Starting your own restaurant could be exciting and…a process. Whether you are starting a small family restaurant or the next big business in the industry, there are some basic legal and administrative steps you need to follow in order to make the process more efficient and avoid unnecessary future complications. Here I will show you the main legal steps to take when you open a restaurant.

1. Rental of premises.
Although this is not the most important step, if not done correctly, it could result in tens of thousands of dollars in losses before you have even started your business operations.
In addition to reading and understanding the proposed rental contract, before signing it, you must check the zoning of the premises. Even when renting space from the existing food establishment, do not underestimate the importance of this step. Many municipalities are changing or updating their zoning, but would allow existing businesses to operate despite their non-compliance. This process is called “grandfathering”. In such a case, the current zoning of a location could prevent you from operating your new restaurant even in the same location where your previous business was also a restaurant.
2. Incorporate your business
Catering operations impose many material responsibilities on their owners: employee health and safety, food poisoning, fires, etc. We never suggest operating a restaurant as a sole proprietorship and putting your personal assets at risk for payment of potential liabilities and damages.
For more information, please see our detailed videos on incorporation and sole proprietorship:
https://www.youtube.com/watch?v=7Ca9eQc57lg
https://www.youtube.com/watch?v=2KsJZaVE4r8&t=9s

3. License.
It is a general name for many aspects of restaurant management:
Municipal operating permit
Department of Health approval for restaurant operations
LLBO – license to serve alcohol to customers. The LLBO application process is lengthy and can be complicated. Remember that the process can take 8 to 12 weeks, so start it well in advance.
WSIB – don’t forget to register with the WSIB in Ontario to ensure your employees are covered by mandatory government insurance. Pay attention to provisions excluding executive officers from this coverage and plan your team accordingly (see below).

4. Organize your team
Have a good determination of your relationships with partners, employees and subcontractors. Prepare and sign appropriate documents and agreements to ensure each party understands their rights, responsibilities, obligations and entitlements.
The partnership contract, the employment contract and the subcontracting contract will help you organize your relations with the team and ensure that you will not have to deal with many unnecessary conflicts, disputes and claims at the time. 'future.
Once you have 5-7 employees, begin preparing and implementing workplace policies and procedures to ensure your workplace complies with applicable laws and regulations.

5. Taxes.
In addition to regular business registration, we suggest registering for HST as soon as you start your first operations. Even if there are no sales yet and you have not started your sales, it still makes sense to register since HST registration will allow you to receive a refund of all HST payments that you made for the renovation and purchase of equipment. So, talk to your accountant or our team to make sure you have the correct tax registrations and are ready to claim the HST rebate when the time comes.

6. Operating documents

Restaurant operating documents are relatively simple and do not require any special knowledge or skills. You don't need sales contracts or terms of service, but you should still pay close attention to supplier contracts, website terms and conditions, privacy policy, etc.

At CBES, we have extensive experience in organizing and supporting a restaurant's business operations. Whether it's a small family-owned establishment or a multi-location restaurant chain, we can help you organize and grow your business in the most efficient and protected way and will help you avoid mistakes which could cost thousands of dollars in the future.

Our website – https://cbes.ca/
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LinkedIn – https://www.linkedin.com/company/cbes

All information provided in this video is for information and reference purposes only. Nothing contained herein should be construed as legal advice or instructions to follow. CBES – Canadian Business and Enterprise Services does not offer legal advice online or on its YouTube channel. Please consult a professional before acting based on the information in our videos.

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