How To Start a Restaurant In Australia 2023? Plan, Requirements & Profits
Starting something new can bring about feelings of self-doubt, such as questioning your readiness and ability to succeed. When thinking of how to start a restaurant in Australia in 2023. These concerns may arise, as everything from the location to the menu and popularity of the restaurant must be carefully considered. It’s important to have a solid plan in place before. Be it opening a restaurant in Canada, Australia, The UK, the USA, or any tier one country, to ensure success.
Elaboration On ‘How To Start a Restaurant In Australia’
Determine Your Food Business Type & Cuisine
Before you start, you should sit down and consider the type of restaurant or food vending you want to open.
It could be a royal fine dining restaurant, a ‘small’ street restaurant, a food van, a food stall, or something unique.
The size and type of food service further relate to Pty Ltd or another formation type.
If you’re alone planning to make, serve and take the feedback through a small stall business, the sole trader type would be suitable too.
Bigger dreams mean bigger restaurant plans, which should always go with Pty Ltd (Private-Proprietary Limited). This requires a minimum of one director and a limit of a maximum of 50 shareholders.
Cuisines & Themes
The concept also includes the type of food you intend to serve. You need to evaluate the cuisines that people would love the most & has demand in the market.
Identify the style of service, theme, or environment you want for your restaurant. The concept is essential in determining your restaurant’s mission, personality, and identity and thus is linked to the brand.
Starting from small?
Not necessary for every restaurant to set bigger business goals. Especially when you’ve got no previous experience in the hospitality industry. In order to start a restaurant in Australia, it’s suggested to initiate with small to med business size. This helps understand the market and consumer behavior better.
Research About ‘How To Start a Restaurant In Australia?’
Primary research always comes from the web. It’s an intellectual habit of making initial research about business needs and requirements through informative portals. Our site, AustralianStreet.com is one of them.
These include the following:
- Looking into the competitor’s website (what and how they operate)
- Following the business and restaurant blogs available on the internet.
- Engage yourself in the forums and community sites (in Australia) to gain the output
- Engaging with mentors and social media experts within the same niche
- Occasionally following the Series of AustralianStreet learning how businesses in Australia start and operate
Traditional Research Method
The secondary, but crucial research is the traditional method of research, which includes:
- Visiting several restaurants and experiencing the Goods & the Bads
- Interacting with the restaurant staff or the manager about the consumer policy they carry
- Meeting the small food van and stall vendors. Getting familiar with and initiating the key-point conversation (without revealing your plan).
- Meeting acquaintances and advisors who better understand this field than you do.
Most importantly, making notes of inclusions, exclusions, what to do, and what not to.
Process Of Opening A New Restaurant In Australia
Here is the full procedure you should follow if you want to open a food business in Australia. Have a look.
Make a Plan
Depending on the nature and capacity of your concept, your plan could range from 10 to 50 pages long. You will need to provide particular details for your research and potential investors in several sections of the restaurant business plan.
Pick Your Location
Choosing a location is an important aspect of your plan. To ensure visibility and a steady flow of customers, a relevant location should be easily reachable by car or walk in a high traffic area. It is also critical to select a not overly competitive location; opening a restaurant a safe distance from your fiercest competitors may be a good way to attract a steady stream of customers
Essential Kitchen Equipment Required
- Kitchen Infrastructure
- Oven & Cooking Appliances
- Cooking Equipment
- Refrigeration Systems
- Benchtop Equipment
- Commercial Dishwasher
- Cookware and Crockery
- Commercial Exhaust Systems
You can begin hiring employees for the kitchen and floor as your opening date approaches. Give yourself plenty of time to find the right professionals for each position. Feel free to ask out-of-the-box queries. And request chefs to prepare some dishes from the menu. Tasting and experimenting is the essential part. That’ll help you discover the Brand’s special items i.e. the Restaurant’s special menu. Experimenting and tasting sessions will get a lot easier when you are acquainted with the chefs’. And already know the level of deliciousness the chef adds. The tasting process should not be compromised especially when you’re unfamiliar with them and their food preparation abilities.
Small Food Businesses – Food Van / Food Stall
Generally, small food vendors/stalls require 1 to max 2 people to get the business going.
- Chef is the primary employee in any kind of food business
- Cashier / Order & System Operator; and Serving Employees are required at busy spots. Else these 3 tasks can also be performed by a single employee if the preparation, heating, and serving procedures are managed appropriately.
Med to Large Fine Dine Restaurants
Minimum 4-5 employees for a medium-sized restaurant. And 8-10 employees for a Med to Large restaurant are a must. These include:
- Restaurant Manager
- Host (One who welcomes customers and arranges the table, reservations, and so on)
- Server (Waiter/waitress – One who serves)
- Bar Manager
- Runner (Ensures the food is lined up appropriately in the kitchen as per the order; And passes onto the servers accordingly)
- Busser (One who clears up the table, and sets it fresh & ready for new guests)
- Cahier (One who accepts and clears the payment. Cahiers also are responsible for taking online orders and delivery management)
3 General Requirements To Start a Restaurant In Australia
Top 3 Things You Require To Start A New Restaurant
Following are some essential things you require before you start a food business in Australia.
1) Construction Mandates
All of your kitchen and other equipment must meet the sanitary standards of the district. Self-service counters, for example, can only use wood for support if it’s encased in a waterproof material like stainless steel, has a food-grade solid-surface top, and has no holes for plumbing, wiring, and piping.
2) Installation Required
The regulation also applies to how you arrange your equipment in the restaurant. For example, unless a piece of equipment is easily movable or sealed to the wall, it requires enough unobstructed space around it to allow for easy cleaning. Equipment that isn’t bolted to the floor should be on wheels or have at least 6 inches of clearance beneath it.
3) Customer Base
Your newly established restaurant will require a customer base or a bunch of regular customers. Suppose your restaurant has a theme, such as Korean culture; or Arabian Days with fresh local ingredients. In that case, you will attract customers from the demographic of people who are most interested in what you have to offer. This does not mean other ethnicities won’t give it a try.
Let’s take an example of ‘Nene’s Chicken’ located in several suburbs of Melbourne. The food is loved by all origins of customers including Aussies, Turkish, Indian, etc. though its primary cuisine is Korean.
The utmost goal has to be setting up a menu that suits every craving and taste bud, for all ages.
Online Ordering & Delivery System
Nothing new! We all are familiar with online food ordering and delivery systems. It makes the restaurant efficiently set the info, menu, and payment methods for instantly serving the customers.
Secondly, promoting our own menu and getting customers to new restaurant sites is a bit challenging. Especially when crises occur (COVID), the competition among restaurants either gets exhausting or worse.
However, online restaurants make a good business.
Online ordering service providers have made restaurant businesses get more exposure in the market. No matter, how new you are, or how experienced your staff is. The online system has diversified opportunities for everyone new or old in the food business.
For customers, placing orders online has become much more convenient than personally visiting the restaurant for takeaways.
- Food Truck – Min $7000 AUD; Including Advertisement & Branding $15,000+ (Would Expedite The Growth)
- Small to Medium ‘Local Street Restaurant’ – Min $3,00,000 AUD (On Lease/Rent); Including Advertisement & Branding $6,50,000+ (Would Expedite The Growth)
- Large / 5 Star Fine Dine Restaurant (At populous locality) – Min $7,00,000 AUD (Lease/Rent); Including Advertisement & Branding $15,00,000+ (Would Expedite The Growth)
- Owner / Sponsor / CEO
- Staff Members
- Commodities & Equipment Suppliers
- Bank / Investors / Fund Organizers
- Publishers & Media
Licencing & Registration Process To Start a Restaurant In Australia
To open a new food business in Australia, you need to look into several departments such as liquor, music, a good location, etc. And to operate these services you require suitable licenses and permits.
Because licenses may take several weeks or months to be issued, you must begin the application process as soon as you have funding. Hire a lawyer to help you make the right decision with the license applications. And ensure that everything is done correctly.
1) Certificate Of Occupancy
The zoning department in Australia will issue a certificate of occupancy once your location has passed the final building inspection. The certificate of occupancy attests to the building’s proper construction and maintenance. The procedure varies from Australia’s law and judicial system.
2) Food Service License
The city or county health department is usually in charge of issuing food service licenses. The health department will inspect your establishment to ensure that all restaurant food safety regulations are being followed. Once you have obtained this license, the health department will continue to inspect your restaurant on a regular basis.
3) Liquor License
A liquor license is required if you intend to serve alcoholic beverages. You may be required to apply for both a liquor license and a beer and wine license in certain states. Begin as soon as possible. Depending on Australia’s law, applying for and receiving a liquor license from the city government’s liquor control board can take months.
4) Valet Parking Permission
If you intend to open a fine dining or full-service restaurant, you may provide valet parking for customers. To apply, you must provide the state with a detailed plan of the proposed pick-up/drop-off area that shows the number of spaces needed, as well as a letter of agreement between your chosen valet operator and the restaurant outlining financial arrangements, including how and when the guest will make payments for your services.
So these are the permissions you need to get if you are planning to open a new restaurant in Australia.
General Info About Licences and Registration In Australia
- Australian business number (ABN) – Business Registration
- Tax file number (TFN) – Individual TFN or Business TFN
- Goods and services tax (GST)
- Pay-as-you-go (PAYG) withholding
- Fringe benefits tax (FBT) – Register For FBT
There are several entities and professionals who can help you get started. It’s always good, to begin with, a consultant or a legal advisor to diagnose the set-up problems and design the action plans.
The Best Advisories & Consultants
Online Food Ordering Systems
How Would You Promote Your Restaurant Business In Australia?
Advertise Your Restaurant Business
Advertising your new restaurant will help to attract customers by capturing the attention of potential diners. Make certain that you select the most appropriate advertising channels while keeping in mind the type of customers you want to reach. The primary goal of your advertising should be to generate curiosity as per people’s interest. Being Omni present everywhere online will give a push to your new dining establishment. Utilizing high-quality content and images to showcase your service, and dishes. And sharing relevant information about your restaurant.
Listing your restaurant or food business on effective platforms like AustralianStreet (Listing), Zomato, Yelp, etc. will help you with Branding.
Before going live, you should consider having a soft opening – this is very common in the industry. Having a soft opening allows your staff to put their skills to the test without the tension of serving the general public during a sizeable grand opening. It’s a good idea to give everyone a “trial run” with the point-of-sale system, as well as fine-tune your mealtimes.
Is it the right time to start a restaurant in Australia due to terrible COVID crises?
COVID crises will keep rising and lowering in the coming years as well. It’s better to create a plan for a future-based restaurant strategy to overcome the crises. If you’ve got a full-proof plan and the team ready to implement, the pandemic won’t affect the business harshly. It’s smart to emphasize more on the online food ordering and delivery system, which is even cost-saving.
What's the potential of Restaurant business being successful in my locality?
Australia is a country of food lovers, and health conscious, not to forget. It’s rude to underestimate the potential of food business growth. Whatever happens, people are not going to stop eating or looking for something new around. The only important thing to focus on is ‘Location’. If you live in a countryside area, make sure the locality is populated or people show more interest in socializing. There’s no point of even starting an online restaurant service if the consumers at yours or nearby location do not prefer outside food. It’s important to do a general research of the area where you are expecting the repeated business from. Understanding the consumer behaviour, buying and spending habits is significant as well.
Conclusion – Should I Start a Restaurant in Australia or Not?
Starting a restaurant in Australia can be a daunting task, but it is not impossible. To start a restaurant in Australia, it’s important to have a clear understanding of the necessary procedures and licenses required, as well as take into account the food preferences of Australians. If you have a strong desire to open a restaurant, it’s possible to make your dream a reality. The article provided guidance on what is required to open a new food business in Australia, so don’t wait any longer and take the necessary steps to start your restaurant.