Interested in small restaurant business ideas? If YES, here is how to start a restaurant business with no money and no experience. How much does it cost to start up?

How to Start a New Restaurant Business

Restaurant business is a delicate business with so much potential for profitability when done right and at the same time very risky and time consuming. In fact, research has shown that over 60% of new restaurants close shop within their first year of operation.

This information though is not to dampen the spirit of anyone interested in venturing into this line of business as it holds so much potential for growth. You can be rest assured that as long as you follow the right advice such as the one given in this article, on steps to starting a restaurant business, your dream of owning a thriving restaurant is well within reach.


What Kind of Restaurant? This should be the question on the mind of anyone with interests in starting out a restaurant business. What type of restaurant exactly will you want to have? You might want to open just a diner or you might be interested in opening a high-end restaurant.

Also, you might be interested in serving specific cuisines for specific target populations. This is of course true depending on where you open shop. It might be an Italian cuisine restaurant, Mexican cuisine restaurant, and the list goes on and on. You can also buy into a restaurant franchise business.

Whatever the case may be, knowing you target population will greatly enhance your business especially in its planning stage.


This is indispensable to any meaningful business to be established. For a restaurant business to thrive, it has to be driven by passion, as there will be times where the profits might not be rolling in as desired.

Here, your passion for this business sustains you through the trying times. It should not just be a business venture you want to go into just for the money. If this is what drives you, your business might just end up among the 60% restaurants which never make it to profitability.

Write up a Business Plan

This is crucial to the planning stage of setting up a good restaurant business. Opening one can never be done based on guesswork or just starting one without prior planning. For your African or Mexican restaurant business to be successful, it needs a solid business plan written out.

This business plan should capture the budget required and the list of restaurant equipment to buy and expenditure to be made. This helps in maintaining your planned budget and also tracks your capital expenditures.

Typically, things that should be found in a good restaurant business plan include your competition; every business has its competition, and knowing how well to make your business to stand out among its competitors gives you the critical edge over others.

Also, it should include a strong budget projection. This aspect is crucial to business growth. Having a strong budget projection directs and guides the business to profitability and expansion.

Choosing a Location

Location contributes immensely to business success. A restaurant thrives on location. A wrong location might affect your business adversely. Such a location might include opening one in a very low population area.

Here, you should not expect many customers because of the business location which is scanty. In choosing a business location, an area with high foot traffic should be selected. Such busy areas stand more likelihood to benefit your business. But caution should also be exercised here.

How has the area impacted on businesses especially restaurants? These should be found out and also, if several other restaurants closed shop in such areas, then it is not a good sign for business.

Choosing a Restaurant Name

Choosing a name for you restaurant is usually a tricky but fun affair. The name should reflect your niche or interests. It should be a name that is meaningful. Such could include your name example Darcy Green restaurant or add whatever meaning name to it.

If the restaurant is exclusively for Indian or Chinese cuisines for instance, it can be called an Indian or Chinese restaurant respectively. Whatever the case, the choice of name should be done to reflect your interests.

Hire Qualified Help

Because you cannot do it alone, due to many details which can overwhelm you, essential help is needed to successfully run a restaurant. Such a person should also have a passion and a drive for restaurant business and should have experience in that area. Having such a person as an additional manager would help in efficiently running a restaurant.

Permits and Licenses

These are essential requirements for any serious restaurant business. When financing for the business is adequately covered, permits and licenses should be applied for. These take between weeks to months to be issued, hence, it should be applied for on time. Such licenses include sign permits, workers compensation and liquor licenses.

Well Written Out Menu

This is very important to any restaurant business. An uncluttered menu that is easy to read and understand should be made available. The layout of the menu should be attractive and should not confuse the customer. Having this is place allows the customer the freedom of making his choice without having to ask several questions.

Advertise your Restaurant

Advertisement for your new business should not be ignored. While using the traditional media to advertise, also consider supplementing with new media such as social media which include Facebook, twitter and so many other ones available. This efficiently puts word out about your business. You should also consider opening a website for your restaurant as this will be greatly beneficial to your business.

Online or Sit-in

You should also decide what type of restaurant to run. If it is an online restaurant where people place their orders online, then it means you need to have delivery vehicles or motorcycles that will deliver such orders to their doorsteps. This particular type needs more planning and logistics.

Also, there is the sit-in restaurant where customers walk in to make their orders over the counter. An eatery is provided for them to conveniently sit and eat whatever they want.

To open a fully functional and well planned restaurant these steps have to be properly followed and the help of professionals need to be consulted. There is never too much work put in to ensure the success of a restaurant business, as it eventually pays off with constant profits and business growth.