Key Takeaways

  • Conduct thorough market research and feasibility studies when forming your restaurant concept in Georgia.
  • Select the right location considering zoning, customer demographics, and accessibility.
  • Ensure you apply for and obtain all state, local, and federal permits, including food service, liquor licenses, and signage permits.
  • Follow Georgia Department of Public Health guidelines to meet health and safety regulations.
  • Build a strong team and document HR policies in line with Georgia labor laws.
  • Consider marketing early by developing your website, social presence, and Google Business listing.
  • UpCounsel can help connect you with experienced Georgia business attorneys for legal guidance.

Wondering how to start a restaurant business in Georgia? If you want to open a restaurant in one of Georgia's cities, you'll need to complete a few important steps, including creating a business plan, obtaining all the necessary licenses, and registering for taxes.

Step 1: Create a Business Idea

Before jumping into things like registration and marketing, it is important to come up with a good business idea. Consider your interests, skills, and abilities when you create your idea. This will ensure that you are well-prepared and dedicated to the business and its success.

Conduct Market Research and Feasibility Studies

Before launching a restaurant in Georgia, it’s essential to validate your business idea with research. Start by analyzing:

  • Local demographics: Who lives or works nearby? What are their food preferences and spending habits?
  • Competitive landscape: What types of restaurants already exist in your target location? What gaps can your concept fill?
  • Trends in Georgia’s dining industry: Are fast-casual spots growing faster than fine dining in your area?
  • Feasibility analysis: Estimate costs, revenue projections, break-even point, and potential profitability.
    Tools like customer surveys, public data, and food industry reports can help refine your idea into a viable business.

Step 2: Plan the Business

Every business requires careful planning. Before investing in and opening the business, you should consider the following:

  • Product development: What services/foods will set your business apart from its competitors?
  • Sales/Marketing plan: Who is the target audience? How will you reach that audience?
  • People/Partnerships: What positions need to be filled? What types of professional relationships should be created first?
  • Financial planning: How much can be made with the business? How many customers or sales will you need to break even or create a profit? Where will you get the necessary funding to open the business?

Choose a Restaurant Location and Understand Zoning

Your restaurant’s location can make or break the business. In Georgia, consider:

  • Foot traffic and parking availability
  • Proximity to competitors
  • Compliance with local zoning laws

Contact your city or county zoning office to ensure your location is zoned for food service. If necessary, you may need to apply for a zoning variance. Always confirm your site meets Georgia Department of Public Health (DPH) and local building codes for restaurant operations.

Step 3: Form the Business

After you've planned and considered the logistics of the business, it is time to legally form the business. This includes registering the restaurant business with the state of Georgia. Many businesses will choose to register as either an LLC or a corporation.

  • LLC: LLC's are easier to set up. Georgia charges just $140 to register an LLC. As an LLC owner, you have personal liability protection.
  • Corporation: Registering the restaurant as a business entity makes you liable for any lawsuits. Some businesses may also be required to file as a “doing business as” (DBA).

Consider Georgia-Specific Business Structures and Registrations

In addition to forming an LLC or corporation, you may also need to:

  • File for a “doing business as” (DBA) name with your local county clerk.
  • Reserve a name through the Georgia Secretary of State.
  • Register with the Georgia Corporations Division through the Georgia Secretary of State’s online portal.
    Also, if forming a corporation, appoint a registered agent and establish corporate bylaws.

Step 4: Register for Taxes

It is also important to register your business for taxes. Every business in Georgia should have an EIN (Employer Identification Number). This is also known as a federal tax ID number. Registering for an EIN allows a business to hire employees and open a business bank account.

There are additional tax rules depending on the details of your business. For example, if the business will sell any items, it also needs to register for Georgia sales tax. If you plan on hiring any employees, you will also need to register for unemployment insurance tax and employee withholding tax.

Step 5: Create Business Banking and Credit Accounts

It is a good idea to have a separate bank account and credit card account for the business. Not only does this improve the business's credibility, but it also protects the business's corporate structure.

Step 6: Set Up an Accounting Process

Accounting allows you to easily track the success of your business. It can also make it easier to file your yearly taxes. You can utilize online accounting software to keep track of your accounting processes.

Step 7: Obtain Any Necessary Permits and Licenses

It is also important to follow all federal and state requirements regarding permits and licenses. The exact permits and licenses needed will depend on the type of business you open. Georgia restaurants will need to have health permits and building permits.

Required Restaurant Licenses and Permits in Georgia

Restaurants in Georgia must obtain several local and state-level permits to legally operate:

  • Food Service Permit: Apply through your county health department. This includes a plan review and inspection process.
  • Alcohol License (if applicable): Required from both the Georgia Department of Revenue and your local municipality. Some jurisdictions may limit the number of licenses available.
  • Business License/Occupation Tax Certificate: Issued by the city or county.
  • Food Sales Establishment License: If you plan to sell packaged food.
  • Grease Trap and Wastewater Permits: Managed by the local public works department.
  • Sign Permit: If installing exterior signage.
  • ADA Compliance: Ensure your space is accessible under the Americans with Disabilities Act.

Contact your local government to confirm exact requirements, as they may vary by city or county.

Schedule and Pass Health Inspections

Before opening, you must schedule an inspection with the local health department to verify your compliance with Georgia’s food safety regulations. Inspectors will assess:

  • Food handling procedures
  • Kitchen layout and sanitation
  • Employee hygiene protocols
    Ongoing inspections may occur quarterly or semi-annually. It’s crucial to train staff according to the Georgia Food Code and maintain proper documentation of food safety practices.

Step 8: Get Insured

Insuring your business can protect you in the event of a lawsuit or when dealing with unemployment. Georgia restaurant businesses should file for the following types of insurance:

  • General liability insurance: Small businesses benefit from general liability insurance.
  • Workers' compensation insurance: Georgia businesses with three or more employees are required to have workers' compensation insurance.
  • Professional liability insurance: Businesses offering professional services or advice should purchase this type of liability insurance.

Consider Additional Types of Insurance for Restaurants

In addition to general liability and workers' compensation, consider:

  • Liquor Liability Insurance: If you serve alcohol.
  • Commercial Property Insurance: Protects your building, equipment, and inventory.
  • Business Interruption Insurance: Helps cover lost income due to fire, storms, or other events.
  • Food Contamination Insurance: Covers losses related to spoiled or contaminated inventory.

Some Georgia landlords may require proof of insurance before finalizing a lease.

Step 9: Define Your Brand

The most successful businesses have a strong brand message. This allows customers to recognize them, and it sets them apart from their competitors. Create your business brand by considering your values, services, and products.

Build a Team and Culture

Hiring the right staff is vital for restaurant success. Start by clearly defining roles like:

  • Executive Chef or Kitchen Manager
  • Front-of-House Manager
  • Servers and Hosts
  • Dishwashers and Prep Cooks
    Georgia law requires you to comply with state labor regulations, including wage laws, workplace safety, and new hire reporting. Document employee policies in an employee handbook and conduct proper training to build a cohesive team and culture.

Step 10: Establish a Web Presence

Having an established web presence is important in today's digital times. Websites also are a point of communication for potential customers. Additional methods of establishing a web presence include:

  • Creating social media accounts.
  • Creating review sites.
  • Creating a local Google page.

Start Marketing Before You Open

Marketing your restaurant before your grand opening helps build anticipation and brand awareness. Consider:

  • Launching a countdown campaign on social media
  • Offering a soft opening for feedback
  • Collecting emails for a VIP launch list
  • Partnering with local influencers or food bloggers
  • Running early promotions through Google Ads or Facebook

Claim your business on Google Business Profile, Yelp, and TripAdvisor to help future customers find you.

Frequently Asked Questions

  1. What licenses do I need to open a restaurant in Georgia?
    You’ll need a business license, food service permit, potentially an alcohol license, and other permits such as health, signage, and occupancy depending on your city or county.
  2. How much does it cost to start a restaurant in Georgia?
    Startup costs can vary widely but typically range from $100,000 to $500,000+, depending on location, size, renovations, and equipment needs.
  3. How do I get a health inspection in Georgia?
    Contact your local county health department to apply for a food service permit. They will schedule an inspection once your kitchen is set up.
  4. Can I sell alcohol at my restaurant in Georgia?
    Yes, but you need to apply for both a local alcohol license and a state alcohol license through the Georgia Department of Revenue.
  5. Where can I find help starting a restaurant business in Georgia?
    You can post your legal needs on UpCounsel to connect with experienced attorneys in Georgia who can guide you through licensing, compliance, contracts, and more.

Following these recommended steps can lead you in the right direction of starting a restaurant business in Georgia. If you need help with starting a restaurant business in Georgia, you can post your legal need on UpCounsel's marketplace. UpCounsel accepts only the top 5 percent of lawyers to its site. Lawyers on UpCounsel come from law schools such as Harvard Law and Yale Law and average 14 years of legal experience, including work with or on behalf of companies like Google, Menlo Ventures, and Airbnb.