How to Start a Fast Food Restaurant (12 Steps & Checklist)

With over 6 years of experience in the restaurant industry, I’ve seen the fast-food sector experience incredible growth.

In 2023, U.S. quick-service restaurant sales peaked at over $490 billion, exceeding pre-pandemic levels, which highlights the vast opportunities within the industry.

In this guide, I’ll walk you through the key steps to starting your own fast-food restaurant, sharing insights and best practices to help you succeed.

What is a Fast Food Restaurant?

Fast-food restaurants are places where you can get food quickly. They serve meals that are already prepared and ready to eat. These restaurants focus on being quick and convenient, offering drive-thru or self-service options.

The menu of a fast food restaurant usually includes popular menu items like burgers, sandwiches, tacos, pizza, fried chicken, and other similar items. The main aim is to serve customers fast, so they can enjoy their meal right away, either on the go or in the restaurant.

How to Open a Fast Food Restaurant?

With over six years of experience working with restaurants, I’ve gathered key insights and best practices to help guide you through the process of opening a successful fast-food restaurant. These steps are designed to give you a solid foundation and help you succeed.

Step 1. Choose your business model

The first step of starting a fast food restaurant is deciding on the restaurant business model. A business format may be different, and it is recommended to think of the following aspects:

• Are you considering a traditional brick-and-mortar location or prefer a mobile option like a food truck business?
• What type of food are you planning to offer? (You are not limited to burgers, pizzas, and french fries, you can also sell healthy fast food options like vegan or gluten-free sandwiches or poke bowls.)
• Do you plan to offer a drive-thru service for customers?
• Do you plan to offer customers a restaurant curbside pickup?
• Will you serve traditional sit-down meals?
• Will there be a dining room?
• Will you serve customers primarily through a counter service, window, or both?
• Do you plan to play music in your fast-food restaurant? If yes, what kind of music?
• Will your restaurant have seating for customers to dine in (if yes, what will be the seating?), or will it be more focused on grab-and-go orders?

Think about your target customers and how to meet their needs and expectations.

Step 2. Write a business plan for your restaurant

Creating a detailed fast food business plan is crucial. Start by conducting market research, and analyze market trends and how competitors run their businesses.

Describe your niche and target market, and include the financial business analysis and financial projections.

The financial forecast should include three key elements: a projected restaurant profit and loss statement, break-even analysis, and sensitivity analysis, all of which will give you a comprehensive financial outlook for your restaurant.

You’ll also want to include the marketing strategies you’re intending to implement. Common marketing approaches for restaurants include prominent signage, loyalty programs, and SMS marketing.

Think of all the startup costs you must cover and place them in your fast food restaurant business plan.

Step 3. Select a suitable location

Choosing the right location is a critical decision that directly impacts your business’s success, as it’s closely tied to the number of customers you will serve.

Your restaurant location strategy should focus on areas with high visibility and accessibility, making it easier for customers to find and visit your establishment.

While choosing a location for your fast food concept, take into account the following:

• Foot Traffic: Evaluate the average number of pedestrians in the area you plan to operate. High restaurant foot traffic increases the chances of attracting customers who are walking by.
• Competition: Analyze the presence of other fast-food restaurants in the local market. A high concentration of competitors might make it harder to stand out, but it could also indicate a strong demand for fast food in the area.
• Accessibility and Visibility: Ensure that pedestrians and vehicles can easily access the location. Check if it is easily noticeable from the street, and consider the availability of parking for your customers.
• Costs: Evaluate all costs related to running a business in the chosen location, including rent, utilities, taxes, labor, and other restaurant expenses. Make sure the location aligns with your budget and projected revenue.
• Infrastructure and Zoning: Confirm that the location has necessary infrastructure like electricity, water, and sewage systems. Check for zoning restrictions to ensure you can operate your restaurant, and determine if you can accommodate delivery trucks for inventory and operations.
• Growth Potential: Consider the long-term growth prospects in the area. Look for neighborhoods that are developing or undergoing planned infrastructure improvements, as these could attract more customers in the future.

Additionally, being close to other fast-food restaurants could be beneficial, as it may indicate a demand for quick dining options.

Step 4. Obtain the necessary licenses and permits

Regulations can vary by location, so check with local authorities, such as the city or county clerk, health department, and zoning department, to ensure compliance with all laws.

The most common permits and licenses you may need to include are the following:

• Business License: It allows you to legally operate a business within a specific jurisdiction.
• Food Service License: It confirms that your restaurant meets health and safety regulations and food handling, preparation, and storage standards. You can get it from the health department or relevant regulatory agency.
• Building and Zoning Permits: These might be necessary if you are constructing a new building or renovating an existing one. Zoning permits ensure that your fast-food restaurant is situated in an officially designated commercial area.
• Alcohol License: You need to obtain it if you plan to sell alcoholic beverages in your establishment
• Signage Permit: To comply with local sign regulations, including rules regarding size, placement, and lighting, you may be required to obtain a permit if you plan to install outdoor signage for your fast food restaurant.
• Employer Identification Number (EIN): You need to obtain it from the Internal Revenue Service (IRS) to hire employees. Establishing your restaurant as an official business entity is required for tax purposes.
• Music Licensing: It is necessary if you plan to play music in your fast food restaurant.

You need to create a business entity, which refers to the fast food management and ownership structure under which a business operates.

Additionally, some businesses are required to file a DBA (Doing Business As) to use a unique name for branding or create a separate identity for a specific part of their business.

Registering a DBA helps maintain transparency, prevents customer confusion, and ensures compliance with regulations and creditor requirements.

Other formalities include:

• Opening a business bank account
• Getting a business credit card

Step 5. Secure funding

Consider the capital needed to start your fast food business, whether you’re buying a fast food franchise or launching your own restaurant.

Knowing the expected costs, you can explore various restaurant financing options, such as applying for restaurant loans and grants or opening a credit line.

Additionally, consider crowdfunding or seeking financial help from friends and family.

How much does it cost to start a fast-food restaurant?

The cost of starting a fast food restaurant depends on whether you open an independent fast food restaurant or a restaurant franchise.

The opening cost for an independent restaurant is between $175,500 and $750,500.

For a restaurant franchise, the costs vary depending on the brand. For example, the estimated initial investment for a Jack in the Box franchise ranges from $1.81 million to $4.21 million, while the startup costs for a Taco Bell franchise are between $1.2 million and $2.9 million.

Step 6. Create a marketing plan

​Developing a comprehensive restaurant marketing plan is crucial for enhancing your establishment’s visibility and attracting a steady stream of customers interested in the food you serve.

It enables you to identify your restaurant’s target audience and enhance the customer experience through tailored promotions, events, and offerings catering to their needs and preferences.

A well-designed marketing plan helps increase your restaurant’s awareness and attract more customers.

Step 7. Design your menu and find food suppliers

Design an appealing fast-food menu that resonates with your target audience. Start by deciding on your main menu items, desserts, drinks, and any special deals or combos.

Once your menu is ready, improve its accessibility by offering a QR code menu. Use a QR code menu builder to generate codes, then place them on tables, windows, or walls, so customers can easily scan and view your menu on their phones.

Finding reliable food suppliers is just as important as crafting a great menu. The quality and consistency of your ingredients directly impact the taste of your food and customer satisfaction.

Take time to compare options and consider starting with a trial order to make sure each supplier can meet your volume needs consistently.

Step 8. Select cooking equipment and design the kitchen layout

You must select and purchase equipment and design the kitchen layout to start your fast-food restaurant.

Below, I’ve prepared a restaurant equipment list you can use. Of course, depending on your establishment’s size and the food you will serve, you might need different equipment, but in general, you will need the following:

• grills
• fryers,
• ovens,
• toasters,
• microwaves
• mixers
• cutting boards,
• knives,
• slicers,
• freezers
• display cases
• beverage dispensers
• smallwares likebowls, cups plates, cutlery, napkins, straws,
• sinks,
• dishwashers,
• mop buckets,
• cleaning supplies

When designing the kitchen layout, consider using kitchen management software to optimize workflow and efficiency.

There are different types of kitchens, and for fast-food restaurants, the assembly line kitchen is most common. This type of kitchen helps streamline food preparation, with each worker performing specific tasks along the line to improve speed and efficiency.

Step 9. Design your restaurant floor plan

When starting a new fast-food restaurant, it’s essential to plan and arrange the layout of your restaurant’s seating and facilities.

Step 10. Hire and train your staff

Building a competent team is a must to run your fast-food restaurant.

Think about how you will look for your staff, how many employees you will need, and what restaurant training for your employees will be necessary.

No matter what type of fast food you are planning to serve, you will probably need the following:

• Head chef
• Line cooks
• Food runners, who bring food to diners
• Counter staff at the cash register

Step 11. Build your website and set up online ordering

When opening a fast-food restaurant, it’s essential to provide customers with the ability to check your offers online.

In fact, 77% of diners report that they search for restaurant information online and visit a restaurant’s website before deciding to visit or order from the restaurant.

According to the same survey, 69% of diners say a restaurant’s website influences their decision to dine in, while 43% visit the site to determine whether they want to order takeout or delivery.

That’s why I highly recommend creating a restaurant website with online ordering. To do this, you can use a ready-to-use tool like a restaurant website builder, choose a fast-food restaurant template, upload your products with photos, and customize your website.

Once you create your website, you can enable online orders. To do this, use a fast food automated ordering system to reach more potential customers.

Step 12. Promote your new fast food restaurant

Effectively promoting your fast-food restaurant is crucial for attracting customers and building brand awareness. For example, studies show that more than 70% of customers are more likely to visit a restaurant that offers personalized promotions.

To sum up, you can effectively increase your restaurant’s reach, attract more customers, and grow your business by implementing these fast food marketing strategies.

• Start with deciding on your restaurant concept
• Develop a fast food business plan
• Find a suitable location
• Take care of all permits and licenses
• Secure funding
• Develop a marketing strategy to attract diners
• Design a menu and search for food suppliers
• Purchase cooking equipment and design your kitchen layout
• Design your floor plan
• Build a competent team
• Create a fast-food restaurant website with online ordering
• Promote your fast food restaurant