How to Start a Restaurant in South Africa: The Complete 2026 Checklist

If you’re wondering how to start a restaurant in South Africa, you’re looking at one of the most dynamic — and demanding — sectors in the country. The South African restaurant market was valued at USD 10.16 billion in 2025 and is projected to reach USD 20.11 billion by 2030, growing at a compound annual growth rate (CAGR) of 14.63%. Quick Service Restaurants hold 48.16% of the market, and independent outlets make up 72.02% of all restaurants. Cloud kitchens are growing at 17.41% CAGR. The opportunity is real. But so are the risks: the trade, catering, and accommodation sector saw 298 liquidations in 2025. Success requires more than a great recipe; it requires a clear restaurant startup checklist South Africa operators can follow from concept to opening day and beyond.

This guide walks you through every major step: deciding if restaurant ownership is right for you, developing your concept, handling legal requirements and licensing (including the mandatory Certificate of Acceptability), finding and fitting out your space, choosing equipment and technology, hiring and training staff (with 2026 minimum wage in mind), planning your menu and pricing, marketing before and after launch, and launching with a plan to optimize. We’ve included key numbers — from labour and utility cost splits (labour ~37%, utilities ~34%, food ~29%) to rough startup cost ranges in ZAR — so you can plan with your eyes open. Whether you’re opening a full-service restaurant, a quick-service outlet, a ghost kitchen, or a food truck, this is your roadmap. The article also links to deeper guides across the Tafela blog — from best restaurant POS comparison and restaurant load-shedding to food cost control, SARS invoicing, menu pricing, and inventory management — so you can use it as a hub for your research.

Is Opening a Restaurant in South Africa Right for You?

The market is growing, but running a restaurant is hard. Before you commit capital and years of your life, it’s worth asking whether the opportunity fits your goals and your tolerance for risk.

The opportunity: a market set to double

As noted, the South African restaurant market is on track to roughly double by 2030. Quick Service Restaurants dominate by share (48.16%), but independents (72.02% of outlets) show that there’s room for owner-operated concepts that differentiate on cuisine, experience, or location. Cloud kitchens are growing fast (17.41% CAGR), offering a lower-capital way to test concepts or focus on delivery. So the restaurant startup checklist South Africa isn’t about whether the market exists — it’s about whether you’re prepared to execute.

Why restaurants fail — and how to avoid the traps

The 298 liquidations in the trade, catering, and accommodation sector in 2025 are a reminder that many ventures don’t make it. Common reasons include:

Under-capitalization — Running out of cash before break-even. Opening costs are often underestimated; operating costs (labour, utilities, food) add up fast. Plan for at least three to six months of working capital beyond opening day.
Poor location — Not enough foot traffic, no parking, or a lease that doesn’t allow the use you need. Location can make or break a restaurant.
No cost control — Labour (around 37% of costs), utilities (around 34%), and food (around 29%) need to be tracked from day one. Without a proper POS, food cost control, and labour scheduling, margins disappear.

Realistic expectations: hours and effort

Opening a restaurant means long hours, especially in the first year. You’ll be dealing with staff, suppliers, customers, and compliance. Seventy-seven percent of hospitality operators are investigating new technologies — not because it’s trendy, but because the right tools (POS, kitchen display, inventory, invoicing) reduce admin and help you stay on top of costs. Go in with your eyes open: the restaurant startup checklist South Africa works only if you’re willing to follow it and adapt as you learn.

Step 1: Develop Your Restaurant Concept

Before you sign a lease or buy equipment, you need a clear concept. That means choosing your format, your cuisine and target market, your unique selling proposition, and a location strategy.

Choose your format

Full-service restaurant — Table service, higher labour and ambience costs, typically higher average spend. Good if you’re competing on experience and cuisine.
Quick Service Restaurant (QSR) — Counter service, faster turnover, lower labour per cover. QSR holds 48.16% of the SA market; competition is fierce but the model is proven.
Ghost kitchen / cloud kitchen — Delivery-only or mostly delivery. Lower fit-out and front-of-house costs; growth at 17.41% CAGR. Good for testing concepts or focusing on delivery platforms.
Food truck or mobile — Lower fixed costs, flexible location. You still need licensing, COA (where applicable), and a solid POS and technology stack that works on the move.

Your format drives your space needs, labour model, and equipment list.

Cuisine and target market

Define who you’re serving and what you’re serving them. Family diners, office workers, students, tourists, or delivery-only customers each have different expectations and price sensitivity. Your cuisine and portion sizes should match your target market and your food cost target (typically 28–35% for food; see menu pricing strategy for more).

Unique selling proposition (USP)

What makes you different? It could be a specific cuisine, a neighbourhood focus, speed, quality of ingredients, atmosphere, or value. Your USP should guide your menu, branding, and marketing.

Location strategy

Location affects foot traffic, delivery access, parking, and visibility. We cover location in more detail in Step 4; at the concept stage, decide whether you’re targeting high street, mall, office park, suburban, or delivery-only — and whether your format fits that choice. A QSR in a mall needs high volume and fast turnover; a full-service restaurant in a suburban strip might rely more on regulars and weekend trade. Ghost kitchens can sit in cheaper, less visible locations because customers never see the premises. Align your format, your USP, and your location type from the start so you’re not fighting the market.

Step 2: Create a Business Plan

A business plan forces you to think through revenue, costs, and funding. It doesn’t need to be a hundred pages, but it should include financial projections, startup costs, funding options, and a break-even analysis.

Financial projections

Project revenue based on covers (or orders) per day, average spend, and trading days. Be conservative in year one. Then project costs: rent, labour, utilities, food, packaging (if applicable), marketing, and debt servicing. Labour is often around 37% of costs, utilities around 34%, and food around 29% — use these as a sanity check. Your best restaurant POS comparison and reporting will later give you real numbers to refine these.

Startup costs (rough ranges in ZAR)

Startup costs vary hugely by concept and location. Broad ranges (order of magnitude):

Registration and licensing — R5 000 – R25 000 (CIPC, COA, liquor if applicable, zoning)
Kitchen equipment — R150 000 – R800 000+ (depending on size and whether you buy new or second-hand)
Furniture, decor, front-of-house — R50 000 – R300 000
POS and technology — R3 000 – R30 000 upfront (or monthly-only with a system like Tafela from R199/month)
Initial inventory — R20 000 – R100 000
Pre-opening marketing — R10 000 – R50 000
Working capital (3 months) — R100 000 – R500 000+ depending on size

We provide a more detailed restaurant startup cost breakdown table later in this guide.

Funding options

Own capital — Reduces debt but ties up personal savings. Common for smaller independents.
Bank loans — Require a solid business plan and often collateral. Interest and repayments affect cash flow.
Investors / partners — Can bring capital and experience but dilute ownership and decision-making.

Whatever you choose, ensure you have enough runway to reach break-even. Under-capitalization is one of the main reasons restaurants fail.

Break-even analysis

Calculate how many covers (or orders) per day you need at your projected average ticket to cover fixed and variable costs. Fixed costs (rent, salaries for key staff, insurance, loan repayments) don’t change with volume; variable costs (food, packaging, part-time labour) do. Once you know your fixed costs per month and your gross margin per cover (revenue per cover minus variable cost per cover), you can work out how many covers per month you need to break even. Use that number to set targets and to sense-check your concept and pricing — if the required covers are unrealistically high for your location and format, rethink before you commit.

Step 3: Legal Requirements and Licensing

You cannot trade legally without meeting South African legal and regulatory requirements. Missing one item can delay opening or lead to fines and closure.

Company registration (CIPC)

Register your business with the Companies and Intellectual Property Commission (CIPC). This establishes your legal entity (Pty Ltd, sole proprietor, etc.) and is required for contracts, banking, and tax.

VAT registration (SARS)

If your turnover is or will be R1 million or more in any 12-month period, you must register for VAT with SARS. Even below that threshold, voluntary registration can be beneficial. Your SARS invoicing must be correct from day one — your POS should support SARS-compliant tax invoices.

Certificate of Acceptability (COA) — mandatory before trading

The Certificate of Acceptability (COA) is issued by the Department of Health (or municipal health authority) and certifies that your premises comply with food safety regulations. You must have a COA before you trade. The process usually involves submitting an application (often with a floor plan and equipment list), paying a fee, and then an inspection. Inspectors will check kitchen and storage layout, surfaces (smooth, rust-proof, non-toxic per Regulation R638), temperature control, pest control, and hygiene practices. If they find issues, you’ll need to fix them and may need a re-inspection. Allow several weeks for the process and do not open without a valid COA — operating without one is illegal and can result in closure and fines.

Liquor licence

If you plan to sell alcohol, you need a liquor licence. Requirements and timelines vary by province and municipality. Apply early; the process can take months.

Zoning and land use

Ensure your premises are zoned for restaurant/catering use. Leasing a space that isn’t correctly zoned can block your COA and liquor application and put you in breach of your lease.

Food safety certificates

Beyond the COA, staff handling food may need food safety training and certificates (e.g. HACCP-based training). Some municipalities or clients require this; check local requirements.

B-BBEE compliance

B-BBEE compliance can affect your ability to tender for corporate or government contracts and may influence funding or partnerships. Even if not mandatory for your concept, understanding your level and improvement options is useful.

Step 4: Find and Fit Out Your Location

Location and premises affect foot traffic, delivery access, compliance, and day-to-day operations.

Location factors

Foot traffic — For walk-in business, visibility and volume of passers-by matter.
Parking — Many South African diners expect safe, easy parking.
Delivery access — If you’re on Uber Eats, Mr D, or similar, consider pickup access for drivers and packaging storage.
Visibility and signage — Can people see you? Can you put up signage per your lease?

Lease negotiation

Negotiate lease length, rent escalation, who pays for what (rates, water, repairs), and break clauses. Get clarity on permitted use and any restrictions (e.g. noise, hours). Have a lawyer or experienced advisor review the lease before you sign.

Kitchen layout and dining area design

Kitchen layout should support your menu and volume: prep, cooking, plating, and dishwashing in a logical flow. Regulation R638 requires surfaces that are smooth, rust-proof, and non-toxic for food contact. Design with health inspections in mind. Dining area design should match your concept and capacity without overcrowding.

Compliance with health regulations

Your COA inspection will focus on hygiene, temperature control, pest control, and the condition of surfaces and equipment. Under Regulation R638, food contact surfaces must be smooth, rust-proof, non-toxic, and easy to clean. That means the right materials for prep tables, sinks, and cooking equipment — and no porous or damaged surfaces that can harbour bacteria. Plan the fit-out to meet these requirements from the start; retrofitting is more expensive and can delay your COA. Storage must allow for separation of raw and ready-to-eat food, and refrigeration must be adequate for your volume and menu.

Step 5: Set Up Your Kitchen and Equipment

Kitchen equipment is one of the largest upfront costs. Getting the right kit — and keeping it running during load-shedding — is essential.

Essential equipment list

Typical items include: stoves/ovens, fryers, grills, refrigeration and freezers, prep tables, dishwashing, exhaust and ventilation, and smallwares (pots, pans, knives, etc.). List everything your menu and volume require; then prioritise must-haves vs nice-to-haves for opening.

New vs second-hand

Second-hand equipment can cut costs significantly. Ensure it’s in good condition, meets safety and hygiene standards, and that you can get it serviced. For critical items (e.g. refrigeration), warranty and backup plans matter.

Kitchen display systems (KDS)

A kitchen display system replaces or supplements paper dockets with a screen in the kitchen, showing orders in sequence, modifiers, and timing. It reduces errors and speeds service. Many POS systems, including Tafela, include a KDS. Plan for screens and placement in your kitchen layout.

Power backup (generators, UPS, inverters)

Load-shedding is a reality. Fridges and freezers must stay cold; your till and KDS need to keep working. Options include generators, UPS (uninterruptible power supply) for till and router, and inverters for critical circuits. Our restaurant load-shedding guide covers practical strategies so you can stay operational during outages.

Step 6: Choose Your POS and Technology Stack

Your point-of-sale system is the hub of operations. Choosing it from day one — rather than “we’ll fix it later” — saves time, keeps you compliant, and gives you the data you need for food cost control and pricing.

Why POS is critical from day one

A proper POS tracks sales, sends orders to the kitchen, manages payments, and produces SARS-compliant invoices. It supports recipe costing, inventory management, and reporting. Starting with a spreadsheet or cash-only approach creates a mountain of catch-up work and compliance risk.

What to look for

Offline mode — When power or internet drops, you must still take orders and payments. Data should sync when connectivity returns. See our restaurant load-shedding guide and best restaurant POS comparison.
SARS invoicing — Tax invoices must meet SARS requirements. Your POS should handle VAT and invoice layout correctly. Details in our SARS invoicing guide.
Payment integration — Cards, SnapScan, Zapper, PayShap, and cash. Support for multiple payment providers (e.g. Yoco vs iKhokha) gives you flexibility and redundancy.
Food costing — Recipe builder, portion costing, and COGS reporting so you can hit your food cost and menu pricing targets.

Payment providers

Yoco, iKhokha, and others offer card machines and digital payments. Compare rates, contract terms, and integration with your POS. We compare Yoco vs iKhokha for restaurants in a dedicated article.

Online ordering integration

If you’re on Uber Eats, Mr D, or your own website, a POS that integrates orders into one flow reduces errors and duplicate entry. Consider digital tipping options if you want to support staff via card/digital tips.

Tafela: POS from R199/month

Tafela gives you POS, kitchen display, SARS-compliant invoicing, food costing, and multi-payment support (Yoco, iKhokha, PayShap, and more) from R199/month. It’s built for South African conditions, with offline mode and no hidden per-transaction software fees. For a full comparison of systems, see our best restaurant POS systems South Africa guide.

Step 7: Hire and Train Your Team

Labour is typically around 37% of restaurant costs. Getting hiring and wages right is essential — and legally required.

Minimum wage 2026

The national minimum wage from 1 March 2026 is R30.23 per hour. The hospitality sector has sectoral determinations that can set different rates for certain categories: for smaller firms in the trade, catering, and accommodation sector, rates can be in the R20–R22.25 per hour range where applicable. Sectoral determinations are published by the Minister of Employment and Labour and can change; always verify the current rate for your category (e.g. waiters, chefs, casual workers) and any sub-minimum provisions for learnerships or first-time job seekers. Check the latest sectoral determination and any collective agreements that apply to you. Paying below the legal minimum exposes you to penalties and claims.

Key positions to hire first

Typically: head chef or kitchen manager, front-of-house supervisor or manager, and key kitchen and service staff. Hire for attitude and train for skill where possible. Ensure someone is responsible for opening/closing, cash handling, and basic compliance (e.g. temperature logs, hygiene).

Labour law basics (BCEA)

The Basic Conditions of Employment Act (BCEA) governs working hours, leave, overtime, and contracts. Get proper employment contracts in place and keep records. Non-compliance can lead to CCMA claims and fines.

Training priorities

Food safety — All food handlers should know basics of hygiene, temperature control, and cross-contamination. Required for COA and good practice.
POS and systems — Staff should be able to take orders, apply modifiers, process payments, and handle basic till operations. Kitchen display systems training reduces ticket errors.
Customer service — Greeting, upselling, and handling complaints consistently.

Your menu and pricing directly affect revenue and food cost. A focused menu and clear menu pricing strategy set you up for profitability.

A smaller, well-executed menu is easier to cost, prep, and quality-control than a long list of mediocre items. Start tight; you can expand once operations are stable.

Food cost targeting (28–35%)

Aim for food cost as a percentage of food revenue in the 28–35% range (varies by concept — see our food cost control guide). Use your POS recipe builder and inventory management to track actual cost and adjust portions or prices.

Pricing strategies

Price to cover food cost, labour, and overhead, plus a margin. Consider psychological pricing (e.g. R99 vs R100), combo deals for QSR, and premium positioning for higher-end items. Our restaurant menu pricing strategy article goes deeper.

Supplier relationships

Build relationships with reliable suppliers. Compare prices, payment terms, and delivery frequency. Having a backup supplier for key items (e.g. protein, dairy) reduces risk when one has a shortage or delivery issue. Ordering smaller, more frequent deliveries can reduce waste and improve inventory management, especially when load-shedding or storage is a constraint. Use your POS and recipe costing to track what you’re actually spending per category so you can renegotiate or switch suppliers when needed.

Step 9: Marketing Before and After Opening

You need customers from day one. Pre-opening buzz and post-opening consistency both matter.

Pre-opening buzz

Social media — Tease the concept, the team, and the menu. Build an email list or WhatsApp group for launch offers. Post consistently in the weeks before opening so people know you exist and when you’re opening.
Soft launch — Invite friends, family, and local influencers for a soft opening. Fix issues before the grand opening and generate word-of-mouth. Offer a discount or free item in exchange for honest feedback and early reviews.
Influencers and local press — Where budget allows, partner with local food bloggers or media for coverage. Even one or two well-placed posts or articles can drive a strong first week if your product and service deliver.

Google Business Profile

Claim and optimise your Google Business Profile. Add correct NAP (name, address, phone), hours, photos, and category. Encourage early customers to leave reviews.

Delivery platform registration

If you’re on Uber Eats, Mr D, or similar, register in advance. Optimise your menu and photos; delivery can be a significant revenue stream and marketing channel.

Ongoing marketing

Email, social, and in-store promotions (e.g. lunch specials, loyalty) keep customers coming back. Track what works via your POS and adjust. Digital tipping and a smooth payment experience also support reputation and repeat visits.

Step 10: Launch and Optimize

How you launch and what you do in the first months set the tone for the business.

Soft opening vs grand opening

A soft opening lets you test operations, train staff, and fix problems with a smaller audience. A grand opening can drive a big first week but adds pressure. Many operators do a soft launch first, then a formal opening with promotions.

First-month priorities

Stabilise operations — Orders flowing correctly to the kitchen display, payments and SARS invoicing correct, no major food safety or compliance gaps.
Watch costs — Labour, food, and utilities. Use your POS and food cost reports to stay on target.
Gather feedback — What do customers love? What do they complain about? Adjust menu, portions, or service as needed.

Common early mistakes

Ignoring food cost and labour cost from week one.
Overstaffing or understaffing; refine rosters based on actual covers.
Not having a POS that works offline — load-shedding will catch you out. See our load-shedding guide.

When and how to adjust

Review sales, costs, and feedback weekly at first. Adjust menu items, pricing, portions, or hours based on data. The restaurant startup checklist South Africa doesn’t end at opening — it evolves as you learn.

Restaurant Startup Cost Breakdown

Use this table as a starting point. Figures are indicative and vary by concept, location, and scale.

Cost category	Low (ZAR)	High (ZAR)	Notes
Registration & licensing (CIPC, COA, liquor, zoning)	5 000	25 000	COA and liquor can take time; budget for delays
Kitchen equipment	150 000	800 000+	New vs second-hand; size and cuisine dependent
Furniture & decor	50 000	300 000	Dining and front-of-house
POS & technology	3 000	30 000	Or R199–R999/mo with Tafela and similar
Initial inventory (food, packaging)	20 000	100 000	Depends on menu and storage
Pre-opening marketing	10 000	50 000	Social, soft launch, signage
Working capital (3 months)	100 000	500 000+	Rent, wages, utilities, food until break-even

Total (rough range): R338 000 – R1 805 000+ depending on concept and location. Always add a buffer for unexpected costs and delays.

Frequently Asked Questions

How much does it cost to open a restaurant in South Africa?

Costs vary widely. A small café or takeaway might open for R300 000–R600 000 including working capital; a full-service restaurant in a prime location can exceed R1.5 million. See the Restaurant Startup Cost Breakdown table above for category ranges. The biggest variables are location, size, equipment (new vs second-hand), and how much working capital you allow for. Many operators underestimate working capital — plan for at least three months of rent, wages, utilities, and food before you assume you’ll be at break-even.

Do I need a liquor licence?

Yes, if you plan to sell alcohol. Requirements and application processes differ by province and municipality. Apply early; approval can take several months. You cannot sell alcohol without a valid licence.

What is a Certificate of Acceptability (COA)?

The Certificate of Acceptability is issued by the Department of Health (or municipal health authority) and certifies that your premises meet food safety regulations. You must have a COA before you trade. It covers kitchen and storage design, surfaces (smooth, rust-proof, non-toxic per Regulation R638), temperature control, pest control, and hygiene. Operating without one is illegal and can result in closure and fines.

How long does it take to open a restaurant?

From concept to opening day, plan for three to twelve months or more. Company registration and basic setup can be quick; finding the right location, negotiating a lease, fit-out, COA inspection, and (if applicable) liquor licence can take many months. Delays in licensing or municipal approvals are common; build buffer time into your plan.

What are the biggest mistakes new restaurant owners make?

Common mistakes include: under-capitalization (not enough cash to reach break-even), poor location choice, ignoring cost control (food, labour, utilities), opening without a COA or proper SARS invoicing, no offline-capable POS (so load-shedding kills sales), and overcomplicated menus that are hard to execute and cost. Many owners also hire too many people too soon or skip proper employment contracts and wage compliance, which leads to CCMA disputes and back-pay. Following a clear restaurant startup checklist South Africa and using the right tools — from day one — reduces these risks.

Conclusion

Starting a restaurant in South Africa is a big undertaking. The market is growing — from USD 10.16 billion in 2025 toward USD 20.11 billion by 2030 — and independents still make up 72% of outlets. But with 298 liquidations in the sector in 2025, success demands careful planning: a solid concept, a realistic business plan, full legal compliance (including the mandatory Certificate of Acceptability), the right location and equipment, and a POS and technology stack that keep you trading through load-shedding and compliant with SARS. Labour (around 37% of costs), utilities (around 34%), and food (around 29%) need to be managed from day one.

The right tools make it manageable. Tafela gives you POS, invoicing, inventory, and kitchen management from day one — with offline mode, SARS-compliant tax invoices, and support for Yoco, iKhokha, and other payment providers. Get started from R199/month and focus on what you do best: feeding your customers.

Get started with Tafela from R199/mo