Start a Business: How to Start a Restaurant in Canada - (2023)

Are you in the market to start your fast food or casual restaurant business in Canada this year? Before you do, read this guide, which details the steps needed to start a new restaurant so you and your business can be on the road to success faster.

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Over 60% of Canadian adults eat out at least once1-2 times a week (pre-Covid), the restaurant/food service industry is currently one of the fastest growing industries in Canada. While restaurant trends tend to come and go, it's doubtful that Canadians will stop visiting restaurants anytime soon. If you are interested in starting your own QSR franchise, restaurant, commercial kitchen or food service company - you have come to the right place. Below, we'll cover the most important things every restaurant needs before opening their doors to the public or starting their first food business venture.

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What you need to know before starting a restaurant in Canada

Starting your own restaurant is not for the faint of heart. Opening a successful restaurant in Canada requires a lot of specialized planning, dedication and will.

This requires the ability to juggle many moving parts to simplify operations and can sometimes seem like the most challenging endeavor. With this in mind, if you work with restaurant professionals, the process can be much more manageable and under control. We have helped many restaurant owners open their first, second, third or tenth location, we have createdThe complete guide to opening your own restaurant in Canadaso you can use it as a guide to the difficult but rewarding journey of the food service industry.

Start a Business: How to Start a Restaurant in Canada - (1)

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1. Choose a restaurant idea, concept or brand

Before starting a restaurant in Canada, you should have a clear idea or understanding of your restaurant concept and brand. The restaurant concept includes the style of service, the type of food available and the look/atmosphere of the restaurant. Your restaurant brand is one of the most important aspects of your business and it is the image you will attract potential future customers to.

Depending on the restaurant brand you choose, the interior and exterior of the restaurant should be easily recognizable by customers and effectively communicate who you are. Designing your restaurant in a way that effectively showcases and matches your brand will leave lasting memories with customers, increasing the likelihood of repeat business. Choosing a functional, memorable concept/design that targets a specific local demographic is a key factor in the success of a restaurant in Canada.

Are you going for a bright and energetic atmosphere or a luxurious living room with low lighting, relaxed style? This is a key step in planning the future of your restaurant.

2. Decide which products to serve

Before you open your doors to the public, you need to know what you will serve and what you will be known for. Deciding what will be on the restaurant menu is another key aspect of owning a restaurant. This will also tell you what commercial food equipment you will need, what staff to hire and what customers you hope to attract. For more serious entrepreneurs, a good suggestion would be to meet with a restaurant consultant with experience in your style of cuisine. A restaurant consultant can guide you to popular and trendy dishes that will attract more customers to your restaurant.
Right now, your menu doesn't need to be 100% complete, but you should have a good idea of ​​the type of food you'll be serving in your store. Later in the restaurant development process, you'll need to create and design the menu based on which foods sell well and which don't. As mentioned earlier, a restaurant consultant can be an effective resource in this part of the process.

3. Create a restaurant business plan

Creating a solid business plan is essential to the success of a restaurant. To get funding or outside investment, financial advisors, lenders and venture capitalists will want to see a well thought out and strategic plan for the future. It will also help you grow your brand into a regional or national force that will attract many more customers and take the guesswork out of it.

Below are the main aspects to consider when creating a restaurant business plan (in order):

  • summary of highlights
  • Description and overview of your company
  • Market analysis
  • Business offers
  • Management / Organization
  • Marketing/Social Media Strategy
  • Economic forecasts

3. Get capital or pitch to investors

Next, you will need to create a budget and financial projections to obtain the commercial loans/financing needed to begin construction of your new restaurant. This is also a good time to add any additional costs you expect your business will need to continue operating until it breaks even. You should also consider the costs you expect to incur for permits/certifications and permits such as building permits, alcohol licenses, etc.

If you're still not sure what you need, consider contacting a commercial finance expert for more information. A Canadian financial expert can assess what type of financing will be needed to fully build and open a restaurant. They can also find government subsidies available that can help reduce the additional financial burden on your business.

5. Site purchase or commercial rental

Ah,Commercial property! We really shine here! This part of the process is best left to the professionals. Call or meet with a commercial real estate professional who knows your specific area of ​​interest. It will help you find the ideal location to give you maximum business exposure within your budget.

If you decide to find the location yourself or you are selecting the perfect real estate locations for your commercial real estate agent, below is a list of things to keep in mind and a list of aspects we put a lot of emphasis on whenreal estate consultantstrial.

Visibility and accessibility– Look for places with good road visibility and easy access for wheelchair users. It's easy to pick a busy high street in your city, however on a busier road you usually pay a bit more for the best location. Another thing to note is available parking - your potential customers need a place to park, right?

DemographicsAnother thing to consider is local demographics. If your business is targeting a younger population, you should look for trendier neighborhoods in the city or areas frequented by a younger population. This will increase the likelihood that your business will be visited by your chosen demographic and ultimately be more successful.

Personnel costs and salaries– It is important to consider the cost of hiring a new restaurant. You need to calculate how many people you will need at certain times, such as dinner or lunch. This includes kitchen staff, waiters/waitresses, hostesses, etc. If you know that dinner will be your busiest time, you should change your staff's work hours to accommodate this demand. You should also consider the local minimum wage, or what a typical restaurant in your area pays its employees.

CompetitionA little competition can indeed have its benefits, but you'll need to be smart enough to keep your distance so you can attract local fans who won't "steal" you from your competition.

When it comes to finding a place, we are readyAbeco GroupI would highly recommend themcommercial lease.Lease of professional spaceit gives you more flexibility if you decide to expand further or run into problems early on.

6. Licenses, Permits and Certificates

To open a restaurant in Canada, you mustapply for certain Canadian licensesand allows you to serve society. This can include a Food Retailer's Licence, Liquor Licence, Business Licence, Building Permits, Occupancy Certificate etc. It is worth working with legal counsel to ensure that all applicable documents are completed correctly.

7. Find a local commercial equipment supplier

Finding a reliable, trustworthy source of quality commercial equipment at a reasonable price can make a huge difference in your restaurant's profitability. Working with a wholesale commercial equipment supplier can help you find everything you need at good prices. From kitchen appliances to cookware and more! If your budget is tight, most commercial equipment suppliers can also provide a price for used equipment, which can help you save more on future expenses.

8. Design and construction of the first site

When creating a restaurant, you should think very carefully about the project,construction managementand the layout of your business space. Usecommercial interior designercan help fill any skill gaps. findingcommercial interior designerSpecial offers for restaurants are key as they know what works and what doesn't. Yoursrestaurant design and constructionit should be designed in a way that encourages open spaces between tables for waiters/waitresses to move around and serve customers. Your main goal should be to create a free flow from kitchen to table to serve your customers in the most efficient way and reduce waiting time for your guests. This is one of the most important parts of opening your own restaurant in Canada. Hiring the best commercial contractor to build your restaurant is critical, as choosing the wrong one can cost you a lot of unnecessary expenses. At Abeco Group, we recommend the optioncommercial project contractor engaged in design and constructionwho specializes in itrestaurant design and constructionto truly benefit and deliver the highest possible value.

8. Design and construction of the first site

When creating a restaurant, you should think very carefully about the project,construction managementand the layout of your business space. Usecommercial interior designercan help fill any skill gaps. findingcommercial interior designerSpecial offers for restaurants are key as they know what works and what doesn't. Yoursrestaurant design and constructionit should be designed in a way that encourages open spaces between tables for waiters/waitresses to move around and serve customers. Your main goal should be to create a free flow from kitchen to table to serve your customers in the most efficient way and reduce waiting time for your guests. This is one of the most important parts of opening your own restaurant in Canada. Hiring the best commercial contractor to build your restaurant is critical, as choosing the wrong one can cost you a lot of unnecessary expenses. At Abeco Group, we recommend the optioncommercial project contractor engaged in design and constructionwho specializes in itrestaurant design and constructionto truly benefit and deliver the highest possible value.

9. Recruitment of suitable staff and employees

Another important step in opening your own restaurant is hiring the right staff. Hiring experienced restaurant staff can help solve any problems with day-to-day operations and can provide business owners with great advice on service, branding and efficiency. All employees should have a proven track record of teamwork and the ability to remain calm under pressure. Reception staff should provide a warm, cheerful and professional service to customers at all times.

Here are some examples of possible restaurant roles:

  • Executive Director/Chief
  • Deputy Chef
  • Principal manager
  • Hosts / Hostesses
  • Barman
  • Waiters/waiters
  • Dishwasher
  • Runners/Carriers with food

9. Recruitment of suitable staff and employees

Advertising and marketing your business is the key to success. 20-30 years ago you could place an ad in your local newspaper and/or buy billboard space, but today you have to be a little more creative. First, your customers should be able to easily find your key information online. Second, they should be excited to visit your new restaurant.

Below are some ideas to help you achieve both goals at the same time.

  • Use the power of social media -The first thing you should do is create social media pages for your business, filled with bright photos of the most important aspects of your business. Typical social media platforms for businesses include;Facebook,Instagram,Twitteretc. When posting photos, you should consider spending a little money to get high quality, professional photos of your food, kitchen, dining room that will effectively market your brand to the world.
  • Create a Yelp and Yellowpages account– Allowing customers to leave reviews can significantly improve your restaurant's reputation. Because the Internet plays such a large role in our daily lives, research has shown that over 85% of Canadians check out your business before visiting. This means they will rate your business based on online reviews. Also fromWhineIYellow Pagesthey are such trusted sites, it can really help to increase your website ranking in Google.
  • Create an attractive website– Your official website should contain both. mobile friendly and easy to navigate. It should contain basic information about your business, including your About page, menu, contact information, good quality photos, other locations (if any), etc.
  • Advertisements in local newspapers“Believe it or not, the newspaper is still a good way to reach local audiences. We recommend contacting your local newspaper and asking if your restaurant is featured in the article. Examples likeToronto Star,Vancouver Sun,Gazeta Montrealskaetc. A reporter will come in and ask you a few questions and do a short story to create an article to introduce people to your new restaurant. There are also other local and national digital blogs likeBlog T.O,Narration,Toronto life,Taste Montreal, MECuriosity Vancouverwhich places a strong emphasis on local food hot spots. These types of sites are very popular regionally/nationally and would be a great way to let people know who you are and what you offer.
  • Loyalty/reward programs– Depending on the size of your restaurant, loyalty programs can be a great way to build a strong following. Pizzerias like itDomino,Chuta pizzaand other local pizzerias usually offer deals or cards where you can buy "5 large pizzas and mediums free", for example. These types of programs reward repeat customers with elements that make being a customer worthwhile and keep them coming back again and again.

11. Plan a soft opening event

Another thing you should do is organize a soft opening for a few key people, such as journalists, bloggers, Instagram influencers, neighboring businesses, etc. These people have extensive local, regional and sometimes national powers, which can give your restaurant a very local or much-needed boost of regional popularity. This strategy also allows you to determine which times are most popular and catch potential problems before they become problems.

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For many, opening a new or first restaurant can seem like an impossible task. However, as the Canadian restaurant industry continues to grow, there will be more room for another unique, exceptional restaurant. The most important thing to remember is that running a business is about thinking ahead, and with careful planning and execution, you can create a successful, thriving restaurant.

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