How to open a restaurant in Texas

Wondering how to open a restaurant in Texas? You’re in luck. From creating a business plan to conducting effective marketing research, we’ve compiled our top tips to consider when opening a restaurant in Texas.   

1. Choose a location

As the trusty expression goes, “location, location, location.” Location matters–especially in the restaurant business. What’s more, the location of your soon-to-be restaurant can help influence your branding, day-to-day operations, and customer experience. An emerging restaurant needs room to grow–both physically and in terms of its customer base. When selecting location, here are a few questions to consider:

• What area or part of town would give you the best access to your target market?
• Is the location (and the building) suited to your restaurant’s brand?
• Is the location accessible to foot and car traffic–as well as wheelchairs and other mobility devices?
• Is the location visible?
• What are the area’s zoning regulations?

Unsure of where to base your restaurant? Explore these established or emerging cities:

• Celina – This North Texas metropolitan is the fastest growing city in the U.S. 
• Houston – This ‘down-home meets cosmopolitan’ city of Southeast Texas is known for its fun and filling cuisine.
• Amarillo – The largest economic hub in the Texas panhandle, Amarillo is an ideal place to put down your restaurant’s roots.
• Fulshear – Boasting of its natural beauty and strong community spirit, this burgeoning Texas town is the second fast growing city in America.

READ: How to find a good location for your business

2. Devise a business plan

A well-constructed business plan can help guide you through each step of starting and managing your restaurant–and is important in securing the financing you may need to get up-and-running. 

Understanding what restaurants in the area offer can help you spot opportunities to provide something fresh to the local market–from the cuisine you offer to the drinks you serve. Analyzing competitor businesses may also help you fine-tune your pricing, craft a unique menu, and market your restaurant more effectively to locals or visitors.

When creating your plan, keep the future of your restaurant in mind, opting for a scalable plan that grows with your business. It may also be wise to include a strategy for handling sales taxes–like Davo Automated Sales Tax by Avalara. Need help getting started with your business plan? The U.S. Small Business Administration (SBA) has some great sample templates. 

READ: How to write a restaurant business plan

3. Craft the menu

Menu design is important to your restaurant’s branding and theme, as well as the overall customer experience. Having a concise menu may also help you plan financially. To stand out against the culinary landscape of the Lonestar state, craft a menu that focuses on your branding and a cuisine suited to your strengths. Along with a well-categorized physical menu, consider providing an electronic menu. Also, take time to consider special options for those with dietary restrictions–and limited-time-only menus that highlight daily, weekly, or seasonal specials.

READ: How to create a restaurant menu

4. Finance and register your business

Opening a restaurant usually requires overhead, although the exact cost likely depends on your location and overall vision. There are many creative options available to help cover some or all of the costs of becoming operational. The U.S. Small Business Administration (SBA) offers a number of small business loans and provides a Lender Match to find a lender suited to you. And, once your business is up-and-running, Clover can offer options to help you keep cash flowing–like Clover Capital and Rapid Deposit.

Registering a business establishes its legal existence, protects your brand, and can help you keep it in compliance with any state and local regulations. In Texas, you must register your restaurant as a legal entity (S-corp, C–corp, LLC, for instance) with the Secretary of State. If you’re struggling to decide what type of entity to register as, the Secretary of State provides information detailing each kind of entity.

READ: How to open a restaurant with no money

5. Obtain permits and licenses

Securing correct licenses is important for legal compliance, meeting health standards, and building trust with diners. While there are common permits required to open restaurants, each state has specific licenses that must be obtained. Fortunately, the Texas government provides a small business portal aimed at pointing you in the right direction. They also provide a comprehensive list of all permits and licenses needed to become an operational restaurant in Texas. 

READ: How to get a small business license in Texas

6. Set-up a restaurant POS system 

Whether you envision your restaurant being a trendy cafe or an upscale steakhouse, you’ll need a POS system to help you keep up with your restaurant operating smoothly and efficiently. Knowing what to look for in a restaurant POS system is half the battle. In addition to being able to accept all types of payments, here are a few features your POS should have:

• Sales tracking and reporting
• Inventory management
• Employee management 
• Customer engagement tools and a loyalty program
• Gift cards

Your POS system should also be able to scale with your restaurant. Clover, for example, offers a range of devices aimed at meeting your restaurant’s growing needs. From the super portable Flex Pocket to the more advanced Station Duo, these devices can be set up to suit your restaurant’s evolving needs. And, depending on whether you envision a take-out business, a dine-in deli, or a sit-down eatery, the Clover Kiosk could be just the ticket to make self-ordering a snap for customers. 

You may also need a kitchen display system to bring efficiency to the kitchen chaos. Luckily, Clover’s Kitchen Display System (KDS) bridges the gap between the front and back of house while also accounting for online orders. 

With the uptick in online ordering, an increasing demand for contactless payment options, and the need to update inventory on the fly, a well-designed restaurant POS is crucial to your restaurant’s success. Clover provides POS systems built specifically for handling the intricate needs of restaurants. 

READ: Restaurant marketing strategies to grow your business

Starting a restaurant can be both exciting and daunting. Clover’s restaurant POS systems can help take the stress out of starting your restaurant in Texas, managing employees, and building customer loyalty. Simply reach out to a Clover Consultant to get cooking!

Editorial Team

Full Service Restaurants (FSR), Insights, Quick Service Restaurants (QSR), Start a small business

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