Ready to launch a restaurant
Wondering how to start a restaurant in Australia? It takes more than great recipes and passion, you’ll need the right structure, licenses, and legal approvals to open your doors. Many new restaurateurs struggle with compliance and paperwork before they even serve their first meal.
This guide simplifies the process. You’ll learn every step to launch your restaurant legally, from business registration to food safety and tax setup, so you can start your dream business confidently and stay compliant from day one.
5 steps to start a restaurant business in Australia
Follow these steps to legally start and successfully run a restaurant business in Australia.
Step 1: Choose the right business structure for your restaurant
Before you register your restaurant, it’s crucial to decide on the right business structure, it determines your legal obligations, taxes, and personal liability. In Australia, you can operate as a sole trader, partnership, company, or trust, each with different benefits depending on your long-term goals.
- Sole trader: Easiest to start and manage but offers no personal liability protection. Your personal assets are exposed if your business faces debts or legal issues.
- Partnership: Suitable for two or more owners sharing responsibilities and profits. However, each partner remains jointly liable for debts.
- Company (Pty Ltd): A separate legal entity that protects your personal assets and offers tax efficiency and scalability, ideal for growing restaurants.
- Trust: Common for family-run businesses or investors seeking tax flexibility and asset protection.
If you’re serious about building a long-term restaurant business, setting up a Pty company is usually the most professional and secure option.
Step 2: Register your business and ABN
Once you’ve chosen your structure, the next step in starting a restaurant in Australia is registering your business and securing an Australian Business Number (ABN). This gives your restaurant legal identity and allows you to trade, hire staff, and pay taxes.
Here’s what you’ll need to do:
- Register your ABN with the Australian Business Register (ABR).
- Register your business name with ASIC (unless you’re trading under your personal name).
- Apply for a Tax File Number (TFN) if you don’t already have one.
- Register for GST if your annual turnover is expected to exceed $75,000, common for most restaurants.
- Set up a business bank account to keep your personal and business finances separate.
Step 3: Restaurant laws in Australia: Food safety, licensing and compliance
When learning how to start a restaurant in Australia, understanding your legal obligations is essential. Restaurants operate under multiple federal, state, and local laws that ensure food safety, fair work practices, and consumer protection.
Here are the key regulations every restaurant owner must comply with:
1. Food business licensing and food safety obligations
Australian restaurants must comply with the Food Standards Australia New Zealand (FSANZ) Food Standards Code, particularly Standard 3.2.2A, which sets mandatory food safety management tools for all food businesses. This standard requires restaurants to:
- Appoint a certified Food Safety Supervisor (FSS)
- Provide ongoing food safety training to all food handlers
- Keep substantiation (evidence) of critical food-safety controls (e.g., temperature logs, cleaning, delivery checks)
Your Food Safety Supervisor is responsible for:
- Monitoring hygiene practices
- Identifying potential hazards
- Overseeing safe food handling
- Ensuring compliance with the Food Standards Code.
They also act as the key contact for local council inspectors and food safety authorities.
While requirements vary slightly across states and territories, all must align with national FSANZ standards. For example, in New South Wales (NSW), food businesses must:
- Notify their local council before trading
- May also require a license from the NSW Food Authority, particularly if handling high-risk foods like seafood or dairy.
The registration process typically involves submitting your business details to your local council or state authority, followed by periodic inspections and renewals to confirm compliance.
Here’s a quick overview of what you’ll need to complete the food business licensing process:
What you need to have | Who verifies it | When is it renewed | What proofs to keep |
Food business registration / notification | Local council / state food authority | Usually annual (varies by council) | Current registration/notification certificate |
Appointed Food Safety Supervisor (FSS) | Local council (EHO) | Ongoing (renew per state rules) | Copy of FSS certificate and ID |
Food handler training | Environmental Health Officer | Continuous (at induction) | Training certificates, induction records |
Food safety records & logs | Local council (EHO) | Daily / service-based | Temperature logs, cleaning schedules, recall sheets, deliveries |
Council inspection outcomes | Local council (EHO) | As scheduled / follow-ups | Inspection reports, corrective action records |
How to Start a Food Business in Australia? A Complete Guide
2. Liquor licensing and RSA
If your restaurant serves or supplies alcohol (dine-in, takeaway, or delivery), you must hold the correct state/territory liquor license and ensure staff are RSA-certified.
What to know (fast):
- Licenses are state-based and differ by service model: e.g. on-premises restaurant, small bar, packaged liquor (for takeaway/online), or producer/wholesaler.
- RSA (Responsible Service of Alcohol) is mandatory for anyone who serves, sells, or supplies alcohol (including managers and delivery handover staff).
- Typical conditions cover trading hours, minors, intoxication management, incident registers, noise/security, and signage.
What to prepare before you apply:
- Operations/business plan (concept, trading hours, harm-minimisation approach)
- Premises floor plan showing all proposed licensed areas
- RSA certificates for applicable staff (or a training plan pre-opening)
- House policy and security/management plans (intoxication refusal, ID checks, incident logging)
- Community impact/consultation documents (where required), and evidence of planning/zoning approval.
Pro tip: Match the licence category to how you’ll trade today and your near-term plans (e.g., adding takeaway cocktails or late-night service) to avoid costly variations later.
3. Outdoor dining and footpath trading
Using footpaths or public land for dining generally requires a council-issued permit, with rules that vary by state and local government.
Apply with:
- Scaled site plan showing tables, chairs, heaters, barriers and clear pedestrian paths
- Indemnity/hold-harmless agreement in the council’s required form
- Public liability insurance certificate (commonly $20 million coverage)
- Evidence of accessibility compliance (kerb ramps, minimum clear widths)
- Prior approval for signage or barriers, if proposed
After approval: keep clearances unobstructed, display/renew the permit, and remove furniture when directed.
Tip: Check your council’s outdoor dining policy first to avoid fines or permit cancellation.
4. Premises, fit-out, and approvals
Once you’ve got the appropriate food handling licenses, you’ll need to think about your physical setup.
Your restaurant premises must comply with zoning laws and building regulations.
Local council approvals or Development Applications (DA) for fit-outs ensure your premises meet health, safety, and urban planning standards. Key compliance areas include:
- Effective ventilation
- Adequate handwashing stations
- Pest control measures
- Fire safety provisions
- Adherence to occupancy limits
To prove that your premises are adequate, you’ll typically need the following documentation:
- Development Application or Complying Development Certificate (CDC) approvals
- Fire safety certificates
- Inspection reports for building and fire compliance
These documents demonstrate compliance, and you will need to show them when applying for other licenses or during health inspections.
5. Trade waste and grease traps
Once you’re up and running, you’ll also need to manage trade waste, particularly fats, oils, and grease (FOG), which can damage sewer infrastructure. Many Australian water authorities require restaurants to have properly installed and maintained grease traps, along with a trade waste management agreement.
To remain compliant, you’ll need to:
- Maintain a regular grease trap cleaning and maintenance schedule
- Engage licensed waste transporters for grease removal
- Keep cleaning logs and maintenance records accessible for inspections
Obligations vary across water authorities, so consult your local authority’s guidelines for precise requirements and permits.
6. Playing music in your venue
Did you know that playing music publicly in your restaurant requires a license from OneMusic Australia? OneMusic is a joint licensing body representing music creators. Streaming music via Spotify or other services without a licence violates copyright law.
Your fees will depend on several factors, which include:
- Floor space or seating capacity of the venue
Type of music being played (background, featured, live)
Frequency and nature of live music events
Obtaining the correct licence avoids copyright infringement penalties and supports music creators.
7. CCTV and workplace surveillance notice
Last but not least, installing CCTV in your restaurant must comply with Australian workplace surveillance laws. As an employer, you must notify staff about CCTV use through clear signage and explain data handling practices.
Here are some best practices for you to consider:
- Place surveillance notices in visible locations
- Securely store footage and limit access to authorised personnel
- Obtain staff consent if cameras monitor staff work areas
Privacy and legislative requirements differ slightly by state, but generally aim to balance security needs with employee privacy rights.
8. Employment, award, payroll and WHS basics
Once your legal setup is in place, hire and manage staff in line with workplace laws.
Pay and conditions
The Restaurant Industry Award (MA000119) sets minimum pay rates, classifications, penalty rates (weekends/evenings), and allowances for roles like servers, chefs, and kitchen hands. Ensure correct classification and rates from day one.
Records to maintain
- Payslips and payroll records
- Rosters and timesheets
- Employment contracts for full-time, part-time, and casual staff
Workplace Health and Safety (WHS)
- Implement a written WHS policy
- Manage risks (slips, trips, burns, cuts)
- Provide appropriate PPE
- Conduct and document safety training
Strong compliance protects your business and supports a safe, engaged team that delivers better service.
9. Insurance your restaurant will likely need
Insurance is your safety net against incidents that can stop service or sink cash flow. Many councils and landlords require proof of cover before you open.
Core policies to consider:
- Public liability: covers customer injury/property damage (often required by councils/landlords).
- Workers’ compensation: covers employee injuries (mandatory).
- Product liability: covers foodborne illness/contamination claims.
- Business interruption: protects revenue during insured closures or disasters.
- Commercial property: building, fit-out, contents, and stock.
- Management liability: directors/officers, employment practices, statutory liability.
- Liquor liability: covers alcohol-related claims (often required by landlords or insurers, but not legally mandatory).
- Equipment breakdown: repair/replacement of critical kitchen machinery.
- Commercial motor/vehicle: for delivery or business-use vehicles.
Coverage needs vary by concept, location, and lease conditions. Review your lease, council requirements, and speak with a hospitality-savvy broker to confirm limits (e.g., public liability often $20M) and any additional endorsements.
Read more: Business Insurance 101 for Aussie Startups: Types, Costs & Why You Need It
Step 4: Tax, accounting and payroll setup
Let’s get the money-and-compliance basics nailed so you’re not playing catch-up later.
Start with the must-dos
GST & BAS: If you’ll turn over $75k+, register for GST. Most venues lodge BAS quarterly (monthly if that suits cash flow).
PAYG withholding: Register so you can withhold tax from staff wages.
STP (Phase 2): Your payroll must report to the ATO every pay run via STP-enabled software.
Superannuation (SG): Budget 12% employer super (paid via SuperStream) by the ATO’s quarterly deadlines.
Helpful guide: Tax deductions for restaurants and F&B businesses
Step 5: Meet the EHO cadence
Expect a pre-opening check and regular, risk-based council inspections, fix any noted issues by the due date and keep evidence to avoid reinspection fees.
Before opening
- Pre-opening inspection: Book with your local council Environmental Health Officer (EHO) once fit-out, cleaning, food-safety plan, FSS, and equipment are in place.
- Have on hand: FSS certificate, food safety plan/logs, calibrated thermometers, cleaning schedules, pest contract, grease trap service record, and DA/CDC + fire safety docs.
After opening
- Routine inspections: Councils conduct periodic (risk-based) inspections—often 1–2x per year, more if high-risk or after complaints.
- Unannounced visits: EHOs can inspect without notice during trading.
If issues are found
- Corrective Action Request (CAR): You’ll get written items with due dates. Fix by the deadline and keep evidence (photos, invoices, updated logs).
- Reinspection fees: Councils may charge a revisit fee if a follow-up is needed or deadlines are missed.
- Enforcement: Ongoing non-compliance can trigger improvement notices, fines, or temporary closure.
Keep these always current
- Daily: temperature logs (receiving, storage, cooking, cooling), cleaning/sanitising checklists.
- Weekly/Monthly: pest service reports, grease trap maintenance, staff training refreshers, thermometer calibration.
- Annually: FSS renewal (per state rules), equipment servicing, policy review.
What is the cost to start a restaurant in Australia
The average cost to start a restaurant in Australia can range between AUD $207,500–$680,200+ (depending on fit-out quality, location, liquor service, and working capital).Key expenses include venue leasing, equipment, fit-out and renovation, licensing, and initial inventory. Let’s do the breakdown of the costs:
Cost item | Typical range | Notes |
Company setup (ASIC + business name) | $600 – $1,200 | ABN is free; GST registration required at $75k projected turnover |
Legal & compliance setup | $800 – $3,000 | Policies, basic contracts, lease review |
Licences & permits (combined) | $600 – $5,000+ | Food business registration/inspection, liquor (if applicable), outdoor dining (council-dependent) |
Insurance (annual, core covers) | $2,500 – $8,000 | Public liability often $20m for councils/outdoor dining |
Fit-out & equipment | $120,000 – $400,000+ | Kitchen, ventilation, dining area |
Technology (POS, website, bookings) | $2,000 – $8,000 | Setup and first-year subscriptions |
Working capital (3–6 months) | $80,000 – $250,000+ | Wages, rent, stock, marketing |
Trade waste/grease trap & servicing | $1,000 – $5,000+ | Install/approval + ongoing pump-outs (authority-specific) |
How Sleek can help you launch restaurant legally in Australia
Starting a restaurant isn’t just about great food, it’s registrations, licences, payroll, tax, and ongoing compliance. That’s where Sleek takes the load off your plate.
You’ll get:
- Fast, stress-free company setup: We handle your company registration, ABN, business name, GST and TFN so you’re ready to trade from day one.
- Ongoing bookkeeping and accounting: Stay on top of cash flow, track expenses, and lodge BAS and tax returns on time.
- Expert tax guidance: Maximise legitimate deductions (COGS, fit-out, equipment, utilities) while staying compliant with ATO rules.
- Payroll and superannuation management: Simplify staff payments and meet all Fair Work and ATO obligations.
- Clear, transparent pricing: No surprises, just everything you need to run your venue confidently.
Whether you’re opening your first café or scaling a multi-site group, Sleek makes setup and compliance seamless, so you can focus on guests, not paperwork.
Ready to launch? Incorporate with Sleek today and start your restaurant the smart way.
FAQs on how to start a restaurant in Australia
Yes. Under the FSANZ Food Standards Code (incl. Standard 3.2.2A), restaurants must appoint a Food Safety Supervisor (FSS), provide staff training, and maintain food-safety records. The FSS oversees daily food handling, hazard controls, and acts as council/EHO liaison.
Expect a pre-opening inspection, then risk-based routine inspections (often 1–2× per year) and possible unannounced visits. Any corrective actions must be closed out by the due date; missed items can attract reinspection fees.
At minimum: business/ABN, food business registration or notification (via your council/state authority), any premises/fit-out approvals (DA/CDC), and if serving alcohol, a state liquor licence (plus RSA for staff). Outdoor dining usually needs a council permit; playing music requires a OneMusic licence.
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businesses worldwide.
from 4,100+ reviews.
satisfaction rate from
16,000 surveyed clients.