How to start a restaurant in 2026

Phase 1 of 6

• Decide your concept: cuisine, service style (full-service, fast-casual, QSR, food truck, ghost kitchen)
• Validate demand: visit 5+ similar concepts, talk to 10+ potential customers
• Draft a one-page business plan: customer, menu, location, pricing, revenue, costs
• Estimate startup capital needed (build-out, hardware, licenses, first 90 days operating cash)
• Pick a name; check trademark and domain availability
• Form an LLC or corporation; get an EIN from the IRS
• Open a business bank account (separate from personal — required for clean accounting)

Phase 2 of 6

• Sign a lease (or finalize food truck purchase). Negotiate at least 6 months of free rent during build-out if possible
• Apply for a business license in your city
• Apply for a food handler license / ServSafe certification
• Apply for a state seller's permit (sales tax)
• Apply for a liquor license if applicable (this is the longest lead time — start early)
• Schedule health department inspection and final occupancy permit
• Get general liability + commercial property insurance
• Hire a contractor for build-out (kitchen layout, plumbing, electrical, ventilation)
• Order kitchen equipment with realistic lead times (ranges, fridges, prep tables, hood)
• Design and order signage, exterior, and interior

Phase 3 of 6

• Finalize menu (15–25 items max for opening — you can expand later)
• Cost out every menu item; set prices so food cost runs 28–35% of menu price
• Source food vendors (US Foods, Sysco, local farms, specialty distributors)
• Source paper goods, takeout containers, branded packaging
• Choose a POS system — compare software fees, hardware cost, payout speed, and contract terms (PalomaPOS: $0/month software with PalomaPOS processing, same-day payouts, month-to-month)
• Set up online ordering and any delivery-marketplace accounts you plan to use
• Set up Google Business Profile, Yelp, and Apple Maps listings
• Build a simple website with menu, hours, location, and online ordering link
• Set up an Instagram and (if relevant) TikTok account

Phase 4 of 6

• Hire kitchen lead first (head cook or sous chef) — they help interview the rest
• Hire FOH lead (general manager or shift lead)
• Hire line cooks, prep cooks, dishwasher
• Hire FOH staff (servers, baristas, cashiers — depending on concept)
• Run a 1-week training program covering menu, POS, hospitality basics, food safety
• Build a tip-distribution policy (auto-tipping rules in PalomaPOS)
• Build a closing checklist and an opening checklist for each role

Phase 5 of 6

• Run a friends-and-family soft launch (50% off) to stress-test kitchen, FOH, and POS
• Fix any kitchen routing or modifier issues found in soft launch
• Run a media/influencer preview night
• Plan grand opening: limit hours and seating capacity to ensure quality on day 1
• Decide whether a cash discount program fits your concept (PalomaPOS includes the signage)
• Verify same-day payouts are arriving to your bank account
• Activate loyalty program from day one — every guest gets enrolled
• Track key numbers daily: covers, average ticket, food cost %, labor %

Phase 6 of 6

• Run weekly P&L reviews against your business plan projections
• Adjust menu prices for any items running over food cost target
• Optimize labor schedule based on real demand patterns
• Push direct online ordering — it's 30–40% more profitable than marketplace orders
• Build an email/SMS list from your regulars
• Apply for a small line of credit or short-term loan for inventory smoothing
• Plan your first marketing campaign once core operations are stable
• Check your effective processing rate on your first full monthly statement