How to Start a Family Style Restaurant

Start a family style restaurant by following these 10 steps:

1. Plan your Family Style Restaurant
2. Form your Family Style Restaurant into a Legal Entity
3. Register your Family Style Restaurant for Taxes
4. Open a Business Bank Account & Credit Card
5. Set up Accounting for your Family Style Restaurant
6. Get the Necessary Permits & Licenses for your Family Style Restaurant
7. Get Family Style Restaurant Insurance
8. Define your Family Style Restaurant Brand
9. Create your Family Style Restaurant Website
10. Set up your Business Phone System

We have put together this simple guide to starting your family style restaurant. These steps will ensure that your new business is well planned out, registered properly and legally compliant.

Exploring your options? Check out othersmall business ideas.

STEP 1: Plan your business

A clear plan is essential for success as an entrepreneur. It will help you map out the specifics of your business and discover some unknowns. A few important topics to consider are:

• What will you name your business?
• What are the startup and ongoing costs?
• Who is your target market?
• How much can you charge customers?

Luckily we have done a lot of this research for you.

What will you name your business?

Choosing the right name is important and challenging. If you don’t already have a name in mind, visit ourHow to Name a Businessguide or get help brainstorming a name with ourFamily Style Restaurant Name Generator

If you operate asole proprietorship, you might want to operate under a business name other than your own name. Visit ourDBAguide to learn more.

Whenregistering a business name, we recommend researching your business name by checking:

• Your state's business records
• Federal and state trademark records
• Social media platforms
• Web domain availability.

It's very important to secure your domain name before someone else does.

What are the costs involved in opening a family style restaurant?

Standard costs include health inspection fees, rent or mortgage bills, cost of supplies/equipment, and employee salaries. If you hope to start a franchise, your costs will be all-inclusive, and the headquarters will typically supply what you need.

What are the ongoing expenses for a family style restaurant?

Family style owners may have the following ongoing expenses:

• Food/drinks
• Rent costs
• Advertising material
• Employee salaries
• Equipment maintenance/replacement

Who is the target market?

Generally family style restaurants market to people who want to get out of the house more than they want to eat gourmet food. The average family is looking for dishes with which they are familiar. Parents especially have to make a lot of decisions throughout the day, and may not want a challenge when they walk into the restaurant. The decor should not be upscale. Families will be bringing in children who may not always be on their best behavior.

How does a family style restaurant make money?

Family style restaurants will mark up the cost of their food and beverages to turn a profit. Profit margins on checks are generally low, between 2 and 3% regardless of the type of restaurant you run. Generally, family style restaurants will serve alcohol though, which is an excellent way to make additional profit off each check.

How much can you charge customers?

Meals at family style restaurants are generally kept as affordable as possible. A single entree may cost between $12 and $18. Those that offer organic, farm-to-table options can charge between $20 to $30, depending on the type of food being offered. Specialty alcoholic drinks are generally sold at between $8 to $10 at family style restaurants.

How much profit can a family style restaurant make?

Profits are generally low. Assuming you make 2.5% profit per check, your profits will be $5,000 for every $100,000 worth of business you do. However, you will likely make enough to cover your costs (and your own yearly salary).

How can you make your business more profitable?

Owners can consider offering catering options for families and businesses who have special events. Owners can also consider participating in community events, or even opening up their own food truck with scaled-down offerings.

STEP 2: Form a legal entity

The most commonbusiness structuretypes are thesole proprietorship,partnership,118bet金博宝 , andcorporation.

Establishing a legal business entity such as anLLCorcorporationprotects you from being held personally liable if your family style restaurant is sued.

You can金宝搏188是什么公司yourself and pay only the minimal stateLLC costsor hire one of the118金宝app for a small, additional fee.

STEP 3: Register for taxes

You will need to register for a variety of state and federal taxes before you can open for business.

In order to register for taxes you will need to apply for an EIN. It's really easy and free!

There are specific state taxes that might apply to your business. Learn more aboutstate sales taxand franchise taxes in our state sales tax guides.

STEP 4: Open a business bank account & credit card

Using dedicated business banking and credit accounts is essential for personal asset protection.

When your personal and business accounts are mixed, your personal assets (your home, car, and other valuables) are at risk in the event your business is sued. In business law, this is referred to aspiercing your corporate veil.

Open a business bank account

Besides being a requirement when applying for business loans, opening a business bank account:

• Separates your personal assets from your company's assets, which is necessary for personal asset protection.
• Makes accounting and tax filing easier.

Get a business credit card

Getting abusiness credit cardhelps you:

• Separate personal and business expenses by putting your business' expenses all in one place.
• Build your company's credit history, which can be useful to raise money later on.

STEP 5: Set up business accounting

Recording your various expenses and sources of income is critical to understanding the financial performance of your business. Keeping accurate and detailed accounts also greatly simplifies your annual tax filing.

Make LLC accounting easy with ourLLC Expenses Cheat Sheet.

STEP 6: Obtain necessary permits and licenses

Failure to acquire necessary permits and licenses can result in hefty fines, or even cause your business to be shut down.

Federal Business Licensing Requirements

There are federal regulations regarding what can and cannot be added to, sold as, and processed with food. Attached is a resource from the Food and Drug Administration detailing the process of starting a food business:How to Start a Food Business

State & Local Business Licensing Requirements

Certain state permits and licenses may be needed to operate a family style restaurant. Learn more about licensing requirements in your state by visitingSBA’s reference to state licenses and permits.

Certificate of Occupancy

A family style restaurant is generally run out of a storefront. Businesses operating out of a physical location typically require aCertificate of Occupancy(CO). A CO confirms that all building codes, zoning laws and government regulations have been met.

• If you plan to lease a location:
• It is generally the landlord’s responsibility to obtain a CO.
• Before leasing, confirm that your landlord has or can obtain a valid CO that is applicable to a family style restaurant.
• After a major renovation, a new CO often needs to be issued. If your place of business will be renovated before opening,it is recommendedto include language in your lease agreement stating that lease payments will not commence until a valid CO is issued.

• If you plan to purchase or build a location:
• You will be responsible for obtaining a valid CO from a local government authority.
• Review all building codes and zoning requirements for your business’ location to ensure your family style restaurant will be in compliance and able to obtain a CO.

Food Regulations

When selling food, you will need licensing from a local health department; all establishments serving food are required to pass a health inspection.Tips for faring well on a health inspections

STEP 7: Get business insurance

Just as with licenses and permits, your business needs insurance in order to operate safely and lawfully.Business Insuranceprotects your company’s financial wellbeing in the event of a covered loss.

There are several types of insurance policies created for different types of businesses with different risks. If you’re unsure of the types of risks that your business may face,begin withGeneral Liability Insurance. This is the most common coverage that small businesses need, so it’s a great place to start for your business.

Another notable insurance policy that many businesses need isWorkers’ Compensation Insurance. If your business will have employees, it’s a good chance that your state will require you to carry Workers' Compensation Coverage.

Is this Business Right For You?

Owners should have a deep understanding and respect for what American families want today. They should also have a knack for bringing people together, and a desire to create a strong sense of community in the restaurant.

What happens during a typical day at a family style restaurant?

An owner of a family style restaurant has the following responsibilities:

• Managing employees
• Checking/ordering supplies
• Selecting menu items
• Marketing/advertising
• Performing quality control/safety inspections

What are some skills and experiences that will help you build a successful family style restaurant?

The owner should have experience in the restaurant industry, preferably participating in operations management of a family style restaurant. It takes organizational skills to be able to keep everything in order, and people skills to let others help when they can.

What is the growth potential for a family style restaurant?

Restaurants like Applebee’s and Buca di Beppo grow because they serve good food in a clean, friendly setting for reasonable prices. Trendier places may be more fashionable, but they tend to attract a far more fickle crowd. A trendy restaurant will need constant innovation to hold customers’ attention, but a family style restaurant can grow big by delivering consistent quality to busy families.