Lots of Americans are quitting jobs in droves as the COVID pandemic has changed the face of work for many. Opening a restaurant is something that many romanticize as fulfilling and rewarding. However, being profitable in the restaurant business is very tough and requires a lot of hoop-jumping just to get your doors opened. Here is some information that will help shine a light on what it takes to open a restaurant in Texas.
Texas is the second-largest market in the restaurant industry in terms of the number of establishments. The restaurant and foodservice industry is a $66 billion growing sector that employs about a tenth of the state’s workforce. (Back of House 2021) That is an encouraging statistic and the right plan can create success for you.
Location For Your Restaurant
As much as it is vital to know what cuisine you want to serve, it’s also essential to think about the kind of customers you want to attract. According to the Texas Restaurant Association, Mexican food is one of Texas’s favorite global cuisines, and you will find some fantastic drive-thru restaurants in Houston serving Tex-Mex food. Similarly, Greater Houston is home to America’s second-largest Vietnamese population making Asian cuisine another favorite.
To begin your big picture view of making a plan for your restaurant business in Texas, consider the following:
- Who are the target customers?
- What type of restaurant will work best for your target market? Fine dining, fast-casual, or drive-thru?
- Which area of town has the highest demand for that cuisine based on demographics?
- Who is the competition?
Once you narrow down a location, finding an affordable restaurant space in a high-traffic area is key. Many restaurant owners are providing an enhanced drive-thru, pick-up, curbside, and delivery experience. Keep this in mind as a necessary addition to creating an in-person dining room experience.
Licenses and Permits
During the planning of your new restaurant, you will need to become familiar with two regulatory bodies – the Texas Department of State Health (DSHS) and the Texas Alcohol Beverage Commission (TABC).
The DSHS is the final authority over your kitchen at large. Ensure that you have these four necessary permits to open your restaurant legally – Certified Food Manager’s Permit, Sales Tax Permit, Food Establishment Permit, and Facilities Permit. (Wroblewski 2019)
The DSHS’s field inspection manual for foodservice establishments runs approximately 200 pages, including cooking standards, water supply, garbage storage, cleaning, and sanitization of the restaurant and employees, among other essential rules for licensing.
In addition, every employee needs a food handler’s license, and those employees handling alcohol should get a TABC-approved license.
On TABC’s website, you will find multiple categories of liquor licenses. Keep in mind that the liquor licensing process can be complicated, and you may require outside legal assistance.
(Back of House 2021)
Insurance
Having insurance protects you from loss and liability. Here are some of the different insurance types you need to know about:
- Property insurance
- Fire coverage
- Personal property coverage
- Business expense coverage
- Workers’ compensation insurance
- Specialty insurance coverage
(Little, 2020)
But as you’ve discovered, it gets complicated from there. Restaurants – especially businesses serving alcohol, making deliveries, or offering valet parking – have unique risks. The type of insurance coverage you may select can be different, based on things like whether you rent or own the building or space the restaurant is in.
ADA Accessibility For Your Restaurant
The Texas Accessibility Standards (TAS) Online covers everything you need to be accessibility compliant – from parking spaces to restrooms. Texas follows the federal standards set by the Americans with Disabilities Act (ADA). (Resto Hub 2021)
If you want a resource for a barrier-free dining experience, you can reach out to Disability Rights Texas (DRTx). It’s a federally funded protection and advocacy agency that can give you the best resources to open your doors to everyone. (Back of House 2021)
Employment For Your Restaurant
Opening a restaurant involves a hiring process and attracting qualified employees. Educate yourself about standard employment law issues such as discrimination, compensation, benefits, onboarding, and more.
There are a few employment laws specific to the restaurant industry, such as minimum wage for tipped employees or rules for various training and exams related to food establishment personnel. Take advantage of free classes offered by local and state governments. The Texas Restaurant Association also offers classes to members.
We Wish You The Best For Opening Your First Restaurant
Technology is a large part of any restaurant establishment today, and Business Sound and Communications is ready to help you get your service delivery function off to a great start.
We are one of the leading dealers in the United States selling and servicing drive-thru communications, POS systems, and enhanced customer experiences with music and digital menu boards from leading manufacturing brands like HME, PAR, and Panasonic.
For more information, feel free to connect with us at sales@bsctx.com or 281-590-3400.
Work Cited
Back of House, Staff. “How to Open a Restaurant in Texas Successfully.” Backofhouse.io, 5 Oct. 2021, https://backofhouse.io/stories/how-to-open-a-restaurant-in-texas.
Little, L. (2020, August 11). What kind of insurance do you need for a restaurant? Farmers Insurance. Retrieved February 7, 2022, from https://www.farmers.com/learn/insurance-questions/what-type-of-insurance-does-my-restaurant-need/
Wroblewski, M.T. “The Four Permits Needed to Open a Restaurant in Texas.” Small Business.Chron.com, Chron.com, 14 June 2019, https://smallbusiness.chron.com/four-permits-needed-open-restaurant-texas-37204.html
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Resto Hub, Staff. “Opening a Restaurant in Texas: How to Get Started.” RestoHub, 2021, https://www.restohub.org/operations/planning/texas-restaurant.
