If you are opening a restaurant in Georgia, you must obtain the licenses and permits to legally sell food, ensuring compliance with health and safety regulations.
In this article, we will focus on the requirements for food service establishments in Georgia. Let’s explore the details!!
Opening a restaurant follows a similar process nationwide, including in Georgia.
Here, we outline the essential steps and highlight the necessary food licenses and permits required to operate a food business in Georgia, which are similar to those required in other states.
Step 1. Choose your restaurant concept
Like other states, opening a restaurant in Georgia starts with selecting a distinct restaurant concept. This decision involves identifying the cuisine, atmosphere, and target market for your establishment.
Factor in cooking methods, staffing requirements, and dining preferences (such as full-service dining or casual counter service) to ensure your concept aligns with local tastes and demographics.
Step 2. Write a restaurant business plan
The next pivotal step is developing a detailed restaurant business plan tailored for opening a dining establishment in Georgia. Start by crafting an executive summary of a restaurant that articulates your restaurant’s mission, vision, and target market succinctly. Proceed by outlining financial forecasts and your operational strategy to lay out a strategic roadmap.
Prior to finalizing your business plan, selecting the right business entity type is essential to ensure your restaurant’s objectives are well-defined and compliant with state laws.
When setting up a restaurant, you have several business entity options to consider:
- Sole Proprietorship: Owned and run by one person, offering simplicity but no separate legal status.
- Partnership: Owned by two or more individuals who share profits, responsibilities, and liabilities.
- Limited Liability Company (LLC): Blends partnership simplicity with corporation-like liability protection, ideal for small to medium-sized restaurants.
- Corporation: Provides distinct legal status from owners (shareholders) with robust liability protection, though it involves more formalities and potential double taxation.
- S Corporation: Similar to a corporation but with pass-through taxation, beneficial for restaurants aiming to avoid double taxation while safeguarding against liabilities.
Step 3. Research restaurant software
Researching appropriate restaurant management software is crucial as you plan your restaurant venture. Begin by evaluating POS systems to handle transactions, monitor sales, and manage inventory effectively.
Implementing an advanced online ordering system can diversify your revenue streams and improve customer convenience. Explore various restaurant ordering systems to select one that aligns with your business model and operational requirements.
Here you can read more about how to set up an online ordering system in your restaurant.
Enhance customer interaction and retention with a dedicated restaurant mobile app, offering features like menu browsing, promotional offers, and loyalty rewards directly on their mobile devices. This investment can strengthen customer loyalty and set your restaurant apart in the competitive market.
Learn more about how to create a food delivery app.
Step 4. Secure financing
Securing financing for a restaurant in Georgia involves addressing substantial initial expenses such as leasing or purchasing space, acquiring equipment, renovations, initial inventory, and staffing. These costs can vary widely but typically demand a significant capital outlay.
Typical sources of financing include
- traditional bank loans,
- Small Business Administration (SBA) loans,
- microloans from Community Development Financial Institutions (CDFIs),
- private investments,
- personal savings,
- crowdfunding initiatives,
- partnerships with lenders specializing in the restaurant industry.
Each financing option offers distinct advantages and considerations to support the financial requirements of launching a successful restaurant venture in Georgia.
Learn more about restaurant financing here.
Step 5. Choose a restaurant location
Selecting the optimal location for your restaurant entails assessing its alignment with your restaurant target market.
Key considerations include
- foot traffic,
- local competition,
- demographics,
- parking availability.
Comprehensive market research is essential to understand local preferences and ensure your chosen location fosters both business growth and customer contentment.
Step 6. Apply for licenses and permits
Opening a restaurant in Georgia requires obtaining various food establishment licenses and permits to ensure compliance with state and local regulations.
Below are the key licenses and permits needed to start your restaurant business in Georgia.
1. Registering your restaurant with the Georgia Tax Center
To open a restaurant in Georgia, you need to register your new business with the Georgia Tax Center to comply with tax requirements. This process allows you to obtain necessary permits and licenses related to sales tax collection and business operations.
For more information and to register your business, visit the Georgia Tax Center website.
2. Getting an EIN (Employer Identification Number)
To establish your business’s connection with the IRS (Internal Revenue Service), you’ll need to obtain an Employer Identification Number (EIN).
An EIN is necessary for tax purposes and hiring employees. Having EIN, you can open a business bank account.
You can apply for an EIN online through the Internal Revenue Service (IRS).
3. Registering with the Georgia Department of Revenue
Registering with the Georgia Department of Revenue is essential when opening a restaurant in Georgia. It allows businesses to comply with state tax requirements, including sales tax collection, withholding tax, and other business taxes. This registration ensures that your food sales establishment operates legally and fulfills its tax obligations.
For more details and to register with the Georgia Department of Revenue, visit their official website.
4. Getting a Business License
In Georgia, obtaining a business license is essential for legally operating a business, including restaurants. This license is typically obtained through the local city or county government where the business is located. It authorizes businesses to operate within that jurisdiction and ensures compliance with local regulations and tax requirements.
Georgia restaurants can apply for a business license at the Georgia Department of Economic Development.
If you operate a restaurant with multiple locations across different cities and counties, you must obtain a separate business license for each location to comply with the specific jurisdiction requirements.
How much does a business license cost in Georgia?
The business license cost in Georgia varies depending on the city or county where the business is located and its type. Generally, fees range from around $50 to several hundred dollars or more.
You should check with the local county or city government where you plan to operate for specific fee details and requirements. For more information, visit the Georgia Department of Economic Development.
4. Register with the Department of Labor
In Georgia, businesses are often required to pay unemployment insurance taxes, even before hiring employees. After obtaining your business’s federal employer identification number (EIN) and finalizing your business’s name and structure, you can proceed to register with the Georgia Department of Labor.
You can use the Online Employer Tax Registration portal on the Department of Labor’s website. Once you provide your business details, you will receive a determination regarding your obligation to pay unemployment insurance taxes. If required, you will be guided on how to set up your account accordingly.
5. Getting a Food Handler’s License
In Georgia, a Food Handler’s Permit is required for individuals who handle food, such as restaurant workers, chefs, kitchen staff, and food servers. This certification ensures they have completed an approved food safety training course to maintain safe food handling practices.
Employees must pass a food safety and preparation test with a minimum score to obtain their permit, promoting public health and safety in food establishments statewide.
You can obtain training for food handlers from various sources approved by the Georgia Department of Public Health (DPH), for example:
Managers with a Food Protection Manager Certification are exempt from needing a Food Handler’s Permit.
Here are examples of approved testing providers:
Visit the ANAB-Conference for Food Protection website to see the list of all approved testing providers.
6. Food Facility Health Permit
In Georgia, a Food Facility Health Permit, often referred to as a Food Service Establishment Permit, is required for any operation that stores, prepares, packages, serves, vends, or otherwise provides food for human consumption. This permit is crucial for ensuring that food facilities adhere to health and safety regulations, which help prevent foodborne illnesses.
To apply for a Food Facility Health Permit in Georgia, you must contact the local county health department where your establishment will be located. Visit the Georgia Department of Public Health.
Food facility health permits cannot be transferred. When opening a new restaurant, even within the premises of an existing restaurant, obtaining a new health permit is necessary.
What is the cost of a food facility health permit?
The cost of a food facility health permit in Georgia can vary based on the type of facility, location, and other factors. Generally, fees for food facility permits can range from a few hundred dollars to several thousand dollars.
Visit the Georgia Department of Public Health for more information.
7. Certificate of Occupancy
In Georgia, before opening a restaurant, you must obtain a Certificate of Occupancy (CO). This certificate, issued by the local government or building department, confirms that the restaurant space meets all zoning laws, building codes, and safety regulations required for occupancy. It ensures the premises are safe and suitable for the intended use of operating a restaurant.
To obtain a Certificate of Occupancy for your restaurant in Georgia, you need to contact the building department or local government office in the city or county where your restaurant is located.
8. Liquor License Permit
To obtain a liquor license permit in Georgia for a restaurant, you need to apply through the Georgia Department of Revenue’s Alcohol and Tobacco Division. This permit allows the legal sale of alcoholic beverages on the premises. Different licenses are available depending on the restaurant’s specific needs, such as serving beer and wine or full liquor service.
For more details, visit the Georgia Department of Revenue’s Alcohol and Tobacco Division website.
What are the current liquor license fees?
Check out Georgia’s current liquor license fees on the Department of Revenue.
Securing business insurance, including liability insurance, is crucial when opening a restaurant in Georgia.
Business insurance protects against unexpected events like lawsuits, property damage, or injuries. Liability insurance covers legal costs if someone sues your restaurant for accidents or injuries.
Step 7. Design your menu
Crafting a restaurant menu in Georgia involves selecting dishes that align with your restaurant’s theme and cater to your target demographic.
Utilizing menu engineering principles during menu creation ensures increased profitability and improves customer satisfaction through strategic pricing and presentation of dishes.
Step 8. Build your team
The cornerstone of a successful restaurant lies in its people. Dedicate considerable effort to sourcing, hiring, training, and retaining exceptional employees who will drive your business forward and uphold its standards of excellence.
Providing comprehensive training, competitive compensation, and benefits such as health insurance helps reduce turnover and cultivate a dependable team, setting the stage for sustained success.
Step 9. Purchase equipment
Acquiring essential food preparation equipment is vital for setting up an efficient kitchen when starting a restaurant in Georgia.
Invest in commercial-grade appliances such as food processors, mixers, and slicers to streamline kitchen operations and maintain quality standards.
Select suppliers familiar with local health codes to ensure compliance and facilitate the procurement of necessary permits for food preparation in Georgia.
Step 10. Create a marketing plan
Crafting an effective restaurant marketing plan for launching in Georgia necessitates a strong emphasis on restaurant social media marketing.
Utilize Instagram, Facebook, and Twitter to engage with the local community, showcase your restaurant’s unique offerings, and cultivate a loyal customer following through targeted campaigns and interactive content.
Step 11. Host soft and grand openings
Organizing both soft and grand openings plays a pivotal role in drumming up anticipation and excitement for the launch of your restaurant.
Integrating innovative grand opening ideas for restaurants, like themed events, exclusive tastings, or collaborations with local influencers, is key to increasing visibility and drawing a diverse crowd eager to partake in your new dining experience.
Step 12. Build a restaurant website
Having a robust online presence is indispensable for any restaurant. Think of your restaurant’s website as its virtual storefront—a place where customers can explore your offerings and engage with your brand.
With the intuitive UpMenu restaurant website builder, crafting a professional website is straightforward, using customizable restaurant website templates designed specifically for restaurants, regardless of your technical expertise.
We’ve created a comprehensive, step-by-step tutorial on how to create a restaurant website to guide you through the process.
Once your site is live, you’ll be equipped to showcase your menu and seamlessly accept online orders, enhancing convenience for your patrons.
Key Takeaways
- Opening a restaurant in Georgia involves securing several licenses and permits, such as a Business License and a Food Facility Health Permit.
- Adhere to food safety protocols, health regulations, and, if applicable, alcohol service guidelines set by local, state, and federal authorities.
- Before embarking on the licensing and permit process in Georgia, define your restaurant’s concept and craft a detailed restaurant business plan that outlines operational strategies, marketing approaches, and financial forecasts.
- Integrate restaurant technology, such as an online ordering system and a POS system, into your financial projections to optimize operations, elevate customer satisfaction, and streamline business processes.
- Develop an extensive marketing strategy that explores unique promotional concepts and leverages restaurant social media marketing to effectively promote your restaurant.
Frequently Asked Questions (FAQ)
What is a Georgia Food Act?
How much money should you have to open a small restaurant?
Starting a small restaurant entails a wide range of initial costs, which hinge on factors such as location, concept, size, and amenities. Typically, expect to budget anywhere from $50,000 to well over $500,000 to establish and launch your small restaurant venture. Read more about how much does it cost to open a small restaurant here.
Do you need a license to sell food in Georgia?
Yes, in Georgia, operating a food sales establishment necessitates obtaining a license from the Department under the Georgia Food Act. The sole exemption from this requirement applies to food sold at non-profit events. Learn more here at the UGA Department of Food Science & Technology.
