How to Start a Small Restaurant or Coffee Shop

As with starting any business, you need to know what to do for every process and step of your business. Do you need a loan? How much money will you need? Where will the business be? How is it going to attract customers from other businesses like yours? These are some of the considerations that should help you gather your plans and begin to firm them into a business. 

 

 

• Make a survey: No matter what business you're starting, you need to have a detailed understanding of that business. What will you offer and how can you get started?
• Talk to other small businesses in the area who are in the same business and find out what they had to go through.
• Find out your local tax laws, state and sales tax and inspections, license(s) that you'll need to do to sell something.
  
  
• Make a plan considering and deciding how you will proceed.
• Restaurants always need to find out about the state and local health departments inspections and regulations.
• You'll need to register your business first and foremost.
• If you'll need a loan, get the money by the best means you can devise.
• Research, research, research: You can never research enough about the product(s) you'll be selling.
  
  
• Get a mentor who will show you the ropes and talk with you.
  
  
• If possible, work in a similar restaurant for up to 2 years before you start one of your own.
• You should always make sure that you want to be in the business for at least ten years and that you love doing what you do.
  
  
• Realize that as an individual proprietor you are liable (responsible) for safety and may lose all your properties and money, if people sue you for an injury due to a fall, or food poisoning, etc. and were to lose... 
  
  
  Starting a small business cafe is a microcosm of starting a restaurant. You may have less space than a restaurant and offer fewer menu items. However, cafes are often open for breakfast, lunch and dinner, unlike some restaurants that serve just lunch or dinner, for example. Choose the hours that you want for your cafe. However, make sure you are open during the busiest hours. For example, lunch may be your busiest hour downtown.
  
  
  
  

  Step 1

  Visit competitive cafes in your area. Make a note of what menu items they sell and their prices. Decide what products you want to sell. Think of extra drinks or menu items you could sell that would differentiate your cafe from your competitors.
  

  Step 2

  Go to the Business.gov website. Use the search function on the Business.gov website to determine what business licenses you will need for your cafe. Obtain a vendor's license for collecting sales taxes within your state. Register your business name as a doing business as. Complete the application process for your vendor's license and DBA through your city or county office.
  

  Step 3

  Select a storefront for you cafe. Select a high traffic area near a busy intersection, strip mall or downtown business district. Negotiate a month rent expenditure with your landlord.
  

  Step 4

  Go to the National Restaurant Association website at Restaurant.org. Email or call the main NRA office and get the association to send you a list of food and supply wholesalers. Look food suppliers up in your local business-to-business phone directory.

  Step 5

  Call several food supply wholesalers. Ask the wholesalers what products they distribute. Try to limit your wholesalers to one as this will simply your ordering and shipment processes. Select the food wholesaler that provides you with the lowest unit cost on food items.

  Step 6

  Figure how much you will need for your small business cafe. Plan to finance your cafe with your savings or retirement account. Obtain a bank loan if necessary. Apply for a loan through the Small Business Administration at SBA.gov. You will likely need to create a three-year sales forecast for a bank or SBA loan, according to the SBA.

  Step 7

  Order your food and supplies after you arrange your financing. Get your tables, chairs and bar stools set up in your dining area. Put up your menu board. Stock your food in supplies.

  Step 8

  Employ a spouse or family members to help you with your cafe. Hire an extra person if necessary. Place a "Help Wanted" ad in the Sunday newspaper.

  Step 9

  Make sure all family members and employees are trained on food preparation and the register before opening day.

  Step 10

  Distribute fliers on car windshields. Ask business owners if you can leave fliers on their counters. Plan on a grand opening with large balloons and banners. Advertise your cafe business in coupon magazines that are distributed by mail. Consider placing a print and online ad with your local phone directory.
  
  
  

  Things Needed

  • Wholesale food supplier

  • Food products
  • Refrigerated units
  • Freezers
  • Steam cabinets
  • Fryers
  • Oven
  • Stove
  • Cooking pots
  • Cups
  • Plates
  • Utensils
  • Menu board
  • Tables
  • Chairs
  • Bar stools
  • Cash register
  • Fliers
  • Large balloons
  • Large banners
    

  Tip

  Set the mood of your cafe according to the customers. Create a quiet, relaxing atmosphere for business people who want to work at your cafe. You will want to add wireless Internet capabilities for this type of activity. Add television screens if customers want to watch sports at night. Invite authors to do readings at your cafe. Conduct birthday parties for kids during slow hours.
  
  
  

  References (6)

  • Entrepreneur: How to Start a Restaurant
  • Business.gov: Business Licenses and Permits
  • Business.gov: Business Name Registration (Doing Business As)
  • Small Business Administration: How to Apply for Loan
  • National Restaurant Association: Resource for Food Wholesalers
  • How to Start a Small Restaurant or Coffee Shop

  
  

  Photo Credits

  •  How to Start a Small Restaurant or Coffee Shop

  
  


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