The Insider’s Guide to Starting a Restaurant Business in Canada

Are you thinking of starting a restaurant business in Canada? If so, you are definitely not alone. The foodservice industry is booming in this country, and there are plenty of opportunities for entrepreneurs who are willing to put in the hard work. However, before you take the plunge and invest your time and money into opening a restaurant, there are a few things that you need to consider. In this blog post, we will outline some of the most important factors that you need to think about before starting a restaurant business in Canada.

The Insider’s Guide to Starting a Restaurant Business in Canada

1. Location, location, location

As they say, the three most important factors in real estate are location, location, location. The same can be said for starting a restaurant business. Your restaurant’s location will have a big impact on its success or failure. Make sure to choose a location that is visible and easily accessible to potential customers. It should also be in a safe neighborhood with plenty of foot traffic. Also note the bigger cities like Toronto, Montreal and Vancouver are extremely diverse and there tend to be abondance of a certain ethnic population in different neighborhoods. If you are planning to cater to a specific ethnic group, it would be best to do your homework.

2. The right concept

When it comes to starting a restaurant, the concept is everything. You need to choose a concept that will appeal to your target market and set your restaurant apart from the competition. Think about what type of food you want to serve and what kind of atmosphere you want to create. Do your research and make sure that there is a demand for the type of restaurant you want to open. Kind of goes without saying if you are planning to cater authentic and ethnical food, make sure you get it right. You may also attract customers of other cultures if you can come up with creative fusion menu items.

3. Financing

Of course, one of the most important factors to consider before starting a restaurant business is financing. This is a capital-intensive industry, so you will need to have access to enough funds to cover the costs of leasing or purchasing a property, outfitting your restaurant, and hiring staff. You may need to take out a loan or secure investment from venture capitalists. Most immigrants finance their business ventures with the life savings they bring with themselves to Canada. If you are investing on your first restaurant business in Canada, make sure you don’t put all the eggs in one basket and set aside an emergency fund for hopefully never happen rainy days. 

4. The right team

Surround yourself with the right team of experts who can help you turn your vision into a reality. You will need to hire a experienced chef, as well as front-of-house and back-of-house staff. Make sure to carefully screen all candidates and only hire those who are passionate about the foodservice industry and share your vision for the restaurant. One common mistake is to relay on insufficiently trained family member to take care of key functions like front line facing the customers or in the kitchen. Working at your own restaurant with family members could be extremely satisfying and joyful however ensure everyone on the team stays professional during the business hours and have a good handle of tasks on hand.

5. Marketing and promotion

Last but not least, you need to have a solid marketing and promotional plan in place to generate buzz for your restaurant before it opens its doors. Create a website and social media accounts for your business. Use these platforms to share your menu, special offers, and events. If things go well, you could also consider working with food bloggers and influencers in your city to get the word out about your restaurant. Another important tips is to jump on the food delivery apps like Uber eats and DoorDash to get the most needed revenue from day one.

Starting a restaurant business is a big undertaking, but if you do your homework and put together the right team, it can be a very rewarding experience. Keep these factors in mind as you start planning your restaurant business in Canada. Good luck.