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How to open a restaurant: a step-by-step guide to starting from scratch

Click and find out how to open a restaurant with a step-by-step guide covering everything you need to know to launch your business.
man writing in a notebook planning how to open a restaurant

Table of Contents

You probably already realize that it's not enough to just find a space and immediately start running the restaurant, right?

Even before finding the ideal location and hiring a team – among other tips you'll see further on –, there's a lot to plan.

If you're thinking about starting a business in this field, follow this step-by-step guide and find out how to open a restaurant!

Saiba mais: 10 tips to open a restaurant and start off on the right foot

Plan the opening of your restaurant with precision!

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11 steps to open a restaurant

Opening a restaurant from scratch is a major challenge and raises a lot of questions. If you're thinking about starting your own business and don't know where to begin, check out the complete step-by-step guide below to understand the market and the investment required, draw up a business plan and structure your restaurant. Follow along!

1 – Analyze the market

Start by assessing the state of the market in your region. Study your future competitors, the consumption profile of your target audience and how the segment is performing locally.

That way, you'll get a sense of whether the venture is worth the investment and what to expect in terms of customer traffic and competition.

Leia também: Is a vegan restaurant a good business? Understanding the trend

2 – Assess the investment required (and the expected return)

Once you've made your decision and understood the landscape your future restaurant will operate in, it's time to project the investment your restaurant will require.

This way, even before launching the business, you'll already have an idea of how long it may take to recover the investment and what your success metrics will be.

A good industry rule is to calculate the maximum investment amount based on the revenue you expect to bring in. That said, net profit cannot be lower than 4% of the investment in the business. This way you start out with better financial health and can project the restaurant's future with more concrete data.

Also check out: Payback: understand what it is and learn how to calculate it

3 – Define the type of restaurant

It may seem obvious, but it's important to define the restaurant's style. You probably already have this clear in your head, but this establishment profile also needs to be officially documented, including in the business plan (more on that shortly).

In general, there are four possibilities: à la carte, all-you-can-eat, fast food and regional cuisine.

  • à la carte: is the best-known model, in which customers choose items from a menu that are prepared to order.
  • rodízio: in this format there is no set amount of what will be served, nor exactly which dish (usually just one type of food). Customers pay a fixed price and can eat as many variations of that item as they want.
  • Fast food: these are the restaurants that typically sell sandwiches and other quicker recipes that are easy to prepare and eat.
  • Regional cuisine: this covers restaurants serving food specific to a region or with their own distinct preparation. Some examples are Japanese restaurants, vegetarian restaurants and steakhouses.

When choosing a category, take into account your own preference, how well the local audience receives it, the number and level of competitors and the infrastructure each one requires.

Leia também: What are the best types of restaurants to invest in?

4 – Create a business plan

O business plan is the backbone of your business. It should lay out the establishment's strategy, describe the activities that will be carried out, the physical spaces the restaurant will have, the team members and each person's responsibilities.

It also points out where the investment will come from and what the costs of running the business will be. That's why having a business plan is essential for a strong start and for better decision-making.

Every business plan has its own characteristics depending on the type of establishment, the market it operates in, the business strategies and the way it operates.

That said, there are a few items that tend to appear in most plans. Check them out below and remember to use whatever makes sense for your future restaurant:

  • a summary of your goals;
  • a description of the target customer profile;
  • operational details, such as space, equipment, tools, etc.;
  • initial investment;
  • target revenue estimate;
  • estimate of initial operating costs;
  • marketing and sales plan;
  • products that will be offered.

Leia também: 5 restaurant ideas to boost your profitability

Excited couple opening a new restaurant, holding up the open sign with enthusiasm. Illustrating the moment of opening a restaurant.

5 – Take care of the paperwork

Paying attention to the red tape of starting a business is essential. It ensures transparency and legal compliance for your future employees and customers and, of course, keeps you out of legal trouble.

Some of the required documents are registering the restaurant with the Board of Trade (Junta Comercial), obtaining the CNPJ tax ID with the Federal Revenue Service, registering with the State Treasury Department and various operating permits.

One tip is to rely on accounting and legal support to make sure everything is in order.

6 – Think about infrastructure

Make sure your future restaurant will have all the equipment, accessories, tools and electronics needed for the operation.

Take everything into account: kitchen utensils, storage equipment and even restaurant software. Alguns exemplos que não podem faltar são:

  • an assortment of pots and pans,
  • prep and storage appliances (stoves and refrigerators/freezers),
  • industrial oven,
  • microwave,
  • food processor,
  • card payment terminals,
  • computer,
  • printers,
  • phones.

Learn more: Equipment for bars and restaurants: see the full list

7 – Choose the right location

Pay attention to the physical space as well. Look for a comfortable setting suited to the volume of customers you expect to serve. And of course, the areas where your team will work (such as the kitchen, inventory storage, cash register, etc.) also need to be adequate.

Also consider the restaurant's location itself. Factors such as easy access by public transportation, the neighborhood's reputation, the profile of nearby establishments and public safety should all be weighed.

This way you ensure customers can reach your business easily and have a pleasant experience getting there.

8 – Hire a good team

Be selective when it comes to hiring your restaurant's team. Afinal, de nada adianta ter um ambiente impecável se as pessoas que dão conta da operação não forem eficientes em suas atividades.

To do that, run a clear, challenging and humane selection process. This makes it easier to tell whether each candidate has the necessary skills (or can learn them) and also has the interpersonal abilities this industry calls for.

Also, remember to always run team training sessions regularly. That way, everyone stays up to date on processes and tools, and you ensure consistent quality and efficiency in the establishment's operation.

9 – Build an irresistible menu

You certainly know that a good restaurant needs to serve good food. So an irresistible menu here doesn't mean having mouthwatering dishes — it means knowing how to build that menu in the most eye-catching and efficient way.

Through engenharia de cardápio you find out which dishes are the most profitable, which are the most popular and which ones need a little “push” to get noticed.

With this information, you ensure every customer can easily find the item they're looking for on the menu. On top of that, a good menu helps solidify your restaurant's visual identity and brand.

10 – Select good suppliers

One of the biggest challenges of running a restaurant is finding good suppliers. They make a big difference in the quality of your recipes and the efficiency of your operation. They also have a significant impact on operating costs.

So aim to work with trustworthy suppliers who have a solid reputation in the market and can guarantee the quality of the products/services they offer.

Getting referrals from other business owners and doing market research are ways to avoid mistakes and make the right choice.

After that, remember to periodically review your current suppliers, maintaining the quality standard and reinforcing your attention to their delivery.

If necessary, don't hesitate to look for new partners – after all, your restaurant's quality is what matters most.

Learn more: How to choose food suppliers for restaurants

11 – Plan how you'll promote the restaurant

As you've seen, promoting the establishment should be planned from the business plan onward. In other words: advertising really is the soul of the business. After all, there's no point in having a flawless restaurant if customers don't even know it exists.

That's why, even before launching the business, start planning your restaurant marketing. Defina qual será a sua linguagem, o tipo de propagandas e também crie perfis nas redes sociais.

The most important thing is to understand where your target audience is (both online and physically) and promote your restaurant in those spaces. That way, you have a better chance of catching the attention of people who will actually be interested in the establishment.

This way, the business can open with customers already won over, making the launch easier and recovering the initial investment more quickly.

Leia também: Soft Opening: a step-by-step guide to a pre-launch

Calculate the costs of opening your restaurant

By following this step-by-step guide, you'll be better prepared to open a restaurant. This is just the beginning of your entrepreneurial journey, and many challenges are certainly ahead.

Running a restaurant is quite complex, which is why solid planning from the start is essential. If you want to know in more detail what it takes to set up your business and how much investment is needed, download our free spreadsheet to calculate the cost of opening a restaurante! In it you'll find:

  • Lista de custos por categoria
  • Charts showing % of costs
  • Market benchmark figures
  • Budget to open your restaurant

Take advantage of this completely free resource and count on EPOC to manage your business! talk to our specialists and find out how we can help.

Frequently Asked Questions

How do you open a restaurant?
To open a restaurant you need to follow a few steps, including:
1 – Analyze the market;
2 – Assess the investment required;
3 – Define what type of restaurant it will be;
4 – Create a business plan;
5 – Pay attention to the paperwork;
6 – Plan the infrastructure;
7 – Choose the right location;
8 – Hire a good team;
9 – Build an irresistible menu;
10 – Select good suppliers;
11 – Plan how you'll promote the restaurant.
How much does it cost to open a restaurant?
The cost can vary quite a bit, but it generally includes rent, equipment and initial supplies.
How do I choose the ideal location for my restaurant?
Consider factors such as foot traffic, competition and proximity to suppliers.
Is market research necessary before opening the restaurant?
Yes, research helps you understand your target audience profile and industry trends.
What are the most common mistakes when opening a restaurant?
Mistakes include a lack of financial planning, underestimating operating costs and ignoring customer feedback.

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Photo of Daniel Silva

Daniel Silva

VP of Finance and Strategy at EPOC Tech. An experienced entrepreneur with deep knowledge of the technology and food and beverage industries. Specialist in leadership and operations, finance, strategy, and marketing. A highly qualified professional with an MBA in Strategic and Financial Management from FGV, a Bachelor's degree in Marketing from ESPM, and postgraduate coursework from Stanford University.

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