The restaurant industry is massive: US restaurant sales totalled $96.6 billion (adjusted for inflation) for a single month at the end of 2024.

Restaurateurs might often feel called to the industry, as food can serve as the centrepiece for small, everyday moments and family gatherings, and restaurants that offer good experiences and great meals can become beloved community gathering places. At the same time, running a restaurant demands organisation, determination, and extensive planning – with challenges ranging from obtaining licences to hiring and training a team.

Below, we’ll cover what you need to know about opening a restaurant in the US, including the challenges you’ll face, the legal requirements, how to create a business plan, and more.

What’s in this article?

• What are some benefits to starting a restaurant?
  
• What are the challenges that come with starting a restaurant?
  
• How do you choose the right restaurant concept?
  
• What are the legal requirements for starting a restaurant?
  
• How can you create a business plan for your restaurant?
  
• What is the process for finding and designing a restaurant space?
  
• How do you hire and train staff for a restaurant?
  
• How can you set up payment systems for your restaurant?
  
• What are the best marketing strategies for a new restaurant?
  

What are some benefits to starting a restaurant?

Aspiring restaurant owners are often passionate. Feeding people can feel deeply rewarding, and seeing return guests who keep ordering their meals or families coming together around a table they’ve set can be significantly satisfying. Restaurants can often become neighbourhood gathering places – a welcoming spot might draw locals in for early breakfasts, casual lunches, or late-night treats. Restaurant owners also often forge ties with their neighbours and build community.

Restaurants can also offer an artistic outlet. Whether you lean toward classic comfort food or an inventive fusion concept, a new restaurant can be a blank canvas to showcase flavours, decor, and atmosphere in ways that reflect who you are and what you love. If you consistently offer a worthwhile experience, you can cultivate a core group of regulars who seek out your restaurant again and again.

What are the challenges that come with starting a restaurant?

Every dream also has its hurdles. Restaurants can be complicated businesses, but identifying potential issues from the outset can help prepare you. Here’s a closer look at some of the challenges you might face.

High costs and thin margins

• Rent and overhead: You’ll often pay high rent for prime locations, particularly in major cities. Even a moderately sized space can entail high costs for utilities and maintenance.
  
• Cost of materials: Food prices can vary widely based on the season and the supply chain, which can make budgeting more difficult.
  
• Equipment and maintenance: Commercial kitchens require specialised equipment, and repairs can be expensive.
  

Uncertain customer traffic

• Variable hours: You might see crowds for weekend brunch, but weekday afternoons could be quieter.
  
• Competition: Established spots probably already have devoted diners. Gaining a foothold in a popular location takes creativity and persistence.
  

Staffing issues

• Turnover: Food services positions see a high turnover rate, which requires ongoing recruitment and training.
  
• Skill gaps: Chefs, cooks, servers, and bar staff each have different skill sets. Hiring someone who ends up being the wrong fit can lead to errors, quality issues, or low morale.
  

Regulations and inspections

• Licences and permits: Securing proof that your restaurant has passed health inspections, meets building codes, and is licensed for alcohol sales can take time and delay your opening.
  
• Strict safety standards: Failing an inspection might mean being forced to close and facing unplanned expenses to bring operations up to code.
  

Emotional and physical demands

• Long hours: Early mornings prepping ingredients and late nights closing out sales can be physically and mentally draining.
  
• Constant problem-solving: From equipment breaking down to unanticipated rushes, you’ll deal with surprises that require making quick decisions.
  

How do you choose the right restaurant concept?

Settling on a concept affects nearly every part of your restaurant, from the decor to the team’s skill sets. Perhaps you plan to draw on your background for inspiration, or you want to incorporate seasonal local produce. Here are some considerations to keep in mind as you weigh your concept:

• Style of food: What cuisine speaks to you? Are you drawn to serving quick-service sandwiches, tapas, or multi-course dinners?
  
• Target clientele: Are you aiming to serve commuters who need a fast bite, families with kids, or couples celebrating special occasions?
  
• Conducive location: Your physical space and location are key for creating the right atmosphere, but they also introduce practical considerations. A large dining room is exciting but costly; meanwhile, smaller spaces can be more affordable, but they might limit the number of people you can serve at peak periods.
  
• Market opportunities: Take a survey of the local market to see what’s missing. If there’s a shortage of reliable brunch spots, that could be your opening.
  
• Overall feel: Do you want your space to feel cosy, lively, or focused on the food? The setting can allow the menu to shine, so take the mood you’re creating seriously.
  

What are the legal requirements for starting a restaurant in the US?

Restaurants must comply with many rules to operate. While the details vary by locality, here’s an overview of the steps to follow to operate legally.

Create a business entity

Limited liability companies (LLCs) or corporation structures are common for restaurants in the US. Taking this step helps shield your personal assets from business liabilities, and it determines how you’ll handle taxes.

Register the business

Complete local registrations and apply for a general business licence, which is often mandatory.

Apply for food service permits

Health departments need to see that your kitchen layout, food storage, and safety protocols meet their standards. You’ll typically be required to submit to an inspection. Be prepared and stay organised to prevent delays.

Apply for alcohol licensing

If you plan to serve beer, wine, or spirits, you’ll need to apply for a separate licence to sell alcohol. Some jurisdictions limit the number of alcohol licences they grant each year, so make sure to apply early.

Check the lease and zoning rules

Confirm whether the space is zoned for your type of establishment. If you’re renting your space, make sure you understand any restrictions on renovations, signage, or outdoor seating before you’re locked in.

Obtain insurance

Many jurisdictions require that you have liability, property, and workers’ compensation insurance.

How can you create a business plan for your restaurant?

Crafting a thorough plan can reveal areas where you need to prepare more or expenses you hadn’t considered. It’s also a chance to organise your vision. Consider breaking down your business plan using this format:

• Executive summary: Summarise the who, what, and why of your restaurant. Detail your concept, the customers you’re looking to attract, and your broad financial goals.
  
• Menu and concept details: Create a survey of your menu offerings. Include sample dishes or categories (e.g. appetisers, entrées, desserts) and explain why you think your concept will stand out.
  
• Market analysis: Identify location trends such as the population, nearby businesses, and foot traffic of where you’re opening. Address how you’ll compete with existing restaurants by listing their strengths or weaknesses and outlining how you’ll offer a different experience.
  
• Marketing and promotions: Make a plan for getting the word out about your new restaurant. Will you focus on social media, local events, flyers in the neighbourhood, or collaborations with popular local businesses?
  
• Operations plan: Create an organisational chart that includes the owner, manager, head chef, servers, and other staff. Be clear about who owns specific duties, such as managing supplier relationships and scheduling.
  
• Financial projections: Know what it’ll cost to put a deposit on a space, buy equipment, secure licences, and stock inventory. Project all ongoing and long-term expenses, such as rent, payroll, utilities, insurance, and materials. Forecast your sales, the average bill per table, and the expected number of tables you can serve each day.
  
• Timeline: Set estimated dates for hitting each milestone, such as renovations or soft launch, but build in a cushion in case of delays.
  

What is the process for finding and designing a restaurant space in the US?

Location and design shape how the public perceives your establishment. The choices you make about your space can limit or help maximise your returns. When first selecting your space, consider the following:

• Foot traffic: Busy corners or pedestrian precincts can draw in people passing by.
  
• Neighbourhood demographics: Check if local residents are your target customers.
  
• Visibility and access: Look into parking, ease of spotting your sign from the road, and safety in the surrounding area.
  
• Construction needs: Spaces that were previously occupied by other restaurants might already be fitted with grease traps, ventilation, and commercial-grade wiring, which can reduce renovation costs. If the building needs major changes, factor in construction timelines and budgets. Ask about clauses in the lease that govern any improvements or expansions.
  

Once you’ve chosen a space, be thoughtful with your design choices. Keep in mind:

• Front-of-house flow: Make it easy for guests to move from the entrance to their seats to the toilets without feeling cramped.
  
• Kitchen layout: Cooking equipment, prep areas, and dishwashing stations should be designed so no movement is wasted.
  
• Lighting and sound: Lighting and acoustic elements can be the difference between a welcoming vibe and a space with harsh lighting or heavy echo.
  
• Customer experience: Invest in comfortable seating with easy-to-clean surfaces and strategic decor that reinforces your concept without cluttering the room.
  

How do you hire and train staff for a restaurant in the US?

About 90% of US restaurants have fewer than 50 employees, and your restaurant will only be as good as the staff you hire. Your employees set the tone for customers’ experiences; transform raw ingredients into memorable dishes; and handle the daily hustle of seating, serving, and cleaning. To hire staff, begin by:

• Posting job descriptions: Clearly outline the responsibilities and requirements for each position and post them on industry job boards.
  
• Conducting interviews: Look for reliability, a willingness to learn, and a service-minded attitude. Skills and experience matter, but how candidates conduct themselves can often tell you more than a CV.
  
• Contacting references and performing background checks: Make sure new hires meet your standards.
  

Once you’ve hired your staff, complete a thorough training process. This should include:

• Menu overview: Walk staff through your dishes, so they can answer customers’ questions and make recommendations with confidence.
  
• Customer service expectations: Remind them how to greet guests, respond calmly to complaints, and identify potential issues before they escalate.
  
• Cross-training: Teach servers some kitchen basics, and give your cooks a sense of how the front of house operates for better communication and working relationships.
  

Retaining staff is another challenge. Paying your employees well and offering flexibility can reduce turnover, and empowering employees to learn new skills or move into leadership roles can also improve retention. Check in with your staff often, both formally and informally, and let them share any frustrations or ideas for improvement.

How can you set up payment systems for your restaurant?

Diners now expect to be able to pay with cards, digital wallets, online platforms, and more. An effective system for processing transactions can keep things from backing up at the register and leave guests with a good final impression. Let’s explore what to look for in the setup of your payment systems.

In-house point of sale (POS)

• Modern POS systems often run on tablets that can send orders straight to the kitchen.
  
• Many platforms tally daily, weekly, or monthly sales data, which can help you spot popular dishes or see when traffic spikes.
  
• Some systems also track ingredient usage as orders come in, which can make it easier to know when to reorder.
  

Contactless payments

• Handheld devices let servers accept payments at the table, which can help you turn tables over faster and avoid queues at the checkout counter.
  
• Accepting digital wallets such as Apple Pay and Google Pay can appeal to customers who prefer a quick tap instead of using a physical card.
  

Online ordering

• Decide whether you’ll handle online orders in-house or partner with a delivery service.
  
• Check that the online ordering solution you choose works well with your system, so you don’t accidentally run out of popular items or miss orders.
  

Tipping and remuneration

• Most electronic checkout screens prompt guests to tip, which can raise total gratuities.
  
• If you use a tip pool, make sure everyone understands the split. Being transparent can help prevent misunderstandings on payday.
  
• Guests often want to savour their time, pay with minimal hassle, and leave feeling taken care of. Make sure your system can do all of the above.
  

What are the best marketing strategies for a new restaurant in the US?

Spreading the word about a new restaurant is no small feat. To stand out, you’ll probably need an online presence, local partnerships, and engaging content. As always, measure what’s working: if your social posts get great feedback, but your sponsored ads seem sluggish, focus on the channel with better returns. Don’t be afraid to start small. A polished website, consistent social updates, and genuine engagement with your audience might do more than an expensive campaign that lacks authenticity. Below are some strategies to consider as part of your marketing plan.

Build an online presence

Create a simple website with up-to-date menus, photos of standout dishes, hours, and location details. Make sure it’s optimised for mobile, so people can easily use it on the go. Platforms such as Instagram or TikTok work well for sharing beautiful food photos and behind-the-scenes clips. Make sure to interact with your followers’ comments to show you’re not a faceless brand.

Conduct local outreach

Sponsor a local school activity or set up a booth at a street fair. When residents taste your food in a casual, friendly setting, it might inspire them to visit your main location. Offer limited-time deals or themed menu nights to spark interest and give regulars a reason to return.

Encourage loyalty and referrals

If a guest posts a photo of your meal, comment or share it on your feed. That small bit of engagement can motivate others to post as well. Punch cards or digital loyalty apps can further reward repeat visitors.

Consider influencer or blogger partnerships

Host a tasting night for local food bloggers or personalities. They often share their experiences online, which can help draw in curious patrons. Track these invitations – and their returns – carefully. You can offer a set menu, or let these guests try a curated selection rather than offering up an open tab.