How to Start a Restaurant Business in Australia 2025

Are you someone with a ton of experience in the hospitality business or just a newbie with a love for culinary art? If you’re reading this blog, no matter which group you fall into, you’re likely considering starting a restaurant in Australia. 

Setting up a restaurant in Australia can be a very thrilling venture, especially considering the state hospitality industry and the opportunities it presents. In 2022, food services in Australia generated over 58 billion Australian dollars in revenue. To succeed, however, careful planning and understanding of the essential steps are crucial for success.

To get you started, we have compiled a comprehensive guide on how to start a restaurant business in Australia. This blog will be incorporating valuable insights from various sources to help you navigate through the process effectively. So without further ado, let’s get started!

Steps to Open a Restaurant in Australia: A Complete Checklist 

1. Gain Industry Experience or Education

2. Perform a Detailed Market Research

3. Develop a Comprehensive Restaurant Business Plan

4. Choose the Right Restaurant Location

5. Obtain the Necessary Licences and Permits

6. Design the Interior

7. Hire the Right Staff

8. Equip the Kitchen and Source Reliable Suppliers

9. Set up a Restaurant Management Software

10. Implement Effective Marketing Strategies

A Guide On How to Open a Restaurant Business from Scratch

Gain Industry Experience or Education

Before embarking on your restaurant business journey, it's crucial to have at least some experience in the hospitality industry. This can provide valuable insights into how a restaurant business normally works. 

Moreover, be familiar with the business operations, the role of customer service and the best practices in the industry. Australian educational institutions offer multiple different educational courses to choose from. Or, you can just work in the industry for a couple of years and can gain all the valuable insights. 

Perform a Detailed Market Research

Understanding the market that you’re going to cater to is very crucial. It’s like finding out whether what you’re bringing to the table is of any value to those sitting at the table. 

If you fail to understand the market’s demands and just stick to your guts when starting your restaurant, there’s a huge chance it might end up as a failure. So, make sure you’re doing proper research on the location, the people, their food habits, trends and more. 

Develop a Comprehensive Restaurant Business Plan

Once you know what you need to build from your market research, it’s time to start preparing a well-crafted business plan. This is the foundation of any successful restaurant. Use the insights from your market analysis and encompass operations, finances, and marketing strategies. 

Make sure you have a proper budget plan and financing options. You can do things such as equipment finance, bank loans, or unsecured business loans to ensure adequate funding.

Choose the Right Restaurant Location

After devising a business plan, it’s time to select the right location for your restaurant. Consider factors such as zoning regulations, target market, competition, visibility, and traffic. 

Also, make sure to choose a location that has enough foot traffic as well. Evaluate the neighbourhood and community preferences and find a suitable venue that aligns with your restaurant’s business plan.

Obtain the Necessary Licences and Permits

Based on your specific location, there are certain requirements to be fulfilled to start a business in Australia. This typically includes obtaining business, food, and liquor licences. Additionally, be aware of food safety regulations to ensure compliance. Be thorough with this step of the process as one small misstep could lead to a range of problems down the line. 

If you're building your restaurant from scratch or taking over an established one, remember to register it as a food business. Many councils require registration before the first brick is laid. 

Check with your local authority to ensure your business aligns with its zoning plans. And if you’re renovating, let the local council know about your plans and get the green light for any changes you want to make

Design the Interior of your Restaurant

Once you have the necessary licenses and permits, start building your restaurant to reflect what your brand will be known for. Design an inviting interior that creates a memorable dining experience for customers. 
Make sure every corner is well-lit, offers comfort, and feels like home for your customers. Remember that a great atmosphere adds taste to your already awesome food. 

Hire the Right Staff

Once your restaurant’s building is ready, start building a strong team. After all, a stable business relies pretty heavily on its employees’ shoulders. Hire hospitality staff who possess the necessary skills and are aligned with your restaurant's values. 

Make sure you are complying with all the regulations of your state regarding human resource management. This includes the pay scale, work environment, diversability, etc.

Equip the Kitchen and Source Reliable Suppliers

A kitchen needs quality equipment like dishes, chopping boards, stoves and more. Don’t be shy when investing in quality kitchen appliances and equipment. Also, establish connections with reliable food and beverage suppliers to acquire quality supplies on a regular basis. 

In today’s digital age, people are used to getting their food needs delivered to their doorstep. So, it’s important to embrace food delivery services to cater to changing customer preferences and expand your reach.

Set up a Restaurant Management Software

A restaurant management software is a point-of-sale system designed specifically for restaurants. It allows restaurant owners to manage orders, accept payments, track all transactions, and send orders directly to the kitchen. 

Moreover, it can manage inventory, schedule works for employees and provide gift vouchers to customers from one single app. 

A perfect example of this is the POSApt Restaurant POS System. It can not only streamline all your business operations but also reduces errors, offers faster transactions, and provides real-time reporting.

Implement Effective Marketing Strategies

And finally, do a bit of marketing. Firstly, get a website to be visible when searched online and integrate an online ordering app. Showcase captivating food images and maintain an active presence on social media platforms.

Engage with online reviews and prioritise customer feedback to enhance your restaurant's reputation. Effective marketing efforts are essential to successfully start a restaurant business in Australia.

How Much Does it Cost to Open a Restaurant in Australia?

Depending on multiple factors, the cost to open a restaurant in Australia ranges anywhere between $200k - $500k. The variable cost is based on the size of the restaurant, type of restaurant, location, etc. As per restaurant startup and Growth Magazine, the average money restaurant owners spend to open a restaurant is $650,000. 

Start your Entrepreneurial Journey with a Restaurant Business

Turn your passion project of starting a restaurant business into a successful venture by following the above-mentioned steps. It can be intimidating to take the first step, but once you’ve made up your mind, everything else follows through. 

Just remember that it can take time and effort to get your restaurant to success. And challenges may arise, but with dedication and proper planning, your restaurant business can thrive in the Australian hospitality industry.