Last updated on 11/06/2024
Opening a restaurant is the dream of many aspiring entrepreneurs in Ireland. When managed correctly, they can be profitable and fulfilling ventures, allowing you to connect with your community and enjoy financial success. Whether embracing a traditional restaurant experience or experimenting with new food trends, there are countless ways to make your dream a reality. Nevertheless, starting a restaurant requires careful planning and thoughtful execution. We've created a step-by-step guide walking you through the restaurant startup process so that you can position your new business for success.
A restaurant concept is the central idea or theme that defines your restaurant. It serves as the foundation for what your business will be and should be reflected in every aspect of your restaurant, from the decor to the menu to the overall ambiance. A clear concept allows you to develop your restaurant’s brand and identity, create a unique selling proposition, and differentiate yourself from competitors.
Your restaurant name, logo, menu design, and merchandise must reflect your concept and present a cohesive image. When customers see your logo or visit your website, they should immediately understand what your restaurant is all about. Additionally, your concept should align with the preferences and expectations of your target demographic.
Common restaurant concepts include:
Mr. Fox in Dublin, a client of Caterboss, is a prime example of a restaurant that has successfully established a strong and unique concept. Located on Parnell Square West, Mr. Fox offers a contemporary dining experience with a focus on creative, seasonal cuisine. The restaurant's concept revolves around a modern, yet cozy atmosphere, paired with an inventive menu that emphasizes local and seasonal ingredients. The decor is stylish and understated, enhancing the dining experience without overshadowing the food. Mr. Fox's clear and cohesive concept has helped it stand out in Dublin's competitive dining scene (Mr. Fox) (Eat App for Business ).
The Fish Wife in Cork has embraced a unique and highly successful concept by focusing on high-quality, fresh seafood presented in a casual, friendly setting. Located at the Marina Market, this restaurant combines the relaxed vibe of a fish market with top-notch culinary expertise. The Fish Wife’s branding, menu design, and decor all reflect its commitment to fresh, local seafood and a laid-back dining experience. This concept has resonated well with both locals and tourists, making it a popular spot in Cork (Irish Pub Concept).
These examples from Dublin and Cork illustrate how a well-defined concept can help a restaurant establish its identity and attract a loyal customer base.
Market research is crucial for ensuring your restaurant concept will attract customers and thrive. In Ireland, it's estimated that 30% of restaurants fail in their first year and 50% within five years, underscoring the importance of thorough planning. To conduct effective market research, start by defining what type of restaurant you want to open. Consider whether there’s a market for this type of food business by researching similar establishments in towns of comparable size.
Questions to guide your market research:
Consider also new trends, like Asian fusion cuisine or health-focused eateries such as smoothie bars. Identifying the number of potential customers is essential, and you may need help from an enterprise professional. Useful resources include the Central Statistics Office (CSO) and Local Enterprise Support Agencies.
A comprehensive business plan outlines your vision and how you'll achieve it. It’s a valuable tool for securing investors and guiding your startup process. Key sections of a business plan include:
Before you start counting up those stacks, you may need to borrow some stacks! Securing funding is often one of the biggest hurdles when opening a restaurant. Many entrepreneurs need financial assistance to cover startup costs. Estimating total startup costs—including license and permit fees, equipment costs, building renovations, and staff salaries—is essential before seeking funding. 
Conventional finance methods are not generally an option for new start-ups that are less than a year old and do not have any trading history. However, there are several alternative funding options available in Ireland:
Microfinance Ireland
Microfinance Ireland offers loans of up to €25,000 to small businesses, even if they have been declined by banks. This is a great option for start-ups needing initial capital without an extensive trading history.
Local Enterprise Offices (LEOs)
LEOs provide financial assistance through grants and vouchers, in addition to offering business advice and support. They can be a valuable resource for new businesses looking to get off the ground.
Crowdfunding
Platforms like Fundit and Kickstarter can help raise money from individuals who believe in your project. Crowdfunding allows you to reach a broad audience and gather smaller contributions that add up to substantial funding.
Private Investors
Independent investors or companies might fund your restaurant in exchange for a percentage ownership stake. This can be a viable option if you can present a compelling business plan and vision. Consider networking through local business groups or events to find potential investors.
Caterboss Credit Facility
At Caterboss, we strive to support new food businesses in Ireland at every opportunity. Recognising the challenges new startups face in accessing conventional finance methods, we offer a unique credit facility. Our payment plan, designed specifically for new food business setups, provides flexible financing options to ease the burden of initial capital requirements.
60/40 Payment Plan
This plan allows new food startups to stretch their investment cash further and use the profits from their initial operations to pay off the balance. It eases the financial burden and provides a manageable way to access the necessary equipment and services to get up and running.
Benefits of the Caterboss Credit Facility
By offering this facility, Caterboss ensures that new food businesses have the support they need to succeed, helping to create a thriving food and hospitality sector in Ireland.
If you're interested in learning more about our credit facility or want to discuss your specific needs, please contact one of our team or fill in our Credit Application form.
A menu is the highlight of a restaurant and the main factor influencing a customer's dining experience. Therefore, it is crucial to carefully curate a menu that matches your restaurant concept and reflects the experience you want to give your guests. Creating a menu goes beyond just listing the dishes you plan to serve. Your menu also dictates what kind of equipment you'll need, what kinds of skills to look for in staff, and the type of customers you'll attract. As you craft your menu, there are several factors to take into account:
styles and sizes.
Finding the right commercial space is critical to your restaurant’s success. Whether you build a new facility or lease an existing one, the location and type of space you choose will significantly impact your business. Here are some factors to consider:
Local Enterprise Offices provide databases of available premises and other resources to help you find a suitable location.
Your restaurant's layout can have a profound impact on a customer's dining experience. A well-designed layout enhances service flow, creates a comfortable atmosphere, and can even influence customer perception of food quality. When planning your layout, focus on both the front-of-house and back-of-house areas.
The front-of-house includes the dining area, bar, lobby, and restrooms. Key considerations:
The back-of-house includes the kitchen, storage areas, and employee workspaces. Key considerations:
Operating a restaurant in Ireland requires obtaining various permits and licenses from local authorities. Here are the essential permits and licenses you will need:
Food Business Registration
Register your restaurant with the Health Service Executive (HSE) Environmental Health Office to ensure it meets health and safety standards and follows proper food hygiene practices.
Employer Registration Number (ERN)
Any employer in Ireland who pays wages exceeding €40 per month to an employee must register with the Revenue Commissioners within 9 days of the first payment. This applies to individuals, partnerships, and companies. Most employers must register electronically through the Revenue On-Line Service (ROS). Non-resident entities should use Form TR1, TR2, or Form PREM Reg if already registered for tax in Ireland. Once registered, employers receive a unique Employer Registration number. Any changes in the employer's name or address must be reported to the Revenue Commissioners.
Music Licence
To legally play music in your restaurant, including live performances, CDs, or streaming services, you need a music licence to avoid copyright infringement. According to IMRO.ie, penalties for playing copyrighted music without a licence can be severe, with fines up to €127,000 or imprisonment.
VAT (Value-Added Tax)
Register for VAT if your taxable turnover exceeds the VAT registration threshold of €40,000 for Restaurants.
Planning Permission
Planning permission ensures your premises are suitable for the intended use and comply with zoning and building regulations.
Alcohol Licence
If you plan to serve alcohol, you will need an alcohol licence from the National Excise Licence Office.
Consult your local Health Service Executive (HSE) for specific requirements and to ensure compliance.
Investing in the right equipment ensures your kitchen operates efficiently. Depending on your budget, there are several options:
Purchase New Equipment
Lease Equipment
Purchasing new equipment offers peace of mind with reliability and warranty coverage. Warranties typically cover repairs and maintenance for a certain period, reducing unexpected costs. New equipment often features the latest technology, improving efficiency and energy savings. This option suits businesses with a solid initial budget and a focus on long-term investment.
Leasing equipment allows businesses to preserve working capital and maintain flexibility. This option is beneficial for those who need to upgrade equipment frequently or adapt to changing business needs. Leasing companies often provide maintenance services, reducing the burden of repair costs. However, be aware of the cumulative cost over time, as leasing can be more expensive than purchasing in the long run.
Choosing the right equipment option depends on your financial situation, business model, and long-term goals. Consider the pros and cons of each method to make an informed decision that supports your restaurant's success.
Essential equipment includes refrigerators, ranges, ovens, fryers, grills, and worktables
Building a strong team is crucial for your restaurant’s success. Focus on creating a positive work culture and providing training and incentives to maintain high employee morale and retention. Key positions include:
Getting the word out about your restaurant is key to attracting customers. Effective advertising strategies include:
A soft opening is a practice run to prepare for your grand opening. Invite a limited number of guests, such as friends, family, or local businesses. Soft opening strategies include:
Starting a restaurant can be a stressful and confusing process, but with careful planning and execution, you can lay a solid foundation for success. By following the steps outlined above and leveraging local resources like the Local Enterprise Offices, you can navigate the challenges and bring your restaurant vision to life.
