To open a restaurant in the UK, put six things in place before day one: a costed plan, the right premises, food business registration, the correct licences, a trained team and suppliers. Most new owners get the food right. Openings tend to slip on the paperwork and the cash.
Costs have moved too. From 1 April 2026, the National Living Wage is £12.71 an hour for staff aged 21 and over. So when you open a restaurant this year, wages will cost more in the first year than the whole fit-out.
This guide is for first-time owners, chef-founders and operators adding a second site. It explains how to open a restaurant step by step, what it costs, how long it takes and how to set up suppliers. It covers the same ground a hospitality consultancy works through before an opening.
In this guide:
- What you need
- The 10 steps
- Start-up costs
- Break-even covers
- Timeline
- Suppliers
- 2026 and 2027 rules
- Mistakes
- Checklist
- FAQs
What Do You Need to Open a Restaurant in the UK?
Expect to need a business structure, registered premises, the right licences, insurance, trained staff and a food safety system before you open a restaurant to paying guests. Some take weeks. Start them early.
| Requirement | Who you deal with | When to start |
|---|---|---|
| Food business registration | Local authority (environmental health) | 28 days or more before trading |
| Planning use class (in England, Class E covers restaurants and cafés) | Local planning authority | Before you sign the lease |
| Premises licence for alcohol, late-night food or entertainment (England and Wales) | Local licensing authority | 3 to 4 months before opening |
| Personal licence for your designated premises supervisor | Local licensing authority | Before the premises licence application |
| Employers’ liability insurance (at least £5 million) | Authorised insurer | Before your first employee starts |
| Food safety management system, such as Safer Food, Better Business | Your team, checked by the environmental health officer | Ready before opening day |
| Waste contract with separate food waste | Licensed waste carrier | Before the first delivery |
| Music licence (TheMusicLicence) | PPL PRS | Before you play background music |
You also need a gas safety certificate, a fire risk assessment and an allergen matrix. Energy suppliers often ask a new business for a deposit, so budget for one.
How to Open a Restaurant: 10 Steps From Idea to Opening Night
Follow this order to open a restaurant for the first time. Some steps overlap, but if you skip one, it usually costs money later.
Step 1: Test the Concept Against Your Local Market
Before you open a restaurant, find out who will eat there, how often and how much they will spend. Walk the area at lunchtime, at 7pm on a Tuesday and on a Saturday night. Count covers in the three busiest rivals and note what they do well.
Then write one sentence that explains the concept to a stranger. If you cannot, the menu, the room and the marketing will pull in different directions.
Step 2: Write a Restaurant Business Plan With Real Numbers
A restaurant business plan should answer three questions: how much money you need, how many covers you must sell and how long the cash lasts. Lenders and landlords will ask to see it.
Include a sales forecast by day part, a 12-month cash flow, your restaurant startup costs and a staffing plan. Build the forecast from covers multiplied by average spend, not from a turnover figure you like the sound of.
Step 3: Arrange Funding and a Cash Reserve
Most people who open a restaurant fund it from savings, a bank loan, investors or a government-backed Start Up Loan of up to £25,000. Many use a mix.
Whatever the source, hold back a cash reserve. A sensible floor is 13 weeks of non-wage fixed costs (rent, rates, utilities and overheads) plus a contingency, because new sites rarely hit forecast in the first quarter.
Step 4: Find Premises That Already Fit the Plan
The cheapest way to open a restaurant is usually to take over a site that was already one. Extraction, grease traps and Class E use already in place can save months and tens of thousands of pounds. An empty shell means planning consent for a flue, new drainage and a longer fit-out.
Before you sign heads of terms, check the rent reviews, break clauses, repair obligations, any personal guarantee and whether the lease sits outside the Landlord and Tenant Act 1954. Ask for a rent-free period that covers the fit-out.
If the outgoing tenant wants a premium for the fit-out, value the kit before you agree a price. Get it tested too, because a failed walk-in fridge wipes out the saving.
Step 5: Register the Business and the Premises
Choose your structure, register with HMRC and set up PAYE before you pay anyone. At break-even, a 50-cover site passes the £90,000 VAT threshold in about six weeks. So most owners register before opening, which also lets them reclaim VAT on the fit-out.
Next, tell your council about the food business. You must do this 28 days or more before trading begins, and paid soft openings count as trading. The council cannot charge for registration or refuse it, according to the government guide to starting a food business.
Step 6: Get the Licences You Need to Open a Restaurant
In England and Wales, you need a premises licence if you plan to sell alcohol, serve hot food or drink after 11pm or host regulated entertainment. Alcohol sales also need a named designated premises supervisor with a personal licence. Scotland and Northern Ireland run separate licensing systems.
Read your council’s licensing policy first, especially if the area has a cumulative impact assessment. When you apply, you must display a notice at the premises for 28 days. Fees run from £100 to £1,905 by rateable value band, as the GOV.UK premises licence page sets out.
Objections can lead to a hearing, so apply early. In England, outside tables also need a pavement licence.
Step 7: Plan the Kitchen Around the Menu
Design the kitchen backwards from your top-selling dishes. Each one needs a station, cold storage close by and a clear route from goods-in to the pass.
Gas appliances under a canopy need a gas interlock that cuts the supply if the extraction fails, under BS 6173. Many insurers also want fire suppression over the fryers. Plan a grease trap for the sink drains too, because water companies can prosecute for fat blockages.
If cash is tight, lease or buy refurbished combi ovens and fryers, but spend properly on extraction and refrigeration. Our kitchenware procurement checklist lists the smallwares most new sites forget.
Step 8: Cost the Menu Before You Print It
Cost every dish from the supplier price file, not a supermarket receipt, well before you open a restaurant. Most UK restaurants aim for a food cost of 28% to 32% of net sales, which means a gross profit of 68% to 72%.
If you have not done it before, learn how to calculate food cost in a restaurant first. Keep every sum ex-VAT, because the 20% VAT on your menu prices belongs to HMRC.
Step 9: Hire and Train the Opening Team
Hire your head chef and general manager first, ideally 8 to 12 weeks before you open a restaurant, so they can help build the menu and systems. If you are the chef-owner, hire the strongest manager you can afford, because nobody can run the pass and the floor on the same night.
Front-of-house staff usually join 2 to 4 weeks out. Budget for two weeks of paid training. Food handlers need hygiene training that suits their role, and anyone who takes an order must know the allergen process.
Step 10: Run Soft Openings Before the Launch
Never open a restaurant to the public without a full service under real conditions. Hold two to four soft openings at reduced prices for friends, neighbors and local businesses. Time the pass, test the till and find the dishes that slow the kitchen.
Your first hygiene inspection can come within weeks. So treat soft openings as a dress rehearsal for the environmental health officer, with temperature logs and cleaning records filled in.
What Does It Cost to Open a Restaurant? A 2026 UK Budget
In the UK, the cost to open a restaurant depends mostly on the premises.
The worked example below is a 50-cover casual restaurant outside London, on a leasehold former restaurant site. Use it as a template for your own restaurant startup costs, not as a quote. All figures are ex-VAT.
| Cost line | Worked example (£) |
|---|---|
| Rent deposit and legal fees | 15,000 |
| Fit-out and decoration | 60,000 |
| Kitchen equipment | 35,000 |
| Furniture, tableware and glassware | 15,000 |
| Licenses, insurance and professional fees | 6,000 |
| EPOS, booking system and IT | 4,000 |
| Opening stock (food, drink and cleaning) | 8,000 |
| Pre-opening wages and training | 17,000 |
| Marketing and launch | 5,000 |
| Cash reserve (13 weeks of non-wage costs plus contingency) | 45,000 |
| Total | 210,000 |
Look at the reserve. After the fit-out, it is the biggest line, and the one owners raid first when they open a restaurant. Spend it on overruns and month two gets tight.
Equipment and opening stock are the safest places to save, because guests never see them. Our guide to procurement savings shows where to start.
How Many Covers Do You Need to Break Even?
Your break-even point is the number of covers that pays all fixed costs before you make any profit. Work it out before you sign a lease, not after you open a restaurant.
Break-even covers per week = weekly fixed costs ÷ (average spend per cover ex-VAT × gross profit %)
Take the 50-cover example. Weekly fixed costs are £11,500: rent £865, business rates £300, wages and employer costs £8,500, utilities £900 and other overheads £935.
The average spend is £32 including VAT, which is £26.67 ex-VAT. At a 70% gross profit, each cover adds £18.67 towards those fixed costs.
£11,500 ÷ £18.67 = about 616 covers a week
Over six trading days, that is about 103 covers a day, or two full turns of a 50-seat room. If your forecast sits below that, change the plan now: a cheaper site, a higher spend or a shorter menu.
Notice that wages are about half of sales at break-even. A healthy site runs labour nearer 30% to 35% of sales, which here means £24,000 to £28,000 a week ex-VAT.
To lift spend without a price rise, steer guests towards sides, desserts and drinks, often the most profitable food in a restaurant.
How Long Does It Take to Open a Restaurant?
Expect 6 to 12 months from idea to opening night, and longer for a shell unit that needs planning consent. Once you have the keys to a fitted site, you can open a restaurant in about 8 to 12 weeks.
| Weeks before opening | What to do | Why it cannot wait |
|---|---|---|
| 26 to 52 | Concept, business plan, funding and site search | Lenders want the plan first |
| 16 to 26 | Sign the lease, check the use class, apply for planning if needed | Planning can take 8 weeks or more |
| 12 to 16 | Apply for the premises licence, order extraction and cooking equipment | 28-day notice and long lead times |
| 8 to 12 | Hire the head chef and manager, shortlist suppliers, order branded tableware | Custom items take 8 to 12 weeks |
| 6 to 8 | Register the food business, open supplier accounts, agree price files | Due 28 days before the first soft opening |
| 4 to 6 | Start insurance, the waste contract and the music licence, recruit front of house | Cover must be live before staff start |
| 2 | Train staff, test the menu, take the first stock delivery | The kitchen needs a full run-through |
| 1 | Soft openings, then adjust order quantities | Real covers show true usage |
If you must open a restaurant by a fixed date, watch the licence, the extraction and the supplier accounts. Late openings nearly always trace back to one of them.
How to Set Up Suppliers Before You Open a Restaurant
Shortlist suppliers 8 to 12 weeks before you open a restaurant, then open accounts at 6 to 8 weeks. A new business has no trading history, so some suppliers will ask for payment up front. Pay by card for the first orders and ask for an account review after three months.
Most restaurants need 6 to 10 accounts: fresh produce, meat, fish, dairy, bakery, dry goods, drinks, coffee, cleaning chemicals and disposables. Build an approved supplier list so the team only orders from accounts you have checked.
Before you sign up, agree these points in writing:
- Delivery days, order cut-off times and the minimum order value for free delivery.
- Credit terms, trade references and any personal guarantee the supplier wants.
- A price file with fixed prices for at least the first month.
- Product specifications and allergen information for every line you buy.
- How the supplier credits short deliveries and damaged goods.
These questions to ask food suppliers cover the rest.
Keep opening par levels low: two to three days for fresh lines and one week for dry goods. You can raise them once real sales data arrives.
At goods-in, check every delivery against the order. Chilled food must arrive at 8°C or below in England, Wales and Northern Ireland, and many kitchens set a 5°C target. Note any shortage on the delivery note before the driver leaves, or the credit becomes hard to claim.
Check use-by dates as well. A case of chicken with only two days of life left will cost you money if your menu sells most of it at the weekend.
UK Rules New Restaurants Must Plan For in 2026 and 2027
Several rule changes affect anyone who plans to open a restaurant this year or next.
Wages: the National Living Wage rose to £12.71 an hour on 1 April 2026, and the rate for 18 to 20-year-olds is £10.85. Employer National Insurance is 15% on each employee’s pay above £5,000 a year, although the £10,500 Employment Allowance can offset part of it. Since 6 April 2026, Statutory Sick Pay is due from the first day of sickness.
Tips: in Great Britain, employers must pass all tips to staff without deductions and keep a written tipping policy that every worker can see.
Waste: under Simpler Recycling rules for workplaces in England, businesses must separate food waste and dry recyclables. Firms with fewer than 10 full-time-equivalent staff have until 31 March 2027, but the count covers the whole business. Wales has had its own rules since April 2024.
Business rates: from April 2026, retail, hospitality and leisure properties in England with a rateable value under £500,000 pay lower multipliers. Read our guide to business rates for hospitality before you agree a rent.
Allergens: you must give information on the 14 regulated allergens for everything you serve. If you pre-pack food on site for direct sale, Natasha’s Law also requires a label with the name and full ingredients list, allergens emphasized.
Common Restaurant Opening Mistakes to Avoid
These four mistakes cause many of the delays and cash problems when people open a restaurant for the first time.
1. Trading Seven Days a Week From Launch
Full hours from day one burn labor while covers are still low. Open five days, perhaps dinner only, and add sessions once the kitchen hits its ticket times.
2. Writing the Menu Before Costing It
A long menu looks generous, but it ties up stock, slows the kitchen and hides low-margin dishes. Start with 12 to 18 dishes, then apply menu engineering after the first month of sales.
3. Choosing Suppliers on Price Alone
The cheapest case price can come with a £200 minimum order, one delivery a week and slow credits. Compare single and multiple supplier strategies against your storage space and delivery needs.
4. Not Checking Invoices Against the Price File
Opening prices drift once the first month ends. Check every invoice against the agreed price file for the first three months, and chase a credit note the same week for any overcharge. Make that check part of your restaurant stock control routine.
Checklist Before You Open a Restaurant
Use this list in the final month before you open a restaurant. Tick every line before the first paying guest arrives.
- Food business registered with the council 28 days or more before trading.
- Premises licence granted, with a personal licence holder named as supervisor.
- Employers’ liability and public liability insurance in force.
- Gas safety certificate, gas interlock, fire risk assessment and electrical checks complete.
- Food safety records and an allergen matrix ready for every dish.
- Supplier accounts open, price files agreed and delivery days confirmed.
- Waste contract in place with a separate food waste collection.
- PAYE running, contracts signed, tipping policy written and right-to-work checks done.
- Till tested and menus printed with prices that include VAT.
- Two or more soft openings completed and par levels adjusted.
How ESConnect Helps New Restaurants
ESConnect helps owners who open a restaurant set up the buying side, from the supplier shortlist to the first delivery. The founder has more than 15 years in hospitality and has opened restaurants in six countries.
We help you shortlist suppliers, compare opening prices and plan deliveries anywhere in the UK through our restaurant procurement services.
Final Thoughts
The owners who open a restaurant smoothly run it like a building project: dated tasks, a fixed budget and one person who owns the list.
Get the lease checks, the licence and the extraction moving first, because they set your opening date. Then lock in suppliers and staff, and protect the cash reserve.
Planning to open a restaurant in 2027? Talk to the ESConnect team about suppliers, opening stock and delivery schedules.
Frequently Asked Questions
1. Can I open a restaurant with no experience?
Yes. No law says you need hospitality experience to open a restaurant in the UK. But first-time owners do far better with an experienced head chef and manager. A few months of shifts in a busy kitchen helps too.
2. How much money do I need to open a restaurant in the UK?
It depends on the site and size. Our 50-cover worked example comes to £210,000 ex-VAT, including a £45,000 cash reserve. A small café in a fitted unit can need under half that, and a London shell unit far more.
3. Can I open a restaurant from home?
You can register a home food business for supper clubs, catering or delivery. Serving the public inside your home usually needs planning permission for a change of use, and your mortgage, lease or insurer may forbid it. The kitchen must meet the same hygiene rules as any restaurant.
4. How long does a premises licence take?
The notice period is 28 days from the day after you apply. If nobody objects, the council grants the licence soon after. If someone objects, a hearing follows, so plan for two to three months from application to grant.
5. Is opening a restaurant profitable in the UK?
It can be, but most people who open a restaurant work on thin margins. Even at a 70% gross profit, wages, rent, rates and energy all come out of that 70%. A few points of food or labour cost often decide whether a site makes money.
6. What qualifications do you need to open a restaurant?
None by law, although many owners take a Level 2 or Level 3 food safety course. To sell alcohol, someone needs a personal licence, which requires an approved licensing qualification.
7. Do I need planning permission to open a restaurant?
In England, not if the premises already sit in Class E, which covers shops, cafés and restaurants. You may still need consent for an extraction flue, outside changes or signs. Hot food takeaways fall outside Class E and need their own planning permission.
8. What insurance do I need to open a restaurant?
Employers’ liability insurance of at least £5 million is a legal requirement once you employ staff. Most owners add public liability, contents and business interruption cover. Landlords often set minimum levels in the lease.
9. How many staff does a new restaurant need?
As a rough guide, a 50-cover casual restaurant needs four or five people in the kitchen and four or five front of house on a busy service, plus a manager. Across a week, part-timers and days off usually take that to 12 to 18 people.
10. When should a new restaurant set up supplier accounts?
Shortlist suppliers 8 to 12 weeks before you open a restaurant and open accounts at 6 to 8 weeks. That leaves time for credit checks, tastings and price files. Place the first orders 3 to 5 days before your soft openings, and ask for full credit terms after about three months of trading.