Solutions

Step-by-step guide to opening a new restaurant in Tennessee.

Use this list as a checklist to plan your new restaurant in the state of Tennessee.

Step 1: Develop a Business Plan
  • Define your restaurant concept (cuisine, style, target audience).
  • Conduct market research to analyze competition and demand.
  • Determine start-up costs, pricing, and financial projections.
  • Create an operational plan, including staffing and suppliers.
  • Use the SBA’s Business Plan template as a helpful starting point
Step 2: Choose a Legal Structure and Register Your Business
  • Select a business entity (Sole Proprietorship, LLC, Corporation, etc.).
  • Register your business name with the Tennessee Secretary of State here.
  • Obtain an Employer Identification Number (EIN) from the IRS.
  • Register for state and local taxes with the Tennessee Department of Revenue.
Step 3: Secure Financing
  • Explore funding options: personal savings, bank loans, SBA loans, or investors.
  • Prepare a financial plan to present to lenders or investors.
  • Apply for business credit if necessary.
Step 4: Find a Location and Obtain a Lease
  • Choose a location that aligns with your target market.
  • Ensure the property is zoned for restaurant use.
  • Negotiate lease terms and obtain necessary occupancy permits.
Step 5: Obtain Necessary Permits and Licenses
  • Business License: Apply with the city or county clerk.
  • Food Service Permit: Required from the Tennessee Department of Health.
  • Alcohol License: If serving alcohol, apply for a liquor license through the Tennessee Alcoholic Beverage Commission.
  • Building and Fire Safety Permits: Obtain from local authorities.
  • Music Licensing: If playing copyrighted music, get a license from ASCAP, BMI, or SESAC.
Step 6: Design and Set Up Your Restaurant
  • Hire an architect or designer for layout and branding.
  • Purchase kitchen equipment, furniture, and décor.
  • Set up a point-of-sale (POS) system.
  • Ensure compliance with ADA accessibility requirements.
Step 7: Choose a POS System to Run your restaurant
  • Choose a POS system that works well for your type of restaurant
  • Consider factors like ease of use for your servers, local support, and scalability
  • Make sure it has the right tools for your business – like online ordering, customer loyalty, the ability to easily split checks, and more
  • Aloha POS is a good option to consider, with local support for restaurants all over Tennessee
Step 8: Hire and Train Staff
  • Recruit chefs, servers, bartenders, and management.
  • Conduct background checks and verify certifications.
  • Train employees on health, safety, and customer service standards.
Step 9: Pass Health and Safety Inspections
  • Schedule an inspection with the Tennessee Department of Health.
  • Implement food safety and sanitation protocols.
  • Obtain a health department approval before opening.
Step 10: Develop a Marketing and Promotion Strategy
  • Create a website and establish social media presence.
  • Plan a grand opening event.
  • Partner with food delivery services and online directories.
  • Utilize local advertising and public relations.
Step 11: Open and Operate Successfully
  • Conduct a soft opening to test operations.
  • Monitor customer feedback and make necessary improvements.
  • Maintain compliance with all regulations and renew licenses as needed.
  • Focus on excellent service and customer retention.

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