You've been dreaming of owning your own restaurant for years and finally you take the plunge. Of course we encourage your decision, because the hospitality industry is a vibrant one. But an unprepared leap into the deep end is not wise. In this article you will read what you need to consider before starting your own restaurant.
Many people dream of opening their own restaurant business. But before opening a restaurant, it is wise to prepare a number of things properly. You need to choose the legal form of your business, register your company with the Chamber of Commerce, apply for permits, take out insurance, and for a proper tax return, proper administration is essential.
A business plan, in which you lay down what kind of restaurant you want to be, who your customers are to be, how you are going to reach those customers, who your competitors are, and how you want to finance your restaurant, forms the basis for your business. Your business plan will help you convince potential financiers to invest in your restaurant, it will also help you keep focus on your goals and ambitions.
Before you open the doors of your restaurant, you need a number of permits. Which ones vary from municipality to municipality, but these are the most important ones:
Operating license
The operating license contains agreements about public order and safety. It also contains information about your restaurant, such as its form and opening hours.
Licence to serve alcoholic beverages
You need a licence to serve alcoholic beverages in your restaurant.
Terrace licence
If you want to serve your restaurant's guests on a terrace, you need a terrace licence.
Environmental licence
Do you have plans to demolish or rebuild your restaurant? Then you may need to apply for an environmental permit.
I am starting a restaurant: what insurance do I need?
In addition to arranging permits, you also need to think about insurance. A number of insurances are necessary:
Business liability insurance
Employees who are injured during working hours or guests who suffer damage while visiting your restaurant can hold you liable. Business liability insurance insures you and your staff against a possible claim for damages.
Goods and inventory insurance
Your restaurant's kitchen contains valuable equipment, your business and patio furniture is worth a lot of money. The value of your inventory may also be considerable. After a fire, water damage or theft, you often do not have the financial resources to replace broken or missing items immediately. Goods and inventory insurance insures the damage.
Business interruption insurance
A damage can lead to greatly reduced income. But your fixed expenses, such as rent, (energy) bills and personnel costs, usually continue as usual. Business interruption insurance provides a payment to compensate for the financial loss after damage.
Buildings insurance or tenants' interest insurance
Is the building in which your restaurant is located your property? A buildings insurance insures you for damage to the premises due to fire and other external calamities. Have you rented premises? The modifications you have made, such as a new floor, kitchen or bar, can be insured via a tenants' interest insurance.
Environmental damage insurance
After a fire, polluted fire extinguishing water can enter the sewage system, harmful substances can be released or remnants of asbestos must be cleaned up. If your restaurant causes environmental pollution, you may be liable for the cleanup costs, which can be high. You can insure the costs with environmental damage insurance.
Sick Leave Insurance
If you employ staff, then a contract with a health and safety service is required by law. You must continue to pay the wages of a sick employee for at least two years. An absenteeism insurance reimburses these wage costs.
We also recommend that you consider the following insurance policies:
Occupational disability insurance
If you become ill, you will not receive any government benefits as a hospitality entrepreneur. With disability insurance you are at least guaranteed an income during your illness.
Glass insurance
Does your restaurant have a lot of glass? An accident, storm damage or vandalism can damage the glass. With glass insurance, you can have the broken glass replaced quickly.
Money Insurance
Customers are increasingly paying their bills by debit card or cell phone. Yet you may still have quite a lot of cash in the till. If you lose money in a fire, theft or robbery, it's nice to have money insurance to pay for the damage.
Computer and Electronics Insurance
In your restaurant, you use a cash register, sound equipment and perhaps a variety of other electronic devices. Damaged equipment can mean (temporary) closure of your restaurant. With computer and electronics insurance, the financial damage remains limited and hopefully you can reopen soon.
Legal Assistance Insurance
As a hospitality entrepreneur you have to deal with staff, guests, suppliers, the municipality and - if you rent your business premises - the landlord. A legal conflict with one of these parties can entail high costs, which you can insure through legal expenses insurance.
Cyberinsurance
Every entrepreneur runs the risk of an attack by cybercriminals. With cyber insurance you insure against the consequences of a digital attack on your reservation system, for example, in which customer data is stolen.
A detailed description of the possible insurances can be found here.