How Do You Start a Restaurant: The Commercial Development Process
Define the Concept and Business Model
The initial stage of starting a restaurant involves defining the operational model. Whether it is a quick-service restaurant (QSR), a full-service fine dining establishment, or a franchise expansion, the model dictates every physical requirement of the building. Business owners must finalize the menu and projected guest volume, as these variables determine the necessary size of the kitchen, the capacity of the HVAC system, and the overall footprint of the space.
Conduct a Feasibility Study and Site Selection
Selecting the right location is more than a marketing decision; it is a technical one. Many operators look for existing restaurant spaces to minimize costs through tenant improvements. However, if the previous tenant was not a food service business, the costs to install grease traps, venting, and increased electrical loads can be significant. In Western markets like Idaho or Washington, site selection must also account for local zoning laws and setbacks that might limit outdoor seating or parking capabilities.
Assemble Your Design-Build Team
One of the most efficient ways to start a restaurant is through the design-build construction delivery method. Rather than hiring an architect and a general contractor separately, design-build aligns both under one contract. This approach allows for more accurate budgeting and faster lead times. Because restaurant builds are highly technical, having the builder involved during the design phase ensures that the commercial kitchen remains functional and compliant with safety codes from the first draft.
Navigate Permitting and Regulatory Approvals
Permitting is often the longest phase of starting a restaurant. In states like California, environmental regulations and health department requirements are stringent. You will generally need to submit plans for several different approvals, including:
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Building permits for structural changes.
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Health Department permits for food safety and sanitation.
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Fire Marshal reviews for occupancy and sprinkler systems.
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Utility permits for gas, water, and specialized grease interceptors.
Design for Kitchen Efficiency and Flow
The kitchen is the heart of the restaurant, and its layout should prioritize the "work triangle" to minimize staff movement. Professional restaurant construction requires careful placement of floor drains, specialized plumbing for dishwashing stations, and heavy-duty electrical outlets for walk-in coolers and ovens. Efficient exhaust hoods are critical to managing heat and air quality, especially in regions with extreme temperature fluctuations like Montana or Arizona.
Manage the Construction and Build-Out Phase
Once permits are secured, construction begins with demolition (if applicable) and the installation of underground utilities. This is followed by framing, mechanical, electrical, and plumbing (MEP) rough-ins. Coordination during this phase is vital to ensure that plumbing lines match the specific requirements of kitchen equipment that may have long lead times for delivery. Interior finishes, including lighting, flooring, and cabinetry, are completed in the final stages to protect them from construction debris.
Equipment Installation and Final Inspections
As the build-out nears completion, commercial-grade equipment is installed. This includes everything from prep tables to sophisticated point-of-sale systems. Before opening to the public, the restaurant must pass a final series of inspections. The health department will verify that refrigeration reaches the correct temperatures and that all surfaces are non-porous and easy to sanitize. Finally, a Certificate of Occupancy is issued by the local municipality.
Frequently Asked Questions
How much does it cost to build a restaurant from scratch?
Costs typically range from $200 to $600 per square foot depending on the location, the level of finishes, and the complexity of the kitchen equipment. High-end kitchens and custom millwork in metropolitan areas will sit at the higher end of that range.
How long does the restaurant construction process take?
From the start of design to the grand opening, the process typically takes 6 to 12 months. This timeline can be influenced by the speed of local permitting offices and the availability of specialized materials or kitchen appliances.
Can I convert a retail space into a restaurant?
Yes, but it requires significant mechanical and plumbing upgrades. You will need to install a grease trap, specialized venting for stoves, and likely upgrade the electrical panel to handle commercial refrigeration and cooking equipment.
Do I need a general contractor who specializes in restaurants?
Specialization is highly recommended. Restaurant construction involves unique codes regarding health, safety, and fire prevention that are not typically found in standard office or retail builds. An experienced contractor can prevent costly delays in the inspection phase.
Talk to Frans Construction
If you are planning to start a restaurant in the Western US, partnering with an experienced general contractor is the best way to ensure your project stays on schedule and within budget. Frans Construction has decades of experience managing complex restaurant build-outs and franchise expansions across Idaho, California, and the surrounding regions. Visit our contact page to discuss your project with our team.
Where we help operators open restaurants
Commercial development for a new restaurant is a location game. Frans Construction runs preconstruction, permitting, and full buildout across the Western U.S. — start with our Washington restaurant construction team for Seattle and Puget Sound work, or the California team for statewide coverage from LA to the Bay Area.
Related services & where we build
Once your concept, site, and financing are locked in, the fastest path to opening is a single accountable team. See our restaurant construction company services and our design-build commercial construction services for how we deliver ground-up restaurants under one contract and one GMP.
We open restaurants across California, Arizona, Nevada, and Colorado.
People also ask
How much does it cost to open a new restaurant?[ + ]
Ground-up and second-generation restaurant openings typically range from $250,000 for a small QSR conversion up to $2.5M+ for a full-service concept with heavy kitchen and bar scope. Construction is usually 55–70% of the total; FF&E, small wares, licensing, and pre-opening labor cover the rest.
How long does it take to open a new restaurant?[ + ]
From lease signature to opening night, budget 9–14 months for a first-generation restaurant space and 5–9 months for a well-scoped second-generation conversion. Design and permitting drive the front end; long-lead kitchen equipment and health-department sign-off drive the back end.
Should I sign a lease before finalizing design?[ + ]
Sign a letter of intent, then run a preconstruction feasibility pass — MEP capacity, exhaust and grease routing, ADA path of travel, and permit outlook — before signing the lease. Landlords will negotiate on delivery conditions and TI allowance if you show up with real construction numbers.
How much tenant improvement allowance should I ask for?[ + ]
In a typical restaurant deal, landlords contribute $30–$100 per square foot as tenant improvement allowance, with more on longer-term leases and stronger operators. A design-build GC can pull together a preliminary construction budget you can use to negotiate the number before you sign.
What permits do I need to open a restaurant?[ + ]
Building, mechanical, electrical, plumbing, health department, fire marshal, and business/liquor licensing at minimum. Grease-interceptor and hood systems trigger separate reviews. Timelines vary wildly by jurisdiction — Los Angeles and San Francisco run long, while many Front Range and Treasure Valley cities move faster.
Design-build or design-bid-build for a new restaurant?[ + ]
Most first-time restaurant operators are better served by design-build: one contract, faster schedule, aligned kitchen and MEP, and construction pricing inside the design process. Design-bid-build makes more sense when the owner has an experienced project manager and wants maximum control over each contract.