01/17/2022 | Press release | Distributed by Public on 01/17/2022 05:01
New York City has long been one of the most sought-after places to open a restaurant, with slightly over 27,000 restaurants across New York. It's also the most populous city in the country with more than eight million people and counting. That's a lot of hungry mouths to feed, so it's no wonder more and more restaurant owners are setting up shop.
However, it goes without saying that running a successful restaurant in New York City is no easy feat. The challenges are especially pronounced for skilled hospitality staff transitioning to the role of an owner. As Fredrik Berselius, chef and owner of Aska (two Michelin-starred restaurant in Brooklyn) shares:
"From having my focus always centered on a kitchen environment, I suddenly became involved in things like negotiating leases, applying for permits and overseeing design and construction…my approach shifted to be more expansive in the sense that I was now in charge of [not] just one element of the picture, but of the whole thing. Each decision holds a lot more weight and risk because the responsibility ultimately ends with you."
Despite the stressful demands of running a restaurant, if done successfully, there are plenty of rewards. Here are five key steps to keep in mind when opening a restaurant in New York City.
Don't miss out on these key steps before opening your restaurant. Tick off all the must-do items for a successful grand opening with this survival guide and master checklist.
The foundations of a successful restaurant are cemented in a thorough and well-researched business plan. Your business plan will guide you through everything from registering your business and getting the right documents, to finding suppliers, creating a menu selection and hiring employees.
A major component of a business plan is also determining the type of business model you'll operate on. For example, if your restaurant is an LLC, a Limited Partnership or a Corporation, you'll need to register with New York state authorities. On the other hand, if you operate as a sole proprietor or under a General Partnership, you need to register with the county clerk.
Once you've decided on your business model, you'll need to decide on the type of food and drinks you'll sell. Your offerings will play a role in the kinds of permits and licenses that you need. You'll also need to have a New York sales tax ID from the state in order to apply for the necessary permits and licenses.
With real estate, it always goes back to the three magic words:location, location, location. The same holds true for restaurants.
Where you operate plays a significant role in the success or failure of the business. Cost is clearly a huge factor when looking for the right space in New York City. You will most likely lease the restaurant space and pay a monthly rent.
In addition to cost, each borough of New York City has a completely different vibe, which means a concept might thrive in one borough and underperform in another.
To open a restaurant in New York City, your location has to be in an area zoned for businesses. To save time and money, consider taking over a space that was already a restaurant. If you are constructing a new space, you'll have to find a registered architect and engineer to submit your blueprints to the Department of Buildings.
Arguably the most arduous yet necessary area of opening a restaurant are the licenses and permits. At a minimum you'll need:
Thankfully, the process for obtaining these permits is fairly straightforward. You can fill out your business information onlinethrough New York City's Department of Small Business Services. This will guide you through a step-by-step process of the requirements for your business, along with the links to respective applications.
Do give yourself enough time to fill out the applications and have your Employer Identification Number (EIN) handy. If you don't have an EIN, you can apply for one through the IRS.
In addition to the permits, there are other regulations restaurants need to abide by such as:
To save yourself time, consider hiring a licensed professional to help you through this process. They will assist in submitting the necessary applications to the proper authorities to ensure you are compliant with New York City regulations.
Protecting your restaurant from the very beginning is essential. Restaurants face risks like customer lawsuits, fires and damage to property, employee injuries and food poisoning. Insurance is the best way to protect your business. While some insurance policies are mandated by law, others are designed to meet specific business requirements.
Below are some policies to consider:
In the restaurant industry, staffing has always been challenging. Even in a pre-pandemic world, managers have to deal with high turnover as well as specific legal requirements.
For example, in New York City the minimum wage for tipped employees is $10 per hour. In addition to this, the New York City Health Department requires that a manager passes a food protection course and always be present when the restaurant is open.
The key to avoiding citations from health inspectors lies in education. Ensure all your employees understand how to properly handle and store food.
There are also other ways to streamline restaurant operations. POS systems, for example, make it easy to manage employee schedules, seating charts, sales, accounting and more.
Opening a restaurant in New York City is both exciting and rewarding, but it's also extremely challenging. There are so many factors to take into account and it requires a ton of hard work and discipline. But with these tips in mind, you will surely be able to make your goal a reality.
Open your restaurant with the right foundation. Talk to one of our experts today to find out how Lightspeedcan support your new restaurant.