The road to opening a fast-food restaurant is strewn with administrative steps on which the success of your project depends. To make sure you don't forget anything, we will guide you through the 4 main steps: defining your fast food concept, making your business plan, respecting the legal obligations specific to restaurant owners and budgeting your expenses.
These are all factors that you can influence and that will maximize your chances of success.
Questions to ask before opening a fast-food restaurant
Is it profitable to open a snack bar or fast-food restaurant?
Opening a fast-food outlet can be a profitable business, but it depends on many factors, such as location, concept, management and operational efficiency. According to a study by CHD Expert - Datassential, the fast-food sector in France will generate annual sales of over 23.4 billion euros by 2023, with an average net margin of 10% for well-managed establishments. This figure shows the continuing popularity of fast food options, especially in urban areas where demand for fast, affordable meals is high.
To maximize profitability, owners need to invest in efficient technologies, maintain high service and product quality, and above all, understand and respond to the preferences of their target customers. The study also recommends keeping a close eye on operational costs, and being wary of the impact of seasonal variations on revenues.
How much money do you need to open a fast-food restaurant?
The initial budget for opening a fast-food outlet can vary considerably, depending on whether you're starting from scratch, taking over an existing establishment or joining a franchise. According to the Hospitality Insights report, the average initial cost of starting up an independent fast-food restaurant in France is estimated at around 250,000 euros. This amount includes the cost of renting or buying premises, purchasing kitchen equipment and supplies, start-up marketing costs, as well as legal and administrative fees.
Costs can be significantly reduced if you opt for a franchise, although this also involves royalties and contributions to national advertising campaigns. For a franchisee, initial costs can vary between 100,000 and 200,000 euros, depending on the brand and franchise model.
1. Define your fast food concept
Hamburgers, sandwiches, pizzas or even sushi and tacos are particularly well suited to fast food. However, to meet the growing demand of the French, restaurants offering healthier and natural menus (salads, poké bowls, juices) have positioned themselves on the fast food market.
That said, your choice should also be guided by the desire to distinguish yourself from your competitors while meeting the needs of a target audience . To do so, think about the theme, the market, the service (table, take-out, bar, buffet), the atmosphere, the setting, the food served as well as the music and the name of your establishment.
2. Draw up a business plan
Opening a fast-food restaurant is not something that can be done overnight, it requires a large investment of time, money and energy and requires the preparation of a business plan.
Conducting a market study
Before opening any restaurant, the first thing to do is a complete and detailed market study of the targeted sector.
Make sure your restaurant offers a different experience and that it will find its audience. You don't want to start if the market is already saturated. To do this, you need to gather information about your competitors and their prospects .
- Observe and analyze market trends and prospects.
- Study the offer and concept of each restaurant in your target area.
- Expand your geographic search a little further to see if other institutions have a similar offering to yours.
- Check out the reviews left by customers online and feel free to test their products.
- Observe their communication, their clientele, their distribution methods, the technologies used, etc.
In short, gather as much information as possible about the market and your potential competitors. This way you will know if there is still room in the market for your concept, especially if you are targeting the same audience.
Define the legal status and formalities for the creation of your fast-food restaurant
As a freelancer
You own and manage your own restaurant and you alone make the decisions. To embark on this adventure alone, it is best to have a sharp entrepreneurial mind.
Within a franchised network
By joining a franchise network such as La Mie Câline, Amorino or Chamas Tacos, which we know well at Innovorder, you benefit from an already established brand image, know-how, guidelines and support from the brand. In exchange for this, you must pay operating and advertising fees.
👉 To go further: opening a fast food franchise
In partnership
The other option, to open your restaurant while remaining in charge, is to associate yourself with a partner who shares the same vision and values as you. A complementary profile to yours in terms of skills would be a plus!
To create your fast food business, you will have to define its legal status:
- the auto-entrepreneur status is only suitable for small restaurants without employees,
- if you start your fast-food business alone, you can opt for a SASU or EURL,
- If you open your restaurant with several partners or shareholders, then the SARL or SAS seems more suitable.
The formalities to be completed to create your company depend on this step.
Establish financial forecasts and financing
Part of your business plan should be dedicated to your financial projections (expenses and earnings). At the end of this, you and the various stakeholders should be able to know if your project is profitable, solid and financially coherent.
The following information should be included in your document:
- a projected income statement,
- a balance sheet forecast,
- a financing table,
- an investment table,
- the calculation of the working capital requirement,
- and the calculation of the break-even point.
To launch your restaurant, you must have a personal contribution equivalent to at least 30% of the total investment. You can then apply for a bank loan.
You can also consider participatory financing, otherwise known as crowdfunding. This consists in collecting funds from your community via campaigns on social networks or events.
Raising funds from potential investors is also an option, but more complex to set up.
Finally, take the time to evaluate the different financial aid offered by the State. Depending on your situation and your business project, you may be eligible for the New Accompaniment for Business Creation or Takeover (NACRE) or the Women's Initiative Guarantee Fund (FGIF).
Define the best marketing strategy for your restaurant
A marketing plan is used to identify the needs and expectations of consumers and to offer a product or service in line with this target audience. It is composed of 4 elements.
Your offer
Your first mission is to determine the specificities of your offer: dishes, packaging, quality, etc.
Will you position yourself as a specialist or as a generalist restaurant? Will you change the menu regularly according to the seasons, focus on premium and organic quality and use local suppliers?
Do you plan to offer starters, main courses, desserts, children's menus, vegetarian menus, etc.?
What customer journey do you want to offer your customers?
The price
Your prices must take into account a number of internal and external criteria.
Internal constraints:
- cost of ownership,
- profitability objective,
- positioning (luxury, premium, cheap, etc.).
External constraints:
- competition,
- target market share,
- transportation and distribution costs,
- purchasing power of the target consumers.
Communication
Your communication must serve your reputation and attract new customers, hence its importance.
It must be in line with the positioning of your restaurant and the target audience.
Finally, don't forget any medium, whether digital (social networks, Facebook Ads, website) or more traditional (flyers, posters, kakemono, etc.).
The distribution
You must also define the distribution channels on which your commercial strategy will be based.
To do this, we recommend that you answer the following questions:
- Will there be room service?
- Will your customers have access to click and collect or a drive?
- Will you use specialized delivery service companies or hire a team of delivery people?
- Will you be partnering with other players?
- Do you plan to open your concept to franchising?
Also consider how you will manage inventory and how your products will be transported (labor, packaging).
Choose the ideal location for your fast food restaurant
When determining the location of your restaurant, make sure it fits the concept, the food and the clientele .
- Define the size of the space you will need.
- Take an interest in the neighborhood and the street. Is it quiet or busy? Is it frequented by your target audience?
- Consider ease of access and parking options.
- Find out about rent and restrictions. How late can you make noise? Can you have a delivery truck?
- Find out about any construction in the area.
- Look at the environment: are nearby businesses, parks or roads assets or obstacles to your project?
3. Comply with the legal obligations specific to restaurateurs
As a restaurant owner, you are subject to a number of legal obligations. But what exactly are we talking about?
The registration
To start your business, you must register your restaurant, in other words: declare its existence and your activity. Once your establishment is registered and recorded on the Trade and Companies Register, you will receive your Siren number and your Kbis.
You must also declare your activity and the identity of your restaurant to the town hall where you are attached, at least 15 days before the opening.
👉 To go further: How to register with the Company Trade Register
Health and safety standards
Your restaurant is subject to a number of health and safety regulations. These rules concern food production, personnel and equipment, storage of your goods and water.
Remember that at least 1 person of your team must have followed the hygiene training called HACCP (it lasts about 14 hours).
Remember also to make the mandatory declaration (form 13984*06) which authorizes you to handle food of animal origin.
Since your restaurant is classified as an establishment open to the public (ERP), you must also apply the rules in force for this type of building. This will give you valuable information about fire and accessibility standards.
The sale of alcoholic beverages
Are you planning to serve alcohol in your restaurant?
Then you must fill out the Cerfa 11542*05 form. You will then have to follow a compulsory training of 20 hours at the end of which you will obtain a professional licensealso known as an operating permit.
Music in the restaurant
In order to broadcast music in your establishment, you must pay royalties to the Sacem (Society of Authors, Composers and Music Publishers). The amount depends on your activity and the size of your restaurant.
Mandatory posting
Within your restaurant, certain information must be clearly visible to customers:
- prices (including taxes and services) inside and outside the establishment,
- opening hours,
- the different means of payment accepted,
- the origin of the meat.
4. Budget your expenses
The formalities to open a fast-food restaurant
The first costs to consider are those related to the creation of your company. First of all, there are the fees of the professionals who will help you in your steps (lawyer, chartered accountant or formalist).
In addition, there are the costs of publishing a legal announcement (between €150 and €250).
Finally, you will also have to take into account the cost of registering your company with the competent registry. To create a SASU, SARL or EURL type company, the registry fees are 41.50 €.
The room
The premises represent a significant expense in your budget.
Unless you buy it with your own money, you will have to pay back a bank loan or pay rent to your landlord every month.
You will also have to take into account the notary fees related to the purchase as well as the amount of the property tax. Renovation costs, if any, may also add to your bill.
Human capital
On your own, it's hard to take on the roles of accountant, communications officer, business manager, maintenance person and waiter. However, before you jump into the talent hunt, ask yourself the following questions:
- What types of positions do you need in the dining room and in the kitchen and what are the skills and qualities of the profiles that could correspond to these positions?
- Do you want to manage yourself or hire someone to manage the staff?
- What are the salary requirements for each of these positions? How will you handle tipsand do you provide any fringe benefits?
- Is the proposed work environment attractive?
- What is your training plan?
- Do you plan to use external service providers(Uber Eats, Deliveroo, etc.) or salaried delivery drivers?
👉 Going further: 9 tips for finding restaurant staff
Physical capital
It's hard to imagine a restaurant without furniture, decoration, tableware, or professional catering equipment!
The equipment is indeed part of the essential resources for the opening of a fast food restaurant. Depending on the type of establishment you wish to launch (on site consumption, take away or delivery), the equipment of your establishment will be more or less important.
For the kitchen, the supplies are roughly the same from one restaurant to another. We have dedicated an article to this subject.
👉 To go further: supplies for your restaurant: the complete list
Operating expenses
Electricity, water, gas and Internet bills are part of the costs of your business. It is impossible to give you a precise amount, because it varies according to your heating system, the type of energy used by your CHR equipment, the number of customers, etc.
The technology
Opening a restaurant without equipping it with digital solutions is a risky bet, especially at a time when the immediacy of orders is a competitive factor.
Technology, by automating certain processes and collecting data, allows you tooptimize the management of your restaurant, both in the dining room and in the kitchen. Indeed, it can be present at each step of the customer journey, from the order taking, to the collection, through the preparation in the kitchen and the service .
At Innovorder, we support restaurant owners who want to provide the best experience to their customers with a complete digital ecosystem:
- certified cash register,
- control terminal,
- production screen,
- customer display,
- online ordering
- pagers,
- back office.
All these solutions have been designed to make life easier for business owners who, like you, manage a fast food restaurant.
👉 Going further: purchase orders: paper or digital?
Purchase and storage of goods
To fulfill your customers' orders, you must ensure that the raw materials needed to prepare their dishes are available on time. You will have to make sure that you have a regular supply of drinks, food and packaging. The choice of your suppliers is therefore strategic. This has a cost as well as the storage of these products.
Insurance
There are many risks in the restaurant business: fire, theft, burning, vandalism, food poisoning, breakdown, to name a few. It is therefore essential to take out civil liability insurance and comprehensive insurance.
The first one protects the restaurant from possible damages caused to customers, suppliers or third parties, in the course of its activities, whether caused by employees, buildings, equipment, but also food.
The second allows you to be compensated when a major risk affecting your premises or your restaurant's property occurs. It is thus an insurance of the commercial premises, but also of the goods.
You will also have to subscribe to a health insurance plan adapted to your employees' situation.
Finally, you can opt for a cold weather insurance or a sommelier guarantee .
Advertising, marketing and communication costs
Advertising, marketing and communication expenses should be included in your expense calculation.
Here are some expenses not to be overlooked:
- creation of a logo and a slogan,
- the design of your menus,
- the creation of a website,
- campaigns on social networks,
- advertisements in local radio stations or magazines,
- posters announcing the opening of your restaurant.
Finally, remember to add your taxes to the total and keep a margin for the unexpected.
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Here is a guide that you can now count on to help you with your opening project!
And for the digitalization of your restaurant, trust Innovorder! We put technology at the service of your establishment to improve the management of your business, to facilitate the management of your activity, to offer a better experience to your customers and to differentiate you from the competition.
