The Complete Checklist for Opening a Restaurant in the USA

The U.S. restaurant industry generates over $1 trillion annually. But it's also brutally competitive - 60% of restaurants fail in the first year, 80% within five years. This comprehensive checklist helps you beat the odds.

Phase 1: Business Formation

✓ Business entity - LLC most common for restaurants (liability protection)
✓ EIN (Tax ID) - Apply at IRS.gov (free, instant)
✓ State registration - File with Secretary of State
✓ Local business license - City/county requirements
✓ Business bank account - Separate from personal finances
✓ Business credit card - For expense tracking

Phase 2: Licenses & Permits

Health & Safety

✓ Food service license - From local health department
✓ Food handler's permits - For all employees (state requirements vary)
✓ ServSafe certification - Manager-level food safety certification
✓ Fire department permit - Occupancy, fire suppression systems
✓ Health department inspection - Pre-opening inspection required

Alcohol (If Applicable)

✓ State liquor license - Type varies (beer/wine, full bar)
✓ Local liquor license - Some cities require additional permits
✓ TIPS/responsible vendor training - Required in many states

Liquor License Timeline

Liquor licenses can take 3-6 months to process. In some states, there are limited licenses available. Start this process immediately after signing your lease.

Other Permits

✓ Sign permit - For exterior signage
✓ Music license - ASCAP, BMI, SESAC for playing music
✓ Outdoor seating permit - If using sidewalk/patio
✓ Dumpster permit - Some cities require permits

Phase 3: Location & Build-out

Site Selection

✓ Traffic counts - Vehicle and pedestrian traffic data
✓ Demographics - Income, age, dining habits of area
✓ Competition analysis - What's nearby? What's missing?
✓ Parking - Adequate for concept and capacity
✓ Lease negotiation - TI allowance, rent abatement, options

Build-out Requirements

✓ Architectural plans - Often required for permits
✓ Kitchen layout - Work flow, ventilation, utilities
✓ ADA compliance - Restrooms, entrances, seating
✓ Grease trap - Required for all food service
✓ Fire suppression - Hood system, fire extinguishers

Phase 4: Equipment & Systems

✓ Commercial kitchen equipment - Ranges, ovens, refrigeration
✓ Smallwares - Pots, pans, utensils, plateware
✓ POS system - Toast, Square, Clover
✓ Kitchen display system - Order management
✓ Reservation system - OpenTable, Resy, SevenRooms
✓ Accounting software - QuickBooks, Restaurant365

Phase 5: Insurance

✓ General liability - $1-2 million coverage minimum
✓ Property insurance - Equipment, inventory, build-out
✓ Liquor liability - If serving alcohol
✓ Workers compensation - Required in most states
✓ Business interruption - Covers lost income during closures
✓ EPLI - Employment practices liability

Phase 6: Staffing

✓ Kitchen staff - Chef, line cooks, prep, dishwashers
✓ Front of house - Servers, hosts, bartenders, bussers
✓ Management - General manager, assistant managers
✓ I-9 verification - Employment eligibility verification
✓ W-4 forms - Tax withholding
✓ Payroll system - Gusto, ADP, Paychex
✓ Tip reporting procedures - IRS compliance

Phase 7: Marketing & Online Presence

Where Diners Find Restaurants

90% of diners research restaurants online before visiting. Your Google presence, reviews, and website matter as much as your food quality.

Essential Digital Setup

✓ Google Business Profile - THE most important listing for restaurants
✓ Yelp business page - Claim and optimize
✓ Professional website - Menu, hours, location, reservations (see our hosting)
✓ Instagram - Food photography is essential
✓ Facebook page - Events, specials, community
✓ Review management - Respond to all reviews (see our review management)
✓ Messenger automation - Answer questions 24/7 (see our messenger automation)

Delivery Platforms

✓ DoorDash - Largest market share in US
✓ Uber Eats - Major player
✓ Grubhub - Strong in urban markets
✓ Direct online ordering - Own website ordering saves commission

Fill Your Tables Faster

We help restaurants get found on Google, manage reviews, and automate customer communications. Your food deserves to be discovered.

Get a Free Visibility Audit

Estimated Startup Costs

Category	Cost Range (USD)
Lease deposit & legal	$30,000 - $100,000
Build-out (2,000 sq ft)	$100,000 - $400,000
Kitchen equipment	$75,000 - $200,000
Furniture & fixtures	$25,000 - $100,000
Licenses & permits	$10,000 - $50,000
Initial inventory	$10,000 - $30,000
Marketing launch	$10,000 - $30,000
Working capital (3 months)	$50,000 - $150,000
Total Estimated	$310,000 - $1,060,000