California Licenses and Permits Required to Open a Restaurant

No matter where you’re opening a restaurant, cafe, bar, or any other food business, you’re going to need to get your licenses and permits 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 California. 

As soon as you’ve secured funding with your thorough restaurant business plan, one of the next steps to get going on is your licenses and permits. Many of them can take weeks, if not months (or even longer), so getting started as early as possible can help prevent bumps in the road to opening your doors.

In California, the first step of opening a restaurant is registering your business with the secretary of state. Then, businesses must figure out which licenses and permits they’ll need to obtain.

Luckily, California has CalGOLD, a license and permits guide that lets any business owner input their county and business type and be provided with a list of permits and licenses to obtain before opening a business. For example, this page shows the results for a restaurant opening in Los Angeles - West Covina County, California.

We’ll get into some of the most common licenses and permits needed in California, what they are and why you need them, how to get them, and how much they cost.

Licenses and Permits Required to Open a Restaurant in California

1. Business License
2. Certificate of Occupancy
3. Food Handler’s License, also known as Food Service License
4. Seller’s Permit
5. Liquor License Permit
6. Catering Business License
7. Food Facility Health Permit
8. Employee Health Permit

1. Business License in California

What is it and why do you need it?

A business license is one of the first licenses you’ll need as you start laying the groundwork of your business. Also known as a business tax certificate, it helps your business stay compliant at tax season.

How to get a business license in California

In California, business licenses are controlled by the city or county you live in. If you operate a restaurant with multiple locations across cities and counties, it’s important to get a business license for each business in different jurisdictions. To get a business license in California, you’ll need:

1. An EIN
2. To choose what classification of business you’ll be (LLC? Sole proprietorship? Partnership?)
3. A business name
4. An address and phone number,
5. A thorough restaurant business plan
6. A COI for your business insurance policy

How much does a business license cost in California?

California business licenses can be as cheap as $50-$100 or as expensive as hundreds of dollars, depending on the type and scope of the business. Business licenses in California need to be renewed and paid for regularly, so check with your jurisdiction about how often yours will need to be renewed.

2. Certificate of Occupancy in California

What is it and why do you need it?

A certificate of occupancy is a document that shows your space is zoned for your type of business, as well as up to code, safe to use, and up to date on its checks and inspections. Not every county will require them for new businesses, and even then, only certain situations require them, including if you’re doing major building work or changing the use of a space from residential to business.

Always get in touch with your local jurisdiction to determine if your project warrants a CoO.

How to get a certificate of occupancy license?

In LA, for example, you can obtain a certificate of occupancy through the LA Department of Building and Safety, also known as LADBS. The forms are online, but in order to get the certificate, your business location will need to go through fire inspections, plumbing inspections, electrical inspections, and building inspections. 

How much does a certificate of occupancy cost?

Different counties will charge different amounts, and they will also vary by type of business. Fee will vary depending on county.

3. Food Handler’s License in California

What is it and why do you need it?

A food service license, also known as an employee health permit, allows restaurants, vendors, or any other type of food business to safely sell and serve food onsite. These licenses ensure that every employee knows how to do their part to keep your diners safe from foodborne illness. They’re often referred to as ServSafe, after the company that administers most food handler’s tests, or as a California Food Handler Card.

How to get a food handler’s license in California

Every employee who prepares or serves food in California must get their Food Handler’s license within 30 days of being hired — chefs, cooks, servers, baristas, and bartenders, to name a few. Bussers and general managers may not be required to do so. 

And if managers have already gotten their Food Protection Manager Certification, they’re also exempt from getting an California Food Handler card. Some jurisdictions have their own food safety training programs and standards, so they’re exempt from requiring employees to get a California Food Handler card.

To get their food handler’s card, employees must pass a test about food safety and preparation with a grade of at least 70% (or higher in some jurisdictions).

How much does a food service license cost in California?

California state law requires that the test and license not cost more than $15, in order to make sure anyone working in a restaurant can afford to get certified.

4. Food Seller’s Permit in California

What is it and why do you need it?

Any business that plans to sell tangible goods that are subject to sales tax needs a seller’s permit. This permit allows them to charge sales tax.

How to get a seller’s permit?

You can register for a permit online through the California Department of Tax and Fee Administration.

How much does a food seller’s license cost?

There’s no fee to apply for a seller’s permit, but you may be asked to pay a security deposit to cover unpaid taxes if the business eventually closes.

5. Liquor License in California

What is it and why do you need it?

This license is required for any type of business to sell and serve alcohol to its patrons. Since alcohol has an incredibly high markup and a long shelf life, it’s often beneficial from a profit standpoint to sell alcohol.

How to get a liquor license in California

In California, liquor licenses are issued by the state, through the California Department of Alcohol Beverage Control. You must have a seller’s permit already to be able to apply for a liquor license. 

After you’ve applied for a liquor license, you must post a public notice of application on your business’s premises for 30 days. Some cases require the applicant to notify their neighbors or post a notice in the newspaper. They will also need to show that their business is correctly zoned for an alcohol-selling business. 

The department does an investigation into the future business and the applicant to see if they qualify. It takes between 30 and 90 days to process a liquor license application, depending on what kind of application it is, so be sure to build this time frame into your countdown to opening. Licenses are renewed on a yearly basis, so you must pay the renewal fee on time or your license will expire until the fee is paid. 

How much does a liquor license cost in California?

A liquor license in California can cost from $105 to over $16,000. See the full fees associated with different types of liquor licenses in California here.

6. Catering Business License in California

In California, there’s no specific catering license, but caterers need to obtain a liquor license if they’ll be serving alcohol, and food safety certifications like other businesses that handle food. 

7. Food Facility Health Permit in California

What is it and why do you need it?

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. They help prevent foodborne illness in patrons, and ensure worker safety as well.

How to get a food facility health permit?

In California, health permits are under city and county jurisdiction, so check with your local health department to find out how to apply. 

Unlike some liquor licenses, health permits are not transferable. When you start a new restaurant, even if it’s in the space of an existing restaurant, you’ll need to get a new health permit. 

When you apply for a health permit, which can often be done online depending on the city, you’ll then need to get an inspection to ensure your space and practices will fit with the California Health and Safety Code and all applicable ordinances. If your business is determined to be safe to operate, you will receive your health permit.

How much does a food facility health permit cost?

As usual with city and county-based permits, the costs vary. In San Francisco, it costs between $900-$1,400 to get a health permit. In Contra Costa county, the range is more like $700-$2,000, depending on the type of operation.

8. Employee Health Permit in California

In California, an employee health permit is the same as a food handler’s license. 

Guidance for Restaurant Zoning: How to Approach It and Required Permits

Zoning is also one of the most important considerations when opening a restaurant, as it dictates where your business can legally operate. Local governments have specific regulations regarding how different properties in their jurisdictions can be used. Understanding these zoning laws is crucial for ensuring your restaurant can operate legally and avoid costly disruptions.

1. Research Local Zoning Laws

• Understand the Zoning Requirements for Restaurants: Different cities and municipalities have zones designated for commercial, residential, industrial, or mixed-use purposes. Restaurants are generally permitted in commercial or mixed-use zones, but restrictions can vary widely depending on the location.

• Check for Special Zoning Restrictions: Some areas may have specific restrictions on the type of business you can operate. For example, certain neighborhoods may have limits on hours of operation, noise, or alcohol sales, which can directly impact your restaurant’s business model.

• Contact Your Local Zoning Office: Before selecting a location, reach out to your city or county zoning office to verify that the property you are considering is zoned for a restaurant. This will save you from potential legal issues or having to relocate later. You can also request a zoning verification letter for additional confirmation.

2. Conditional Use Permits (CUP)

• What is a CUP? If your desired location is in a zone where restaurant use is not outright permitted but may be allowed with conditions, you’ll need to apply for a Conditional Use Permit. This allows you to operate as long as certain conditions are met.

• How to Obtain a CUP: Apply through your local planning commission or zoning office. The process typically involves a public hearing and may require you to address concerns from nearby residents or businesses (e.g., noise, parking, traffic). Approval can take time, so factor this into your planning timeline.

• Compliance with Conditions: A CUP usually comes with specific conditions, such as limitations on operating hours, capacity, or outdoor seating. You must comply with these conditions to maintain your permit.

3. Building and Construction Permits

• Renovating a Space? If your restaurant location requires renovations or construction, you’ll need building permits from the local planning or building department. Zoning compliance will be checked as part of this process. Ensure your renovations follow the building codes for fire safety, sanitation, and accessibility (ADA compliance).

• Signage Permit: Any signage you wish to install, such as storefront signs or awnings, may also require a permit. The size, design, and lighting of the sign are often subject to zoning regulations.

4. Parking and Accessibility

• Parking Requirements: Many zoning laws require businesses, including restaurants, to provide a minimum number of parking spaces per square foot of the dining area. If your restaurant does not meet the parking requirements, you may need to apply for a variance, which is a request to deviate from zoning standards.

• ADA Compliance: Restaurants must be accessible to people with disabilities. This includes having ramps, accessible restrooms, and adequate space for movement within the restaurant. These requirements are enforced through building permits but are often influenced by zoning regulations as well.

5. Alcohol Zoning Requirements

• Zoning for Liquor Sales: If your restaurant plans to serve alcohol, additional zoning restrictions may apply. Some areas prohibit the sale of alcohol altogether, while others may require a certain distance between your restaurant and schools, churches, or residential areas.

• Alcohol-Specific Permits: In addition to a general liquor license, you may need special zoning clearance if your location has restrictions on alcohol sales. Consult with both the zoning office and your state’s Alcohol Beverage Control (ABC) board.

6. Working with a Zoning Expert

Hire a Zoning Attorney or Consultant: Zoning laws can be complex and differ greatly between jurisdictions. A zoning expert can help you navigate the process, apply for the necessary permits, and avoid potential legal or operational issues that may arise during construction or after opening.

12 Month Timeline for Opening a New Restaurant

In addition to securing licenses and permits, opening a new restaurant requires careful planning, coordination, and the completion of numerous tasks well in advance. Below is a practical timeline that outlines key steps, starting up to a year before opening day, to ensure you are prepared for a smooth and successful launch.

12 Months Before Opening: Concept Development and Research

Develop Your Restaurant Concept and Business Plan

• Timeframe: 12 months before opening

• Start by defining your restaurant concept, target market, and cuisine. A well-thought-out business plan should include market analysis, financial projections, operational structure, and a marketing strategy.

Research Location Options and Zoning Laws

• Timeframe: 12 months before opening

• Begin looking for a location that matches your concept and complies with local zoning laws. This step often requires multiple site visits and discussions with real estate agents or zoning experts.

10-11 Months Before Opening: Securing Funding and Finding a Location

Secure Financing

• Timeframe: 10-11 months before opening

• Whether through personal savings, a business loan, or investors, securing adequate financing is essential for leasing, renovations, permits, and initial inventory purchases.

Sign Lease or Purchase Agreement

• Timeframe: 10-11 months before opening

• Once financing is secured, finalize your restaurant location by signing a lease or purchase agreement. Be sure the terms align with your long-term business goals and that the property meets zoning requirements.

9 Months Before Opening: Licensing, Permits, and Design

Apply for Business and Food Service Licenses

• Timeframe: 9 months before opening

• Start the application process for necessary licenses such as business, food service, health permits, and alcohol licenses (if applicable). These can take months to process and require approval before opening.

Hire Architect and Designer

• Timeframe: 9 months before opening

• If your restaurant space requires renovation, now is the time to hire an architect and interior designer. Work with them to develop a layout that aligns with your vision, meets operational needs, and complies with health and safety codes.

6-8 Months Before Opening: Construction and Hiring

Begin Construction and Renovations:

• Timeframe: 6-8 months before opening

• Once your design is finalized and permits are secured, construction and renovations can begin. Expect this phase to take several months, depending on the complexity of the buildout.

Hire Key Team Members

• Timeframe: 7-8 months before opening

• Begin searching for executive staff such as your head chef, general manager, or kitchen manager. Early hiring ensures you have experienced leaders to help with menu development, vendor sourcing, and operational planning.

4-5 Months Before Opening: Finalizing Operations

Develop Menu and Finalize Vendor Contracts

• Timeframe: 4-5 months before opening

• Work with your chef to create and test menu items, and finalize contracts with food and beverage vendors. This is also the time to plan your kitchen layout and order necessary equipment.

Apply for Liquor License (if applicable):

• Timeframe: 5 months before opening

• Applying for a liquor license can be a lengthy process, so start this early to ensure approval before opening. Follow local guidelines and be prepared for inspections.

3 Months Before Opening: Marketing and Staff Recruitment

Launch Pre-Opening Marketing Campaign

• Timeframe: 3 months before opening

• Begin creating awareness for your restaurant with a marketing campaign. Use social media, local events, and press releases to generate excitement.

Recruit Full Staff

• Timeframe: 3 months before opening

• Start recruiting front-of-house (servers, hosts) and back-of-house (line cooks, dishwashers) staff. Proper training will take time, so ensure your team is hired well in advance of your opening day.

2 Months Before Opening: Training and Inspections

Train Your Staff

• Timeframe: 2 months before opening

• Begin comprehensive training for your entire team. This should include everything from customer service skills to food safety practices and POS system training.

Pass Health Department and Fire Inspections

• Timeframe: 2 months before opening

• Schedule inspections with your local health department and fire marshal to ensure your restaurant is compliant with all safety regulations. These inspections are critical for receiving your operating permits.

1 Month Before Opening: Final Preparations

Order Initial Inventory and Supplies

• Timeframe: 1 month before opening

• Place orders for your initial inventory, including food, beverages, and essential supplies. Make sure everything arrives and is properly stored before soft opening events.

Host Soft Opening and Practice Runs

• Timeframe: 2-4 weeks before opening

• Conduct a soft opening to test your staff, kitchen, and overall operations. This can be an invite-only event for friends and family, giving your team real-world practice before your official opening.

Opening Day:

Launch with Confidence

• Timeframe: Day 1

• With all preparations complete, you’re ready to officially open your restaurant. By following this timeline, you’ve ensured your business is compliant, well-staffed, and poised for success.