How To Start A Restaurant Business With No Money

By Riajur Rahman -- Monday, 20 Jun, 2022
How to start a restaurant with no money

The restaurant is a famous word. All the people around the world is more familiar with this word. The restaurant comes from the French word "restaurer" which means providing food for people. A restaurant business is the business activity associated with franchising, development, restaurant licensing, operation, and others. Basically, the restaurant business is the operation and ownership of taverns, related commissaries, banquet centers, and other ancillary activities. Sometimes a question appears that how to start a restaurant business with no money. Basically, the restaurant business is profitable but it is quite impossible to start with no money. However, we will literally let you know how to start a restaurant business with no money and some other factors so get in touch with us.  

How do you define a restaurant business?

The restaurant business means preparing food and serving restaurant customers. In short, a restaurant is a place where people come to get food and spend their time. Those who work in the restaurant are always ready to serve food to the customers according to their menus. A restaurant is the best place to spend time and get delicious food. 

Many restaurants offer food delivery services besides their indoor service. The restaurant business that lets clients order food, enter the premises, make an order for food, and eat those may be considered as the restaurant industry part. The restaurant business is growing faster according to the modern business process. Most of the restaurant industry is involved with the food delivery service also.

How to start a small restaurant business?

The restaurant business is one of the most beneficial businesses around the world. It is also one of the richest businesses among some other businesses. You can easily earn benefits with this business if you have some plan and follow some strategy. So let's start with us to know how to start a restaurant business so take a look and get your ideas. 

  • Make a clear concept of the restaurant business 

Not only for the restaurant business it is for all categories of businesses. If you would like to start a business you must keep better knowledge of such business. Although the restaurant business is one of the most competitive business platforms. In this case, you must keep better knowledge of the restaurant business. 

It is noted that before starting a restaurant business you must need a calculation in all aspects. For example, how much capital you have, how much revenue you would like to spend, how many customers you may get a day, how much profit you may get from each item and customer, and others. You also have to make a crystal clear concept for restaurant tools besides such things. If everything is good to go then you may implement your decision. 

  • Revenue for restaurant business

Revenue is one of the basic requirements to start a restaurant. We are human beings, whatever we see in our daily life we would like to do anything better. Sometimes we are behind in filling our dream there is only one cause that is revenue. Indeed, revenue is the key to starting anything. If you think about small business you need at least low margin investment. Some people don't have money to invest in a restaurant or how to start a restaurant business with no money. Basically, you may get money from anywhere else like those who provide a loan. You can take a loan on how much you need to start a business. There is an issue with it you have to pay interest based on their business policy. 

  • Place selection for restaurant

Choosing a restaurant location is one of the most crucial parts of the restaurant. Before opening a restaurant, you must keep in your mind that you have to choose the right location where peoples are available. If you can select any place that is the heart of the city then it becomes a better choice. It is because the restaurant business depends on people. Therefore, you have to survey how many restaurants are there in the heart of the city, how many customers they are obtaining each day, what kind of strategy they are following, and others. On the other hand, the restaurant can be open beside the road where a large number of people gather.

  • Prepare restaurants certified paper or license 

After selecting a restaurant place you must need a license to be certified by the government. It means before starting a restaurant, you need government certification. In this case, you may need some time to get this paper. Besides the license, you may need a food license, there is the easiest way to get a food license in the USA. You may obtain it from your local health department either in person or online. Here you are able to apply for a fixed, and temporary food service license. 

  • Manpower for restaurant 

Manpower is another major part of a restaurant. You will need the person to serve the customer. In this case, recruit some people those are skilled to manage the restaurant's crucial tasks. You can split your restaurant staff into some categories such as service staff, kitchen staff, management staff, and others. Those who work in the kitchen and prepare food such persons are also called kitchen staff. 

Basically, restaurant merits, and demerits, and a restaurant's future depends on kitchen stuff. Service staff means those who present food to the customer's table they are also called the waiter. They also hold a major part to enhance restaurant performance. Another crucial part is the management team or management staff. Basically, they manage the restaurant all the process and all the restaurant process depends on the management staff.   

  • Create restaurant menu

Basically, the restaurant is known due to its menu. You must design a restaurant menu because the restaurant menu carries your restaurant profile. The restaurant menu should be easy those items need a low specific time to prepare.  You should make an eyecatching and enjoyable menu. In this case, you can keep some food lists on your menu these are more popular in this locality. 

How to choose a location for a restaurant?

How to choose a location for a restaurant

Indeed, there is no way to make sure the success of the restaurant business where you have the best chance to create a severe bad impression on your restaurant business. For this reason, place selection is one of the crucial terms for starting a new journey in the restaurant business. There are some tips here to select a restaurant place that can greatly impact your business. 

  • Decide a right zone 

If you think of how to start a restaurant business with no money then restaurant place decides will be your first priority because the restaurant business depends on people. Are you able to reach more than thousands of customers? For this reason, you should choose a place where peoples are available and people becomes attracted to your restaurant. In this case, you can target some organizations such as colleges, universities, and others. Basically, you need people and ask yourself which place is best suited for your restaurant business. 

  • Think about the audience

Customer or audience is the worth of any business not only for a restaurant. You may decide on a place where there are sufficient places to walk and vehicles. Therefore, how many people will go beside your restaurant then you will have a chance to attract them to your restaurant. It is noted that how will you attract such people to your restaurant is your own responsibility.   

  • Avoid competition

The restaurant business is a more competitive business around the world. If you choose any location to start your restaurant journey then you will see that many restaurants are available there. They will get more audience than you because they are already established and familiar with this area. For this reason, the best way is that you should avoid such restaurant business competitors. In the beginning stage, you should avoid your competitor in your area. You have to work hard from the beginning level to compete with such restaurants. 

How to start a restaurant business with no money?

Can you start a restaurant with no money? Or how to start a restaurant business with no money? Reality is difficult if you would like to perform on any platform, you must require revenue. How to start a restaurant business with no money? It is quite impossible to start a restaurant business with no money. Not only for the restaurant business capital required to start all the categories of business. On the other hand, if you don't have money then you have a way. So let's start how to start a restaurant business with no money. 

1. Get help from an investor

Those who would like to be an entrepreneur and would like to start a business from the beginning level most of them have low budgets. In this case, they can get help from any investor. It may be the quickest way to find someone who would like to invest in your business. It is noted that you may contact them about the investment policy and it is up to you. 

In this case, you should follow some cautions: Finance is responsible to break a relationship. If you borrow money from your relatives or friends so let them know that it is an investment and it can all be lost. So you don't let them know about your benefits because you may lose in your business and you are not sure what will happen in your business. If you count low revenue than your investment then your reputation may spoil.   

Nowadays the restaurant business is competitive and costlier. There are different types of fields in the restaurant and there is also more demand. For this reason, you must require the cost to start a restaurant and meet all the requirements. If you don't have money then you may take a bank loan. It is noted that the bank loan is not the easiest process. It is a lengthy process and you have to provide more documents to achieve validity. 

2. Crowdfund 

Crowdfund is being more popular in the modern age. Crowdfunding is one of the most renowned platforms to raise money. These campaigns often incentivize donors to contribute by providing them with something in return. In this case, you could offer donors free meals at the opening. Crowdfund is crucial that you get the word out. 

3. Get government help

The government encourages entrepreneurs by giving them a loan to start a business. If we talk about the U.S. government the U.S. government loves to encourage entrepreneurs. The U.S. Small Business Administrator offers loan programs for small business owners. They have a lender match program that is able to make a better relationship with lenders and business owners. So think about the government loan and take steps carefully. It may be a success key for your small restaurant business. 

4. Find angel investor

Angel investor means those who would like to help entrepreneurs from the beginning. Basically, angel investors become wealthy they also encourage entrepreneurs and invest money to start a business. If you search in the USA then you will see more than hundreds of wealthy investors are ready to invest in any business. There are many donner websites, you may find them from their website. They can have the policy to give you money. In this case, you may consult with them and how much money you need is up to you. 

5. Don't let operating costs high

Finance is the main thing from start-up any business. There is a familiar speech that if you spend more you will get more. It is true but it is not applicable to every single step. If you are in the beginning stage and have low finance then you must spend money with consciousness. One of the most expensive parts of the start-up business is labor and wages. As a restaurant owner, you will definitely want to reduce operating costs how much you can.

What are the requirements to start a restaurant?

requirements to start a restaurant

What do I need to do to start a restaurant? The restaurant business is one of the most famous and competitive. Before opening a new restaurant door the restaurant owner needs to keep some strategy in mind. Not only for the restaurant business if you would like to open any business anywhere else you must follow and meet some requirements. We are going to share some crucial requirements that you must meet to open a restaurant business. 

  • Business license

Before opening a restaurant you must require a certification from the government. Basically, the business license is a legal document and carries a certification that you are doing business in a legal way. You may get this certification from your country or city to operate within the jurisdiction. 

  • License for food service

A food license is one of the most crucial parts of the restaurant. Basically, a food service license is issued by the health department of a country that carries a broad meaning. Before providing you food service license the health department team will visit your restaurant. If you follow and adhere to all the rule that is required for food service they will provide you a certificate according to their policy. If you become certified in the food service department then you will be eligible to start a new journey in the restaurant business. 

  • Employee and wages

Whenever you are going to open a business then you must require the employee and you have to pay the wages after a specific time. In this case, there is a statutory limit to pay the wages to the employee, you must follow that standard. It is noted that you have to follow what is the federal minimum wage in your locality. The best way is to provide the employee wages following the department of labor law. 

  • Cleaning and disinfecting 

Many peoples come to the restaurant. Basically, people choose clean, well-decorated, and large spaces so that they can freely spend their time. You must make sure that your restaurant is clean and ventilated. In this case, you must be responsible to keep clean of your restaurant. Encourage the restaurant staff to frequently use hand sanitizer and wash their hand. As a restaurant owner, you must be conscious and ensure frequent sanitation and cleaning of the touch surface with disinfectants.

  • Training and personal safety 

If you become a restaurant owner then you must ensure the safety of restaurant staff and customers. For this reason, restaurant staff should use hand socks and ensure appropriate other protective equipment. The restaurant staff should be well trained to serve the customers, clean every single seat and benches, wipe down and inspect all counters, and many more.   

How profitable is restaurant business?

There are many profitable business categories restaurant business is one of them. A restaurant business is one of the most profitable businesses but sometimes restaurant owners may count lose if restaurant owners don't follow the right strategy. The restaurant's success is not measured by meals and water the restaurant profit margin can be affected by several reasons, such as average cost of customers, restaurant operation, and many more. 

The restaurant profit typically spans from 0 - 15% and the average cost to start a restaurant is usually between 3 - 5%. It is noted that it is an estimation but restaurant profit partially depends on the restaurant owner. It is noted that all categories of the restaurant are not highly profitable. There are some restaurants that are more profitable, such as

  • Food trucks.
  • Online delivery restaurants.
  • vegetarian restaurants.
  • Bars. 
  • Buffet restaurants.
  • Pizzerias.
  • Farm-to-table restaurants.

How to calculate a restaurant profit margin?

The calculation is one of the crucial things before starting a business. The right calculation can bring your business to the supreme level. We will share an easy calculation for restaurant gross profit margin and restaurant net profit margin. So take a look and get the best idea to calculate a restaurant's profit margin.

  • Restaurant gross profit margin

We have given a simple mathematical term to find the restaurant's gross profit margin. So you may use this term to get your restaurant's gross profit margin. To find a gross gross profit margin you need to subtract the selling price from the cost of sold food and divide the selling price and get gross profit.

(selling price - cost of sold food) ÷ selling price = Gross profit

gross profit * 100 = Gross profit margin

If you sell any food for $30 and its cost $15 to make it, then your gross profit margin will be 

($30 - $15) = $15

($15 ÷ $30) = $0.50

$0.50 * 100 = 50%

So, you have 50% gross profit margin.

  • Restaurant net profit margin 

We have said before that if you would like to start a new journey in the restaurant business you must calculate before you start. The profit margin calculation can give you the right concept about how much profit you earned. So let's see how to calculate the restaurant's net profit margin. The restaurant's net profit margin is needed whenever you deduct the running cost from gross profit. Basically, it involves utility cost, payroll, maintenance cost, mortgage cost, administrative, insurance, etc. The formula for net profit margin is:

Total revenue - Total expense = net profit

(net profit/total revenue) * 100 = net profit 

Suppose, you had $100000 revenue and you have spend $60000 then the calculation will be like this:

($100000 - $60000) = $40000

($40000/$100000) * 100 = 40%

So your net profit margin is 40%

How to enhance restaurant profit margin?

Peoples start businesses to get a profit. The restaurant business is a well-reputed platform to get more profit. You may enhance restaurant sales revenue by offering takeout and delivery and diversifying your restaurant service. Basically, there are several ways to enhance restaurant profit, but we have referred here to some main key strategies to enhance restaurant business profit margin. These are given below. 

  Enhancing restaurant sales volume

Start your sales tracking from the first day of a week. Besides sales tracking you need to keep the focus on some strategies, such as optimizing food menu pricing, continuous update menu layout, keep running restaurant campaigns, and improve table turnover. Basically, restaurant profit partially depends on the restaurant management system. If you become a new starter then let the people know about it and highlight your food serving process, food item, restaurant management system, and others.

  Update menu layout 

Whenever peoples enter the restaurant then they would like to know about the food item. In this case, if you can design an eyecatching menu layout then you can have a great chance to attract customers.  On the other hand, you can find or survey about the customer intension that what types of food they like most and which food list is more popular in your area. You can design your menu based on such a technique to drive more sales and revenue. 

  Enhance restaurant service

Providing better customer service or satisfying the customer is one of the major priorities for any business policy. If it becomes a restaurant business then there is no question about customer service because the restaurant business always depends on the customer. If you can generate happy customers by providing restaurant service then you may get better feedback from the customer. It is noted that smart and excellent customer service can successfully enhance your revenue and can change your business structure.  

  Utilize a Good POS software 

Restaurant business growth and revenue are highly dependent on modernization. In this case, you can use restaurant POS software that attracts customers to pay through a smart billing system. There are a large number of privileges of using a restaurant POS system but here are a few of them, such as 

  • It offers an urgent payment system.
  • It offers good-looking and simple invoices.
  • The restaurant owner will get more clients' orders.
  • POS software offers a better inventory management system
  • You may get customer loyalty and satisfaction.
  • Customer is able to reserve restaurant by using the restaurant reservation system
  • POS is also called restaurant management software and it let you know how to manage your restaurant's crucial tasks. 

How to maximize restaurant business with software?

Modern technology is the gift of modern science. Technology has a contribution to every single sector. All the sectors are getting in touch with technology and turning to the new line. The restaurant business is not out of them. POS software is the greatest adventure for the restaurants that are used to manage most of the crucial tas of the restaurants. POS software has a large number of comprehensive features that is not describable by writing. 

If you use POS as your restaurant management software then you will be able to manage restaurants easily. Restaurant POS system allows restaurant reservation system that can be the best way to avoid no-shows and customers can easily reserve tables before they come to the restaurant. In this case, they will never be annoyed by your restaurant management. POS software allows a smooth billing system and it lets you manage the inventory of your restaurant. Restora POS software has more than a hundred features that are sufficient for any shape of the restaurant. 


The restaurant is one of the most popular and profitable platforms around the world. We may think about how to start a restaurant business with no money but it is fairly difficult to start a restaurant business with no money. There is one thing if you don't have the money you can adopt another way, such as taking a loan from the bank, or a government entrepreneur loan, you can borrow from your nearer person, and you may get support from any angel donner, and others sources. If you can follow and meet restaurant business strategy then you have a chance to get success as soon as possible. It is because it is a low investment high profit business.