Opening a Restaurant

How to Open a Restaurant in Oregon

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

Getting ready to open a restaurant? To help you get started, we put together a comprehensive step-by-step guide for how to open a food establishment in Oregon. This is a big job with lots of steps and paperwork. Writing up a solid business plan and securing funding for your restaurant are some of the first things you’ll need to do so that you can afford all the building blocks of your business, including your licenses and permits.

One of the most critical parts of opening a restaurant is being compliant with local laws. So when you’re opening a restaurant, cafe, bar, or any other food business in Oregon, you’re going to need to get your licenses and permits for that State in order. 

A liquor license, a food facility health permit, a certificate of occupancy — they all have varying (and sometimes overlapping) requirements, so it’s important to know exactly what you need to get to legally open a restaurant in your particular city or county in Oregon.

We’ll go into all the steps that would-be restaurateurs in Oregon need to know — whether you’re opening a trendy café for hipsters in Portland, or a college sports bar for students in Eugene.

Key takeaways

  • Define your unique concept: A solid brand identity is essential for a restaurant. Start outlining your mission and core values. These elements will guide your decisions, from staffing to promoting your restaurant.

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

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

  • Choose the best location: Criteria you should focus on include an ideal customer profile (ICP), real estate market, community, size of the space, previous tenants, and zoning.

  • Apply for licenses and permits: Including 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 Oregon restaurants: These insurances include workers compensation, general liability, commercial property, business income, and cyber liability.

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

  • Hiring and onboarding employees: Finding the right people for your team is crucial. Network with industry professionals, use social media platforms, connect with local 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.

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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

How to start a restaurant in Oregon

1. Define your unique restaurant concept

What type of dining experience do you plan to offer in Oregon? Start by gathering your ideas in one place. The following questions can help guide your brainstorming process:

  • What cuisine will I specialize in?

  • Who are my main competitors, and what will set me apart from them?

  • Will I run a full-service restaurant with ample seating, or operate primarily as a takeout spot with limited dining space?

  • Who is my target audience, or ideal customer?

  • Am I aiming to operate a single location, or is my goal to expand into a chain?

  • How many employees will I need, and what tone of service will they provide — casual and welcoming, or more formal and refined?

  • What will the restaurant’s physical space look like?

Define your mission and values to shape your brand

A solid brand identity is essential for a thriving restaurant. Start by outlining your mission and core values.

These key elements will guide your decisions, from staffing to promoting your restaurant. Once you have a clear direction, you can create an engaging restaurant name and logo that embodies your brand’s uniqueness.

2. Create a restaurant business plan

A restaurant business plan is the roadmap that will take your Oregon restaurant from an idea to a reality.

The first step in your restaurant business plan is to choose your legal business structure. Explore options like a limited liability company (LLC), sole proprietorship, partnership, S corporation, or C corporation. For a detailed breakdown of these structures, including their pros and cons, check out our guide on restaurant business entities.

Next, restaurant ownership can vary widely. Some are run by a single individual with a team of staff, while others involve investors who hold a stake in the business. There are also cooperative models where every employee is an owner. Many restaurants blend these approaches, with a mix of owners and partners leading the business, while employees receive a share of the profits once certain financial milestones are hit.

The second step is to decide what kind of boss you want to be and how you want to share the profits in your restaurant. Then, find a lawyer and accountant in Oregon to help you with all the paperwork.

Your business plan should incorporate all this information, along with sections covering the following aspects of your restaurant:

  • Executive summary, including your business name

  • Company overview, including your business model

  • Industry analysis (target audience, location analysis, competitive analysis)

  • Marketing plan

  • Business and service model (Quick service restaurant? Fine dining? Fast food? A sit-down dining room?)

  • Operating plan (staffing, customer service policies, payroll, point of sale (POS) system, which vendors and providers you’ll use for produce and laundry and more)

  • Financial analysis (investment plan, financial projections, projected cash flow, and estimated food costs)

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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. How to get funding for your restaurant

Starting a restaurant can range from $95,000 to $2 million, a sum that most aspiring restaurateurs might not have readily available. For those looking to finance their restaurant venture in Oregon, several options include:

  • Traditional bank loans

  • Alternative lending options

  • Small Business Administration (SBA) loans

  • Merchant cash advances

  • Lines of credit

  • Crowdfunding

  • Seeking financial support from friends or family 

Each financing option varies widely in application requirements, loan amounts, collateral needed, repayment terms, and funding speed.

Traditional bank loans are usually sought for conventional financing with longer terms and fixed interest rates. SBA loans are favored for their lower interest rates and extended repayment schedules but involve more complex application processes. Merchant cash advances can be attractive for those with lower credit scores, though they often come with higher fees. Crowdfunding is a contemporary choice that lets businesses raise funds from a large audience, typically in exchange for future products or services.

For more details on these options, explore our guide on 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. Choose the best location for your restaurant

Choosing the best location for your Oregon restaurant is important. You'll need to analyze local demographics, market conditions, competition, and factors such as the restaurant’s size, visibility, and history.

Deciding whether to buy, lease, or build your restaurant space is a key decision that will impact your startup costs significantly. Each option comes with its own set of benefits and drawbacks. If you opt to build a new space or renovate an existing one, be ready to navigate regulatory challenges and secure the necessary permits and approvals.

Here’s some additional criteria to focus on when evaluating a location to decide if it's right for your restaurant:

  • Ideal customer profile

  • Real estate market

  • Community

  • Size of the space

  • Previous tenants

  • Zoning and previous type of usage of the space

Ensure that the size and layout of your restaurant align well with your overall concept. For example, a small space might be perfect for a trendy coffee shop in Portland, while a larger venue is necessary for a buffet-style restaurant or a trending brewery in Eugene.

5. Apply for Oregon restaurant licenses and permits

Like any other state, Oregon has specific requirements for the licenses and permits needed to open a restaurant. Some licenses are managed at the state level, while others are handled locally (by city or county authorities).

In Oregon, some of the licenses 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 Oregon. You can register for and manage your new business license on the Oregon 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, is required by any business that plans to sell tangible goods that are subject to sales tax. This permit allows them to charge sales tax.

  5. A Food Handler’s Permit, also known as Food Service 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 Oregon Food Handler Training website.

  6. Liquor License Permits are required for any type of business to sell and serve alcohol 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 the Oregon State Liquor Authority website, and typically costs between $400 and $1,000.

  7. Food Facility Health Permits in Oregon are under city and county jurisdiction. You’ll need to check with your local public health department to find out how to apply. All restaurants need to have their health permits in order before opening, and they must stick to safe food sanitation rules, handling, storage, and preparation practices all throughout their operations to comply with health inspections from the Oregon Health Authority.

Learn more about the types of permits, license fees, and license costs in Oregon at Oregon.Gov.

6. Must-Have Insurance for Oregon Restaurants

Here are a few types of insurance for Oregon restaurateurs to consider:

  • Worker’s compensation insurance, helps employees who get sick or injured on the job to cover healthcare expenses and lost wages. This form of insurance is mandatory in Oregon.

  • General liability insurance, which helps cover you in case you’re sued because of a customer injury or property damage, among many other types of lawsuits. It’s not mandatory, but highly recommended.

  • Commercial property insurance, which helps you with repairs of your physical location and the equipment in it, if they get damaged. This is also not mandatory, but highly recommended.

  • Business income insurance, which can help you recover lost income due to fires, theft, or wind disasters.

  • Cyber liability insurance, which protects against data breaches, especially if you handle customer credit card information.

7. Designing your menu and drink selections

Create your menu, whether you're collaborating with a chef-owner, a general manager, or crafting it yourself. Be prepared to tweak your menu items and drink selections with your kitchen and bar staff once they’re hired and trained.

Make sure your menu includes distinctive food and drink options that set your restaurant apart in a competitive market like Portland. Set prices that will support long-term profitability.

Learn more about menu design and menu engineering to make the most of your menu.

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Restaurant POS Comparison Tool

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

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8. Hiring and onboarding restaurant employees

When hiring staff for your restaurant in Oregon, ensure you follow local city and county regulations regarding state labor laws.

Your employees are crucial to your restaurant's success. From the front-of-house team that creates a welcoming vibe to the cooks who craft delicious dishes and the support staff that keeps everything running smoothly, there are many important roles to fill.

Finding the right people for your restaurant team is crucial. Network with industry professionals, use social media platforms, connect with local culinary schools, and post job openings on relevant industry boards.

To attract and retain talented restaurant staff, create a positive work environment. Offering competitive pay and valuable benefits, like health insurance, can set your restaurant apart from the competition.

Here are some resources from Toast to help you recruit, hire, and retain talented restaurant employees:

To learn even more, go through our video course on hiring and retaining restaurant employees.

9. Invest in important equipment and technology

As your opening day approaches, explore various restaurant technology options to set up your operations for success from the start.

New restaurants in Oregon should strongly consider investing in:

Implementing the right technology can streamline your operations and provide valuable insights into your business. With these tools, you can make data-driven decisions to boost efficiency, increase revenue, and achieve long-term success.

10. Create a restaurant marketing plan

Just like anywhere else, a restaurant in Oregon needs a strong marketing strategy to attract attention. While word of mouth can be powerful once your restaurant is established, reaching your target customers and turning them into regulars often depends on marketing channels like social media and email campaigns. 

Take advantage of local Oregon summer festivals and celebrations to help get the word out, some of which include:

Learn more about creating a restaurant marketing plan with Toast’s marketing plan templatesocial media guide for restaurants, and our guide to restaurant email marketing.

11. Plan your soft launch and grand opening events

Once everything is ready for your restaurant, hold a soft opening to test your operations. Invite family, friends, and have your staff do the same for an initial run-through. This helps identify and address any issues before the official launch of your Oregon restaurant.

Then, focus on planning and promoting your grand opening. Use social media to spread the word, distribute flyers around your city or town, and tap into your existing network to boost attendance on opening day.

You’re good to go!

Opening a restaurant is a lengthy and challenging journey, but it’s also highly rewarding. To help you stay on top of everything that needs to be done within the first year, check out our time-bound restaurant opening checklist below.

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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

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