Opening a Restaurant in New York City
Here is a step-by-step guide for purchasing or opening a restaurant in New York City and applying for a liquor license and the correct timing to hire a liquor attorney. In the coming weeks we will delve into the specifics of the sections below:
Step 1: Develop Your Restaurant Concept and Business Plan
Before diving into the logistics, in order to open a restaurant in New York City it’s crucial to have a clear vision for your restaurant and a solid business plan. This should include:
- Your restaurant concept and cuisine type
- Target market analysis
- Financial projections and funding sources
- Operational plans
- Marketing strategy
A well-developed business plan will be essential for securing funding and navigating the licensing process.
Step 2: Secure Funding For Your Restaurant
Opening a restaurant in NYC is a significant financial undertaking. The median asking price for restaurants in New York in 2024 is $346,000, but costs can vary widely depending on location, size, and concept. Explore funding options such as:
- Bank loans
- Investors
- Crowdfunding
- Personal savings
Ensure you have sufficient capital to cover startup costs, licenses, permits, and initial operating expenses.
Step 3: Choose a Location in New York City and Secure the Space For Your Restaurant
Finding the right location is critical for your restaurant’s success. Opening a restaurant in New York City requires you consider factors like:
- Zoning regulations
- Foot traffic
- Nearby competition
- Accessibility
- Size and layout
Once you’ve found a suitable space, negotiate the lease or purchase agreement. It’s advisable to have a liquor attorney who can handle restaurant leases–some liquor attorneys handle only licensing–review any contracts before signing. You may also wish to have your attorney help you negotiate the terms of the lease beforehand.
Step 4: Register Your Restaurant Business Entitity
Before or simultaneously with applying for licenses and permits specific to your goal of opening a restaurant in New York City, you will ultimately need to establish your business legally:
- Choose a business structure (e.g., LLC, corporation)
- Register your business with New York State — this may be done just before signing a lease unless you require your business to be formed for the purpose of including partners, investors, and raising funds in which case this may be done sooner.
- Obtain a Federal Employer Identification Number (EIN)
- Get a Sales Tax ID from the NYS Department of Taxation and Finance — this may be done just before opening for business.
Step 5: Apply for Necessary New York City and State Licenses and Permits for Your Restaurant
At this stage, it’s highly recommended to consult with a liquor attorney with solid experience assisting those opening a restaurant in New York City. They can help ensure you obtain all required licenses and permits and navigate the complex regulatory landscape. Key licenses and permits include:
Step 6: Apply for a Liquor License For Your New York City Restaurant
- Food Service Establishment Permit from the NYC Department of Health and Mental Hygiene
- Certificate of Occupancy from the Department of Buildings
- Food Handler’s License for yourself and key staff members
If you plan to serve alcohol, you’ll need to apply for a liquor license from the New York State Liquor Authority (SLA). This process can be complex and time-consuming, so starting early is crucial. Steps include:
- Determine the type of license you need (e.g., on-premises, wine/beer/cider or full liquor)
- Ensure you meet eligibility requirements:
- Be at least 21 years old
- Be a US citizen or permanent resident
- Have a clean criminal record
- File a 30-day notice with your local Community Board and attend the board meeting
- Gather necessary documents, including:
- Completed application
- Proof of citizenship
- $1,000 penal bond
- Photos and diagram of the premises
- Investment records
- Lease or deed for the premises
- Menu
- Proof of Community Board notification
- Submit your application to the SLA
- Attend a 500-foot hearing if required (for locations applying for full liquor with 3 or more existing liquor licenses within 500 feet)
The liquor license application process typically takes more than six months and sometimes closer to a year; but temporary permits are available that can have you up and running within 90 days from providing the 30-day notice if you are ready to open and operate by that time.
Step 7: Design and Build Out Your Restaurant
Opening a restaurant in New York City takes time. While waiting for license approvals, you can begin:
- Designing your restaurant interior
- Purchasing equipment and furnishings
- Renovating the space (ensure all work is properly permitted)
Step 8: Hire and Train Staff
Begin the hiring process for key positions such as:
- Chefs and kitchen staff
- Servers and bartenders
- Managers
Ensure all staff complete required food safety training.
Step 9: Set Up Operations
Establish relationships with suppliers, set up your point-of-sale system, and finalize your menu.
Step 10: Final Inspections and Opening
Schedule final inspections with the health department and other relevant agencies. Once all approvals are in place, you can prepare for your grand opening.
When to Hire an Attorney
Gather your team when opening a restaurant in New York City. It’s advisable to consult with a liquor attorney specializing in restaurant and hospitality law as early as possible in the process, ideally before signing any contracts or leases. A liquor attorney can be particularly helpful during the following stages:
- Reviewing and negotiating lease agreements
- Choosing and establishing your business structure
- Navigating the complex licensing and permitting process, especially for liquor licenses
- Ensuring compliance with labor laws and regulations
- Reviewing contracts with suppliers and vendors
An experienced attorney can help you avoid costly mistakes and ensure your restaurant starts on a solid legal foundation.
By following these steps and working with experienced professionals, you’ll be well-prepared to navigate the process of opening a restaurant in New York City and obtaining a liquor license. Remember that the process can be complex and time-consuming, so starting early and staying organized is key to success.
