Are you planning to open a restaurant in Washington? To help you get started with your venture, we have put together an extensive guide with details on how to open a restaurant in Washington State.
One of the most critical parts of opening a restaurant is being compliant with all the local laws. When you are starting your venture of opening a restaurant, café, or any other food business, you must have permits and a license in order.
A food facility health permit, liquor license, certificate of occupancy, all these documentation have requirements. Hence, it is important to know exactly what you need to legally open a restaurant in Washington DC.
Like all other states, Washington has set criteria and needs around the permits and licenses for opening a restaurant. The state administers some licenses, while some are done on a local level.
Things You Need to Open a Restaurant in Washington
The licenses you need to open a restaurant in Washington DC comprise of:
- Business License
- Food service license
- Certificate of occupancy
- Seller’s Permit
- Liquor license
- Food facility health permit
- Building health permit
Understanding Business Licenses in Washington: Why They Matter
A business license is one of the prime licenses you need as you plan to lay out the groundwork of your business. This is also known as a business tax certificate. It will help you to stay acquiescent during tax season.
Guide to Obtaining a Business License in Washington
In Washington, a business license is controlled by the county or city you reside in. If you operate a restaurant that has multiple locations, it is important to get a business license for each business in a different authority. To get a business license in Washington, you need an:
- EIN
- Sole proprietorship or partnership
- Business name
- Address proof and contact number
- A methodical business plan
- A COI for your insurance policy
How Much Does a Business License Cost in Washington?
Washington Business license cost depends on county, type of business, and scope of business. Business licenses in Washington need to be paid and renewed regularly. Always check the jurisdiction about how often your license needs to be renewed.
License Name: Business license
Cost: 100$
Link: Washington State Department of Licensing
Certificate of Occupancy: What It Is and Why It’s Essential
A Certificate of Occupancy is a document that indicates your space is zoned for your business type. It also proves that your business is up-to-code, up-to-date, and safe to use. This is along with checks and inspections. It is not required in every county. Only certain situations require them, like when doing major work or converting the use of space from residential to business.
It is always beneficial to get in touch with your local jurisdiction to determine if your project warrants a Certificate of Occupancy.
How to Obtain a Certificate of Occupancy
You can get the forms online. However, to get the certificate, your business location must go through plumbing inspections, fire inspections, building inspections, and electrical inspections. Always check your local county’s building or local city and safety department.
What Is the Cost of a Certificate of Occupancy?
Different counties will charge different amounts. It also varies by the type of business. The fee will also vary depending on the county.
License Name: Certificate of Occupancy
Cost: Fee varies depending on the county
Link: Always check your county’s small business department or local city
Washington Food Handler’s License: What It Is and Why You Need It
A food service license is generally known as an employee health permit. It allows vendors, restaurants, or any other type of business to sell and serve food on-site safely.
These licenses make sure that every employee knows how to carry out their work in compliance with health standards. It helps keep diners safe from any food disease or illness. It is usually known as ServSafe. It is named after the company administering most food handler’s tests, also known as Washington Food Handler Card.
Getting a Food Handler’s License
Every employee who handles food in Washington must get their Food Handler’s license within 30 days of employment. This includes cooks, chefs, baristas, servers, and bartenders to name a few. General managers and buzzers may not be required to get a Food Handler’s license.
Managers with Food Protection Manager Certification do not need to get a Washington Food Handler Card. Some jurisdictions have their own food safety training standards and programs. This may exempt employees from needing a Washington Food Handler card.
To get the Food Handler’s card, employees need to pass a test about preparation and food safety with a grade of approximately 70%. It may be higher in certain jurisdictions depending on local regulations.
How Much Does a Food Service License Cost in Washington?
Washington state law requires that the license and test should not cost more than $17. This is to make sure that anyone working in a restaurant can afford to get certified.
License Name: Food handler’s license
Cost: Up to $17 per employee
Link: Washington Food Handler Training
Washington Food Seller Permit: What It Is and Why You Need It
Any business planning to sell taxable goods must obtain a seller’s permit to comply with sales tax regulations. This consent allows them to charge the sales tax.
How to Obtain a Seller’s Permit?
You can register for online permits through the permits portal and the SBA website.
How Much Does a Food Service License Cost?
There is no fee to apply for a seller’s permit. However, you may be asked to pay a security deposit to cover the unpaid taxes, if the business eventually closes.
License Name: Seller’s permit
Cost: $0, maybe just a security deposit
Link: SBA permits and license
Liquor License: What It Is and Why You Need One
This license is a must for any restaurant selling or serving alcohol to its clients. Since alcohol has a long shelf life, it is often favorable from a profit standpoint to sell alcohol.
Ways to Obtain a Liquor License
In Washington, liquor licenses are issued by the state. You must have a seller’s permit to apply for a liquor license. After you have applied for the license, you must post it on a public notice of application on your business premises for at least 30 days. Some cases require an applicant to post a notice in the newspaper or notify their neighbors. They will also need to show that the business is zoned properly for alcohol-selling business.
The department also performs an investigation into the future business and applicant to see if he/she is qualified. It takes between 40- 90 days to process the application for a liquor license, depending on what kind of application it is. So, always make sure the build time frame is in your countdown to the opening. Licenses can be renewed on a yearly basis, so pay the renewal fee on time or your license will expire.
How Much Does a Liquor License Cost in Washington?
A liquor license in Washington can cost up to $450 – $1200. See the full fee associated with various types of liquor licenses in Washington.
License Name: Liquor License
Cost: $450 – $1200
Link: Washington State Liquor and Cannabis Board
Catering Business License Requirements in Washington
There is no specific catering license in Washington. However, caterers must obtain a liquor license if they wish to serve alcohol. They also need to get food safety certifications as they handle food.
Washington Food Facility Health Permit: What It Is and Why You Need One
All restaurants must have a health permit in order to open. They must stick to safe food handling, preparation practices, and storage throughout the operation. It helps prevent food diseases and illness in clients and facilitates safe working for all.
Steps to Obtain a Food Facility License
If you wish to open a restaurant in Washington DC, health permits are under the control of county and city jurisdiction. Check with your local health department to find out how to apply for one for your restaurant.
Unlike liquor licenses, health permits are non-transferable. When you are opening a new restaurant, even if it is in the space of a previous restaurant, you need to get a new health permit.
Applying for the health permit can be done online depending on the city. You will first need to schedule a site inspection. This guarantees that your space and practices comply with the Washington Health and Safety Code, along with any applicable ordinances.
If your business is determined to operate safely, you will receive your health permit.
How Much Does a Food Facility Health Permit Cost in Washington?
It varies from county to county.
License Name: Food facility and health permit
Cost: It is variable, and usually costs around $1100 +
Link: Check with your local authority for online application
Washington Employee Health Permit: What You Need to Know
In Washington, an employee health permit is the same as a food handler’s license.
Apart from all the licenses, what do I need to open a restaurant in Washington DC? Well, many important points need to be considered before opening a restaurant in Washington. The most important is:
Insurance
Below are a few types of Insurance for Washington restaurant owners to consider:
- Worker’s Compensation Insurance: This is mandatory in Washington. It helps all the employees who fall sick or injured during the job to cover healthcare expenses and lost wages.
- General Liability Insurance: It helps protect you if you are fired or sued due to a customer injury or property damage. This coverage extends to various types of lawsuits so that you are financially safeguarded.
- Commercial Property Insurance: This helps you with repairs of your physical location and also the equipment in it if they get damaged.
- Business Income Insurance: It can help you in recovering lost income due to theft, fires, and wind disasters.
Some other legal requirements for opening a restaurant in Washington are:
Employer Identification Number
To get all the permits and licenses mentioned above, every business needs an Employer Identification Number also known as EIN. Applying for an EIN is easy. It can be done online, via mail, or fax.
Most applicants will likely opt for the online EIN application option. This is because it is much quicker and easier to do compared to printing, faxing, or mailing an application. However, it should be done in one concurrent session. So, make sure that you have all your paperwork and information in hand. The application can be found on the IRS website which comprises all the restrictions and instructions.
What Are the Costs of Opening a Restaurant in Washington, DC?
Let us look at some financial considerations for new restaurants in Washington.
When you are planning to open a restaurant in Washington, you will need to choose the right type of business unit and possession structure. Then you will need to secure the funding for your business.
Business Entity
When starting a restaurant, you need to select what kind of business entity you will be planning to build. Choose between LLC, partnership, sole proprietorship, C Corporation, or S Corporation.
Ownership Structure
Different restaurants approach profit and ownership very differently. Some businesses have many employees, while others are run by a single owner. Additionally, some offer investors a stake in the company.
Others operate as a co-op, whereby all employees have a stake in the business. Also, many businesses operate on a model where owners and partners control the company. However, once the business surpasses a predetermined profit threshold, all employees may receive a share of the income.
Figure out which type of profit sharing and ownership structure makes sense for your business. Then, work with the accountant and lawyer to draw up all the necessary contracts and paperwork.
Loans
Starting a restaurant can cost anywhere from $97,000 to $3 million. Most people don’t have that kind of capital readily available.
Restaurant owners in Washington have several financing options to consider. These include brick-and-mortar bank loans, SBA loans, alternative loans, and lines of credit. Other possibilities are merchant cash advances, crowdfunding, or seeking financial support from family and friends.
They differ widely in application requirements, what kind of collateral you need, how much you can take out, the type of overpayment and repayment schedule, and how easily and quickly you can receive your funding.
The Basics to Open a Restaurant in Washington DC
Choosing the correct location for your restaurant is important. You need to do a lot of research on demographics, competition, and market in your location. You should also research the actual restaurant size, space, history, and visibility. You can also opt to have the cloud kitchen and save on the expenses.
If you choose a physical location for your restaurant, you have three options: lease an existing space, purchase a property, or build your restaurant from the ground up. Below are some additional criteria to focus on when looking for a restaurant location to decide if it is right for you or not:
- Community
- Real estate market conditions
- Ideal customer profile and target market
- Previous tenants
- Size of the site
Naturally, the location of the restaurant and layout of the space should bring your restaurant idea to life. If you are thinking of opening a steakhouse, having your own building becomes a necessity. However, serving tacos or sandwiches to beachgoers could do with perhaps a food truck.
It is vital to keep in mind that your location and available square footage will also play a major role in your kitchen design and floor plan of your restaurant.
If your vision is to create a high-volume casual Italian restaurant with an open kitchen, you’ll need a larger space. Additionally, you may require the ability to knock down walls and install proper ventilation systems. Some landlords are not very lenient to let you do all this.
Key Operational Considerations for Opening a Restaurant in Washington, DC
Training, Retaining Staff, and Hiring
When hiring employees for your restaurant, make sure that you are complying with local country and city guidelines for state labor laws. The employees that you hire are true extensions of your restaurant and its brand. They are one of the most vital aspects of your restaurant’s success. From front-house servers to chefs, there are many restaurant positions you can hire for.
Technology and Equipment
The majority of restaurant guests expect technology to be incorporated into their dining experience. After the pandemic, restaurant guests don’t always prefer to visit your restaurant.
That is why you need to invest in technology and equipment. They should support an off-premise dining experience that is equally enjoyable as your in-house dining experience. New restaurants should consider investing in the following:
- An online ordering system for restaurants
- An integrated cloud-based restaurant point-of-sale system
- Restaurant analytics and reporting
- Restaurant payroll solution
- Team communication and simple scheduling
- Contactless payment option and order and pay at the table that makes the guests feel super comfortable.
Restaurant technology will power your business to grow and establish revenue as a successful restaurant brand.
Plan a Soft or Grand Opening for Your Restaurant
Once your space and menu are finalized and you’re ready to introduce your restaurant to the public, you can plan either a soft launch or a grand opening. This allows you to unveil your restaurant to the world with excitement and anticipation.
A soft opening is a casual night for the new restaurant. This is where friends and family of the business, staff, neighbors, representatives, distributors, and vendors are invited in for your unofficial first shift. It is like a soft opening where new restaurants go through meal service live for the very first time. You do not mark the soft launch to the public; it is just for the closed ones.
A grand opening marks an official launch to the public, either for breakfast, lunch, or dinner. Members can drop in for a drink or a bite. People can try out your special dishes and post them on social media platforms for more popularity.
Opening a Restaurant in Washington
Opening a restaurant is a huge undertaking with many steps, mountains of paperwork, and overlapping requirements. Writing up a solid restaurant plan and also securing funding for your restaurant are some of the first things you need to do. This is so that you can also afford all the building blocks of your business, including permits and licenses.
As your opening day approaches, it’s important to explore technology options for your restaurant. Find the right combination of systems and products to set up your operations for success from day one.
Opening a restaurant in Washington is a rewarding but challenging endeavor that requires careful planning and execution. From obtaining licenses to ensuring smooth operations, each step is important to your restaurant’s success.
At App2Food, our solutions, such as online ordering systems and restaurant loyalty programs, help restaurant owners grow their businesses efficiently. If you’re ready to take your restaurant to the next level, contact us today to learn how we can support your venture.