Opening a Restaurant

How to Open a Restaurant in Idaho

Katherine BoyarskyAuthor

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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.

Toast | BUILT FOR RESTAURANTS

Although it's quite famous for its bumper potato crops, Idaho has a lot to offer foodies and restaurant-goers locally and from across the country. With its capital city nestled in the Rockies and expansive riverfront throughout the state, the great outdoors and healthy appetites go hand in hand.

There are plenty of opportunities for new restaurateurs in this beautiful part of the US, and we want to help you make the most of it. From the first idea to the first service, a restaurant is a complex and demanding endeavor. To give them a helping hand, we created an Idaho-specific guide to follow when opening a restaurant.

Initially, you will need to lay out a business plan and secure financial backing to get the establishment up and running. Like the rest of the states, Idaho has set rules and licensing standards for all food establishments. Food handling, liquor sales, building permits, and business registration are some of the key aspects involved in becoming a fully-fledged restaurant.

Our guide details the key steps any new restaurant owner in Idaho needs to follow, along with several free resources to download. No matter what you're planning to add to the Idaho food scene, let us help you set your new business up for success.

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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.

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Starting a restaurant in Idaho: Step by Step

1. Defining your restaurant concept

Whether your dream is an understated coffee bar, late-night speakeasy, or family-friendly pizzeria, the first challenge may be choosing your best idea. Now is the time to sift through all the 'maybes' to find the 'definitely'.

Use the following series of prompts to whittle down your collection of ideas. Think about the pros and cons of each, and gradually, you will develop a viable, manageable business concept.

  • What types of food will your menu feature? Will you feature a single cuisine or explore a fusion of flavors?

  • Who are your competitors in the area? How will you differentiate your restaurant and attract customers?

  • Who is your target audience? What are their preferences, and how will you appeal to them through your food and dining experience?

  • How many staff members will you need? Will their service style be warm and welcoming or more polished and formal?

  • Are you envisioning a cozy, family-run restaurant or aiming to create a larger franchise or chain?

  • Will your establishment offer full-service dining, takeaway options, or a mix of both?

  • What will the interior of your restaurant look like? Consider color schemes, themes, furniture, and overall ambiance.

If you're stuck for ideas, never fear. You're not the first to get stuck in a creative rut, so feel free to seek inspiration from our collection of restaurant theme ideas.

Once you've finalized a concept, it's time to get creative with naming your restaurant and designing a logo. Consider your values, mission, and the aesthetic that will tie it all together. Picking a logo to represent your restaurant can be a great opportunity to explore your creativity and begin shaping your brand.

2. Developing a business plan

Are you committed to owning an Idaho food business? Now you've got a basic idea and a name for it, it's time to move on to the official business plan. Like any financial venture, having a document that spells out what's going to happen (and who's going to make it possible) is crucial.

Registering your business entity with your state, county, or city is a sensible place to start the plan. You will need to decide what entity your restaurant will be classified as, with several options to choose from: a sole proprietor, a partnership, an LLC, or an S or C corporation. We've written a more specific guide on restaurant business entities to help you understand which type best suits your situation.

Your restaurant will also need to have a crystal-clear structure around ownership and profits. In general terms, most restaurants operate with owners taking on the responsibility of running costs and operational decisions. Employees take home a wage and bonuses when certain profit thresholds are reached.

Your business plan should outline these specifics, as well as the following items. These all have a key role in how your restaurant will run both daily and long-term:

  • Executive summary: Restaurant name plus a brief overview of the business.

  • Company overview: Details of your business model and concept.

  • Industry analysis: Your target market/s, location, and active competitors.

  • Financial analysis: Your investment plan and financial projections, including the break-even point, anticipated cash flow, and estimated costs.

  • Business model and service style: Define how your restaurant will serve customers (e.g. fast food, fine dining, walk-ins only) and what options they have for visiting (e.g., sit-down, takeaway only, pop-up venue).

  • Operations plan: Detail your staffing needs, customer service policies, payroll plan, and which point-of-sale system and vendors you’ll use for supplies.

  • Marketing plan: The strategy you will follow to promote your restaurant and attract customers.

Creating a business plan might seem overwhelming—there are so many options to choose from and decisions to make. However, it will pay off in spades as you continue to build your business and can refer back to the plan to keep your vision on track.

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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.

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3. Financing your restaurant

There are a lot of challenges to tackle in the food industry—one of the most common barriers to entry is the start-up cost. A new restaurant in Idaho will average between $95,000 and $2,000,000. For most new business owners, that's a hefty amount of money to find and spend.  

Fortunately, there are many financial processes available for you to explore. As with any money-related decision, carefully assess what is the best option for your individual situation. Idaho restaurateurs can choose from a range of loan categories:

  • Traditional bank loans

  • SBA loans

  • Merchant cash advances

  • Lines of credit

  • Alternative financing

  • Crowdfunding

  • Support from friends or family

Depending on which path you take, you will have to research and go through a different application process. Each of the listed options will have a different amount limit, collateral requirements, repayment schedule, and time frame for giving you access to the funds.

For more details on these options, check out our guide to restaurant financing and loans.

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Restaurant Opening Calculator

This calculator lays out some of the fundamental financial costs of opening a restaurant, so you can start planning and bring your dream restaurant to life.

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4. Select a location

With over 83,000 square miles to choose from, Idaho is far from crowded when it comes to restaurant real estate. It's also recently been crowned the best state to start a small business in, according to Wallethub's 2024 report. These are both encouraging stats to keep in mind when searching for your restaurant location.

To find the perfect spot, you'll need to research the local area, real estate market, demographics, and industry competition nearby. Once you have found a building, it's just as important to know its space, layout, square footage, and previous usage.

Regulation-wise, constructing or renovating any space may involve permits and reviews from your city or county authorities. Research is your best friend in this stage, so make as many inquiries as you need to learn what acquiring your new restaurant location will involve.

Depending on your concept, you might consider buying a property, leasing a space, or building your restaurant from scratch. These all have their attractions, but with each choice, you'll need to factor in the financial cost and time to make each one a reality.

A final check to run on every contender for this decision is making sure it matches your original concept. If your vision is a family-friendly restaurant - you will need a space that's large, level, and easy to access. A bakery serving takeaway only, on the other hand, may be perfect for a hole-in-the-wall type store.

5. Applying for Idaho Restaurant Licenses and Permits

All restaurants are subject to high regulation standards, given their focus on food and the public. Idaho has its own requirements for securing the licenses and permits needed to open a restaurant. While there may be a lot to organize, rest assured it's just part of the process - we've already done some of the research for you.

Some of the restaurant licenses and permits required by Idaho include:

  1. Employer Identification Number (EIN), linking your business to the IRS. You can find the application on the IRS website, along with all the relevant instructions.

  2. Every Idaho entity must register a business license with the government. You can complete the application using the Idaho Business website, which also provides access to other helpful business-related resources.

  3. When your restaurant is operating, you must have at least one Certified Food Program Manager onsite. Idaho's Health & Welfare website details the state's food safety training guidelines. You will also need to visit your local health district website to complete the relevant applications for food safety permits.

  4. Building permits are required for any renovation or building projects in your restaurant space. You can learn about this permit and application process by visiting Idaho's Division of Occupational and Professional Licenses website. For occupancy permits, you will need to contact your city or county office.

  5. The Idaho State Liquor Division controls all liquor licensing regulations. You can visit the website to find the liquor license application forms or to learn more about Idaho's laws and processes for business permits.

For a more detailed explanation, you can check out our guide to Idaho's permits, license fees, and license costs, available now to all restaurant owners.

6. Creating your menu

This can be one of the most enjoyable parts of creating your restaurant. The menu will be a major factor in a customer's decision to visit your establishment, and a good experience can lead to more coming through the door.

When developing your menu ideas, it's helpful to collaborate with experienced food professionals. You could enlist the help of a chef, a restaurant manager, or a food critic. We've created two guides about menu design and menu engineering, which you can use to help create a memorable range of dishes.

Think about the ingredients you have access to, the budget you've allocated for food, and the process of prepping and presenting each item on the menu. Be prepared to be surprised - your golden ticket item might flop, and a humble home recipe may fly off the counter.

Once the menu is released into the world, work with your team in-house to capture customer feedback. New ideas, small modifications, and honest reviews can help you refine the food and beverage offerings to meet demands.

7. Selecting your systems

In today's digitally oriented world, restaurants have adapted and thrived by investing in quality technology and management systems. There is a wide variety of restaurant technology options available. Set aside time to decide what combination of equipment and gadgets you want to implement in your restaurant's daily routine.

Here's a list of some key systems that new restaurants can benefit from:

Knowing how much time, money, and inventory is going towards different aspects of the restaurant is crucial to future decision-making. Choosing the right array of systems will give your restaurant a more productive, data-driven approach to service.

8. Restaurant hiring and training

A quality restaurant is only as good as the people who show up for it every day. Your staff will be essential to the ongoing operation of your business, from the head chef to the bar backs. Before you start hiring, freshen up your knowledge of Idaho's labor laws, plus any that pertain to your local area.

If this is your first time hiring a food and beverage team, you may be surprised about the range of roles available in a restaurant. You will need people in the kitchen and bar, servers to deliver food and drink, cleaners to maintain the standards of your venue, and other support staff to keep the lights on and the water running.

Reliable and dedicated employees are always a valuable investment for a business. To attract these people, you need to stand out as a desirable and responsible employer. Competitive wages, health insurance, and other meaningful employee benefits will help your job ads stand out.

We recommend these additional Toast resources to assist you in attracting, hiring, and training a quality restaurant team:

When posting your available roles, it's useful to leverage your network, social media channels, and digital job platforms. To better grasp the recruiting process, you can watch our video course on hiring and retaining restaurant employees.

9. Marketing your restaurant

A new restaurant needs someone to talk about how great it is - and who better for the job than you? Rolling out a strong marketing plan will require attention to detail, creativity, and passion for the cause.

By now, you've chosen a name and a logo, so use these to continue developing the restaurant brand. This is everything that people will come to associate with your restaurant. The colors, symbols, and visual representation of what you're offering play a strong role in attracting your ideal customer.

There are many marketing techniques available, and if you're just starting out, why not test a few different strategies? Social media is an evergreen option, as it has many free functions and can reach specific groups of people with carefully chosen keywords and tags.

Email marketing campaigns are another popular choice in the food industry, thanks to their reliable, simple structure. They are a good way to maintain customer relationships over time, keeping them informed of specials, events, or perks for loyal customers.

Regardless of how you choose to promote your restaurant, when it comes to marketing, you need to stay consistent and engage authentically with your audiences. Once they've become positive advocates, they'll spread the word for you!

10. Soft and hard launching

The big day is almost here - but before you launch, holding a soft opening is wise.

For this trial occasion, you can invite some supportive customers—family, friends, and your staff's own network—to the very first service in your restaurant. With a more forgiving audience, you can identify any issues with your systems or training before the grand opening.

After you've nailed down any loose ends, get busy promoting the main event. Post on social media, hand out flyers around the local area, and call on your network to draw a crowd for the big day. Take this opportunity to enjoy your admirable achievement - you've successfully opened a restaurant!

You're open!

And just like that, you've done it. A brand new restaurant with all the bells and whistles, ready to serve customers and satisfaction.

Now that it's finally open, time will fly by as you continue to learn and grow in your role as the owner. 

FAQs

How much does it cost to open a restaurant in Idaho?

The start-up cost of opening a restaurant in Idaho varies depending on your concept. The typical range is between $95,000 and $2 million, which is no small sum for most people. With this in mind, it is highly recommended that small businesses apply for available funding or subsidies.

What permits do I need to sell food in Idaho?

Besides registering your entity with the state and the IRS (for tax purposes), you will also need the following certifications:

  • Building permit - if you're renovating or constructing a space.

  • Liquor license - if you plan to sell alcohol.

  • Certified Food Program Manager - any employee can hold this; at least one must be onsite during every shift.

How much is a food handler's license in Idaho?

Food handler's permits cost up to $10 and can be completed online or in person. A food manager permit is more expensive and requires more extensive training, costing up to $130. Different counties and cities may have designated training providers for these qualifications.

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A free, customizable Restaurant POS Comparison Tool to research and compare point of sale systems in one Excel spreadsheet.

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