How to Open a Restaurant in Utah

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 restaurant in Utah. 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, café, bar, or any other food business in Utah, 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 Utah.

We’ll go into all the steps that would-be restaurateurs in Utah need to know — whether you’re opening a cozy café in Provo, or a fine dining establishment in Salt Lake City.

Key takeaways

• Establish your unique concept: Define your mission and values to shape your brand. A strong brand is the cornerstone of any successful restaurant. Begin by defining your mission and values.

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

• Get funding: Funding options include brick-and-mortar bank loans, alternative loans, small business loans, merchant cash lenders, lines of credit, crowdfunding, and turning to friends or family for financial support.

• Choose your ideal location: Important considerations include your ideal customer profile, real estate market, community, size of the space, previous tenants, and zoning.

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

• Essential insurance: This includes insurances such as worker’s compensation, general liability, commercial property, business income, and cyber liability.

• Designing your menu: Refine your entire menu with kitchen and bar staff once they’re hired and well-trained. Ensure it features unique items that distinguish your restaurant in a competitive market.

• Hiring and onboarding employees: Network with industry professionals, utilize social media platforms, connect with culinary schools in your area, and post job openings on relevant industry boards.

• Invest in essential equipment and tech: This includes many items, such as a POS system, kitchen display screens, online-ordering system, reporting and analytics software, inventory management software, accounting software, scheduling software, payroll solution, loyalty or rewards solution, and contactless payment options.

• Restaurant marketing plan: Reaching your target customers and converting them into regulars often relies on marketing channels such as social media and email campaigns.

• Plan your soft and grand opening events: Conduct a soft opening to test your operations. Invite family, friends for your restaurant’s initial live run-through. Then, shift your focus to planning and promoting your grand opening.

How to start a restaurant in Utah

1. Establish your unique restaurant concept

What type of restaurant will you open in Utah? Jot down all your business ideas in one spot. Use the following questions to help gather your thoughts:

• What kind of food/cuisine should I specialize in?

• Who are my competitors? How will I differentiate myself from them?

• Will I own a full-service restaurant and offer lots of seating or operate as a takeout counter with a few small tables?

• Who’s my ideal customer persona (ICP)?

• Will I be a small business owner, or will you aim at starting a chain?

• How many staff members will I hire? What style of service will they offer — warm and friendly, or elegant and aloof?

• What will the physical business look like?

Define your mission and values to shape your brand

A strong brand identity is the cornerstone of any successful restaurant. Begin by defining your mission and values. 

These fundamentals will shape your business decisions, from hiring staff to marketing your restaurant. With a clear sense of purpose, you can then develop a compelling restaurant name and logo that reflects your unique brand.

2. Create a restaurant business plan

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

The first step in your restaurant business plan should be to determine your legal business structure. Consider options such as a limited liability company (LLC), sole proprietorship, partnership, S corporation, or C corporation. For a comprehensive overview of these structures, including their advantages and disadvantages, please refer to our guide on restaurant business entities.

Next, restaurants come in all shapes and sizes when it comes to ownership. Some are one-person shows with a team of employees, while others have investors who own a piece of the pie. There are also co-ops where everyone who works there is the restaurant owner. Many businesses are a mix of these models, with owners and partners in charge, but employees getting a share of the profits once the restaurant hits a certain point.

So 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 Utah to help you with all the paperwork.

All this information will need to be built into your business plan, along with sections that touch on the following aspects of your business:

• Executive summary, including your business name

• Company overview, including your business model

• Industry analysis (ideal customer persona, location analysis, competitive analysis)

• Marketing and advertising plan

• Business model 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)

3. Get funding for your Utah restaurant

It costs anywhere between $95,000 and $2 million to start a restaurant, and very few aspiring restaurateurs have that kind of money to spare. 

Some financing options available to restaurateurs looking to go into business in Utah include:

1. Brick-and-mortar bank loans 

2. Alternative loans

3. Small Business Administration (SBA) small business loans 

4. Merchant cash lenders 

5. Lines of credit 

6. Crowdfunding

7. Utah’s small business funding programs

8. And turning to friends or family for financial support 

Each option differs significantly in terms of application requirements, loan amounts, collateral needed, repayment terms, schedules, and the speed at which funds are disbursed.

Brick-and-mortar bank loans are typically used for more traditional financing with longer terms and fixed interest rates. SBA loans are a popular choice due to their lower interest rates and extended repayment schedules, though they come with more complex application processes. Merchant cash advances can be appealing for those with lower credit scores, but they tend to have higher fees. Crowdfunding is a modern option that allows businesses to raise capital from a broad audience, often in exchange for future products or services.

For more details on these options, explore our guide on restaurant financing and loans.

4. Choose your ideal restaurant location

Selecting the ideal location for your Utah restaurant is crucial. You'll need to investigate your area's demographics, market conditions, and overall competition, as well as the restaurant’s size, visibility, and history.

Deciding whether to buy, lease, or build your restaurant space is a crucial decision with significant implications on your startup costs. Each option has its advantages and disadvantages. If you choose to construct a new space or renovate an existing one, be prepared for the regulatory hurdles involved in obtaining the required 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, intimate space might be perfect for a cozy café in Provo, while a larger venue is necessary for a buffet-style restaurant or a trending brewery with a taproom in Salt Lake City.

5. Apply for Utah restaurant licenses and permits

Like any other state, Utah has its own particular requirements around the licenses and permits needed to open a restaurant. Some licenses are administered by the state, while several others are done on a local (city or county) level.

Some of the licenses you’ll need to open a restaurant in Utah include:

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

2. Business License, which is issued by the state of Utah. You can register for and manage your new business license on the Utah 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 Utah 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 Utah State Liquor Authority website, and typically costs between $2,000 and $5,000.

7. Food Facility Health Permits in Utah are under city and county jurisdiction. You’ll need to check with your local 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 handling, storage, and preparation practices all throughout their operations.

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

6. Essential insurance for Utah Restaurants

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

• Worker’s compensation insurance, which is mandatory in Utah, helps employees who got sick or injured on the job to cover healthcare expenses and lost wages.

• 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.

• Commercial property insurance, which helps you with repairs of your physical location and the equipment in it, if they get damaged.

• 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

Design your menu, whether you’re working with a chef-owner, a general manager, or developing it on your own. Regardless, be ready to refine your menu items and drink offerings with your kitchen and bar staff once they are hired and well-trained.

Ensure your menu features unique food and drink options that distinguish your restaurant in a competitive market, especially one like Salt Lake City. Set prices that will ensure profitability for the long-run.

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

8. Hiring and onboarding restaurant employees

When hiring employees for your restaurant in Utah, make sure you’re complying with local city and county guidelines for state labor laws.

Your employees are essential to your business's success. Whether it's the front-of-house staff who create a welcoming atmosphere, the cooks who prepare delicious food, or the support staff who ensure everything runs smoothly, there are many roles to fill in your restaurant.

Finding the right people to join your restaurant team is essential. Consider networking with industry professionals, utilizing social media platforms, connecting with culinary schools in your area, and posting job openings on relevant industry boards.

To attract and keep talented restaurant staff, you must create a positive work environment. Offering competitive compensation and valuable benefits, such as health insurance, can set your restaurant hiring far apart from competitors.

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

• 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

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

9. Invest in essential equipment and tech for your restaurant

As your opening day gets closer, explore various restaurant technology options to find the best combination of products and systems that will ensure your restaurant's operations are set up for success right from the start.

New Utah restaurants should strongly consider investing in the following systems:

• A cloud-based restaurant POS system with handhelds

• Kitchen display screens

• An online-ordering system for restaurants

• Restaurant reporting and analytics software

• Restaurant inventory management software

• Restaurant accounting software

• Simple scheduling and team communication

• A restaurant payroll solution

• A restaurant loyalty or rewards solution

• Contactless payment options

Having all of the right restaurant technology can streamline your operations and provide invaluable insights into your business's performance. By leveraging these tools, you can make data-driven decisions to improve efficiency, increase revenue, and ultimately achieve long-term success.

10. Create a restaurant marketing plan

Just like in any state, a restaurant in Utah requires a solid marketing strategy to get the word out. While word of mouth can be effective once your restaurant is already well-established, reaching your target customers and converting them into regulars often relies on marketing channels such as social media and email campaigns. 

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

• Utah State fair

• Oktoberfest

• Festival of Trees

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

11. Plan your soft and grand opening events

Once everything is set for your restaurant, conduct a soft opening to test your operations. Invite family, friends, and encourage your staff to also do the same for your restaurant’s initial live run-through. This will help identify and resolve any issues before the official launch of your Utah restaurant.

Afterward, shift your focus to planning and promoting your grand opening. Use social media to spread the word, distribute flyers in your restaurant’s neighborhood, and leverage your existing network to maximize attendance on opening day.

You’re good to go!

Opening a restaurant is a long and challenging process, but it's an incredibly rewarding one. To keep track of everything you need to do within a year of opening, check out our time-bound restaurant opening checklist below.