How to Open a Restaurant in Nevada

Planning to launch a restaurant in Nevada? To help you on your journey, we've created a detailed, step-by-step guide on how to successfully open a restaurant in this state.

Navigating local regulations is one of the most crucial steps in starting your restaurant. Whether you're opening a café, bar, or other food service establishment, it's essential to secure the necessary licenses and permits.

From liquor licenses to food facility health permits and occupancy certificates, each has its own set of rules, sometimes with overlapping requirements. Understanding what's required in your specific city or county is key to ensuring your restaurant opens legally.

Key takeaways

• Define your unique concept: A strong concept is crucial for your restaurant. Begin by outlining it, as it will influence all aspects of your operations.

• Create a business plan: This should include an executive summary, company overview, industry analysis, marketing plan, business and service model, operating plan, and a financial analysis.

• Get funding: These options include traditional bank loans, alternative lending, small Nevada business loans, merchant cash advances, lines of credit, crowdfunding, and financial support from friends or family.

• Choose the best location: Focus on your ideal customer profile (ICP), real estate market, community, size of the space, previous tenants, and zoning.

• Apply for licenses and permits: These include an employer identification number (EIN), business license, certificate of occupancy, food seller’s permit, food handler’s permit, liquor license permits, and a food facility health permit.

• Insurance for Nevada restaurants: This includes workers compensation, general liability, commercial property, business income, and cyber liability.

• Design your menu items: Include food and drink options that set your own restaurant apart in a competitive market. Set prices that support long-term profitability.

• Hiring and onboarding employees: Network with industry professionals, use social media, connect with culinary schools, and post job openings on industry boards.

• Invest in important technology: Implementing the right technology can streamline your operations and provide valuable insights into your business.

• Create a marketing plan: Word of mouth can be powerful once your restaurant is established, but reaching target customers and turning them into regulars depends on marketing channels like social media and email campaigns.

• Plan your soft launch and grand opening: Hold a soft opening to test your operations. Then, focus on planning and promoting your grand opening.

How to start a restaurant in Nevada

1. Develop a Unique Restaurant Concept

What kind of experience do you want to offer at your Nevada restaurant? Start by crafting a unique concept. Ask yourself the following questions to help shape your vision:

• What specific types of food will I offer?

• Who are my local competitors, and how can I differentiate myself?

• Will the focus be on a full-service dining experience or a takeout model with limited seating?

• Who is my target audience or ideal customer persona (ICP)?

• Should I start with a single location, or aim for future expansion?

• How many employees will I need, and will the service be casual or more refined?

• How should the restaurant's design and layout be structured?

Define your mission and core values to guide the vision of your brand

Creating a solid brand identity is crucial for restaurant success. Begin by defining your mission and core values, as they will influence everything from staffing decisions to marketing efforts. With that foundation in place, you can then develop a unique name and logo that reflect your brand's character.

2. Develop a Business Plan for Your Restaurant

A restaurant business plan serves as the blueprint for bringing your Nevada restaurant vision to life.

Begin by selecting the appropriate legal structure, whether it’s an LLC, sole proprietorship, partnership, S corporation, or C corporation. For a deeper understanding of these options, including their advantages and drawbacks, refer to our guide on restaurant business entities.

Ownership models can range from a single-owner setup with staff to more complex arrangements involving investors or co-owners, where employees may also hold shares. Many restaurants use a blend of these, with restaurant owners and partners managing operations while employees participate in profit-sharing.

Next, determine your management approach and how profits will be distributed. It's wise to consult both a lawyer and an accountant in Nevada to ensure the proper legal and financial groundwork is laid.

Your business plan should include these elements and address critical sections such as:

• Executive Summary: Your restaurant’s name and unique concept

• Company Overview: Business model and organizational structure

• Industry Analysis: Target market, location, and competition

• Marketing Strategy

• Business Model: Restaurant style (quick service, fine dining, etc.)

• Operations Plan: Staffing, service protocols, payroll, POS systems, suppliers

• Financial Plan: Startup costs, financial forecasts, cash flow, and food cost projections

3. Securing funds for your restaurant

Starting a restaurant is a significant financial commitment, with costs ranging from $95,000 to $2 million. In Nevada, there are several funding options available:

• Traditional bank loans

• Alternative lenders

• Small Business Administration (SBA) loans

• Merchant cash advances

• Lines of credit

• Crowdfunding

• Support from friends or family

Each option comes with its own set of requirements, loan amounts, collateral expectations, repayment terms, and processing speeds.

Bank loans usually offer fixed rates and longer repayment terms, while SBA loans are popular for their lower interest rates and flexible terms, though the application process can be more complex. Merchant cash advances cater to those with lower credit but often come with higher fees. Crowdfunding allows you to raise money from the public, often in exchange for future services or products.

For further information on these funding options, see our guide on restaurant financing and loans.

4. Choosing the ideal location for your restaurant

Selecting the ideal location for your Nevada restaurant is crucial to its success. Consider the local demographics, market trends, competition, and factors like the space’s size, visibility, and history.

You’ll also need to decide whether to buy, lease, or build your restaurant, as this decision will heavily influence your startup costs. Each option has advantages and challenges, with building or renovating requiring additional permits and regulatory compliance.

When evaluating a location, consider the following:

• Ideal customer profile (ICP)

• Real estate market conditions

• Neighborhood and community vibe

• Space size and layout

• History of prior tenants

• Zoning regulations and previous property use

Make sure the size and layout fit your restaurant's concept. For instance, a cozy space may suit a world-class fine dining steakhouse on the Las Vegas strip, while a larger venue is ideal for a Mexican taco or brunch joint catering to college students and people living across Clark County.

5. Obtain necessary restaurant licenses and permits in Nevada

Similar to other states, Nevada has specific requirements for the licenses and permits needed to open a restaurant. Some licenses are regulated at the state level, while others are managed by local authorities (such as city or municipal offices), and fees may vary depending on the license and the year.

In Nevada, some of the licenses and licensing processes you'll need to open a restaurant include:

1. Employer Identification Number (EIN), which connects your business to the IRS. The restaurant license application can be found on the IRS website, including all instructions and restrictions.

2. Business License, which is issued by the state of Nevada. You can register for and manage your annual license on the Nevada State Portal.

3. Certificate of Occupancy, which is issued by your city or county if needed, and shows that your space is up to commercial code with local regulations.

4. Food Seller’s Permit, also known as a retail food establishment license, is required by any business that plans to sell tangible goods that are subject to sales tax. This sales tax permit allows them to charge sales tax on food sales, and it must comply with the Nevada Food Code.

5. A Food Handler’s Permit, also known as Food License or Food Handler Card, is not required state-wide for every employee — but every establishment needs to have at least one trained Food Safety manager. This license shows employees or managers have taken a course teaching them the proper food handling protocols on how to prevent foodborne illness. This can be accessed on the Nevada Food Handler Training website.

6. Liquor License Permits are required for any type of business to sell and serve alcoholic beverages to its patrons. Since alcohol has a high markup and a long shelf life, it’s often beneficial from a profit standpoint to sell alcohol. A liquor license can be acquired through Nevada county and city government websites, and typically costs between $2,500 - $5,000.

7. Food Facility Health Permits in Nevada fall under the jurisdiction of city and county health departments. You’ll need to consult with your local public health department or the Nevada state department of health to understand the application process. Ensure you obtain all necessary health permits before opening your restaurant and adhere to safe food sanitation, handling, storage, and preparation practices throughout your operations.

Get additional information about the types of permits, license fees, and license costs in Nevada at NV.Gov.

6. Essential insurance types for Nevada restaurants

Consider the following insurance options for your Nevada restaurant:

• Worker’s Compensation Insurance: Required by law in Nevada, this covers medical expenses and lost wages if an employee is injured or falls ill on the job. This form of insurance is mandatory in Nevada.

• General Liability Insurance: While not mandatory, this protects you from lawsuits related to customer injuries or property damage and is highly recommended.

• Commercial Property Insurance: Helps cover the cost of repairs for damage to your restaurant or equipment. It's optional, but advisable.

• Business Income Insurance: Not required, but it covers lost income if your restaurant is disrupted by events like fires, theft, or natural disasters.

• Cyber Liability Insurance: Protects against data breaches, especially if you handle sensitive customer information. Although optional, it’s a wise investment.

Insurance is a crucial food business expense for restaurants, and having coverage is essential.

7. Creating your menu and drink selection

Design your menu, whether in collaboration with a chef, general manager, or on your own. Be ready to adjust your offerings based on feedback from your kitchen and bar teams after they’ve been trained.

Ensure your menu stands out by featuring unique dishes and drinks that differentiate your restaurant in a competitive market, especially with Las Vegas restaurants. Price your items strategically to maintain profitability.

Consider using menu design and engineering strategies to enhance the appeal and performance of your menu.

8. Hiring and onboarding restaurant staff

When hiring employees for your restaurant in Nevada, ensure compliance with local labor laws and regulations.

Your staff is key to your restaurant’s success. From front-of-house personnel who shape the customer experience to kitchen staff preparing quality dishes and support roles that keep operations smooth, each position is essential.

To build a strong team, leverage industry connections, social media, local culinary schools, and job boards to find the right candidates.

To attract and retain top talent, foster a positive work environment. Offering competitive wages and benefits, such as health insurance, can help set your restaurant apart.

For additional guidance, check out these resources from Toast:

• How to Recruit Your Next Star Employee

• How to Onboard a New Restaurant Employee

• How to Train New Restaurant Employees

• How to Reduce Restaurant Employee Turnover

For more tips, explore our video course on hiring and retaining restaurant staff.

9. Invest in key equipment and technology

As you prepare for opening day, it’s important to invest in the right technologies to ensure your restaurant runs efficiently from the start.

For Nevada restaurants, consider investing in:

• Cloud-based POS systems with mobile devices

• Kitchen display systems

• Online ordering platforms

• Reporting and analytics tools

• Inventory management software

• Accounting solutions

• Employee scheduling and communication tools

• Payroll management systems

• Customer loyalty programs

• Contactless payment options

The right tech solutions can streamline your operations, provide actionable insights, and enhance overall efficiency in your dining area, helping drive both revenue growth and long-term success.

10. Develop a restaurant marketing plan

A successful marketing strategy is crucial for a Nevada restaurant to attract attention. While word of mouth is valuable, initially, you’ll need to focus on marketing channels like social media and email campaigns to reach your target audience and build a loyal customer base.

Take advantage of local festivals and events in Las Vegas and across Nevada to promote your restaurant. Some notable ones to consider include:

• National Finals Rodeo

• Las Vegas, NV PRIDE Festival

• The Great Vegas Festival of Beer

11. Plan your soft launch and grand opening events

When your restaurant is ready to open, start with a soft launch. Invite family, friends, and encourage your staff to spread the word. This allows you to refine your operations and resolve any issues before the official opening.

Next, focus on planning and promoting your grand opening. Use social media to generate buzz, distribute flyers in the community, and leverage your existing network to drive attendance for the big event.

You’re all set!

Opening a restaurant is a challenging but rewarding endeavor. To keep track of essential tasks and milestones in the year following your launch, refer to our detailed time-bound restaurant opening checklist below.