Los Angeles is a hotspot for nightlife, with celebrities popping their heads into nightclubs, and the biggest names in hospitality trying to stake their claim in Hollywood. While L.A. is a competitive market for restaurants and bars, a successful business can make a killing, and become the talk of Southern California. Here are a few things to keep in mind if you’re considering opening Los Angeles’ next top restaurant.
Getting Seed Money
If you are looking for the cash for a down payment on the property of your dreams, you may want to look into private investors to help get you through that real estate transaction. While you can also look into banks and other conventional leaders for start-up loans, you can also look into hard money lenders in California. A hard money loan is an asset-based loan, through which a borrower receives funds secured by real property.
These business purpose loans may come with a higher interest rate, but that is due to the risk associated as well as a shorter time span for paying off than a traditional loan. However, hard money lenders are far more flexible, with lenders offering leniency and adjustments to a payment schedule, as opposed to a standard calendar kept by a traditional lender. A good credit score can get the ball rolling to get the financing you need.
Stocking Up on Equipment
Getting the commercial property you need in Los Angeles is one step, now comes finding the restaurant equipment you need to start making the dream a reality. From cabinets and shelves to refrigerators and Atosa freezers, there are several pieces of equipment that restaurants need to factor into their initial purchases. You can actually look into competitive rates to find the appliances, glassware, and dinnerware you need, without having to splurge for a fork and spoon.
Be sure to do research to address what ends up being an important factor for your bottom line. You are going to take a loss in getting your restaurant stocked with the necessary equipment, but you don’t have to dig your hole deeper to purchase a chest freezer you don’t need. Evaluate the must-haves, and the wants, before going forward with buying prep tables that have no room in your restaurant.
Getting Permits in Order
Opening a restaurant anywhere in the United States requires obtaining certain permits to be allowed to operate. First comes a business license, which can range in fee in the City of Los Angeles. Restaurant owners will also need to be evaluated by a fire marshal to get certification on the occupancy allowed in their facility.
Restaurants also require a food vendor’s license issued by the city or county to ensure that your business is following food safety guidelines. You can additionally acquire a liquor license, permitting alcohol sales on your grounds. Depending on the style of the restaurant, you may want to look into licensing that permits live entertainment, pool tables, or even valet parking.
Los Angeles and the state of California were heavily impacted by the pandemic, forcing many industries to shut down to stop the spread. The restaurant industry was struck especially hard, but with reopenings in motion, it’s more important than ever for businesses to adhere to COVID-19 protocols. This starts with following the latest city, county, and state guidelines on indoor dining capacity and social distancing to keep your customers and staff safe.
Be sure to enforce mask wearing by staff while on the clock, as well as a hand hygiene regimen to ensure the safety of diners and co-workers alike. Restaurants should also create a regular routine of disinfecting surfaces in the kitchen and dining area, making customers feel more at ease when they sit down for a meal, and more likely to come back again.