The quick-service restaurant launch plan

Every step from deciding to opening, in the order it happens, shaped to your situation, with your own numbers beside it. About 51 steps in 8 phases, 26 of them specific to a quick-service restaurant. Free to read; ticking steps off and putting in your own numbers come with membership.

The plan51 steps

Your situationthe usual plan for a quick-service restaurant

  1. 01

    Decide with the numbersa week or two

    Before a dollar is spent. Most expensive mistakes happen here, and this phase costs nothing.

    Not started0/6Fold
    • A QSR sells a low at high speed and lives on volume.

    • Typical for one unit is $700,000 to $2,000,000 a year; the owner keeps 14 to 22% of it before paying themselves. If that band does not cover what you need, that is the signal to pause and look again.

    • ~50% survive 5 years. Roughly half of all new U.S. employer businesses are still operating after five years, and restaurants land close to that average.

    • Twelve questions about your money, time, experience and temperament, scored. Then the 5 questions this business asks of its owner, about the hours and the work. Answer both before you spend a dollar.

    • Rule of thumb: a profitable unit with real, documented volume is usually the lower-risk way in; car counts and a daypart history are hard to beat from a spreadsheet. Answer it in your situation above and the plan reshapes.

    • Customers, prices, rent, staff pay, what it costs to open. We filled in typical numbers; change what you know and everything on this page follows.

    • Opening a quick-service restaurant in a leased building is a remodel, a kitchen package, and a drive-thru all at once.

    • The itemized cost to open10 lines
      • Fryers, griddles & hot holding: $5,000 to $74,000Three to four fryers and one or two griddles; name-brand filtered fryers drive the high end
      • Walk-in cooler & freezer, prep tables & ice: $44,500 to $84,000
      • Hood, fire suppression & build-out (construction, plumbing, electrical, HVAC, grease interceptor): $30,500 to $339,000The biggest swing; a former fast-food building with a working hood and grease trap costs far less
      • Drive-thru board, canopy & exterior signs: $7,500 to $76,000A static board and new sign faces, up to a digital board, canopy, and new building signs
      • POS, kitchen screens, drive-thru headsets & cameras: $9,000 to $20,000
      • Seating, sinks, work tables & drive-thru window: $6,500 to $26,000
      • Smallwares: $3,000 to $8,000
      • Opening inventory (food, packaging, chemicals): $4,000 to $12,000
      • Permits, design, deposits & professional fees: $21,000 to $83,500Architect and site plan, permits, first insurance premium, lease and utility deposits, opening marketing
      • Initial working capital: $50,000 to $120,000Crew hiring and training, marketing, and about 3 months of reserve
    • Costs start on day one; customers take months. Map the first twelve months of cash so the business does not run out of money while it is getting going.

    • The business has to earn your pay like any other bill. Set it in your numbers and watch the month it move.

    • How deals in this business are financed4 lines
      • SBA 7(a) loan (Up to 10 yr (25 with real estate) · up to $5M · 75-85% government-guaranteed)The workhorse for opening or buying a unit: it funds a remodel, equipment, working capital, or an acquisition.
      • SBA 504 loan (Up to 25 yr · real estate & heavy equipment)For buying the building and pad.
      • Equipment financing / lease (Secured by the equipment · 2-5 yr terms common)Finance the fryers, walk-ins, hood, and drive-thru system on their own, secured by the gear itself; ice machines are often rented with service included.
      • Seller financing (Often 5-20% of price · 3-7 yr)Common when buying an existing unit.
    • Most new shops pair an with 10 to 20% of your own cash. Know the monthly payment before you look at a single space.

    • Before you shop. A lender tells you what they would fund, what they need from you (credit, your cash in, a plan with numbers), and a pre-qualification letter makes a landlord or a seller take you seriously.

    • Your state’s business name search, the trademark register, and the domain, before the name is on a sign, a van, or a lease.

    • A , an , and the S-corporation election each change what you keep and what you are exposed to. Compare them with the numbers, confirm with a CPA and an attorney, then file with your state.

      After:
    • The is free from the IRS in minutes once the company exists. The bank account needs both. Keep business money separate from day one.

      After:
    • Pick the accounting software and connect the bank account now, so every cost of opening is captured and the numbers you later are real.

    • What decides it for this business: high vehicle traffic count, easy ingress / egress, room for a drive-thru lane, strong road visibility & signage, daytime population & density.

    • One call to the planning desk with the address: is this use allowed there, and what will it take (, permits, health department plan review, fire sign-off)? A space that needs a change of use can add months.

    • Rent, free months for the , who pays for what, the and the renewals, subject to financing and permits. The lender needs this letter or a draft lease to take your application.

      After: ,
    • , renewal options, increase caps, what the landlord adds on top of rent, and what happens if you have to leave. For a location business the lease is part of the purchase price.

      After:
    • at minimum; property, workers’ compensation and the rest as the business needs. The landlord asks for a certificate at signing and the lender at closing.

    • Your plan with numbers (download it as a PDF from this page), the company’s papers, the or draft lease, the and equipment quotes, your personal financial statement, and proof of the cash you put in.

      After:
    • The lender approves against the ; you sign the lease once approved; the loan closes against the signed lease and the insurance certificate. Ask for the to match the or longer.

      After:
    • Bind the policies you had quoted before a contractor, a vehicle or a customer is in play. Keep the certificates; the landlord, the lender and the city will ask.

      After:
    • The health department reviews the layout, the sinks, the refrigeration and the finishes before you build. Building first and fixing later is the most expensive mistake in food.

      After:
    • The health department reviews the kitchen layout and equipment plan, inspects the finished kitchen, and issues a permit you renew each year.

      After:
    • Local approval for building signs, the pylon or monument sign, and the drive-thru menu board.

    • Register your or corporation and obtain a city or county business operating license.

    • State registration to collect and remit tax on food and drink sales.

    • Planning review of the drive-thru lane, stacking length, traffic flow, and parking; some cities require a special use permit for any new or changed drive-thru.

    • Many sewer utilities permit and inspect the grease interceptor and require pumping records.

    • The fire marshal tests the hood suppression system and checks exits, alarms, and occupant load.

      After:
    • Local sign-off that the building is approved for restaurant use, before you can open the doors.

      After:
    • Food-safety certification (e.g., ) for a certified manager on every shift and, in many states, food handler cards for crew.

    • After the build, with the refrigeration cold, the facility clean, a certified manager on site and the final menu in hand. The permit comes after the inspection; post it where customers see it.

      After:
    • The POS takes counter, drive-thru, kiosk, and mobile orders in one place and sends each item to the right kitchen screen.

    • A crew of 20 or more hourly workers means from week one: withholdings, overtime, and workers’ comp.

    • A dedicated business checking account keeps card deposits, cash, and supplier payments separate from personal money, essential for clean books and for any...

    • Close the books every month so you see food and as a percent of while there is still time to act.

    • , property, and workers’ comp at minimum, plus equipment breakdown for the walk-ins.

    • Count food and packaging on a set day and order to par from your distributor.

    • See the price the the business needs implies, then check it against what the market pays.

    • Federal plus state employer, withholding, and workers’-comp registrations once you hire; a music license (ASCAP, BMI, SESAC) if you play music.

      After:
    • Wages are the start: , insurance, training time and the hours you stop billing. Owners usually post the jobs a month out and hire two to four weeks before opening so training happens before the doors open.

    • Daily: Open and prep to par, run the lunch and dinner peaks, watch ... Weekly: Cut the schedule against forecast volume daypart by daypart, place... Monthly: Reconcile food and as a percent of , walk the line by...

    • Opening, closing, the sale, the complaint, the cash. One page each. This is the manual a franchise would have sold you.

    • Free, and it is how most people will find you. Address, hours, photos and the menu or price list, live before opening day; then the sign, the soft opening and the first regulars.

    • Friends, neighbors and a short menu or list. Find the problems while the room is forgiving.

    • Enter the real numbers and see every cost line against the for this business.

    • & throughput; & waste; & .

    • Growth consumes cash before it produces it. Find the rate your own cash funds before you push.

    • Quick-service units trade actively, to owner-operators, multi-unit operators, and SBA buyers, and they command some of the higher multiples in food service because the systems...