How to Open a Restaurant in the UK 2026 — Complete Checklist

Opening a restaurant in the UK is one of the most rewarding — and most demanding — business ventures you can take on. The UK hospitality sector contributes over £93 billion to the economy, but the failure rate for new restaurants is notoriously high. Most failures aren't down to bad food. They're down to poor cash management, regulatory missteps, and underestimating the operational complexity of running a food business.

This guide covers every step, in order, with the real costs, the legal requirements, and the practical decisions you'll need to make before you open your doors.

Step 1 — Business Plan and Concept

Before anything else, you need a clear concept and a realistic business plan. The concept determines everything else: location, kitchen equipment, staff count, pricing, and marketing.

• What type of restaurant? Dine-in, takeaway, café, pub, food truck, pop-up, ghost kitchen
• What cuisine? Your own niche in a crowded market
• Target customer: Lunch trade, evening dining, families, office workers, tourists
• Covers and average spend: 40 covers × £22 average spend × 2 turns = £1,760/day lunch + dinner
• Competitive analysis: Who else is operating nearby? What's your differentiation?

Your business plan should project revenues and costs for at least 3 years, with a cash flow forecast for the first 12 months (month-by-month). Banks and investors will require this. Most new restaurants take 6–18 months to become cash-flow positive.

Step 2 — Finding and Securing Premises

Location is often the single biggest determinant of a restaurant's success. Key considerations:

• Footfall: How many people walk past per day? Is it lunch-traffic or evening-traffic?
• Accessibility: Parking, public transport, delivery access for suppliers
• Use class: The premises must be Use Class E (commercial, service, food) or F2. Converting from A1 (retail) to A3 (restaurant) requires planning permission
• Kitchen infrastructure: Does the space already have extraction ventilation? If not, installing it is expensive (£5,000–£20,000)
• Lease length and break clauses: Aim for a 3-5 year lease with a break clause at 12–18 months. Avoid 10+ year leases as a new business
• Dilapidations clause: Understand what condition you're required to leave the premises in at the end of the lease

Step 3 — Licences and Legal Requirements

This is where many new restaurant owners get caught out. Start the licence applications early — some take 28 days or more to process.

Step 4 — VAT Registration

You must register for VAT when your taxable turnover exceeds £90,000 in any rolling 12-month period (2026 threshold). Many new restaurants benefit from voluntary early registration:

• Reclaim VAT on startup costs: Kitchen equipment, refurbishment, furniture — you can reclaim the VAT paid on all of these once registered
• MTD compliance from day one: Start with digital records — it's much harder to backfill later
• Business credibility: Suppliers and landlords take VAT-registered businesses more seriously

Once VAT-registered, you must use Making Tax Digital (MTD) compatible software. Your EPOS system should handle this — Bill Feeds tracks VAT on every order and generates the reports your accountant needs for quarterly returns.

Step 5 — Kitchen Equipment and Setup

Kitchen equipment is typically the largest single capital cost. The basics for a full-service restaurant kitchen:

Equipment	New Cost	Used/Refurb
Commercial range (6-burner gas)	£2,000–£5,000	£800–£2,000
Combi oven	£3,000–£8,000	£1,000–£3,000
Commercial refrigeration (under-counter + walk-in)	£3,000–£10,000	£1,000–£4,000
Extraction canopy (if not existing)	£5,000–£20,000	N/A (site-specific)
Dishwasher (commercial)	£2,000–£6,000	£800–£2,500
Prep surfaces, shelving, smallwares	£3,000–£8,000	£1,000–£3,000

Buy used kitchen equipment where possible — there is an enormous secondary market for quality commercial kitchen equipment. Look for recently closed restaurants selling their contents.

Step 6 — Allergen Compliance (Natasha's Law)

Natasha's Law came into force in England in October 2021. Every food business in the UK must:

• Display the 14 major allergens for every dish on menus (or on request via staff)
• Provide written allergen information for any food that is pre-packed for direct sale on your premises
• Train staff to confidently answer allergen questions from customers

The 14 major allergens are: celery, cereals containing gluten, crustaceans, eggs, fish, lupin, milk, molluscs, mustard, nuts, peanuts, sesame, soya, and sulphur dioxide.

Your EPOS system should store allergen information per dish — so that any member of staff can check a customer's allergen query on the spot without guessing. Bill Feeds supports allergen tagging on all menu items.

Step 7 — EPOS and Payment Setup

Your EPOS (Electronic Point of Sale) system is the operational heart of your restaurant. It needs to be set up and tested before you open. Key decisions:

• Cloud vs traditional: Cloud EPOS runs on any device, auto-updates, works on mobile — almost always the right choice for new restaurants
• Hardware: You can use your existing iPad or Android tablet (BYOD) or buy a dedicated terminal. BYOD saves £500–£2,000 in startup costs
• Card payment: You'll need a card terminal (SumUp, iZettle, or integrated card reader). Contactless and Apple/Google Pay are now expected by customers
• Receipt printer: 80mm thermal printer (~£80–£150) for customer receipts and kitchen tickets. Essential for food service
• Staff training: Allow 2–4 hours to train your team on the EPOS before soft opening

Startup Cost Summary

Cost Category	Small Café	Independent Restaurant
Lease deposit (3–6 months)	£6,000–£15,000	£15,000–£60,000
Refurbishment	£5,000–£20,000	£30,000–£150,000
Kitchen equipment	£5,000–£15,000	£20,000–£80,000
Licences and legal	£500–£2,000	£1,000–£5,000
Initial stock	£1,000–£3,000	£3,000–£10,000
EPOS software (year 1)	£228–£948	£228–£948
Insurance (year 1)	£500–£1,500	£1,000–£3,000
Total estimate	£18,000–£57,000	£70,000–£309,000

Frequently Asked Questions

What licences do I need to open a restaurant in the UK?

Food Business Registration (mandatory, free), Premises Licence (if selling alcohol), Personal Licence (for DPS), food hygiene certificates, and public liability insurance. Music licences are required if playing recorded music.

Do I need to register for VAT to open a restaurant?

Mandatory above £90,000 taxable turnover. Voluntary registration is often beneficial — you can reclaim VAT on startup costs and be MTD-compliant from day one.

How much does it cost to open a restaurant in the UK?

Small café: £18,000–£57,000. Independent restaurant: £70,000–£309,000. The biggest variables are lease deposit, refurbishment, and kitchen equipment.

What is Natasha's Law and how does it affect my restaurant?

Natasha's Law requires all food businesses to provide allergen information for every dish. You must be able to confirm the 14 major allergens for any item on your menu. Store allergen data in your EPOS system for instant staff access.