9 Things to Consider Before Opening a Restaurant

If you don’t have any experience in the restaurant business, there are many things you should know before opening a restaurant. You need to make sure your location is perfect for your concept, make sure you know what your customer base will be like, set aside some serious cash before you open up shop, and more. Here are some of them to help you decide if you should enter this industry or not.

1. Location

Of course, before opening a restaurant, you need to look for the right location.  It should be close to residential areas and office buildings.  You also have to consider your target customers when choosing a location. If you are targeting young people in their 20’s, then it makes sense that you would put your restaurant closer to college campuses or residential areas for young people.  However, if you are targeting a more mature crowd of baby boomers, then it is a good idea to put your restaurant in a more commercial area with office buildings and shopping centers.

2. Concept

Deciding on the concept is another important thing that you need to consider before opening up shop. However, if you’re a new restaurateur without much experience in running a restaurant business, finding a concept that works for your location may be harder than it seems. 

3. Customer base

You need to consider your customer base as they will have different needs and tastes. They will ultimately be the ones to dictate the many decisions you will make for your restaurant, from the menu and decor to the workers you hire and the prices you put on your products.

4. Cash on hand and working capital

It is always good to have some extra cash for emergencies or future expansion. Starting a restaurant may be costly due to the amount of overhead you have to take care of. However, thankfully, there are some ways for new restaurateurs to save money on opening a restaurant.

5. Insurance plans

a restaurant owner

Before starting, find out about the types of commercial insurance your restaurant needs and how much they will cost before opening a restaurant. Depending on your location and size, you may need business liability insurance to protect yourself in case of lawsuits arising from injuries at your restaurant. Talk with a commercial insurance provider to know what you will need in your restaurant.

6. Equipment needs and costs

Setting up your equipment and buying them can be really costly, especially if you’re just starting out and don’t have much capital. Before opening a restaurant, it’s good idea to look into renting or leasing equipment that you will need for your restaurant.

You’ll also need to consider furniture for the establishment of your restaurant. Before opening a restaurant, you need to make sure you have an attractive and comfortable interior for your customers.

7. Hiring and training employees

Employees are the face of your restaurant;  the customers will judge you based on their experience with them. A good way to attract customers is to provide good customer service and hire employees who are friendly and capable in what they do. You also need to make sure you train these people well in terms of delivering excellent food service.

8. Menu items, prices, and branding strategy

This part is very important because people will judge your restaurant based on it. You need to consider what kind of food you will serve and how much it will cost. Branding is also one of the most important steps in starting a business, so make sure you come up with a name for your restaurant that customers can easily remember.

9. Marketing strategy

You need to make sure you come up with a marketing strategy for your restaurant. It is not enough that you have the best food in town; you also need to get people to know about it. You can do this through advertising or word-of-mouth promotion, which are both good ways of marketing your restaurant. Social media is also a good way to market your restaurant and build a strong following. People nowadays love to take photos of their food and tag the restaurant for others to know about you. Make sure that you have a social media presence to have a wider reach in the market.


At the end of the day, opening up a restaurant can be very rewarding but risky at the same time. However, if you have a passion for running your own restaurant business, then take all these things into consideration before opening a restaurant. With enough perseverance and good planning and judgment, you can create a place that will become an enjoyable establishment in your neighborhood.

Scroll to Top