Thinking of Opening a Restaurant? Here’s What You Need to Know
Starting a restaurant is an exciting journey, but it’s also one of the toughest industries to break into. In the UK, around 60% of new restaurants close within three years (ONS). That’s why proper planning, smart decision-making, and a strong business model are essential for long-term success.
Whether you’re dreaming of a fine dining spot in London or a cosy café in Manchester, this guide will walk you through the key steps to opening a successful restaurant in the UK—from concept to launch.
1. Define Your Concept & Mission
Before doing anything else, you need a clear vision for your restaurant. Ask yourself:
• What kind of cuisine will you serve?
• Who is your target audience? (Fine dining, casual, quick service?)
• What will make your restaurant stand out?
A strong mission statement keeps your business focused. Need inspiration? Check out our list of restaurant mission statements to see how top restaurants define their brand.
2. Create a Solid Business Plan
A restaurant without a clear business plan is like a kitchen without a chef—it won’t last long. Your plan should cover:
• Market research – Who are your competitors? What’s your niche?
• Financial projections – Start-up costs, expected revenue, and profit margins.
• Menu development – Ingredients, pricing strategy, and supplier costs.
• Staffing plan – How many employees do you need? What will you pay them?
• Marketing strategy – How will you attract and retain customers?
A well-researched business plan helps secure investment and ensures you don’t run into surprises.
3. Choose the Right Location
Location can make or break your restaurant. The best spot depends on your concept and audience. Consider:
• Foot traffic & visibility – Will people see and find your restaurant easily?
• Demographics – Does the local community match your target customers?
• Competitor presence – Are you filling a gap in the market or entering an overcrowded space?
• Rent & costs – Can you afford the area long-term?
Once you’ve secured your space, maximise your layout to create a great dining experience—whether that’s an intimate fine-dining setting or a high-energy bar.
4. Get the Legal & Financials in Order
The UK restaurant industry is highly regulated, so getting your paperwork right from day one is essential.
📌 Licences & Permits You’ll Need:
✔ Food Business Registration – Register with your local council at least 28 days before opening (Gov.uk).
✔ Food Hygiene Rating – Your restaurant will be inspected and rated on hygiene standards.
✔ Premises & Alcohol Licence – If you’re serving alcohol, you’ll need a premises licence and a designated premises supervisor (DPS).
✔ Music Licence (PRS & PPL) – If you’re playing music, you must get the right permissions.
✔ Insurance – Public liability, employer liability, and business insurance.
Non-compliance can result in hefty fines or closure, so get this step right.
5. Hire & Train a Great Team
Your staff will make or break the customer experience. Even if your food is exceptional, poor service will drive customers away.
📌 How to Build a Strong Team:
• Hire for attitude as much as skill—training can improve skills, but personality is harder to change.
• Invest in training to improve service quality and efficiency.
• Create a positive workplace culture to retain staff—turnover is high in hospitality.
To motivate your team, ensure fair and transparent tip management—read our guide to tip pooling for tips on getting this right.
6. Build a Menu That’s Profitable & Marketable
A great menu isn’t just about amazing food—it’s about profitability. Every item should be:
✔ Cost-effective – Ingredients should be priced for a healthy profit margin.
✔ Customer-friendly – Easy to understand and appealing.
✔ Operationally efficient – Can your kitchen staff prepare dishes quickly without bottlenecks?
📌 How to Optimise Your Menu for Success:
• Use menu engineering – Feature high-margin dishes prominently.
• Monitor food costs – Learn how to track restaurant performance metrics to ensure profitability.
• Test & refine – Get feedback from soft openings before launching to the public.
7. Develop a Strong Marketing Plan
Your restaurant can’t succeed if no one knows about it. A smart marketing plan builds hype before launch and keeps customers coming back.
📌 Essential Marketing Tactics:
• Build an email list – Stay connected with customers using restaurant email marketing.
• Leverage social media – Share behind-the-scenes content, special offers, and promotions.
• Partner with influencers – Work with local food bloggers to reach a wider audience.
• Encourage online reviews – 94% of diners check reviews before visiting a restaurant (BrightLocal).
Launching soon? Consider offering early-bird specials, grand opening discounts, or exclusive tasting events to build buzz.
8. Streamline Operations with Technology
The right tech can increase efficiency, improve service, and reduce costs.
📌 Tech Every Restaurant Needs:
• POS system – Handles orders, payments, and reporting.
• Queue management tools – Keep wait times low and tables turning quickly (see our top picks).
• Digital billing & payments – Make checkouts seamless with yetipay.
• Reservation management – Prevent no-shows and optimise table bookings.
Investing in smart technology from day one can set your restaurant up for long-term success.
9. Monitor Performance & Adapt
Once your restaurant is up and running, tracking performance is crucial.
📌 What to Measure:
• Sales & profit margins – Track revenue trends and adjust where needed.
• Customer feedback & online reviews – Identify areas for improvement.
• Table turnover & average spend per customer – Use digital payments to speed up service and increase revenue.
Restaurants that continuously monitor and adapt are the ones that survive and grow.
Final Thoughts: Set Yourself Up for Success
Opening a restaurant is a challenge, but with the right planning and execution, it can be incredibly rewarding.
By focusing on a strong concept, efficient operations, and customer engagement, you can build a restaurant that stands out in the UK’s competitive dining scene.
Want more expert tips? Check out:
• Why digital bills improve the restaurant experience
• How experiential dining can make your restaurant unforgettable
• 5 overlooked restaurant metrics that could boost your profits
Starting a restaurant is hard work, but with smart strategies and the right tools, you can turn your vision into a thriving business.
