A fast food business sells affordable food to customers in as little time as possible. These restaurants provide service by way of drive-thrus as well as traditional sit-down meals. Some customers opt to bring their order with them in a “to go” fashion. This business is quite popular as it provides tasty food in a quick, low-cost manner. Open a fast food business and you will provide people with an affordable means of eating, staying energized, and feeling fulfilled. 카지노사이트
Start a fast food restaurant by following these 10 steps:
Plan your Fast Food Restaurant
Form your Fast Food Restaurant into a Legal Entity
Register your Fast Food Restaurant for Taxes
Open a Business Bank Account & Credit Card
Set up Accounting for your Fast Food Restaurant
Get the Necessary Permits & Licenses for your Fast Food Restaurant
Get Fast Food Restaurant Insurance
Define your Fast Food Restaurant Brand
Create your Fast Food Restaurant Website
Set up your Business Phone System
There is more to starting a business than just registering it with the state. We have put together this simple guide to starting your fast food restaurant. These steps will ensure that your new business is well planned out, registered properly and legally compliant.
STEP 1: Plan your business
A clear plan is essential for success as an entrepreneur. It will help you map out the specifics of your business and discover some unknowns. A few important topics to consider are:
What are the startup and ongoing costs?
Who is your target market?
How much can you charge customers?
What will you name your business?
Luckily we have done a lot of this research for you.
What are the costs involved in opening a fast food restaurant?
This business requires the physical restaurant itself, cooking equipment, food/ingredients, labor, insurance and marketing. Building a restaurant can cost upwards of $100,000 or more. The cost of cooking equipment and ingredients will likely be several thousand dollars if not tens of thousands of dollars. 안전한카지노사이트
What are the ongoing expenses for a fast food restaurant?
This business requires laborers, marketing, insurance, cooking equipment, monthly rent, and utilities. Laborers who take customer orders, cook food, serve meals, and clean the facility usually earn $7 to $10 per hour. Fast food restaurant managers earn between $25,000 and $55,000 per year. Accountants and marketing professionals earn a yearly salary in the range of $35,000 to $60,000. Budget several hundred dollars or more per month for utilities. Plan on spending $500 to $1,000 or more per month to market your fast foo restaurant. Cooking equipment and ingredients will cost several thousand dollars per month. Most fast food restaurant owners own their facility. Yet there might be a monthly loan payment. Budget $1,000 to $2,000 or more for the monthly loan/rent payment.
Who is the target market?
The target market is busy individuals who do not have the time or energy to cook meals. Youngsters and those who earn low wages are also target customers due to the comparably low cost of fast food.
How does a fast food restaurant make money?
This business makes money by selling food and drinks to customers.
How much can you charge customers?
Customers should be charged anywhere from a few dollars to $10 for the typical order. Fast food restaurants typically charge a dollar or two for a beverage and around $5 for the average food order.
How much profit can a fast food restaurant make?
This business can rake in plenty of money. A single fast food restaurant can generate $50,000 to $100,000 or more per year. Open additional locations and it is possible to earn millions of dollars per year.
How can you make your business more profitable?
Add additional drive-thru lanes to accommodate additional customers. It is also possible for fast food restaurants to provide catering services for local businesses, organizations and events. Do not throw out old cooking equipment. Sell it to other restaurants and reinvest the proceeds in new equipment and improvements for your fast food restaurant. 카지노사이트 추천
What will you name your business?
Choosing the right name is important and challenging. If you don’t already have a name in mind, visit our How to Name a Business guide or get help brainstorming a name with our Fast Food Restaurant Name Generator
If you operate a sole proprietorship, you might want to operate under a business name other than your own name. Visit our DBA guide to learn more.
STEP 2: Form a legal entity
The most common business structure types are the sole proprietorship, partnership, limited liability company (LLC), and corporation.
Establishing a legal business entity such as an LLC or corporation protects you from being held personally liable if your fast food restaurant is sued.
You can form an LLC yourself and pay only the minimal state LLC costs or hire one of the Best LLC Services for a small, additional fee.
STEP 3: Register for taxes
You will need to register for a variety of state and federal taxes before you can open for business.
In order to register for taxes you will need to apply for an EIN. It’s really easy and free!
Learn how to get an EIN in our What is an EIN guide or find your existing EIN using our EIN lookup guide.
Small Business Taxes
Depending on which business structure you choose, you might have different options for how your business will be taxed. For example, some LLCs could benefit from being taxed as an S corporation (S corp).
You can learn more about small business taxes in these guides:
LLC Taxes
Sole Proprietorship vs LLC
LLC vs Corporation
LLC vs S Corp
How to Start an S Corp
S Corp vs C Corp
There are specific state taxes that might apply to your business. Learn more about state sales tax and franchise taxes in our state sales tax guides.
STEP 4: Open a business bank account & credit card
Using dedicated business banking and credit accounts is essential for personal asset protection.
When your personal and business accounts are mixed, your personal assets (your home, car, and other valuables) are at risk in the event your business is sued. In business law, this is referred to as piercing your corporate veil.
Additionally, learning how to build business credit can help you get credit cards and other financing in your business’s name (instead of yours), better interest rates, higher lines of credit, and more.
Open a business bank account
Besides being a requirement when applying for business loans, opening a business bank account:
Separates your personal assets from your company’s assets, which is necessary for personal asset protection.
Makes accounting and tax filing easier.
Open net 30 accounts
Net 30 accounts are used to establish and build business credit as well as increase business cash flow. With a net 30 account, businesses buy goods and repay the full balance within a 30-day term.
NetMany net 30 credit vendors report to the major business credit bureaus (Dun & Bradstreet, Experian Business, and Equifax Business Credit). This is how businesses build business credit so they can qualify for credit cards and other lines of credit.
Get a business credit card
Getting a business credit card helps you:
Separate personal and business expenses by putting your business’ expenses all in one place.
Build your company’s credit history, which can be useful to raise money later on.
STEP 5: Set up business accounting
Recording your various expenses and sources of income is critical to understanding the financial performance of your business. Keeping accurate and detailed accounts also greatly simplifies your annual tax filing.
Make LLC accounting easy with our LLC Expenses Cheat Sheet.
STEP 6: Obtain necessary permits and licenses
Failure to acquire necessary permits and licenses can result in hefty fines, or even cause your business to be shut down.
Federal Business Licensing Requirements
There are federal regulations regarding what can and cannot be added to, sold as, and processed with food. Attached is a resource from the Food and Drug Administration detailing the process of starting a food business: How to Start a Food Business
State & Local Business Licensing Requirements
Certain state permits and licenses may be needed to operate a fast food business. Learn more about licensing requirements in your state by visiting SBA’s reference to state licenses and permits.
For information about local licenses and permits:
Check with your town, city or county clerk’s office
Get assistance from one of the local associations listed in US Small Business Associations directory of local business resources.
Certificate of Occupancy
A fast food business is generally run out of a storefront. Businesses operating out of a physical location typically require a Certificate of Occupancy (CO). A CO confirms that all building codes, zoning laws and government regulations have been met.
If you plan to lease a location:
It is generally the landlord’s responsibility to obtain a CO.
Before leasing, confirm that your landlord has or can obtain a valid CO that is applicable to a fast food business.
After a major renovation, a new CO often needs to be issued. If your place of business will be renovated before opening, it is recommended to include language in your lease agreement stating that lease payments will not commence until a valid CO is issued.
If you plan to purchase or build a location:
You will be responsible for obtaining a valid CO from a local government authority.
Review all building codes and zoning requirements for your business’ location to ensure your fast food business will be in compliance and able to obtain a CO.
Food Regulations
When selling food, you will need licensing from a local health department; all establishments serving food are required to pass a health inspection. Tips for faring well on a health inspections
STEP 7: Get business insurance
Just as with licenses and permits, your business needs insurance in order to operate safely and lawfully. Business Insurance protects your company’s financial wellbeing in the event of a covered loss.
There are several types of insurance policies created for different types of businesses with different risks. If you’re unsure of the types of risks that your business may face, begin with General Liability Insurance. This is the most common coverage that small businesses need, so it’s a great place to start for your business.
Another notable insurance policy that many businesses need is Workers’ Compensation Insurance. If your business will have employees, it’s a good chance that your state will require you to carry Workers’ Compensation Coverage.
STEP 8: Define your brand
Your brand is what your company stands for, as well as how your business is perceived by the public. A strong brand will help your business stand out from competitors.
If you already have a logo, you can also add it to a QR code with our Free QR Code Generator. Choose from 13 QR code types to create a code for your business cards and publications, or to help spread awareness for your new website.
How to promote & market a fast food restaurant
Promote the business through a wide variety of local channels. Increase awareness of your fast food restaurant through advertisements on billboards, in local newspapers, on the radio, TV, and beyond. Consider offering coupons in the local newspaper to encourage people to give your fast food restaurant a try. Consider giving away a free toy with offerings geared toward children. Sponsoring local events and sports teams to present your fast food restaurant and brand in a positive light will also help. You can also sponsor local contests, giveaways, and other promotions to increase your brand’s exposure.
How to keep customers coming back
The speed at which food is prepared, cooked, and served is the most important factor. Offer one or several drive-thru lanes so customers do not have to park their vehicles and walk inside to place their order. Keep your prices competitive with those offered at other local fast food chains.
STEP 9: Create your business website
After defining your brand and creating your logo the next step is to create a website for your business.
While creating a website is an essential step, some may fear that it’s out of their reach because they don’t have any website-building experience. While this may have been a reasonable fear back in 2015, web technology has seen huge advancements in the past few years that makes the lives of small business owners much simpler.
Here are the main reasons why you shouldn’t delay building your website:
All legitimate businesses have websites – full stop. The size or industry of your business does not matter when it comes to getting your business online.
Social media accounts like Facebook pages or LinkedIn business profiles are not a replacement for a business website that you own.
Website builder tools like the GoDaddy Website Builder have made creating a basic website extremely simple. You don’t need to hire a web developer or designer to create a website that you can be proud of.
Using our website building guides, the process will be simple and painless and shouldn’t take you any longer than 2-3 hours to complete.
Other popular website builders are: WordPress, WIX, Weebly, Squarespace, and Shopify.
STEP 10: Set up your business phone system
Getting a phone set up for your business is one of the best ways to help keep your personal life and business life separate and private. That’s not the only benefit; it also helps you make your business more automated, gives your business legitimacy, and makes it easier for potential customers to find and contact you.
There are many services available to entrepreneurs who want to set up a business phone system. We’ve reviewed the top companies and rated them based on price, features, and ease of use. Check out our review of the Best Business Phone Systems 2022 to find the best phone service for your small business.