Opening a Restaurant

How to Open a Restaurant in Montana

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

Are you preparing to open a restaurant in Montana? To support people new to the food establishment industry, we have compiled a user-friendly, Montana-specific guide to follow when opening a restaurant. Any new business is a huge undertaking, from the first idea to the first sale, and there are many moving parts to contend with.

Creating a water-tight plan for your business and ensuring you have adequate financial backing are high priorities in this process. Once these steps have been completed, you can move on to the detail-heavy paperwork of restaurant licenses, permits, and certifications. 

Compliance with state and local regulations is a non-negotiable part of owning and operating any food establishment. Whether your dream is an understated coffee bar, late-night speakeasy, or family-friendly eatery, you need to get your permits and licenses in order. 

Montana is like any state, with its own set of regulations and legal rulings regarding food safety, liquor sales, business registration, and many other aspects of operating a successful food venue. Educating yourself thoroughly on what is expected and required of any restaurant owner operating in Montana is important.

We have covered all the steps a hopeful Montana restaurateur will need to follow — whether you’re opening a fine dining experience in Billings, a steakhouse in Great Falls, or an ice cream parlor in Whitefish.

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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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How to start a restaurant in Montana

1. Choosing your restaurant concept

What sort of restaurant have you been envisioning? Now is the time to sift through all the good ideas to find the great one. The following questions can be a helpful series of prompts to bring your concept out of thin air into a realistic, concrete business that has the potential to thrive.

  • What range of dishes will you offer customers? Is there a particular cuisine or fusion you want to pursue?

  • Are you picturing a small mom-and-pop style business or a larger franchise/chain-based model?

  • What's your competition? Are nearby restaurants offering a similar concept to their diners? How will your restaurant draw sales and stand out?

  • Are you planning to offer a full, seated service to clientele? Or takeaway only? Perhaps you're thinking of a combination of both?

  • What will the physical business look like? Think through your preferred colors, themes, furniture, and finishings.

  • What size team will you employ? Are they trained to be welcoming and accommodating or more refined and elegant when serving customers?

  • Who are you hoping will come to your restaurant? What are they interested in buying from a food business? How will you attract them?

Mission and values — their impact on your business

Considering the values you want to live out through your business can help you navigate the hard details of this planning process. These values contribute to your business's larger mission, as they influence things like who you hire and how you build your brand.

Once you've ironed out the general concept, you can move on to the fun part—naming your business and giving it a logo. The aesthetic element of your restaurant can play a big part in customer impressions, and it is a great opportunity to let your creativity tie all those ideas together in a meaningful symbol or design.

2. Developing your restaurant's business plan

Having a clear, solid business plan is vital to any new business, acting as a road map to help you achieve your end goal of a successful Montana restaurant.

The first step is to establish what type of entity your business will be classified as—you can register as an LLC, a partnership, a sole proprietorship, or an S or C corporation. If you're unsure what to choose, we have a helpful guide on restaurant business entities that explains the pros and cons of each option.

Every business and restaurant takes a different approach to ownership and profits. You can choose to operate as the sole owner with many employees or take on some investors to increase your financial backing. Others offer their investors a share in the business or become a co-op by providing their employees a small share of the profit.

Most fall somewhere in between, with owners taking responsibility and employees sharing in the profits when a break-even point has been surpassed. What makes sense for you in terms of ownership and profit-sharing structure is your decision. It is helpful, however, to hire an accountant and a lawyer to draw up your required paperwork and contracts.

Your business plan will include all this information, as well as the following components which also dictate how you operate the restaurant:

  • Executive summary: Include the name of your restaurant and a brief overview of the business.

  • Company overview: Provide details about your business model and concept.

  • Financial analysis: Outline your investment plan and financial projections, such as the break-even point, anticipated cash flow, and estimated costs.

  • Business model and service style: Clarify whether your restaurant will be quick service, fine dining, fast food, or a sit-down establishment.

  • Industry analysis: Examine your target market, location, and competitors.

  • 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: Describe how you plan to promote your restaurant and attract customers.

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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 Montana restaurant

The starting cost of a restaurant ranges from $95,000 to $2,000,000, which is a very large sum that most people are unable to readily access. 

Montana restaurateurs have multiple financing options to explore, such as traditional bank loans, alternative financing, SBA loans, merchant cash advances, lines of credit, crowdfunding, or seeking support from friends and family. Each option varies in terms of application criteria, loan amounts, collateral requirements, repayment plans, and how quickly you can access funds.

Carefully assess which option aligns best with your financial needs and goals. 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. Selecting your Montana location

Finding the right location for your restaurant is critical. You’ll need to research demographics, market, and competition in your surrounding area, as well as gain a crystal clear understanding of the building's actual space, size, visibility, and history.

Buying, leasing, or building restaurant space are all great options to consider. Each choice has its own drawbacks and impacts the amount of startup capital required. If you’re building from scratch or renovating an existing space, you may need to do a plan review to ensure the work meets local regulations.

We've also collated some other aspects to consider when evaluating a restaurant location for your future business:

  • Size of the space

  • Real estate market conditions

  • Target market and ideal customer profile

  • Surrounding community

  • Previous tenants

  • Previous usage of the space

  • Zoning

Ensure that your restaurant space aligns with your concept and brand. For instance, a cozy coffee shop with artisanal pastries fits well in a small venue, while a larger space may be necessary for a steakhouse with group seating or a family-style Italian restaurant.

5. Applying for Montana Restaurant Licenses and Permits

Like every state, Montana has specific requirements for obtaining the necessary licenses and permits to open a restaurant. While some licenses are managed at the state level, others are handled locally by city or county authorities. We have put together a list of some of the most important regulations you'll need to adhere to.

Montana licenses and permits you'll need to open your restaurant can 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. Montana requires you to contact your local environmental health department to open a food business. This website also contains many guides and resources for anyone working in or planning to operate in the food industry.

  3. Building Permits are required for any renovation, change of occupancy, or building projects in your restaurant space. You can learn about this permit and application process by visiting Montana's Department of Industry and Labour website.

  4. Retail Food License, which is provided by Montana's Department of Public Health and Human Services. You can find the application and other state resources by searching 'retail food' on the home page of the website. Some counties will have their own certificates, which you will need to submit to your local health department.

  5. Montana requires every food service worker to hold a Food Handler’s License, also known as a Food Service License or Food Handler Card. These are widely available online and cost as little as $10, making it one of the more accessible licenses you will need to add to your business.

  6. Montana's liquor licensing is administrated by the Alcoholic Beverage Control Division, where you can learn about the different licenses, taxes, and training provided by the state. Here, you will find information about applying, restrictions, and process timelines for each different license.

We have written a more detailed guide to Montana's permits, license fees, and license costs, which is available for restaurant owners to explore now.

6. Food and Beverage Selection

Develop your menu, either on your own or in collaboration with a chef-owner or general manager. Once your kitchen and bar staff are hired and trained, be prepared to work with them to refine the food and beverage offerings based on customer feedback.

Ensure your menu features distinctive items that set your restaurant apart from surrounding competition while also reaching profit-friendly price points.

You can also explore our guides to menu design and menu engineering, designed to help you optimize the impact of your restaurant.

7. Hire and Train Restaurant Staff

When hiring staff for your restaurant in Montana, it's important to know the state's labor laws inside and out to ensure you are adhering to local city and county guidelines.

Your staff is the foundation of your restaurant's success. From front-of-house employees who create a welcoming atmosphere to chefs and cooks delivering quality meals, and the support team ensuring smooth operations, a restaurant offers a wide variety of roles to choose from.

To recruit new talent, explore options like tapping into your network, leveraging social media platforms such as Instagram and Facebook, reaching out to culinary school graduates, or posting on industry-specific job boards.

To attract and retain top talent, make your restaurant an appealing workplace by offering competitive wages and valuable employee benefits like health insurance. These attributes will help set you apart from other employers.

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

To expand your knowledge base, utilize our video course on hiring and retaining restaurant employees.

8. Restaurant Technology and Systems

Now that you're getting closer to the grand opening, it's a good time to explore your restaurant technology options to establish what range of products and systems will best suit your operation and help your business hit the ground running.

The following array of systems are all valuable investments for new restaurant owners:

Efficient restaurant technology works behind the scenes to keep things running smoothly and helps you monitor your business's health and performance. With useful insights at your fingertips, you're empowered to make decisions that boost revenue and continue to elevate the success of your restaurant.

9. Marketing your Restaurant

Like any upcoming business, a new restaurant in Montana requires an effective marketing plan. Word of mouth is powerful for an established venue. When starting out, you will need to reach your target customers first. Social media channels, mailouts, and email marketing campaigns can convert them into regulars and advocates for your restaurant.

We have assembled a range of resources you can use to learn more about marketing your restaurant. Choose from our marketing plan template, our social media guide for restaurants, and our guide to restaurant email marketing.

10. Opening Your Restaurant

Once everything is set up, it's time to host a soft opening. Invite family, friends, and your staff's connections to experience your restaurant's first full-service run. This will help you identify and fix any issues before the official launch.

Afterward, focus on planning and promoting your grand opening. Share the event widely on social media, distribute flyers in your neighborhood, and ask your network to spread the word to attract as many guests as possible for the big day. Enjoy the buzz of finally having customers experience the fruits of your labor!

FAQs

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

The start-up cost of opening a restaurant in Montana 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 any funding available to them.

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

A food handler's card or license will vary depending on the level and mode of training. Each county or city may have designated providers or regulations around this training. 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 $150.

What permits do I need to sell food in Montana?

Besides registering your entity (e.g., sole proprietorship) and connecting your business with the IRS, other licensing requirements include:

  • Food Handler's License

  • Building Permit

  • Retail Food License

  • Liquor License (if you wish to sell alcohol)

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