a business venture that usually consists of several essential \u201cingredients.\u201d These can include competency in culinary fundamentals, professional business principles, and marketing acumen\u2014 not to mention resilience and grit.<\/p>\n<p>Starting this type of endeavor might seem daunting, but if you\u2019re prepared, you can begin to execute your vision. If you\u2019re looking for a concise, step-by-step guide on how to start a restaurant, let\u2019s dive in.<\/p>\n        <div class=\"tmm-table-of-contents\" tmm-table-of-contents>\n            <div class=\"tmm-table-of-contents__title\">Table of Contents<\/div>\n            <div class=\"tmm-table-of-contents__list\" tmm-table-of-contents__list><\/div>\n        <\/div>\n        \n<h2>1. Pick a Restaurant Type<\/h2>\n<div id=\"attachment_24791\" style=\"width: 778px\" class=\"wp-caption alignnone\"><img decoding=\"async\" aria-describedby=\"caption-attachment-24791\" class=\"wp-image-24791 size-full\" src=\"https:\/\/www.escoffier.edu\/wp-content\/uploads\/2022\/12\/Food-truck-with-a-bicycle-and-skateboard-leaning-against-it-768.jpeg\" alt=\"A food truck with a bicycle leaning against it.\" width=\"768\" height=\"513\" srcset=\"https:\/\/www.escoffier.edu\/wp-content\/uploads\/2022\/12\/Food-truck-with-a-bicycle-and-skateboard-leaning-against-it-768.jpeg 768w, https:\/\/www.escoffier.edu\/wp-content\/uploads\/2022\/12\/Food-truck-with-a-bicycle-and-skateboard-leaning-against-it-768-300x200.jpeg 300w\" sizes=\"(max-width: 768px) 100vw, 768px\" \/><p id=\"caption-attachment-24791\" class=\"wp-caption-text\">A food truck might be a lower-budget and more effective business model option than a traditional restaurant.<\/p><\/div>\n<p>Your first step in starting a restaurant is simply brainstorming and choosing a concept that ignites your entrepreneurial spirit. Do you dream of opening a vegan food truck or starting a farm-to-table pop-up restaurant? Perhaps you have your heart set on only serving warm breakfast comfort food.<\/p>\n<p>When picking a restaurant type, also consider the following questions:<\/p>\n<ul>\n<li>What type of service do you want to offer?<\/li>\n<li>What does your target audience look like?<\/li>\n<li>What is your unique brand?<\/li>\n<\/ul>\n\n\t<div class=\"blog-quote\">\n\t\t<div class=\"the-quote\">\n\t\t\t<div class=\"quotes\">\u201c<\/div>\n\t\t\t\u201cOur students are taught the financial aspects of running a successful hospitality operation. Being able to apply this knowledge in the workplace can make them valued employees.\u201d*\t\t<\/div>\n\t\t<div class=\"author \">\n\t\t\t\t\t\t\t<div class=\"image\">\n\t\t\t\t\t<img decoding=\"async\" src=\"https:\/\/www.escoffier.edu\/wp-content\/uploads\/2021\/11\/Vicki-Davenport.png\"\n\t\t\t\t\t     alt=\"Vicki Berger\"\n\t\t\t\t\t     width=\"150\" height=\"150\">\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<div class=\"text\">\n\t\t\t\t\t\t\t\t\t<div>\n\t\t\t\t\t\t<strong>Vicki Berger<\/strong>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\tHospitality &amp; Restaurant Operations Management Instructor\t\t\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t<\/div>\n\n\t\n<p><em>*Information may not reflect every student\u2019s experience. Results and outcomes may be based on several factors, such as geographical region or previous experience.<\/em><\/p>\n<h3>Consider Low-Cost Restaurant Start-Up Ideas<\/h3>\n<p>In this ideation phase, you\u2019ll also want to consider your budget. Even though there are ways to fund your restaurant (keep reading for more on this), you might want to consider some of the following restaurant models if you have minimal money to begin with.<\/p>\n<h3>Start a Home-Based Catering Business<\/h3>\n<p>With <a href=\"https:\/\/www.escoffier.edu\/blog\/food-entrepreneurship\/the-complete-guide-to-starting-a-home-based-catering-business\/\">home-based catering<\/a>, you may be able to cook out of your home, although it\u2019s more likely that you\u2019ll do the cooking from a commercial kitchen space and run the business operation out of your home. This can make catering an economical option, and you can expect lower startup costs than opening a restaurant\u2014<a href=\"https:\/\/www.entrepreneur.com\/businessideas\/ghost-virtual-restaurant\" target=\"_blank\" rel=\"noopener\">somewhere between $10,000 and $50,000<\/a>.<\/p>\n<h3>Start a Ghost Kitchen or Ghost Restaurant<\/h3>\n<p>A <a href=\"https:\/\/www.escoffier.edu\/blog\/food-entrepreneurship\/the-rise-of-ghost-restaurants\/\">ghost kitchen or ghost restaurant<\/a> operates out of a rented commercial kitchen space. Food is <a href=\"https:\/\/www.escoffier.edu\/blog\/food-entrepreneurship\/building-a-delivery-friendly-menu\/\">delivered to customers<\/a> through third-party delivery apps like <a href=\"https:\/\/www.escoffier.edu\/blog\/food-entrepreneurship\/the-pros-and-cons-of-becoming-an-uber-eats-restaurant-partner\/\">Uber Eats or GrubHub<\/a>. This can be one of the most affordable ways to start a restaurant. You\u2019ll be leasing your kitchen space, but there\u2019s no dining room or bar to pay for.<\/p>\n<p>According to Entrepreneur Magazine, startup costs for a ghost kitchen are estimated to range between $10,000 and $50,000, and in some cities, local providers offer options below $10,000.<\/p>\n<h3>Launch a Food Truck<\/h3>\n<p><a href=\"https:\/\/www.escoffier.edu\/blog\/food-entrepreneurship\/how-to-start-your-own-food-truck\/\">Starting a food truck<\/a> is still a significant investment of both money and time, costing between <a href=\"https:\/\/www.escoffier.edu\/blog\/food-entrepreneurship\/how-much-does-a-food-truck-cost\/\">$40,000-$250,000<\/a> total. You\u2019ll have to purchase your truck, outfit it with the necessary equipment, and acquire all of the necessary permits.<\/p>\n<p>If you buy a used truck and\/or used equipment, you may be able to reduce your startup costs even further. The operating costs might be lower, too, since you can use a tablet-based point of sale (POS) system, and you\u2019ll have much lower utilities and staff costs.<\/p>\n<h2>2. Create a Business Plan<\/h2>\n<div id=\"attachment_23674\" style=\"width: 778px\" class=\"wp-caption alignnone\"><img decoding=\"async\" aria-describedby=\"caption-attachment-23674\" class=\"wp-image-23674 size-full\" src=\"https:\/\/www.escoffier.edu\/wp-content\/uploads\/2017\/03\/Person-wearing-a-white-shirt-using-a-calculator-and-writing-with-a-pen-768.jpeg\" alt=\"A person leans over a counter with several notebooks. They have a calculator in one hand and a pen in the other.\" width=\"768\" height=\"513\" srcset=\"https:\/\/www.escoffier.edu\/wp-content\/uploads\/2017\/03\/Person-wearing-a-white-shirt-using-a-calculator-and-writing-with-a-pen-768.jpeg 768w, https:\/\/www.escoffier.edu\/wp-content\/uploads\/2017\/03\/Person-wearing-a-white-shirt-using-a-calculator-and-writing-with-a-pen-768-300x200.jpeg 300w\" sizes=\"(max-width: 768px) 100vw, 768px\" \/><p id=\"caption-attachment-23674\" class=\"wp-caption-text\">It\u2019s vital to create a solid business plan and to keep on top of your numbers.<\/p><\/div>\n<p>Now that you\u2019re set on a business idea, it\u2019s time to draft your roadmap to execute on that idea. Think of your business plan as a skeleton outline that details each important component of your foodservice business. At the end of the day, you\u2019ll leverage this business plan to \u201cpitch\u201d potential investors.<\/p>\n<p>Students enrolled in Escoffier\u2019s <a href=\"https:\/\/www.escoffier.edu\/food-entrepreneurship\/\">food entrepreneurship<\/a> program can engage in a business-oriented curriculum that can help prepare them to start a business plan. They may discuss vetting their food business idea, pitching investors, and forecasting revenue.<br \/>\n\t\n\t<div class=\"blog-article-callout-wrap\">\n\t\t<div class=\"blog-article-callout-text\">\n<h3>5 Essential Business Plan Components:<\/h3>\n<ul>\n<li>Executive summary (i.e., restaurant name)<\/li>\n<li>Company description (i.e., restaurant model type)<\/li>\n<li>Competitive analysis (i.e., target market)<\/li>\n<li>Organization plan (i.e., staffing and customer service policies)<\/li>\n<li>Financial projections (i.e., investment and funding plan)<\/li>\n<\/ul>\n<\/div>\n\t<\/div>\n\n\t\n<h3>Devise a Marketing Plan<\/h3>\n\n\t\t<div class=\"blog-next\">\n\t\t\t<div class=\"blog-next-tagline\">Read this next<\/div>\n\t\t\t<a href=\"https:\/\/www.escoffier.edu\/blog\/food-entrepreneurship\/restaurant-marketing-101-an-essential-guide\/\" aria-label=\"Read this next: Restaurant Marketing 101: An Essential Guide\">\n\t\t\t\t<div class=\"blog-next-inner\">\n\t\t\t\t\t<div class=\"blog-next-image\" style=\"background-image: url('https:\/\/www.escoffier.edu\/wp-content\/uploads\/2023\/02\/A-cafe-owner-holding-a-laptop-stands-next-to-a-cash-register-and-smiles-for-the-camera.-768x512-1.jpeg');\"><\/div>\n\t\t\t\t\t<div class=\"blog-next-contents\">\n\t\t\t\t\t\t<div class=\"blog-next-category\">Food Entrepreneurship<\/div>\n\t\t\t\t\t\t<div class=\"blog-next-title\">Restaurant Marketing 101: An Essential Guide<\/div>\n\t\t\t\t\t\t<div class=\"blog-next-text\">Find strategies to attract new customers and potentially increase revenue in this Restaurant Marketing 101 Guide.<\/div>\n\t\t\t\t\t\t<div class=\"blog-next-button\">\n\t\t\t\t\t\t\t<span class=\"button\">Read Article<\/span>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t<\/a>\n\t\t<\/div>\n\n\t\t\n<p>Investors will likely want to see a proposed \u201cmarketing mix\u201d as part of your business plan. The purpose of this is to gauge how you\u2019ll acquire new customers and keep them loyal through inbound and outbound marketing tactics\u2014combined with paid media. Make sure your marketing plan is thorough and covers effective strategies such as social media marketing, branding, email marketing, SEO, and more.<\/p>\n\n\t<div class=\"blog-quote\">\n\t\t<div class=\"the-quote\">\n\t\t\t<div class=\"quotes\">\u201c<\/div>\n\t\t\t\u201cAnybody can say they are a chef. As far as the management portion, that is where Escoffier is really helping me actually run a restaurant, run a caf\u00e9, or run a business. And that\u2019s what I want. I want my own restaurant.\u201d*\t\t<\/div>\n\t\t<div class=\"author \">\n\t\t\t\t\t\t\t<div class=\"image\">\n\t\t\t\t\t<img decoding=\"async\" src=\"https:\/\/www.escoffier.edu\/wp-content\/uploads\/2021\/12\/tiffany-moore.jpeg\"\n\t\t\t\t\t     alt=\"Tiffany Moore\"\n\t\t\t\t\t     width=\"150\" height=\"150\">\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<div class=\"text\">\n\t\t\t\t\t\t\t\t\t<div>\n\t\t\t\t\t\t<strong>Tiffany Moore<\/strong>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\tOnline Culinary Arts Graduate, Co-Founder\/Chef, Event Hall @ Cascade, TBS \u201cRat In The Kitchen\u201d Contestant, Military Veteran\t\t\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t<\/div>\n\n\t\n<p><em>*Information may not reflect every student\u2019s experience. Results and outcomes may be based on several factors, such as geographical region or previous experience.<\/em><\/p>\n<h2>3. Choose a Prime Location<\/h2>\n<div id=\"attachment_28163\" style=\"width: 778px\" class=\"wp-caption alignnone\"><img decoding=\"async\" aria-describedby=\"caption-attachment-28163\" class=\"wp-image-28163 size-full\" src=\"https:\/\/www.escoffier.edu\/wp-content\/uploads\/2021\/03\/View-of-stylish-empty-cafe-with-arranged-wooden-tables-and-black-chairs-Featured-Image.jpeg\" alt=\"Interior of a modern-style restaurant with dark wood tables and chunky black chairs.\" width=\"768\" height=\"512\" srcset=\"https:\/\/www.escoffier.edu\/wp-content\/uploads\/2021\/03\/View-of-stylish-empty-cafe-with-arranged-wooden-tables-and-black-chairs-Featured-Image.jpeg 768w, https:\/\/www.escoffier.edu\/wp-content\/uploads\/2021\/03\/View-of-stylish-empty-cafe-with-arranged-wooden-tables-and-black-chairs-Featured-Image-300x200.jpeg 300w\" sizes=\"(max-width: 768px) 100vw, 768px\" \/><p id=\"caption-attachment-28163\" class=\"wp-caption-text\">Your restaurant\u2019s location can make all the difference in your business success.<\/p><\/div>\n<p>What\u2019s one key factor in how <a href=\"https:\/\/www.escoffier.edu\/blog\/food-entrepreneurship\/how-much-money-can-restaurants-make\/\">restaurants can make money<\/a>? Location. Location can hold the power to attract your niche target audience. If your restaurant is located on a naturally busy street with lots of organic foot traffic, this can help you attract new customers\u2014visibility is critical.<\/p>\n<p>Think about the type of food you\u2019re serving and how it might resonate in your location. For example, fine-dining Italian might do best in an upscale brick building next to boutique shops. But deli sandwiches and small bites could land better in a casual food truck environment. Also, think about leasing vs. buying a physical space. This can affect your costs and profits immediately.<br \/>\n\t\n\t<div class=\"blog-article-callout-wrap\">\n\t\t<div class=\"blog-article-callout-text\">\n<h3>Essential Location Factors to Consider<\/h3>\n<ul>\n<li>Sizing and capacity<\/li>\n<li>Neighborhood community<\/li>\n<li>History of the building<\/li>\n<\/ul>\n<\/div>\n\t<\/div>\n\n\t\n<h2>4. Map out Your Menu<\/h2>\n<p>After you have your business idea and plan in place, you can begin the creative and slightly technical process of <a href=\"https:\/\/www.escoffier.edu\/blog\/food-entrepreneurship\/menu-design-best-practices\/\">building out your menu<\/a> offerings. You might want to consider using high-quality, seasonal ingredients when conceptualizing your dishes\u2026 also keeping in mind associated costs and how competitors are pricing. Don\u2019t forget to create a great <a href=\"https:\/\/www.escoffier.edu\/blog\/hospitality-careers\/how-to-create-a-great-drink-menu\/\">drink menu<\/a>, too; in many restaurants, beverages drive much of the profits.<\/p>\n<p>Escoffier\u2019s <a href=\"https:\/\/www.escoffier.edu\/food-entrepreneurship\/\">food entrepreneurship<\/a> curriculum can include dedicated coursework that explores the creation and application of various types of food and beverage menus. Topics may range from visual design to price analysis to making use of available resources.<br \/>\n\t\n\t<div class=\"blog-article-callout-wrap\">\n\t\t<div class=\"blog-article-callout-text\">\n<h3>Menu Pricing Factors to Consider<\/h3>\n<ul>\n<li>Cost of goods sold<\/li>\n<li>Food cost<\/li>\n<li>Profit margins<\/li>\n<li>Sales forecasting<\/li>\n<li>Inventory<\/li>\n<\/ul>\n<\/div>\n\t<\/div>\n\n\t\n<h2>5. Prepare for Restaurant Costs<\/h2>\n<div id=\"attachment_23684\" style=\"width: 778px\" class=\"wp-caption alignnone\"><img decoding=\"async\" aria-describedby=\"caption-attachment-23684\" class=\"wp-image-23684 size-full\" src=\"https:\/\/www.escoffier.edu\/wp-content\/uploads\/2022\/08\/Close-up-photo-of-a-calculator-and-pen-sitting-on-a-financial-report-768.jpg\" alt=\"Closeup of a calculator and a pen sitting on a financial report.\" width=\"768\" height=\"513\" srcset=\"https:\/\/www.escoffier.edu\/wp-content\/uploads\/2022\/08\/Close-up-photo-of-a-calculator-and-pen-sitting-on-a-financial-report-768.jpg 768w, https:\/\/www.escoffier.edu\/wp-content\/uploads\/2022\/08\/Close-up-photo-of-a-calculator-and-pen-sitting-on-a-financial-report-768-300x200.jpg 300w\" sizes=\"(max-width: 768px) 100vw, 768px\" \/><p id=\"caption-attachment-23684\" class=\"wp-caption-text\">Creating a spreadsheet can help you keep track of startup costs.<\/p><\/div>\n<p>Along with choosing a restaurant space and planning a cost-efficient menu, knowing what goes into additional restaurant costs can help you plan your budget and decide where to splurge and where you can economize. Here are some of the biggest expenses you may face.<\/p>\n<h3>Remodeling or Restaurant Improvements<\/h3>\n<p>Unlike a residential lease where tenants are expected to leave the space as they found it, it\u2019s not uncommon to invest money into remodeling your commercial space when you rent. For example, you may need to change the size of the kitchen or add a bar. Landlords sometimes provide a \u201ctenant improvement allowance\u201d to offset some of these costs. But the details will depend on your specific lease, so make your requirements clear before signing. And if it\u2019s a property you own, you are typically responsible for all of the costs!<\/p>\n<h3>Restaurant Equipment<\/h3>\n<p>Ovens, refrigerators, stand mixers, fryers, and commercial dishwashers usually aren\u2019t included with your restaurant space. You\u2019ll probably be responsible for purchasing or leasing this equipment. An exception may be a commercial kitchen rental, which could come with some equipment already built in. When it\u2019s time to buy, you may be able to find some of this equipment second-hand at a reseller or auction.<\/p>\n<h3>Restaurant Furniture, Supplies, and Technology<\/h3>\n<p>A full-service restaurant requires space for guests to sit and eat. So you\u2019ll need tables, chairs, and barstools for any indoor and outdoor spaces. Plus, you may need a host stand and server stations. There will also be costs like plates, silverware, glassware, linens and towels, menus, and technology like your POS system and your payroll system.<\/p>\n<h2>6. Fund Your Restaurant<\/h2>\n<div id=\"attachment_25652\" style=\"width: 778px\" class=\"wp-caption alignnone\"><img decoding=\"async\" aria-describedby=\"caption-attachment-25652\" class=\"wp-image-25652 size-full\" src=\"https:\/\/www.escoffier.edu\/wp-content\/uploads\/2022\/07\/Accountants-working-on-financial-statement-on-computer-screen-in-office-768.jpeg\" alt=\"A person sits at a desk with their hands poised over the keyboard, while a second person in the background points to the screen, which shows a financial statement.\" width=\"768\" height=\"489\" srcset=\"https:\/\/www.escoffier.edu\/wp-content\/uploads\/2022\/07\/Accountants-working-on-financial-statement-on-computer-screen-in-office-768.jpeg 768w, https:\/\/www.escoffier.edu\/wp-content\/uploads\/2022\/07\/Accountants-working-on-financial-statement-on-computer-screen-in-office-768-300x191.jpeg 300w\" sizes=\"(max-width: 768px) 100vw, 768px\" \/><p id=\"caption-attachment-25652\" class=\"wp-caption-text\">Evaluate multiple ways to fund your restaurant and explore every option you can find.<\/p><\/div>\n<p>So with all those costs in mind, how can you acquire enough capital to start your restaurant? If you have your business plan in place indicating cost projections, this is the time to look into additional funding resources.<\/p>\n<h3>Secure Grants<\/h3>\n<p>Grants can be a great resource to help you start a restaurant. Auguste Escoffier School of Culinary Arts alumna Tiffany Moore won two grants to get her startup capital.* One was through StreetShares (now known as <a href=\"https:\/\/www.meridianlink.com\/products\/business\/\" target=\"_blank\" rel=\"noopener\">MeridianLink<\/a>), which awards grants to military veteran entrepreneurs. The other was through <a href=\"https:\/\/www.fiserv.com\/en.html\" target=\"_blank\" rel=\"noopener\">Fiserv<\/a>, a financial services tech provider that also provides some grants to small businesses.<\/p>\n\n\t<div class=\"blog-quote\">\n\t\t<div class=\"the-quote\">\n\t\t\t<div class=\"quotes\">\u201c<\/div>\n\t\t\t\u201cI pitched my business idea through a non-profit called StreetShares at the Military Influencer Conference to a crowd of over 3,000 [virtual] guests and three on-scene judges. I solicited votes and I came out #3 out of 160 applicants. Afterward, the viewers\u2026 and the judges awarded me first place, and I received grant money for my business.\u201d*\t\t<\/div>\n\t\t<div class=\"author \">\n\t\t\t\t\t\t\t<div class=\"image\">\n\t\t\t\t\t<img decoding=\"async\" src=\"https:\/\/www.escoffier.edu\/wp-content\/uploads\/2021\/12\/tiffany-moore.jpeg\"\n\t\t\t\t\t     alt=\"Tiffany Moore\"\n\t\t\t\t\t     width=\"150\" height=\"150\">\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<div class=\"text\">\n\t\t\t\t\t\t\t\t\t<div>\n\t\t\t\t\t\t<strong>Tiffany Moore<\/strong>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\tOnline Culinary Arts Graduate, Co-Founder\/Chef, Event Hall @ Cascade, TBS \u201cRat In The Kitchen\u201d Contestant, Military Veteran\t\t\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t<\/div>\n\n\t\n<p><em>*Information may not reflect every student\u2019s experience. Results and outcomes may be based on several factors, such as geographical region or previous experience.<\/em><\/p>\n<p>Many grants have specific criteria, so it may take some time to find one that you\u2019re eligible for. However, if you do some research, you may find a grant that you can qualify for! These financial gifts usually don\u2019t have to be repaid, and even a small grant of a few thousand dollars could help you to get closer to your funding goals.<\/p>\n<h3>Obtain a Business Loan<\/h3>\n<p>Some banks and credit unions can provide small business loans, especially if you already have a relationship with those institutions. As long as you carefully manage your expenses and don\u2019t overborrow, outside financing can be a great way to find startup capital.<\/p>\n<p>Some restaurants can get a 504 loan through the U.S. Small Business Administration (SBA). These loans are accessed through a \u201cCertified Development Company\u201d which provides government-backed SBA loans. You can <a href=\"https:\/\/www.sba.gov\/local-assistance\/find?type=Certified%20development%20company&amp;pageNumber=1\" target=\"_blank\" rel=\"noopener\">look for qualified lenders<\/a> in your area.<\/p>\n<p>No matter what type of business loan you choose, realize it can take anywhere from a few weeks to a few months to receive funding. So start the application process early to ensure you have your funds when you need them.<\/p>\n<h3>Bring On Private Investors<\/h3>\n<p>Private investors can invest in your small business in exchange for a portion of the profits. You can bring them on as partners to handle some of the workloads, or they can be \u201cangel investors\u201d who take a hands-off approach and instead let you run the business on your own\u2014as long as they\u2019re receiving their share of the profits.<\/p>\n<h3>Explore Crowdfunding<\/h3>\n<p>If you already have a group of people supporting your restaurant concept, crowdfunding may be a fruitful funding option. By pitching your restaurant on platforms like <a href=\"https:\/\/www.gofundme.com\/\" target=\"_blank\" rel=\"noopener\">GoFundMe<\/a> and <a href=\"https:\/\/www.kickstarter.com\/\" target=\"_blank\" rel=\"noopener\">Kickstarter<\/a>, you can gain financial support from individuals. And if you\u2019d like, you can encourage donations by offering future rewards like discounted meals or invitations to a soft opening.<\/p>\n<h2>7. Obtain Restaurant Licenses and Permits<\/h2>\n\n\t\t<div class=\"blog-next\">\n\t\t\t<div class=\"blog-next-tagline\">Read this next<\/div>\n\t\t\t<a href=\"https:\/\/www.escoffier.edu\/blog\/food-entrepreneurship\/what-licenses-and-permits-do-you-need-to-start-a-restaurant\/\" aria-label=\"Read this next: What Licenses and Permits Do You Need to Start a Restaurant?\">\n\t\t\t\t<div class=\"blog-next-inner\">\n\t\t\t\t\t<div class=\"blog-next-image\" style=\"background-image: url('https:\/\/www.escoffier.edu\/wp-content\/uploads\/2023\/01\/Owner-of-Cafe-standing-outside-next-to-open-sign-1400.jpeg');\"><\/div>\n\t\t\t\t\t<div class=\"blog-next-contents\">\n\t\t\t\t\t\t<div class=\"blog-next-category\">Food Entrepreneurship<\/div>\n\t\t\t\t\t\t<div class=\"blog-next-title\">What Licenses and Permits Do You Need to Start a Restaurant?<\/div>\n\t\t\t\t\t\t<div class=\"blog-next-text\">Every restaurant owner must obtain the proper licenses and permits for a restaurant. Learn more about necessary documents as well as how to obtain them.<\/div>\n\t\t\t\t\t\t<div class=\"blog-next-button\">\n\t\t\t\t\t\t\t<span class=\"button\">Read Article<\/span>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t<\/a>\n\t\t<\/div>\n\n\t\t\n<p>You\u2019ll need licenses and permits pertinent to the city and state where your restaurant is located. Licenses and permits will also be specific to your restaurant type and whether you plan to sell liquor.<\/p>\n<p>Be aware that some of these can take a long time to obtain, so try to get a head start on this process. Because this process can be complicated, sometimes it\u2019s best to hire a specialized lawyer who can help take care of this more grueling work for you.<br \/>\n\t\n\t<div class=\"blog-article-callout-wrap\">\n\t\t<div class=\"blog-article-callout-text\">\n<h3>Types of Restaurant Licenses You May Need<\/h3>\n<ul>\n<li>Business license issued by the locality<\/li>\n<li>Employer Identification number (EIN)<\/li>\n<li>Certificate of occupancy<\/li>\n<li>Foodservice license<\/li>\n<li>Food handler\u2019s permit<\/li>\n<li>Building health permit<\/li>\n<li>Liquor license<\/li>\n<li>Sales tax license<\/li>\n<\/ul>\n<\/div>\n\t<\/div>\n\n\t\n<h2>8. Hire Qualified Staff<\/h2>\n<div id=\"attachment_24096\" style=\"width: 778px\" class=\"wp-caption alignnone\"><img decoding=\"async\" aria-describedby=\"caption-attachment-24096\" class=\"wp-image-24096 size-full\" src=\"https:\/\/www.escoffier.edu\/wp-content\/uploads\/2022\/09\/Manager-holding-a-clip-board-and-pen-while-talking-to-three-other-team-members-768.jpg\" alt=\"A person holds a clipboard and stands in front of a group of restaurant staff.\" width=\"768\" height=\"512\" srcset=\"https:\/\/www.escoffier.edu\/wp-content\/uploads\/2022\/09\/Manager-holding-a-clip-board-and-pen-while-talking-to-three-other-team-members-768.jpg 768w, https:\/\/www.escoffier.edu\/wp-content\/uploads\/2022\/09\/Manager-holding-a-clip-board-and-pen-while-talking-to-three-other-team-members-768-300x200.jpg 300w\" sizes=\"(max-width: 768px) 100vw, 768px\" \/><p id=\"caption-attachment-24096\" class=\"wp-caption-text\">Top-level staff can set the right tone at your restaurant and set you apart from the competition.<\/p><\/div>\n<p>Running any restaurant takes a whole crew of dedicated kitchen staff who have the proper training and experience. When hiring, you\u2019ll want to consider the entire <a href=\"https:\/\/www.escoffier.edu\/blog\/culinary-pastry-careers\/different-types-of-chef-jobs-in-the-brigade-de-cuisine\/\">brigade de cuisine<\/a> system, which covers the front and back of the house.<\/p>\n<p>To avoid frequent turnover, ensure you have a thorough interview process in place, check references, see whether chef and management candidates have completed an <a href=\"https:\/\/www.escoffier.edu\/accreditation\/\">accredited<\/a> culinary curriculum. Make sure to train your employees well and to create an environment in which people want to stick around.<br \/>\n\t\n\t<div class=\"blog-article-callout-wrap\">\n\t\t<div class=\"blog-article-callout-text\">\n<h3>Common Restaurant Positions<\/h3>\n<ul>\n<li>General Manager<\/li>\n<li>Host<\/li>\n<li>Bartender<\/li>\n<li>Server<\/li>\n<li>Busser<\/li>\n<li>Cashier<\/li>\n<li>Executive Chef<\/li>\n<li>Sous Chef<\/li>\n<li>Prep Cook<\/li>\n<li>Line Cook<\/li>\n<li>Dishwasher<\/li>\n<li>Food Runner<\/li>\n<\/ul>\n<\/div>\n\t<\/div>\n\n\t\n<h2>You Opened! Now What?<\/h2>\n<p>You made it past the planning stages and maneuvered through the maze of details to make it to opening day. Congratulations, you&#8217;re a business owner! Now what?<\/p>\n<p>Now, you work to execute on your business plan and keep improving. This will take a mix of creativity and hard-nosed business acumen as you continually evaluate and tweak your business model. You&#8217;ll need to regularly evaluate how your menu offerings are working out, know exactly what your profit margin is, keep abreast of what the competition is up to, stay on top of any staffing issues, and make sure your guests are enjoying themselves and want to return.<\/p>\n<p>For today&#8217;s restaurant owner, marketing often means social media engagement and keeping on top of reviews, whether <a href=\"https:\/\/www.escoffier.edu\/blog\/world-food-drink\/4-ways-all-chefs-should-handle-food-critics\/\">solicited or unsolicited<\/a>. Customers not only appreciate a good meal, but they often seek a relationship or sense of community as well. If this sounds daunting, you might consider hiring a social media manager as part of your marketing and advertising budget.<\/p>\n<p>Looking further ahead, you might find yourself in a position to expand. It&#8217;s never too early to consider your strategy for that scenario, including <a href=\"https:\/\/www.escoffier.edu\/blog\/food-entrepreneurship\/restaurant-franchising-a-brief-guide-and-opportunities\/\">franchising<\/a>. When you become a franchisor, you allow others to buy licenses to operate under your brand name and business model; this helps you expand into new locations without having to manage each location yourself.<\/p>\n<h2>Begin Your Food Startup Journey\u2026Discover How to Start a Restaurant<\/h2>\n<p>When it comes to starting your own restaurant, ensure you have a business plan in place that covers your bases. This may take a thorough understanding of culinary fundamentals, plus business and marketing skills to execute your food startup idea.<\/p>\n<p>If you\u2019re looking for comprehensive guidance on how to launch your own restaurant, consider Escoffier\u2019s <a href=\"https:\/\/www.escoffier.edu\/food-entrepreneurship\/\">Food Entrepreneurship<\/a> program to get your business idea in motion. Take the next step and <a href=\"https:\/\/www.escoffier.edu\/contact-us\/\">start your entrepreneurial journey<\/a> today.<\/p>\n\t\n\t<h3 class=\"additional-articles-heading\">IF YOU FOUND THIS FOOD ENTREPRENEURSHIP ARTICLE HELPFUL, HERE ARE MORE YOU MIGHT ENJOY:<\/h3>\n\n\t\n<ul>\n<li><a href=\"https:\/\/www.escoffier.edu\/blog\/food-entrepreneurship\/how-to-start-bakery-business-from-home\/\">How to Start a Bakery Business From Home<\/a><\/li>\n<li><a href=\"https:\/\/www.escoffier.edu\/blog\/food-entrepreneurship\/how-gleam-and-escoffiers-mentorship-program-guide-aspiring-entrepreneurs\/\">How Gleam &amp; Escoffier\u2019s Mentorship Program Can Guide Aspiring Chefs<\/a><\/li>\n<li><a href=\"https:\/\/www.escoffier.edu\/blog\/hospitality-careers\/restaurant-management-101-an-essential-guide\/\">How to Attract the Best Employees for Your Restaurant<\/a><\/li>\n<\/ul>\n<p><em>This article was originally published on June 18, 2021 and has since been updated.<\/em><\/p>\n<p><em>*Information may not reflect every student\u2019s experience. Results and outcomes may be based on several factors, such as geographical region or previous experience.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Wondering how to start a restaurant? Find out what you need to know in our step-by-step guide.<\/p>\n","protected":false},"author":23,"featured_media":55822,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1296],"tags":[1295,1303],"class_list":["post-18850","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-food-entrepreneurship","tag-restaurant-management","tag-start-a-restaurant"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.6 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>How to Start a Restaurant: A Step-By-Step Guide - Escoffier<\/title>\n<meta name=\"description\" content=\"Wondering how to start a restaurant? 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