Owner Resources

How to Start a Restaurant: A Step by Step Owner Guide

How to start a restaurant, step by step: concept, capital, site, lease, permits, build-out, hiring and opening — on a 6 to 12 month timeline.

a server in a white shirt and tie carrying two plated dishes — owner resources: how to start a restaurant: a step by step owner guide

Most restaurants take 6 to 12 months to open, and the permitting alone accounts for 3 to 6 months of that. The order matters more than the speed: concept decides site, site decides build-out, and the health department permit decides your opening date. Here is the sequence that keeps those from colliding — and the two places nearly every project loses time.

Step 1 — Settle the concept before anything else

The concept decides the site, the equipment, the staffing model, the license and the budget. Until it is specific, every downstream decision gets made twice.

Specific means service style, price point, covers, hours and whether alcohol is part of it. Those five answers do more work than a business plan.

Step 2 — Know your number, then fund past it

The national median cost to open is about $375,500, with most independent projects between $175,000 and $750,000. Full service averages nearer $475,500.

Then add three to six months of operating expenses. That reserve is not contingency, it is part of the opening cost, and it is the line that decides whether you survive the first slow season.

Opening timeline, where the months go A horizontal bar chart. Concept and funding is shown as 1 – 3 months. Permitting, start first is shown as 3 – 6 months. Build-out and equipment is shown as runs in parallel. Re-inspection buffer is shown as 2 – 4 weeks. Total, concept to doors open: 6 – 12 months. Every figure shown is a published range, not a quote. Opening timeline, where the months go Concept and funding 1 – 3 months Permitting, start first 3 – 6 months Build-out and equipment runs in parallel Re-inspection buffer 2 – 4 weeks Total, concept to doors open: 6 – 12 months.
Opening timeline, where the months go — published ranges, not quotes.

Step 3 — Choose the site for what it already has

A second-generation restaurant space brings a hood, grease interceptor, gas, drainage and a walk-in. A raw shell brings none of it, and those are the slowest and costliest items in any build.

Two identical concepts across the street from each other can differ by six figures on this alone.

Step 4 — Negotiate the lease like it is part of the build

The tenant improvement allowance, who pays for the hood and the grease interceptor, the rent commencement date and the assignment clause are all build-out terms wearing lease clothing.

Get the free-rent period long enough to cover construction and permitting. A lease that starts charging rent while you are waiting on an inspection is an expensive calendar.

Step 5 — Start the health permit first, then file everything else in parallel

Budget $1,000 to $15,000 and three to six months for permitting. The health department plan review is the long pole — begin it before the others.

Most permits do not depend on each other. A business license, an EIN, sales tax registration and plan review can all start on the same day. Filing them sequentially is the single most common self-inflicted delay.

Step 6 — Build in a buffer for re-inspection

Add two to four weeks specifically for correcting violations and scheduling re-inspections. Nearly every project needs at least one.

A timeline with no re-inspection buffer is a timeline that will be missed, and the cost of missing it is rent on a closed restaurant.

Step 7 — Order long-lead equipment early

Hoods, walk-ins and custom fabrication run on manufacturing lead times that do not care about your opening date. Order them as soon as the layout is final.

Equipment sitting in a crate is a much better problem than a build waiting on a crate.

Step 8 — Hire and train before revenue

You will pay a kitchen and a front-of-house team through training, menu development and at least one friends-and-family service before the first real ticket.

Underfunding the training weeks shows up as turnover in month three, which costs more than the training would have.

Step 9 — Put insurance in place before the keys

The landlord wants a certificate before handing over keys. The lender wants evidence before funding. The equipment vendor wants it before delivery.

Our restaurant insurance page sets out what a program contains. Price it during lease negotiation, because three other parties are waiting on it.

Step 10 — Soft open, then open

A soft opening is a systems test, not a marketing event. You are looking for the ticket times, the bottleneck at the pass and the table that never gets bussed.

Open for real once those are fixed, not once the dining room looks finished.

The two places projects lose time

Sequential permit filing, and a lease whose rent starts before the build does. Both are avoidable and both are decided months before anyone notices.

Everything else on this list is work. Those two are just timing.

The bottom line

Most restaurant openings take 6 to 12 months from concept to doors open, with full-service concepts at the longer end. The permitting alone runs 3 to 6 months and $1,000 to $15,000, and the health department permit is the long pole — start it first and file every other application in parallel. Budget the national median of about $375,500 if you need a planning figure, and keep 3 to 6 months of operating expenses in reserve, because undercapitalization closes more restaurants than bad food does.

Frequently asked questions

How long does it take to open a restaurant?

Most openings run 6 to 12 months from concept to doors open, with full-service concepts at the longer end. Permitting alone accounts for 3 to 6 months of that, and some individual permits take 60 to 90 days or longer.

What is the first step?

Settling the concept precisely enough that it decides everything downstream — the site, the equipment, the staffing model and the license you need. A vague concept produces a vague lease and an expensive build-out, because every decision gets made twice.

Which permit should I apply for first?

The health department permit. It is the long pole and it gates your opening date. File the business license, sales tax registration and plan review on the same day if you can — most permits have no dependency on each other, so running them in sequence simply wastes weeks.

How much money do I need before I sign a lease?

Enough for the build-out, the equipment, the opening costs and three to six months of operating expenses. Signing a lease with funding for the first three but not the fourth is the most common way a viable concept fails.

Should I take a second-generation space?

If you can find one that fits the concept, usually yes. A space that was already a restaurant brings a hood, grease interceptor, drainage and often a permitted layout, and those are the slowest and most expensive parts of a build.

When do I need insurance in place?

Earlier than most people expect. The landlord will want a certificate before handing over keys, the lender before funding, and equipment vendors before delivery. It is a small cost that three other parties are waiting on, so price it while you are negotiating the lease.

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