How to Open a Restaurant in Australia: A Step-by-Step Guide

Got a killer restaurant idea, mate? Knowing how to open a restaurant in Australia involves crucial steps from planning to launch. We’ll guide you.

13 May 2025

Rules & Regulations

Permit & License

F&B Entrepreneurship

Zeyno

How to Open a Restaurant in Australia: A Step-by-Step Guide

Step 1: Develop a Comprehensive Business Plan
Key elements of a Business plan
Tips on Drafting a Business Plan
Step 2: Secure Necessary Funding
Startup Costs of Opening a Restaurant in Australia
Four Primary Funding Options to Opening a Restaurant in Australia
Australian Government Grants & Support for New Food Businesses
Step 3: Register Your Business and Obtain Licenses
Registering a Business Name & Obtaining an Australian Business Number (ABN)
Generally Required Permits and Licenses for a Food Business in Australia
Step 4: Comply with Food Safety Regulations
Australia New Zealand Food Standards Code (FSANZ Food Standards Code)
What is a Food Safety Supervisor in Australia
Step 5: Choose an Optimal Location
Step 6: Design and Fit Out Your Restaurant
National Construction Code (NCC) that Apply to Restaurant in Australia
Step 7: Hire and Train Staff
Ready to Open Your Dream Restaurant in Australia
FAQs
What's vital for opening a restaurant business plan
Typical costs for opening a restaurant in Australia
Must-have licenses when opening a restaurant
Food safety rules for opening a restaurant
Tips for marketing when opening a new restaurant

Step 1: Develop a Comprehensive Business Plan

A meticulously developed business plan is the cornerstone of successfully navigating how to open a restaurant. It provides a clear roadmap, articulating your vision and operational strategy, which is indispensable when seeking investment or loans. This document should thoroughly detail every aspect of your proposed restaurant.

Key elements of a Business plan

Your business plan must encompass several critical sections:

Executive Summary: A concise overview of your entire plan.
Company Description: Detail your restaurant concept, mission, vision, legal structure, and ownership.
Market Analysis: In-depth research of the Australian F&B industry, your target demographic (e.g., young professionals, families, tourists), market needs, trends, and a comprehensive competitor analysis within your chosen locality.
Products and Services: A detailed menu, including pricing strategy, potential for seasonal changes, and any unique selling propositions (USPs) like locally sourced ingredients or specific dietary accommodations.
Marketing and Sales Strategy: How you plan to reach and attract your target market, including branding, advertising, public relations, and loyalty programs.
Management Team: An overview of key personnel, their experience, and organisational structure.
Operations Plan: Details of daily operations, including suppliers, inventory management, staffing roles, and technology use (e.g., POS systems).
Financial Projections: This includes startup costs, projected profit and loss statements, cash flow statements, and a break-even analysis, typically for the first three to five years.
Funding Request (if applicable): Clearly state the amount of funding needed and how it will be utilized.
Appendix: Supporting documents like resumes of key staff, permits, licenses (or plans to obtain them), and market research data.

Tips on Drafting a Business Plan

1. How detailed should financial projections be, and what assumptions must be clearly stated?

Financial projections need to be robust and realistic, based on thorough research of local market conditions, supplier costs, and potential revenue streams. For instance, clearly state your assumptions for average customer spend, daily customer numbers (differentiating between weekday and weekend traffic if applicable), many restaurateurs aim to keep food costs between roughly 28% and 35% of revenue, though your actual percentage will depend on your concept, menu and supplier contracts, and labour cost percentage. Transparently outlining these assumptions allows potential investors or lenders to understand the basis of your financial forecasts and assess their viability.

2. Where can Australian entrepreneurs find templates or guidance for creating a restaurant-specific business plan?

The Australian government's business portal, business.gov.au, offers comprehensive guides and templates that can be adapted for a restaurant venture. State government business websites, such as Business Victoria or Business NSW, also provide localised resources and support. Industry bodies such as Restaurant & Catering Australia (R&CA) often publish guides or can connect you with accredited consultants. Visit https://www.rca.asn.au for direct access to R&CA’s insights and consultant network.

Step 2: Secure Necessary Funding

Determining the financial requirements for your venture is a critical phase when learning how to open a restaurant. Startup costs can vary significantly based on location, size, concept, and the extent of renovations required. It's crucial to create a detailed budget itemising all anticipated expenses.

Startup Costs of Opening a Restaurant in Australia

Startup costs can encompass a wide range of expenses. Key items include:

Lease security deposits and initial rent: This can be a substantial upfront cost, particularly in prime locations in cities like Sydney or Melbourne.
Fit-out and renovation: Customising the space to suit your restaurant's concept and comply with regulations. This includes kitchen installation, dining area design, plumbing, and electrical work.
Kitchen equipment: Ovens, stovetops, refrigeration, freezers, dishwashers, and smaller appliances.
Furniture and fixtures: Tables, chairs, décor, lighting, and point-of-sale (POS) systems.
Initial inventory: Food and beverage stock for the first few weeks of operation.
Licenses and permits: Costs associated with business registration, food licenses, liquor licenses, etc.
Marketing and pre-opening expenses: Website development, signage, initial advertising campaigns, and launch events.
Working capital: Funds to cover operational expenses (salaries, rent, utilities, supplies) for the first few months until the business becomes profitable.

Four Primary Funding Options to Opening a Restaurant in Australia

Several funding avenues exist, each with its own implications:

Personal Savings:
Pros: Full ownership and control, no debt repayments.
Cons: Significant personal financial risk; may limit the scale of the initial operation.
Bank Loans: Australian banks like Commonwealth Bank, Westpac, NAB, and ANZ offer business loans.
Pros: Can provide substantial capital; structured repayment plans.
Cons: Requires a strong business plan and often collateral; interest payments add to ongoing costs; approval can be challenging for new ventures without a track record.
Angel Investors or Venture Capitalists: Individuals or firms that invest in exchange for equity or future revenue share.
Pros: Can provide significant capital and often mentorship or industry connections.
Cons: Dilution of ownership and control; investors expect a return on their investment, which can create pressure.
Crowdfunding: Platforms like Kickstarter or Pozible allow you to raise funds from a large number of people.
Pros: Can also serve as a marketing tool and validate your concept.
Cons: Requires a compelling campaign; success is not guaranteed; platforms take a percentage of funds raised.

Australian Government Grants & Support for New Food Businesses

Use business.gov.au' s Grant & Program Finder to see what’s currently open. These programs can include grants for innovation, sustainability initiatives, employing apprentices, or regional development. The grant finding tool is a valuable resource to search for current opportunities based on your business type, location, and activities.

Step 3: Register Your Business and Obtain Licenses

Navigating the regulatory landscape is a fundamental part of learning how to open a restaurant in Australia. This involves formalising your business structure and securing all necessary operational permissions.

Registering a Business Name & Obtaining an Australian Business Number (ABN)

If you plan to operate under a name other than your own personal name (for sole traders) or the names of all partners (for partnerships), you must register it with the Australian Securities and Investments Commission (ASIC), unless specific exemptions apply.

An Australian Business Number (ABN) is a unique 11-digit identifier necessary for most businesses in Australia for tax and other business purposes. You can apply for an ABN through the Australian Business Register (ABR) website. Registering for Goods and Services Tax (GST) is also typically required if your business turnover is expected to be $75,000 or more per year.

Generally Required Permits and Licenses for a Food Business in Australia

The specific licenses and permits can vary by state/territory and local council, but typically include:

Food Business Registration/Notification: All food businesses must notify or register with their local council before they start trading. This ensures compliance with food safety standards.
Liquor License (if applicable): If you plan to sell or supply alcohol, you'll need a liquor license from your state or territory liquor licensing authority (e.g., Liquor & Gaming NSW, Victorian Gambling and Casino Control Commission). There are various types of licenses depending on how you intend to serve alcohol (e.g., with meals, takeaway).
Development Application (DA)/Planning Permit: Your local council will require approvals for the fit-out and use of the premises as a restaurant. This ensures compliance with zoning, building codes, and health regulations.
Trade Waste Permit: If your business discharges greasy wastewater into the sewer system, you may need a permit from your local water authority.
Music License: If you play copyrighted music (live or recorded), you'll need licenses from bodies like APRA AMCOS and PPCA.

Step 4: Comply with Food Safety Regulations

A non-negotiable aspect of how to open a restaurant in Australia is a steadfast commitment to food safety. This involves understanding and implementing national standards to protect public health and maintain your business's reputation.

Australia New Zealand Food Standards Code (FSANZ Food Standards Code)

The FSANZ Food Standards Code’s Standard 3.2.2A – Food Safety Management Tools was phased in over 2022–23; verify the current requirements with your local food authority. Key responsibilities for restaurants typically include:

Implementing safe food handling practices for receiving, storing, preparing, displaying, and transporting food.
Ensuring staff have appropriate skills and knowledge in food safety and hygiene.
Appointing a certified Food Safety Supervisor.
Maintaining the premises, fixtures, fittings, and equipment to a high standard of cleanliness and in good repair.
Having adequate facilities for food storage, temperature control, and waste disposal.
Developing and implementing a food safety program if required by your state or territory legislation (often required for businesses serving high-risk foods or catering to vulnerable populations).
Keeping records related to food safety, such as temperature logs, cleaning schedules, and supplier details.

What is a Food Safety Supervisor in Australia

A Food Safety Supervisor (FSS) is a person who has obtained a recognised food safety training qualification and has the authority to supervise food handling practices in the business. The specific requirements for FSS training and recognition vary slightly by state and territory, but generally involve completing a nationally recognised unit of competency through a Registered Training Organisation (RTO).

The FSS is responsible for:

Overseeing day-to-day food handling operations.
Ensuring staff are trained in and adhere to safe food handling practices.
Helping to develop and maintain the food safety program.
Recognising, preventing, and alleviating food safety hazards.
Being available to be contacted while the business is operating.

Businesses need to ensure their FSS certificate is current and displayed prominently.

Step 5: Choose an Optimal Location

Selecting the right location is a pivotal decision when determining how to open a restaurant. The ideal site should not only align with your brand and target audience but also offer practical advantages for daily operations and long-term growth. Negotiating a commercial lease is a complex process. Key considerations include:

Rent: Including base rent, percentage rent (if applicable), and rent review mechanisms (e.g., CPI increases, market reviews).
Lease Term and Options to Renew: A longer term provides security, while options to renew offer flexibility.
Permitted Use Clause: Ensure the clause clearly allows for restaurant operations, including specific activities like serving alcohol or having outdoor dining, if planned.
Fit-out Contributions or Rent-Free Periods: Landlords may sometimes contribute to fit-out costs or offer a rent-free period to help with setup. This is highly negotiable.
Make Good Clause: Understand your obligations to return the premises to its original condition at the end of the lease. This can be a significant hidden cost.
Outgoings: Clarify who pays for outgoings like council rates, water charges, land tax, and strata levies.
Assignment and Subletting Rights: Understand your ability to transfer the lease or sublet part of the premises if your circumstances change.

It is highly advisable to seek legal advice from a solicitor experienced in commercial leasing in your state or territory before signing any lease agreement.

Step 6: Design and Fit Out Your Restaurant

The design and fit-out phase is a critical investment in how to open a restaurant, shaping both the customer's experience and the efficiency of your operations. This stage requires careful planning to ensure compliance with building codes and to create a functional, appealing space.

National Construction Code (NCC) that Apply to Restaurant in Australia

The National Construction Code (NCC) sets the minimum requirements for the design and construction of buildings in Australia, including restaurants. Key aspects relevant to restaurant fit-outs include:

Volume One (Building Code of Australia – BCA Class 2 to 9 Buildings): This volume applies to commercial buildings, which includes most restaurants (typically Class 6 for cafes/restaurants or Class 9b for assembly buildings if large).
Accessibility: Provisions for people with disabilities, such as accessible entrances, pathways, toilets, and counter heights (referencing AS 1428.1).
Fire Safety: Requirements for fire resistance of building elements, fire detection and alarm systems, fire-fighting equipment, and safe egress paths.
Health and Amenity: Standards for ventilation, natural light, sanitary facilities (toilets and handwashing stations), and prevention of dampness. Kitchen areas have specific requirements for finishes, ventilation, and pest proofing.
Structural Soundness: Ensuring any structural alterations are sound.
Energy Efficiency: Depending on the scope of work, energy efficiency provisions may apply.

Compliance with the NCC is mandatory, and your local council or a private certifier will assess your plans against these requirements.

Step 7: Hire and Train Staff

Assembling a proficient and dedicated team is a vital step when considering how to open a restaurant. Your staff are the face of your business and play a crucial role in delivering quality food and service, which directly impacts customer satisfaction and loyalty.

Australian employers must comply with the Fair Work Act 2009 and relevant Modern Awards (e.g., the Restaurant Industry Award or Hospitality Industry (General) Award). Key obligations include:

Minimum Wages: Paying employees at least the minimum wage rates specified in the applicable modern award or a registered agreement. Rates vary based on age, classification, and employment type, like full-time, part-time, casual.
Superannuation Guarantee: Paying superannuation contributions for eligible employees into their nominated super fund. The current superannuation guarantee rate is set by the Australian Taxation Office (ATO).
National Employment Standards (NES): Providing the 11 minimum entitlements of the NES, which include maximum weekly hours, requests for flexible working arrangements, various types of leave (annual, personal/carer’s, compassionate, family and domestic violence, parental), long service leave, public holidays, notice of termination, and redundancy pay.
Record Keeping: Maintaining accurate employee records, including pay slips, hours worked, leave entitlements, and superannuation contributions.
Work Health and Safety (WHS): Ensuring a safe working environment.

Non-compliance can result in significant penalties from the Fair Work Ombudsman. For detailed information, see the National Employment Standards overview and the minimum wages page.

Ready to Open Your Dream Restaurant in Australia?

Navigating the journey of opening a restaurant in Australia can seem daunting. This guide has provided valuable insights into each step, from crafting a compelling business plan to attracting loyal customers.

Don't hesitate to reach out to Eats365 - our tailor-made restaurant POS solutions, from iPad POS to comprehensive restaurant management systems, can empower you to streamline operations, optimize service, and focus on creating an exceptional dining experience. Contact Eats365 today and let us help you turn your restaurant vision into reality!

FAQs

What's vital for opening a restaurant business plan?

A comprehensive plan for the Australian market must include an executive summary, company details, thorough market and competitor analysis, menu and pricing, marketing strategy, management team, operations plan, financial projections (3-5 years), and funding request if applicable. Tailor it to local conditions.

Typical costs for opening a restaurant in Australia?

Startup costs include lease deposits, fit-out/renovations, kitchen equipment, furniture, initial inventory, licenses (food, liquor), pre-opening marketing, and working capital. These vary significantly based on location (e.g., Sydney vs. regional), size, and concept.

Must-have licenses when opening a restaurant?

Key requirements include an ABN, business name registration, local council food business registration, and state-specific liquor licenses if serving alcohol. Development approvals for fit-out, trade waste permits, and music licenses are also commonly needed for opening a restaurant.

Food safety rules for opening a restaurant?

Restaurants must comply with the FSANZ Food Standards Code. This involves safe food handling, staff training, appointing a certified Food Safety Supervisor, maintaining clean premises, and potentially a documented food safety program, depending on your state and local council specifics.

Tips for marketing when opening a new restaurant?

Utilise cost-effective digital strategies: optimise your Google Business Profile, engage on social media (Instagram, Facebook), build an email list, and focus on local SEO. Consider a soft launch to test operations and generate early buzz before officially opening your restaurant.