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Starting a restaurant business in Nevada

There are a variety of businesses you can start in the state of Nevada as the state offers flexibility in terms of forming and operating a startup. You can also start a restaurant in Nevada as it is considered as one of the most lucrative and high in demand businesses. The tourism industry along with the restaurant businesses are considered to be the bright spots in the economy of the state and account for more than 28 percent of the total employment in Nevada. In fact the new trend to start a restaurant from home or a food delivery service is gradually becoming a part of the mainstream businesses driving the economy.

Introduction to restaurant business in Nevada

Nevada is a state with diverse industries and the top industries making a positive impact on the economy include the tourism industry, restaurant industry, and the gaming industry. These industries are all interconnected and dependent on each other. You can start a restaurant in Nevada as it is considered as a strong and evolving industry but there are several aspects of forming this business that you need to consider. Hence, we have created this helpful guide that will answer queries pertaining to forming a business in Nevada, getting a license, how to start a restaurant business plan, choosing a location and business structure, restaurant space and layout, and hiring employees.

Restaurant Industry in Nevada

Nevada officially became a state in 1864 and the Nevada Department of Economic Development also known as the Governor’s Office of Economic Development (GOED) was formed in 1955. The GOED has been responsible for putting Nevada tourism on the map thus creating a huge platform for other businesses like the restaurant and local food industry to grow. Today, there are 8 historical restaurants in the state including the Boulder Dam Hotel. Since then restaurants in Nevada have come a long way towards becoming an integral part of the economy and the tourism industry. If you have a food business idea then to start a restaurant in Nevada may be the right decision.

How does the restaurant industry impact the Nevada economy?

Today, Nevada is home to 5,980 restaurants including eating and drinking places and has generated $9.9 billion in sales. The restaurant industry has provided employment to 219,200 and by 2029; the employment is expected to grow by 15% to 252,100. When you start a restaurant in Nevada, it will become an integral part of the growing hospitality industry. Whether you start a restaurant from home or use commercial space, the restaurant industry has a positive economic, fiscal, and social impact on the state. In fact, every dollar that is being spent in the table-service area makes a contribution of $1.70 to the economy of the state. Similarly, every dollar that is being spent on the limited-service area of the restaurant industry is contributing $1.48 to the Nevada economy.

Top restaurant trends you can’t ignore

The restaurant industry in Nevada is one of the fastest growing and evolving industries in the state. If you are planning to start a restaurant delivery service or a restaurant from home then knowing the current trends in the industry will be an asset towards ensuring overall sustainability of your business. The key restaurant trends in the Nevada state are:

  • Restaurants offering organic and gluten free food – The customer has always been the king and the restaurant diners of today are inclined more towards restaurants that are offering organic and gluten free food. Gluten refers to a group of proteins that are found primarily in cereal grains and restaurants have indeed started offering gluten free food to satisfy the customer’s palate. Similarly, there is an increasing demand in organic food, which basically comprises vegetables and grains that are being grown without the use of artificial chemicals, hormones, and are not genetically modified. Entrepreneurs of today are gearing up to start restaurants in Nevada that caters to this change in customer’s taste. At the end of the day, today’s customers value health and transparency.
  • Be a part of a casual dining restaurant chain – A casual dining restaurant is also known as a sit down restaurant and is a highly popular option if you are planning to start a restaurant in Nevada. This is a type of restaurant that serves a moderately priced menu in a casual ambiance. Most often than not, a casual dining restaurant provides table service. The top five casual restaurant chains that are trending include Panera Bread, Chipotle Mexican Grill, Panda Express, Five Guys Burgers and Fries, and Wingstop. A forecast based on customer taste and choice indicators of restaurant food suggests that the casual dining chains will expand exponentially in the near future and is expected to reach a total sales of US$863 billion by 2020.
  • Restaurant delivery services are the future! – If you have been toying with the idea to start a restaurant delivery service then it is time to soar higher with it. Yes, it is a fact that almost 60% of consumers in the US order a takeout or delivery at least once a week. You can start a restaurant in Nevada that offers takeout services as the revenue generated through the Online Food Delivery Services segment is projected to surpass US$26,527 million by 2020 with an annual growth rate of 5.1 percent. The future of this market may also witness delivery of an online restaurant order using autonomous vehicles or food-delivery drones.
  • Restaurant food driven by AI Chefs! – If you are wondering how technology may change the way restaurants work then the new innovation round the corner is robot chefs! You heard it right – Moley Robotics has successfully created the first robotic kitchen in the world. The robotic kitchen features an advanced, fully functional robot that has been integrated into an aesthetically designed kitchen where it can cook with the same skill and flair as that of a master chef. This simply means that if you start a restaurant in Nevada with a robotic kitchen then the food being served will be consistent in taste as well as appearance.
  • Solving issues related to staff turnover – The restaurant industry in the US and Nevada however growth oriented have been ailing with high staff turnover rates. The challenging areas are to fill up BOH (back of house) positions like kitchen managers and chefs. In order to start restaurant delivery services and ensure its success you have to work on turnover rates for a variety of positions including cashier or counter services, support staff, servers, kitchen staff, bar staff and management. One of the best ways to counter some of the problem areas is through implementation of Restaurant Management Software’s like multi-function POS systems that can do a variety of work including overseeing processing of payments, ensuring the restaurant pantry has all ingredients, menu planning, and overseeing various facets of the restaurant operations.

Steps to start a restaurant business in Nevada

The restaurant business in the US is valued at $899 billion and there has been a rise in consumers wanting to dine out or have prepared food delivered at home. In order to start a restaurant in Nevada, you will need to create a proper business plan and identify the various important aspects of starting the restaurant successfully. Hence, we have created the following guide that will help you to start a restaurant from home or commercial space with ease.

Choose restaurant concept and brand

A restaurant concept is the key to defining the restaurant and it can be an idea or a theme for example: If you are planning to offer Greek food on the menu then you can integrate a Greek design or create an ambience of Greece. You can also start a restaurant in Nevada with a simple, sleek, and minimalistic decor. It is important to know that the concept will flow through the menu design, service style like fine dining or bistro, and the style of cuisine. Inspiration is often taken from knowledge of local ingredients, heritage, and traditions. When you start a restaurant business plan, the concept is really important as everything else will follow it including the brand creation and branding.

Prepare your business plan

A restaurant business plan is like a framework that will take into account everything right from the proposed restaurant management to branding and menu design. A business plan is essential to start a restaurant in Nevada as it will also highlight the competition and provide an insight into revenue generation. If you want to start a restaurant business plan then the following will be some of the important components:

  • Executive Summary
  • Company Overview
  • Industry Analysis/Market Analysis
  • Marketing Plan
  • Menu
  • Employees
  • Restaurant Design
  • Financial Analysis
  • Location
  • Financial Analysis

Choose a location

Choosing a location is also known as location analysis and is a key component towards making the restaurant a success among future customers. You will require a restaurant business license in Nevada to make the restaurant operational and the license will also be issued based on the location. It is imperative you choose a location based on certain factors like:

  • The visibility of the restaurant and this should be determined by car and foot traffic patterns
  • Space requirements, for example, for every seat in the restaurant, you will require 5sqft of kitchen space
  • Parking options near the restaurant for customers and staff
  • Avoid high crime rate areas
  • If you have chosen a location to start restaurant delivery service then research the surrounding businesses in that location to understand if they are doing well or not
  • Focus on accessibility of the location bearing in mind that restaurants located near highway exits draw interstate travelers etc
  • The cost to start a restaurant in Nevada should be a bottom-line consideration as higher upfront costs prior to becoming profitable can drive it out of business

Choose a business structure & set up your business

One of the most important choices you will have to make prior to applying for a restaurant business license in Nevada and registering your business is choosing the right business structure. The structure that is quite common amongst startups is sole proprietorship as it is easy to form and will provide you with complete managerial powers. This type of business structure will be beneficial if you are planning to start a restaurant from home. If you are looking at renting commercial space and are thinking of tax implications then the most beneficial business structure would be a regular C corporation, S corporation, and a limited liability company (LLC). We at IncParadise can help you to register your restaurant business in Nevada as we are expert incorporation specialists and have helped with registration of over 15,000 companies.

Set up your choice of business structure in Nevada today!

Obtain necessary licenses and permits

One of the most important requirements towards making your startup operational is to apply for and obtain a restaurant business license in Nevada. Ideally, you will be required to apply for a general business license with the Nevada Secretary of State (SOS) and an applicable local business license specific to the county or city you are establishing your business in.

Check what type of Nevada licenses your business requires!

Set up your restaurant space and layout

Setting up your restaurant space and layout will ensure you are able to submit layout or floor plan to the city departments. This is helpful especially when applying for a restaurant business license in Nevada or for permits from the city planning department. You can always create the restaurant layout using floor planning software like ConceptDraw or SmartDraw. Some of the aspects to consider while creating your restaurant space and layout include:

  • There are several primary spaces that you need to consider for the ‘Floor Plan’ including kitchen, restrooms, bar area, dining area, entry/exit, and waiting area.
  • Placing and planning your kitchen area like an island-type kitchen plan provides a better workflow or you can go with the commercial kitchen layout or assembly line layout
  • To start a restaurant business plan you need to focus on restaurant space planning by calculating an approximate area per diner like 18-20 square feet per person in fine dining concept. You will also need to work out the table & chair spacing.

Form your menu items

The menu items should be created in accordance with the food concept that your restaurant is planning to promote. Whether you start a restaurant delivery service or fine dining, the menu is at the heart of the entire business. You will need to establish basic food items followed by anything exotic that you may want to offer. The menu will play a crucial role in determining the equipment required, hiring of chefs, and the targeted consumers. Once you start a restaurant in Nevada you can later on increase the menu items or create a menu that will be profitable and sustainable in the long run.

Hire employees

When you start a restaurant in Nevada, one of the biggest challenges you may face is that of hiring qualified labor. Since, this is the food-service industry, you will need to search for and find chefs, assistants in the kitchen, qualified administrative and cashier desk staff, food service, and cleaning and dishwashing. You will need to conduct background checks and screen applicants thoroughly. You need to also ensure that the restaurant business is in compliance with the Nevada regulations on minimum wage.

How does IncParadise help you?

It may seem like a difficult proposition to start a business in Nevada but with the help of IncParadise, you sail smoothly through the registration phase of your business. We possess the knowledge and experience-based efficiency required to help business incorporation or formation in the state of Nevada. This knowledge and experience along with a professional team have enabled us to provide a wide range of business specific services.

We are one of the top registered agents in the country with a team of experts ready to provide answers to any business related query you may have. When you start a business in Nevada, you will be able to benefit from our mail forwarding services, which will allow you to receive all your mails at a secure location. You can also save time by taking advantage of our “Mail Forwarding App” compatible with Android and iOS devices and can be used as a mail scanning service and to receive instant mail notification among others.

Incorporate your restaurant business in Nevada today!