How to Open a Restaurant in Connecticut
Looking to go into the restaurant business in Connecticut?
Katherine BoyarskyAuthor
Opening a Restaurant Checklist
So many things go into opening a restaurant. Use this free PDF checklist to set your new restaurant up for success.
Get free downloadAre you thinking about entering the food business in Connecticut? We've got everything you need to open a restaurant in CT.
There's plenty to think about when getting your new restaurant up and running. For instance, what are the local laws like regarding liquor licenses? And do you need a food safety check or employee health permit from the local health department? Then there's your location, business plan, financing... the list is endless.
That's why we've created this comprehensive step-by-step guide on how to open a restaurant in Connecticut. Learn how to plan effectively to ensure you budget correctly and operate legally in the state of Connecticut.
Opening a Restaurant Checklist
So many things go into opening a restaurant. Use this free PDF checklist to set your new restaurant up for success.
How to Start a Restaurant in Arkansas
1. Choose a Concept
What's the first thing you did when you decided to open a restaurant in Connecticut? Chances are, you dreamed up a cool concept or a delicious menu idea before you thought about the finer details like financing.
The first step on your path to owning and running your own Connecticut restaurant is to settle on a concept. What kind of food will you serve? What will your restaurant's interior design look like? Consider the following things:
Demographics: What kind of people do you want to attract?
Location: What types of restaurants are already in your desired location?
Menu: What food and drink items will you serve?
Size: How big do you want your restaurant to be?
Design: How will you decorate the inside and outside of your establishment?
If you're stuck for inspiration, we have plenty of restaurant design concepts that you can browse at your leisure. The most important rule is to choose something you're proud of and make sure you stick to your themes throughout your planning.
2. Create a Business Plan
Now that you've done the creative brainstorming, it's time to get down to business. Creating your business plan is a vital step on the road to opening a restaurant in Connecticut, as it will help you visualize your establishment, buy the right equipment, plan your marketing strategies accordingly, and hire the correct amount of staff.
At this stage, you should think about your values and mission. Consider what kinds of customers you want to reach and what type of business you want to be. Are you looking to get fast food to the masses? Or are you going to offer a luxury dining experience for high-paying customers?
You also need to consider what kind of business entity you want to operate as because this will help you budget correctly and file the right tax returns. Are you after sole proprietorship or more of an S corporation or C corporation?
Many restaurants operate differently from each other. What's most important is to figure out what works for you and stick with that. You can learn more about the benefits and pitfalls of each business structure in our guide to restaurant business entities.
Restaurant Business Plan Template
No matter where you’re at in your restaurant ownership journey, a business plan will be your north star. Organize your vision and ensure that nothing is overlooked with this free template.
3. Choose Your Location
Your restaurant's location matters a lot more than you think. It will play a huge role in the type of customer you attract, how expensive your property is, and how accessible your establishment is to local residents.
You have three options when you choose a physical location for your restaurant: buying a property outright, renting the space, or building a new establishment from the ground up. You can also go location-free, an ideal business model for food trucks.
Here are some things you must consider when choosing your location:
Customer Demographics
Competition in Your Local Area
Target Market
Real Estate Market Conditions
Property Size and Space
Visibility and Accessibility
Building History and Previous Tenants
Pick a location that can best help you bring your vision to life. For example, a craft beer bar in Hartford will need extra space for brewing and storing beers. Meanwhile, if you want to serve tasty treats and snacks to beach-goers near New Haven, a mobile food truck could do the trick.
Your restaurant's location will also play a huge part in your interior design and layout. If you want to offer wood-fired pizzas from a specialist pizza oven, you'll need the right space and ventilation to do this. Always check with your landlord before knocking down walls and building add-ons.
4. Secure Restaurant Financing
Opening a restaurant in Connecticut can be tough without the right financial backing. Before you go buying any equipment or committing to a property rental, you must find and secure restaurant financing.
It can cost at least $95,000 to start a restaurant in Connecticut. Unless you have that money lying around somewhere, you'll need to either apply for a loan, ask for support from friends and family, or seek other ways of raising funds. Here are some options for restaurant financing:
Bank Loans
SBA Loans
Merchant Cash Advances
Lines of Credit
Crowdfunding
Friends and Family
You may prefer one option over another due to the kind of repayment plan you want or how much money you need. Always check what kind of collateral you need and how quickly you'll receive the funding before you make any financial commitments.
5. Apply for Licenses and Permits
Among the questions to ask yourself when opening a restaurant, one of the most important is: "What licenses and permits are required to open a restaurant in Connecticut?"
Connecticut licensing requirements differ from other states. Some licenses are administered by the state, while others are done on a local (city or county) level. The business licenses you’ll need to open a restaurant in Connecticut include:
Business License: In Connecticut, business licenses are controlled by the city or county you live in. You must get a business license if you want to register any company in Connecticut. You'll need (among other things) a federal Employer Identification Number (EIN), an address, and a thorough business plan.
Certificate of Occupancy: This document is proof that your property is zoned for restaurant operations. It also proves that it's safe to use and up-to-date on inspections. Not every county will require them for new businesses, so always get in touch with your local jurisdiction to determine if your project warrants a certificate of occupancy.
Liquor License Permit: Connecticut state issues liquor licenses. You must get one if you plan on serving any time of alcohol. A liquor license typically costs $1,550 in Connecticut but can rise to $4,100 for outdoor open-air spaces.
Food Handler’s License: This permit will allow your restaurant staff to serve food legally, as it proves handlers can work safely and responsibly. Every employee who prepares or serves food in Connecticut must get their food handler’s license within 30 days of being hired.
Seller’s Permit: This lets a restaurant collect sales tax on their food and drink. There's no fee to apply, but you may be charged a deposit.
Food Facility Health Permit: All new restaurants require a food facility health permit. In Connecticut, health permits are under city and county jurisdiction, so check with your local health department to find out how to apply.
6. Invest in Restaurant Equipment
Now it's time to buy the physical equipment to flesh out your new building. Your equipment shopping list will vary depending on the size of your establishment and the type of food you're serving. For example, you'll need a lot of grills if you're a burger joint and a lot more blenders if you're a juice bar.
Here are some fundamental restaurant equipment you should buy:
Refrigerators
Freezer
Storage Containers
Shelving
Ovens, Grills & Ranges
Knives
Specialist Equipment
Takeout Equipment (Napkins, Wooden Cutlery, etc).
You also want to consider restaurant tech when buying equipment. These days, restaurant guests expect technology during their dining experience. Our Restaurant Technology Report found that 95% of restaurant owners agree that technology improves business efficiency.
This could be something as simple as a modern point-of-sale (POS) system or as complex as restaurant reporting and analytics. If you want to offer takeout to your guests, you should also think about setting up an online ordering system. This restaurant equipment and technology will give your guests an off-premise dining experience that's equally as enjoyable as your in-house dining experience.
7. Develop Your Menu
Now that you've got some of the more boring tasks out of the way, it's time to get creative! Experimenting in the kitchen is many people's favorite part of owning a restaurant, so don't hold back when it comes to flavoring your starters and baking new desserts.
There are two rules to remember when designing your restaurant menu. The first is to stick to your themes throughout. If you're a sports bar, serve sports-related food like chicken wings and burgers. It might look a bit out of place if you're serving whole plates of roast lamb and green beans at a lunch-focussed café! Much like a cake, consistency is key here.
The second consideration is to always provide value for money for your customers. It doesn't matter if you're charging luxury prices for your meals, but you have to make sure the service you provide is worth your fees in the eyes of your customers. Balance your menu prices by charging fair prices that cover your inventory costs.
8. Hire and Train Restaurant Staff
So, you've got your new business license, you've done your inspection with the local health department, you've bought all your equipment and food products... what's next? Hiring a workforce, of course!
Employees are the face of your restaurant. They are the point of contact between your brand and your customers. Every plate they serve and every drink they pour must reflect your values, which means you must hire the right people, whichever restaurant positions you're hiring for.
So, how do you go about hiring the best? You have several options. You may prefer classic methods like online job boards and career sites to reach a wider number of potential candidates, or you might go for other hiring routes like referrals and local advertising.
Before you hire your staff, however, you must make your new restaurant an attractive place to work. Create a thriving and friendly workplace culture or give your staff discounts on food and drink. This will help you become a boss at restaurant recruiting and will also ensure you retain your staff once you've hired them.
9. Create a Marketing Plan
Your restaurant needs a strong marketing plan to get business off the ground. How else will people know that you're open and offering delicious food? Here are some of the various marketing methods you could use for your new restaurant:
Social Media
Word-of-Mouth
Paper Flyers
Ads in the Local Paper
Online Ads
Email Marketing
Unless you're well-connected in the local area, don't rely on word-of-mouth marketing as your primary marketing strategy. Instead, focus on establishing a strong social media presence, as this will be a valuable tool for getting the word out about your business and attracting your chosen demographic.
10. Time for the Grand Opening!
You've created your concept. You've installed your heavy equipment. You've hired and trained an army of new employees. All that's left to do now is open!
But before you showcase your new restaurant to the public, it might be worth hosting a soft opening first for close friends and family. This will help you test out your menu and make sure your employees know what they're doing in terms of preparing food and serving customers.
Invite your chosen guests to dine either for free or for discounted rates on your soft opening, and ask them for their honest feedback at the end. If all goes to plan, you shouldn't have much to change before you invite the general public through your doors!
You could also offer discounts at your grand opening. For example, the first 30 guests through the doors get 30% off, or everyone gets a free drink with their meal for the first week. The grand opening is your chance to showcase what you can offer your local area and is the best way to spread the word about your business.
FAQs
Do I need a license to sell food in CT?
Yes, you'll need a food seller's permit if you want to make money from your food or baked goods in Connecticut. You'll also need a lot more permits if you want to open a restaurant or food establishment, such as a steakhouse or food truck. Health permits and food handler's licenses are needed to sell food in a commercial property.
Is Connecticut a good place to start a restaurant business?
Prospective restaurant owners looking to start a new food business in Connecticut will be pleased to know that the state is considered a great place for new companies.
Does CT have a restaurant tax?
The Connecticut prepared food tax applies to all restaurants and bars that serve food and involves an extra 1% of sales tax on top of the base tax of 6.35% for the state. This means CT's restaurant tax is 7.35%. This applies to both meals prepared post-ordering and pre-prepped meals made to go.
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DISCLAIMER: This information is provided for general informational purposes only, and publication does not constitute an endorsement. Toast does not warrant the accuracy or completeness of any information, text, graphics, links, or other items contained within this content. Toast does not guarantee you will achieve any specific results if you follow any advice herein. It may be advisable for you to consult with a professional such as a lawyer, accountant, or business advisor for advice specific to your situation.
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