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Guide to opening a restaurant

Office of Economic and Workforce Development
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This page will help you understand the steps to opening a restaurant in San Francisco. It is a resource from the Office of Small Business, San Francisco's central point of information for small businesses.Office of Small Business

Reach out to the Office of Small Business for one-on-one help with your new restaurant.

We can help you with:

  • Leasing and finding a space
  • Permitting
  • Business registration
  • General business counseling
  • Financing

Find a location for your restaurant

Browse and consider locations

  • Consider factors like demographics, safety, traffic, zoning and building requirements, and accessibility.

Check the location's zoning

  • Every location is zoned differently.
  • Even if there was previously a restaurant at a location, check the location's zoning because it may have operated without approval.
  • If you plan to serve liquor or beer and wine, check if the location allows alcohol. Be sure to start your liquor license application early.

Determine if you need to make changes to your space

  • Before signing a lease, you can consult with the SF Department of Public Health (DPH) and SF Fire Department (SFFD) to understand whether your space needs sprinkler systems, kitchen hoods, fire exits, capacity requirements, and more.
  • Check this even if the location was a restaurant before. It may have operated without permits, or with outdated equipment.

Learn about making your business accessible

  • Your landlord is required to provide information about the accessibility of the building, in case it needs renovations.

Set up your business

Create a Business Plan

  • Writing out business goals and action steps helps you clarify and organize your priorities.

Choose a business structure

  • When starting a business, you will need to select a business structure for your business. This decision impacts how much you pay in taxes and your personal liability (i.e. who is legally responsible for debts). You will need to decide before registering your business.

Choose and file a business name

  • If you choose to conduct business under a name different than your own (ie. John Doe), you must file a Fictitious Business Name (FBN) with the SF Office of the County Clerk.

Apply for an Employer Identification Number (EIN)

  • An Employer Identification Number (EIN) is also known as a Federal Employer Identification Number (FEIN) or Federal Tax Identification Number. It is a unique nine digit number assigned by the Internal Revenue Service (IRS).
  • Generally, businesses need an EIN to pay employees and to file business tax returns.

Register your business in San Francisco

  • If you register your business before choosing a final location, you will have to update your registration with the new address. This can cost money and time.

Apply for a Seller's Permit 

  • Seller's Permits are from the CA Department of Tax and Fee Administration (CDTFA). Every location must have this permit to sell taxable goods.

Obtain workers' compensation insurance 

  • You will need this insurance if you will have employees. You will need these in order to obtain the DPH permit to operate.

Prepare your space

Apply for permits for tenant improvements

  • Most tenant improvements - even small ones - require a permit

Check water and wastewater capacity charges

  • If your business will use more water than the previous business or resident, you may have to pay a capacity charge to the SF Public Utilities Commission (SFPUC).
    • Tip: Get an estimate of the water capacity charge from the SFPUC before you sign a lease. This fee can be high, especially if your location was not previously a restaurant.

Install equipment for fats, oils and grease 

Get gas and electric services 

Install signage and/or an awning

  • Awning permit fees are waived every May. You can qualify if you submit your permit application during the month of May. 

Food and alcohol

Get a Manager's Food Safety Certification

  • Either your and/or a designated employee needs this certification.
  • This person is responsible for teaching other employees about proper food handling. 

Ensure all employees have a Food Handler Card

Apply for your Health Permit to Operate

  • Apply within 6-8 weeks of your planned open date.
  • You'll need to include proof of Worker’s Compensation Insurance, proof of Food Safety Certification, and a Business Registration Certificate.

Obtain a Liquor License

  • The CA Department of Alcoholic Beverage Control (ABC) issues liquor licenses. 
  • Be prepared to wait 3-6 months for your liquor license to be issued.
  • After applying, a notice will be posted at your location to alert the general public that you plan on serving alcohol.
  • If there are no objections, the department will conduct a background investigation and, if cleared, issue the permit.
  • Liquor licenses can be transferred or purchased from an old owner of a restaurant. This can sometimes be expensive.
    • Transfers take 75 days on average.
  • If you want to sell spirits along with beer and wine, your restaurant will need a Type 47 license.
    • The only way to acquire a Type 47 license in San Francisco is to purchase an existing one.
    • If you only want to sell beer and wine, you can apply directly to ABC for a Type 41 license.

Don’t serve any foods containing trans fats

  • This is state law.
  • DPH enforces the trans fat compliance program to ensure that no food containing artificial trans fat is stored, distributed, served, or used in the preparation of any food.

Use containers that are compostable or recyclable

After opening