Guide to Starting a Restaurant_Cafe_Takeaway.pdf

MORE BUSINESS RESOURCESRestaurant and CateringA Guide to Startinga Restaurant / Café/ Take-awayINFORMED / CONNECTED / COMPETITIVE / SUSTAINABLE

A step-by-step guide to starting a Restaurant / Café / Take-away BusinessCONTENTSIntroduction P 3Turning an idea into a business P 4Business planning P 7Starting a restaurant / café / take-away business P 10License and regulatory information P 16Key contacts and industry associations P 24P 2DEPARTMENT FOR MANUFACTURING, INNOVATION, TRADE, RESOURCES AND ENERGY

INTRODUCTIONSo you wish to start a restaurant,café or take-away business?Starting a restaurant / café / take-away business can beexciting and rewarding, however there are many challengesthat you will encounter along the way, and that’s even beforeyou open your doors.A high percentage of businesses fail within their first threeyears of operation. Good ideas don’t always make goodbusinesses! Businesses that survive and thrive have anumber of things in common. This guide will provide youwith answers to many questions you may already have andwill be a great starting point when considering commencingany new business.It will also give you more specific help and information intowhat is required and what is recommended when startingor buying a restaurant / café / take-away business.What this guide doesn’t coverThis guide will not give you all the answers. Every effort hasbeen made to ensure that information provided is accurate.You should note however that this information is intended asa guide only, providing an overview of general informationavailable for new business starters. It is not intended to bean exhaustive source of information and should not be seento constitute legal or financial advice. You should, whennecessary, seek your own advice for any legal or financialissues raised in relation to establishing your business.Those people that have had a successful business in anotherindustry or State may wish to start reading industry specificinformation from Part III onwards. However, Parts I and II doprovide you with a useful list of questions that you may wishto consider during the development of your business plan.What this guide does coverThis guide is divided in to five parts. It will assist you in makingkey decisions and provide advice in the following areas:I. Turning an Idea into a BusinessII. Business PlanningIII. Starting a Restaurant / Café / Take-away BusinessIV. Licence and Regulatory InformationV. Key Contacts and Industry Associations.Parts I and II provide advice that can be used to setup businesses other than a restaurant, café ortake-away business.P 3

A step-by-step guide to starting a Restaurant / Café / Take-away BusinessTurning an Idea into a BusinessBefore you start any business you need to get a really goodfocus on your business idea and just what it is you want todo. Starting a business is risky at best and understanding theproblems you will face and working out how you will tackle thembefore you start will increase your chances of succeeding.Here are some questions to assist you to think through whatyou need to know and do:About youYou will be your own most important asset, so an objectiveappraisal of your strengths and weaknesses is essential.Ask yourself:• Are you a self-starter?• Do you get along with a variety of personalities?• How good are you at making decisions?• Do you have the physical and emotional stamina to runa business?• How well do you plan and organise?• How will the business affect your relationships / family?• Have you worked for someone else as a supervisoror manager?• Have you had any business training?• Are you willing to take advice and constructive criticism?About the moneyOne of the leading causes of business failure is insufficientstart-up capital. Once you have taken care of your building andequipment needs you must also have enough money on handto cover operating expenses for at least one year. In additionyou should include your salary as the owner and money torepay any loans.Ask yourself:• How much money do you need to get started?• Do you know how much you can contribute to thebusiness set-up?• What are the alternatives in financing your business?• What do you need to do to get a loan?• What should you know about accounting andrecord keeping?• What level of profits do you anticipate?• How much credit can you get from your suppliers?• Are you willing to reinvest your salary / business profitsto help your business grow?• Have you talked to your Bank Manager and Accountantabout your plans?• Have you considered a partner?About the businessThere are four basic needs for success in small business –sound management practices, industry experience, technicalsupport and planning ability. Few people start a business withall these areas covered.Ask yourself:• How does your business idea differ from othersimilar business?• What will you name your business? Why?• What purpose will your restaurant / café / take-awaybusiness serve?• What is the state of the industry you are planning to enter?• Who will your clients or customers be?• How will you market your business’ goods or services?• How much will you charge?• How will you measure your business success or failure?• Who is your competition?• Who will be your suppliers?• Where will you operate your business?• Is it a good location?• Will you have sufficient room to expand if necessary?• Do you know exactly what equipment and supplies youwill need and how much they will cost?• Have you a plan to control your inventory?• What technology will you rely on?• How will your business impact the environment?• What will the hours of operation be? If you are buyingan existing business:> Are you sure you know the real reason why the ownerwants to sell?> Have you compared the cost of buying an existingbusiness with the cost of starting a new business?> Is the equipment / inventory up to date and ingood condition?> Is the building in good condition?P 4DEPARTMENT FOR MANUFACTURING, INNOVATION, TRADE, RESOURCES AND ENERGY

Turning an Idea into a Business> Will the landlord transfer the lease to you?> Will the landlord allow any structural alterations?> Have you considered buying a franchise?About the peopleYour staff will be critical to the success of your business.Your goal should be to hire employees who will be productiveand add value to your business.Ask yourself:• How many employees will you need?• Who will you hire?• How will you recruit / hire?• What qualifications / experience will they require?• Will your family be involved?• What wages will you pay?• What training plans do you have?• Should you employ contractors?• Should you have an apprentice or trainee?Before you employ staff you must ensure you understandhow the structure of your business may affect the wagesand conditions you will need to provide to your employees.Your business and workers are covered by the federalworkplace relations system, the Fair Work Act. For moreinformation about the award that covers your workersgo to www.fairwork.gov.au or your industry associationwww.rcsa.asn.au. When you employ staff it is also importantthat you calculate your costs. The costs will not just includewages but also the ongoing costs of superannuation, workerscompensation insurance, leave entitlements and possiblypayroll tax. These can typically add 25-30% to wage costs.Other costs that should be considered are those associatedwith training, equipment, protective clothing, fringe benefitsand supervision. Finding and keeping the right staff is oftenthe major challenge in business.Types of businessesBefore commencing a business you will need to decidewhat structure will suit your business. There are significantadvantages and disadvantages for each type of structure andyou should consult a business advisor, accountant or solicitorfor advice.The most common forms of business structure are:Sole traderThe business has no separate legal existence from its owner.As a sole trader you will be responsible for the liabilities ofyour business.PartnershipIs a contractual relationship between two or more peoplewhere the profits, losses, risks and assets are legally sharedaccording to the terms of the contract.TrustIs where a business is transferred to a third party who haslegal control and has a duty to run that business to benefitsomeone else.CompanyIs a legal entity separate from its shareholders. A companydirector has additional legal and reporting obligations.You should discuss the advantages and disadvantages of eachbusiness structure with your accountant and determine whichis the most appropriate for you.There are many and varied legal requirements when starting /operating a business. Because businesses are so diverse it isnot possible or practical to list every mandatory requirementfor all businesses.Businesses will also need to comply with federal, state andlocal council laws and requirements.A comprehensive flow chart is provided in Part IV – Licence /Regulatory Information. This section will assist by providingyou with direction in meeting your legal obligations.Knowing where to look and finding the right informationeasily is a great help when starting a new business. The SmallBusiness Gateway http://www.dmitre.sa.gov.au/sbs providesinformation and free resources such as workbooks, self-tests,videos and interactive PDF files to assist South Australianbusinesses plan and grow their business ideas.P 5

A step-by-step guide to starting a Restaurant / Café / Take-away BusinessTurning an Idea into a BusinessA few extra questions:• Are you passionate about entering business?• Could you make more money working for someone else?• Do you have supportive family and friends?• Do you understand how your work / life balancemay change?• Do you know where to get further help and advice?If you have answered all these questions carefully you havealready done some hard work and serious thinking. The nextstep is to put all these thoughts into words by creating abusiness plan.Another great resource is the Service SA Website www.service.sa.gov.au. Service SA is the State Government’s one-stopcontact point for Government information and services.Particularly useful is the ‘Business, Industry and Trade’ linkyou will find on their home page.P 6DEPARTMENT FOR MANUFACTURING, INNOVATION, TRADE, RESOURCES AND ENERGY

Business PlanningWhat is a business plan and why do I need one?A business plan provides specific, organised information aboutyour company. It provides direction, keeps you on track andis usually a requirement when you seek finance. It preciselydefines your business, identifies your goals and serves asyour business resume. It helps you allocate resources properly,handle unforseen problems and make the right decisions.A business plan should be a work in progress. Even successfulrestaurant / café / take-away businesses should maintaina current business plan.Every successful business plan should include somethingunder each of the following topic headings:1. Executive Summary2. Market Analysis3. Company Description4. Organisation & Management5. Marketing Planning & Sales Management6. Product or Service7. Funding8. Financials9. Appendix1. Executive summaryThe Executive Summary is the most important section of yourbusiness plan. It provides a concise overview of the entire planand it tells the reader why you think your business ideas willbe successful. It should be the last section you write after youwork out all the details of your business plan.Typically it would include:• a mission / vision statement• date of business commencement• details of key personnel and the function they perform• number of employees• location of business• description of plant or facilities• products provided or services rendered• banking relationship• summary of company growth potential• summary of management’s future plans.If you are just starting a restaurant / café / take-away businessyou won’t have a lot of information or history to draw on.Focus instead on your experience and background as well asthe factors that led you to start this business. Show how yourbusiness can provide a solution for your target market.2. Market analysisThe market analysis section should illustrate your knowledgeabout the restaurant / café / take-away industry. This sectionshould include an industry description and outlook, targetmarket information, any market test results, lead times anda competitor evaluation.Industry description and outlookThis overview should include a description of your industry,its current size, its historic rate of growth, trends andcharacteristics as well as major customer groups withinyour industry.Target marketYour target market is simply the group of customers youwish to focus on. When you are defining your target marketit is important to narrow it to a manageable size as manybusinesses make the mistake of trying to be all things to allpeople. e.g. the corporate breakfast market, weddings andfunctions, passing tourist trade, etc.You should state the characteristics of the primary marketyou are targeting, its size, the extent to which you feel you willbe able to gain market share and why, your pricing and grossmargin targets, your resources, the purchasing cycle of yourpotential customers, trends and potential changes which mayimpact your primary target market.Market testsInclude any results that may have come from any customerresearch or market testing.Supply / lead timesYou should detail the availability of supply of your inputs,the range of suppliers who can service you effectively andestimated lead times.P 7

A step-by-step guide to starting a Restaurant / Café / Take-away Businessbusiness planningCompetitive analysisYou need to identify your competition by product or serviceas well as by market segment, assess their strengths andweaknesses, determine how important your target marketis to your competition and identify any barriers, which mayhinder you as you enter the market.Regulatory restrictionsThis should include information related to customer orgovernment regulatory requirements or potential changes inthe future and how you will comply with these requirements.3. Company descriptionThis section should look at how all the different elements ofyour business will fit together. It should explain succinctly whyyou are in the restaurant / café / take-away business, whatmarket place needs you are satisfying and why your businesswill be successful.4. Organisation and managementWho does what in your business? What is their background andwhy are you bringing them into your business? You will need todetail your business organisational structure, details about theownership, profiles of your management team and any specificskills or qualifications that may be relevant.5. Marketing strategyMarketing definitions are numerous but fundamentally,marketing is the process of creating your customers and everybusiness needs customers. This area in your plan should detailyour strategy (a longer term direction) e.g. a franchise strategyrather than your marketing tactics (short term response)e.g. put advertisement in newspaper.A separate promotional strategy or marketing plan should detailhow you wish to communicate your message to customers.You may wish to use specialist agencies to help with yourcommunication e.g. graphic designers for logos and signs,advertising agencies, public relations companies etc.6. Product or serviceWhat are you selling? Focus on the areas where you have adistinct advantage with your product or service. Identify theniche you will be filling. Give the reader evidence as to whypeople will be willing to pay you versus others. Provide details ofkey suppliers, availability of product or service and product costs.Overall this section should include:• a detailed description of your food and service offering• information related to your product’s life cycle• any protected procedures or recipes – particularly relevantfor franchises• any ongoing research.7. FundingIf you are utilising a business plan to assist in securing fundingyou will need to include the following:• your current funding requirement• your future funding requirements (over the next 3-5 years)• how you will use your funds (e.g. capital expenditure, workingcapital, acquisitions, etc.)• any existing collateral (e.g. your house or other assets).Each explanation of these is extremely important to a futurecreditor since they will directly impact your ability to repayany loans.8. FinancialsThe financials should be developed after you have analysed themarket and set clear objectives.You should include:• historical financial data – if you are buying an establishedrestaurant / café / take-away business you will need toprovide historical data related to the businesses performance(3-5 year history if possible) of income statements, balancesheets and cash-flow statements.• projected financial data – creditors will want to see whatyou expect your business to be able to achieve in the next3-5 years. Each year’s documents should include forecastedprofit & loss statements, balance sheets, cash-flowstatements and capital expenditure budgets. In your firstyear projections you should look at supplying monthly orquarterly figures. Make sure that your projections matchany funding requests and there are no inconsistencies.P 8DEPARTMENT FOR MANUFACTURING, INNOVATION, TRADE, RESOURCES AND ENERGY

usiness planning9. AppendixThe appendix section should only be provided to readers suchas potential financiers on an ‘as needs’ basis. Your businessplan will be a critical reference and communication tool but itis not for everyone to see. Therefore the detail included in anappendix should be on hand but not always included in themain body of the plan.Typically an appendix would include:• credit history• resumes of key staff• menu / wine list• recipe costings• letters of reference• market research findings• copies of licences, permits, patents etc.• copies of legal documents such as leases and contracts.Any copies of your plan should be controlled. Keep adistribution record of who has a copy of your plan, as this willallow you to update and maintain your plan.Business planning summaryRegardless of whether you are looking to raise finance foryour business idea, if you have diligently completed therequirements of a formal business plan, researched andanswered the questions about your business that needanswering, you will be considerably better prepared forthe challenges opening a restaurant / café / take-awaybusiness will bring.P 9

A step-by-step guide to starting a Restaurant / Café / Take-away BusinessStarting a Restaurant / Café /Take-away BusinessSo you wish to start a restaurant / café / take-away business?Starting a business in the hospitality industry can be arewarding undertaking and like all businesses it comes withits share of challenges. Before starting a restaurant / café /take-away business in South Australia it is wise to do yourresearch. You must believe in your product or service, as itwill consume much of your time, especially during the start-upphase. There are many issues to consider such as financing,regulations, taxation, marketing, managing your businessand much, much more.This section will specifically concentrate on providingfurther information and advice on starting a restaurant /café / take-away business. It is recommended that youread Part I: Turning an Idea into a Business and Part II:Business Planning first as the information and advicecontained in these sections are important for any start-upbusiness. Your industry association will also be a greatplace to start (Restaurant & Catering S.A. www.rcsa.asn.au).Industry overviewAustralia’s reputation for world class dining is well known.26% of international tourists select Australia as a touristdestination on the basis of its food.The Office of Consumer & Business Services cites thenumber of licensed restaurants at 1159 at 2012, with644 Special Circumstances Licenses that include caterers,buses, limousines, pool halls, boats and vessels that mayor may not serve food. In addition to these licensed venues,there are countless unlicensed shops and caterers allcompeting for that same hospitality market.97% of all restaurant and catering businesses employ lessthan 20 people, making it a labour intensive service industrythat sits squarely in the small business community.SnapshotThe figures below are from the Restaurant & Catering Australia2011/2012 Benchmarking Survey:• 57% of the workforce are casual employees, while 17% areemployed part time• Average turnover per business is $700,000• In SA we average 794 customers per week per business• The average floor space for a restaurant in SA is 206.5square metres• On average 38.4% of turnover is wages, salaries andassociated payroll costs• On average 29% of turnover is cost of sales for foodand beverage• On average 10.5% of turnover is spent on rent, ratesand insurances• 54% of business is repeat businessOver 50 percent of meals in the US are eaten out of the homeand whilst our dining landscape is somewhat different, thelocal market has experienced a similar trend. According to BISShrapnel, Australians are now eating 39 percent of our mealsoutside the home, with current predictions suggesting aroundthe 50 percent mark by 2015. Work and lifestyle pressuresoften do not allow sufficient time for more and more people toprepare their own cuisine. They therefore rely on the nation’scafés, take-aways and restaurants to help cater for their dietaryneeds. The biggest winner in this emerging trend is the casual/ café market. The combination of time poor office workers andthe demand for cheap but quality food has seen an increase inthe number and standard of casual eateries.The food service / hospitality industry is demanding. Expectlong days; often 10-15 hours per day. The business mustexcel in many areas such as food preparation and service,management, marketing, drink service, purchasing, inventorycontrol and personnel administration. Just because yourfriends think you give good dinner parties does not necessarilymean the progression to successful restaurateur will be easy.Try and take any notion of romance or emotion out of thedecision making process and quickly understand thatto succeed you must be business-like in your approachand thinking.P 10DEPARTMENT FOR MANUFACTURING, INNOVATION, TRADE, RESOURCES AND ENERGY

Starting a Restaurant / Café / Take-away BusinessFederal, state and local council laws govern the hospitalityindustry. It is imperative that as a start-up business youunderstand all pertinent regulations before making keydecisions especially before purchasing or leasing a building.A separate flow chart of legal / licence requirements for therestaurant / café / take-away industry in South Australia isincluded in Part IV of this guide.Types of operationDepending on your experience, finances, location andcustomers you will decide on the type of restaurant youwish to open.• Traditional / Formal• Casual dining• Function venue• Ethnic• Café• Fast food / take-away• Cafeteria• Caterer• Licensed or unlicensed etc.LocationFor most businesses an appropriate location is critical.Choosing the right location for your restaurant can easily bethe difference between success and failure. Considerationsmust include the needs of your business, where yourcustomers and competitors are located and such things asaccess and parking, local council zoning restrictions, noise,transport and the environment.Layout and designProfessional assistance should be sought from reputablerestaurant consultants, interior designers or experiencedoperators when contemplating the layout and design of yourrestaurant / café / take-away business. Consideration shouldbe given to:• adequate space for tables and seating, serving areas,cashier areas, entertainment areas, bathroom facilities, bar,administration, staff room, disabled access / facilities etc.• a kitchen that allows efficient and effective foodpreparation, interaction between staff, safety in movement,dry and cold storage, dishwashing, area for staff personalitems, convenient delivery zone, ease of cleaning andmaintenance, adequate temperature, lighting andventilation etc.• heating and cooling• signage, traffic flow, emergency exits• floor and window treatments (will significantly impacton noise levels)• linen, cutlery, crockery and glassware• music• appropriate equipment purchase• ergonomic work spaces e.g. consider bench heightsand equipment positioning.Seating capacityMost businesses will look to maximise their seating capacityso as to maximise their potential income. Seating numbers willobviously depend on the space available and the style, type,size and flexibility of your furnishing options.Seating capacity may also be restricted by the terms of yourliquor licence, the size of your restroom facilities, disabledaccess, emergency exits or the number of car parks you haveavailable for your customers.It is important to investigate any potential limitations of yourseating capacity with the relevant authorities e.g. Consumer& Business Services or your local council before committingto a property or signing any lease agreement.Your product or serviceWhether you offer a full service ‘a la carte’ menu or take-awaysandwiches it will be critical to prepare your menu and setthe right price. Plan your menu carefully; know the items yourcustomers prefer and how they like them prepared. Providevariety. Menu prices will be governed by market forces butare generally a combination of food costs and what is neededto meet expenses and realise a profit. Food and drink costschange regularly and must be monitored. You must determinewhat your target market is willing to pay for the product orservice that you provide and whether the profit margin thisreturns will allow you to sustain your business.P 11

A step-by-step guide to starting a Restaurant / Café / Take-away BusinessStarting a Restaurant / Café / Take-away BusinessIndustrial relationsThere has been considerable legislative change impactingthe Industrial Relations area for all business. Workers arerequired to receive their minimum entitlements and to workin an environment that is safe and free from harassment ordiscrimination. To find out more about:• industrial awards• the different ways of working• leave• superannuation• termination and employment• work health and safety• workers compensation• discrimination• sexual harassment• workplace bullying• union and employer association• Fair Work National Employment StandardsFor more information go to www.fairwork.gov.au.StaffingFinding and keeping good staff in the hospitality industryis often the single biggest issue facing the new owner. Thedemand for positions available for front-of-house and kitchenstaff currently exceeds the number of applicants available.For your operation to attract and retain the right staff youwill need to be critically aware of what you must provide topotential employees.Such as:• good working conditions• leadership• clear procedures and policies• flexible rosters• succession planning• team building• incentives• appropriate remuneration• training• gratuities etc.The hospitality industry is typically staffed by a large casualworkforce and can utilise trainees and apprentices in variousroles. Incentives are available to employers who contractapprentices or trainees.For further information regarding employment of apprentices,traineeships and training providers visit www.skills.sa.gov.auOpening timesWhen will you trade?Seven days a week? Open on public holidays? All daybreakfasts?All these options should be assessed but whatever you decideyou should ensure that you:• utilise your resources effectively• have sufficient staff available• meet the customers demands• maximise the potential of peak periods• maintain a life / work balance• meet any requirements for opening / closing timesthat may be imposed on your business as a conditionof your liquor license (usually in conjunction withcouncil recommendation)• consider the impact of penalty rates on weekendsand public holidays.When will you first open for business?As a start-up restaurant this is a critical decision. Startingbefore the peak pre-Christmas period may provide you with asignificant volume of customer traffic. However, opening in apeak period will also quickly expose any weaknesses in yourkitchen and front-of-house systems, as they will be undersignificant pressure. As a new business you will be underscrutiny by your customers and start-up disasters in therestaurant business often don’t recover.Consider a ‘soft’ opening and ensure you and your staff areas prepared as can be.P 12DEPARTMENT FOR MANUFACTURING, INNOVATION, TRADE, RESOURCES AND ENERGY

Starting a Restaurant / Café / Take-away BusinessWork, health and safetyThe preparation and service of food and drink comes withsignificant responsibilities and cannot be taken lightly. Thepotential for loss of your business and more tragically the lossof life is very real for operators who do not comply with healthand safety regulations that apply to the food industry.It is recommended that new business owners who wishto understand their Work Health & Safety (WHS) obligationsmore fully, access the SafeWork SA website atwww.safework.sa.gov.au. SafeWork SA has recentlyinstigated a business advisory program specifically focusedon assisting small business. For assistance telephoneSafeWork SA Help Centre on 1300 365 255.Food safety legislation is designed to safeguard communityhealth, increase community confidence and awareness of foodsafety and ensure South Australia meets national standards.The following legislation applies to all food business inSouth Australia:• The Food Act 2001• Food Regulations 2002• Food Safety Standards.The three food safety standards used Australia wide set downthe rules of how food must be handled and how premises andequipment must be appropriate for maintaining food safety.These are:• Standard 3.1.1 Interpretation and Application• Standard 3.2.2 Food Safety Practices and GeneralRequirements• Standard 3.2.3 Premises and Equipment.For copies of the food legislation, industry specific fact sheets,food safety bulletins and other resources visit the Departmentof Health website www.dh.sa.gov.auThe food legislation requires all new food businesses to notifytheir local council and provide business and contact details.Notification is required by law to ensure that councils knowwhere all food businesses are located, how to contact themfor inspection purposes and to provide guidance on foodsafety issues within their business. In South Australia there isgenerally no charge on notifying the council and you can oftencomplete this online.Councils’ Environmental Health Officers (EHO’s) are responsiblefor ensuring food businesses within their council area handlefood safely. They will carry out routine inspections of foodpremises approximately every 6-12 months without noticebased on a risk assessment and business performance.It certainly is recommended that new food business ownersget to know their EHO and work with them in ensuring foodsafety standards are met.In addition to food safety your EHO will assess whatprograms you have in place to control any potential pestor vermin infestation.You have an obligation to your customers, staff and industrycolleagues on joining this industry to make yourself fully awareof your responsibilities as a food business proprietor under theFood Act. You must ensure that the business complies with allthe requirements of the food safety standards.You must:• ensure that any person handling or supervising thehandling of food has appropriate skills and knowledgein food safety and hygiene• provide easily accessible hand-washing facilities withwarm running water, soap and single-use paper towelsor air-dryers• inform food handlers that they must report all illnesses• exclude people from handling food where there isreasonable likelihood of food contamination.If transporting food, two main food safety issues needto be considered:• Protecting the food from contamination• Correct temperature control if the food ispotentially hazardous.As an employer you also have a legislative obligation toprovide compensation cover to protect your workforce andyour business from significant potential financial impact ofworkplace injury or illness. Under South Australian law whenyou buy a business, appoint staff, or hire contractors you needto register with WorkCover within 14 days. Registration can bedone online at www.workcover.com.au.Once your registration is processed you will receive aconfirmation letter and a Certificate of Registration thatitemises your industry class and code, the rates and feesthat apply and your total premium rate.P 13

A step-by-step guide to starting a Restaurant / Café / Take-away BusinessStarting a Restaurant / Café / Take-away BusinessIn the event of an emergency the owner or occupier of arestaurant / café / take-away business must ensure theoccupants of the building are able to exit safely. You will needto have plans in place to control the emergency so that noperson is put at risk at any time. You will have to considerevacuation plans, the training of your staff and their responsein an emergency, the provision of fire equipment andemergency contact details.Contact SafeWork SA Help Centre on 1300 365 255, accessConsumer & Business Services website www.cbs.sa.gov.auand your local council to obtain further information.Trade wasteAs a food business you must dispose of any waste or byproductresponsibly. Wastewaters from business activitiessuch as meal preparation and dish washing contain oil / greaseand suspended solids at levels that can build up in sewer pipes,restricting flows and causing blockages. A ‘grease arrester’refers to a pre-treatment device that permits the separationby gravity of oil / grease and suspended solids from thewastewater. Contact SA Water for guidelines with regard tosize and suitability for your business www.sawater.com.auTrade waste comes in many forms:• Packaging (cartons, bottles, plastic) – separate and storefor recycling• Food scraps and general waste – dispose of hygienicallyin appropriate sealed containers for collection• Hazardous chemicals – ensure these are disposed of safely(not into storm water)• Oil, fat and grease – contact SA Water to arrangeassessment for the provision of a ‘grease arrester’ andperiodic removal of suspended waste; and arrange pick upof discarded oils by a contractor• Hard refuse – dispose of as per Council guidelines.Your food business will require a plan to appropriately disposeof the above waste.You may also wish to consider what your business cando to help ensure our environment is protected for futuregenerations. Visit the Environment Protection Authority (EPA)website for further information www.epa.sa.gov.auGeneral insuranceYou will also need to consider protecting your business andcustomers with other insurances:• Public liability• Contents• Building• Machinery break down• Loss of profit• Income protection etc.A freezer break down can result in thousands of dollars inwasted product or a champagne cork to the eye of a customercould result in a hefty lawsuit. Consult your insurance brokerfor their advice on what appropriate insurances your business,council, landlord or financier requires.Record keepingA good record keeping system should be simple to use,easy to understand, reliable, accurate, consistent anddesigned to provide information in a timely way. The legalrequirements concerning financial records require that theybe permanent, accurate and a complete record of your dailyincome and expenses.Good business records will help you manage your business,meet your tax obligations and help make sound businessdecisions. It will assist you in completing and lodging youractivity statements and income tax returns, making yoursuperannuation contributions and paying your tax on time.The Australian Taxation Office (ATO) can impose significantpenalties if you fail to keep the appropriate records. Refer to theATO’s comprehensive website www.ato.gov.au and look for thelink ‘New to Business’ for a helpful checklist of your obligations.There is a variety of book keeping recording systems availableand it is wise to compare systems and discuss options withother similar businesses before you commit to a system.Your accountant should also be consulted, as your systemshould be able to expand with your business. Many hospitalityindustry specific software packages are available wherepoint of sale transactions are integrated with the back officeaccounting package.P 14DEPARTMENT FOR MANUFACTURING, INNOVATION, TRADE, RESOURCES AND ENERGY

Starting a Restaurant / Café / Take-away BusinessLiquor licenceWhat is a liquor licence? A liquor licence authorises theconsumption of liquor and sale of liquor for consumption onthe premises at any time with or ancillary to a genuine meal.The Liquor Licensing Act 1997 defines a meal as a genuinemeal eaten while seated at a table.There are a number of criteria and significant documentationrequired when applying for a liquor licence. A complete guideto lodging an application for a liquor licence can be found atConsumer & Business Services www.olgc.sa.gov.au.The sourcing of documents, police checks, advertisingyour intent and the scheduling of a hearing date can takeconsiderable time. For potential new restaurant businessowners considering a liquor licence it is critical that preparationis completed well before an opening date is declared. If you aretaking over an existing licensed establishment it is importantto know that the licence will not automatically be transferred tothe new business owners. An assignment of this licence to youas the new owner will need to be approved by the CBS.If you are successful in gaining a liquor licence you will needto ensure that a ‘responsible person’ is in attendance at alltimes. This person will need to be approved by the OLGC afterhaving completed accredited training in ‘Liquor Licensing Laws’and ‘The Responsible Service of Alcohol’. Many recognisedhospitality training organisations can provide this trainingwhich takes approximately two half-days to complete.As of 19 January 2013 all hospitality staff that serve liquorwill be required to be trained in Responsible Service of Alcoholto comply with the General Code of Prcatice for Liquor. Thebusiness must also keep evidence of training of staff in theirLiquor Management Plan.MusicThe benefits of playing recorded music in your business aremany and varied and certainly can enhance the ambiencewhen dining.If you intend playing music, screening music videos / DVD’s oreven having music on hold on your telephone you will need tobe aware that a licence fee is required. There are at least twocopyrights in most recordings and music videos:• The copyright in the song (lyrics, composition etc.):licences available from APRA (Australasian PerformingRights Association) www.apra.com.au• The copyright in the recording and / or music videoof the song: licences available from PPCA(Phonographic Performance Company of Australia Limited)www.ppca.com.auYou will almost always require permission to play liveor recorded music in your business or as your telephone‘on hold’ music.You can use the Business Music Licence Application SmartFormto work out which licences you will need to allow you to playmusic in your business. To download the SmartForm and applyonline visit the Business Music Licence Application link on thewww.business.gov.au website.Alternative systems are available that circumvent the needfor some licenses. Contact your industry association forinformation on these alternatives.P 15

A step-by-step guide to starting a Restaurant / Café / Take-away BusinessLicence and Regulatory InformationThe following provides a guide to assist you in meeting your legal licence / permit obligations.1. Your premises – to buy or not to buy?If taking over an existing business, will you be renovating the premises?Options Requirements Contact Cost NotesYesDevelopment Local Council VariesApplication Your Builder Subject to work• Renovations involving the structure of the buildingor plumbing require council approval• Your builder will advise you of costs and timeassociated with any renovationsNoNo additional licences requiredIf establishing a new business, where will your business operate?Options Requirements Contact Cost NotesNewPremisesDevelopmentApplicationCouncilYour BuilderAdvertising costsSubject to work• New buildings may require rezoning and or developmentapplications• You may need to advertise the redevelopment of the site• Your builder will advise you of any costs and timeassociated with any renovationsExistingPremisesDevelopmentApplicationCouncilYour BuilderAdvertising costsSubject to work• If the premises are not already used by a businessindustry of your type, you may require a developmentapplication (change of use)• You may need to advertise the redevelopment of the site• Your builder will advise you of any costs and timeassociated with any renovations2. Your premises – to lease or not to lease?If you buy an existing business you may choose to buy or lease the building in which the business operates. There are no licensingrequirements for buying or leasing premises. However, you should consider the following:If you lease your premises.RequirementsNil, but consider:• Solicitors fees• Cost of rent• Real estate agent’s feesNotesContact Consumer and Business Services (CBS) www.cbs.sa.gov.au/contact.htmlif you are leasing premises. They can provide you with information, which mayminimise the likelihood of lease concerns in the future. Telephone 131 882 forfurther information.P 16DEPARTMENT FOR MANUFACTURING, INNOVATION, TRADE, RESOURCES AND ENERGY

Licence and Regulatory Information3. Your premises – other issuesAs part of your business will you discharge trade waste into the sewerage system?Options Requirements Contact Cost NotesYesApplication forApproval toDischarge TradeWasteSA WaterCouncilVaries • If you discharge any liquid other than domesticsewerage, then you discharge Trade Waste• Check with SA Water Trade Waste Branch onyour obligationsNoNo other licences requiredWill your customers dine on the footpath?Options Requirements Contact Cost NotesYesOutdoor DiningPermitCouncil Varies • An existing permit may be transferred. Some councilsdo not regulate Outdoor Dining – check with your localcouncil or Business Licence Information Service• Some Councils require a Footpath Usage / ObstructionPermit instead of Outdoor DiningNoNo other licences requiredWill you erect new or amend any existing advertising signage?Options Requirements Contact Cost NotesYesAdvertisingsignageapprovalCouncil Varies • This may include ‘A’ frame signs on the footpath,although some councils do not regulate this formof signage. Check with your local councilNoNo other licences requiredP 17

A step-by-step guide to starting a Restaurant / Café / Take-away BusinessLicence and Regulatory Information4. Your business structureHow will your business be structured?Options Requirements Contact Cost NotesCompanyRegistration ofan AustralianCompanyAustralian Securities andInvestment Commission (ASIC)Varies • You will need to know how manydirectors there will beAustralianBusinessNumber (ABN)Australian Taxation Office (ATO) Nil • ABN Registration can be made onlineat www.abr.gov.auBusiness NameRegistrationAustralian Securities andInvestment Commission (ASIC)$70 – for up to3 years• You must register a business name ifyou trade using any name other thanyour own or your company nameBusiness NameChangeAustralian Securities andInvestment Commission (ASIC)Nil unless lateadvice• Notify ASIC if you alter certainparticulars on an existing businessname registration (other than thename itself)Trade MarkRegistrationIntellectual Property Australia(IP Australia)Varies by class • A trademark protects your businessname and / or logo from use by others.Renewal is required after 10 yearsOptions Requirements Contact Cost NotesPartnershipLimitedPartnershipFormationConsumer and BusinessServices (CBS)Legal Fees • Consult your solicitor for legal advicewhen setting up a partnershipAustralianBusinessNumber (ABN)Australian Business Number(ABN)Nil • ABN Registration can be made onlineat www.abr.gov.auBusiness NameRegistrationAustralian Securities andInvestment Commission (ASIC)$70 – for up to3 years• You must register a business name ifyou trade using any name other thanyour own or your company nameBusiness NameChangeAustralian Securities andInvestment Commission (ASIC)Nil unless lateadvice• Notify ASIC if you alter certainparticulars on an existing businessname registration (other than thename itself)Trade MarkRegistrationIntellectual Property Australia(IP Australia)Varies by class • A trademark protects your businessname and / or logo from use by others.Renewal is required after 10 yearsContinued ...P 18DEPARTMENT FOR MANUFACTURING, INNOVATION, TRADE, RESOURCES AND ENERGY

Licence and Regulatory Information... ContinuedOptions Requirements Contact Cost NotesSole TraderAustralianBusinessNumber (ABN)Australian Business Number(ABN)Nil • ABN Registration can be made onlineat www.abr.gov.auOptions Requirements Contact Cost NotesTrustBusiness NameRegistrationAustralian Securities andInvestment Commission (ASIC)$70 – for up to3 years• You must register a business name ifyou trade using any name other thanyour own or your company nameBusiness NameChangeAustralian Securities andInvestment Commission (ASIC)Nil unless lateadvice• Notify ASIC if you alter certainparticulars on an existing businessname registration (other than thename itself)Trade MarkRegistrationAustralianBusinessNumber (ABN)Intellectual Property Australia(IP Australia)Australian Business Number(ABN)Varies by class • A trademark protects your businessname and / or logo from use byothers. Renewal is required after10 yearsNil • ABN Registration can be made onlineat www.abr.gov.auOptions Requirements Contact Cost NotesI’m in businessand notrestructuringTrade MarkRegistrationTrade MarkRegistrationNo other licencerequiredIntellectual Property Australia(IP Australia)Varies by class • A trademark protects your businessname and / or logo from use byothers. Renewal is required after10 yearsYour business may operate under your own name (with no additions) or your existing businessname or companyP 19

A step-by-step guide to starting a Restaurant / Café / Take-away BusinessLicence and Regulatory Information5. Employing staffThere are a number of requirements associated with employing and managing staff. Will you be employing staff?Options Requirements Contact Cost NotesYes, withwages belowSuperannuationGuaranteeAustralian Taxation Office (ATO) 9% of gross salaryin 2012-13• Refer www.ato.gov.au$50,0009.25% – 2013-14per month9.5% – 2014-1510% – 2015-1610.5% – 2016-1711% – 2017-1811.5% – 2018-1912% – 2019-20PAYG Australian Taxation Office (ATO) Nil • Register for PAYG when you applyfor your ABNWorkersCompensationWorkCover SA % of salary / wages • Register online atwww.workcover.com.au• Invoice will be issuedYes, withwages above$50,000per monthPayroll TaxRegistrationSuperannuationGuaranteeRevenue South Australia (RSA)Australian Taxation Office (ATO)% of salary / wagescalculated9% Salary in2012-13• Payroll Tax Registration at www.revnet.sa.gov.au• Refer www.ato.gov.au9.25% – 2013-149.5% – 2014-1510% – 2015-1610.5% – 2016-1711% – 2017-1811.5% – 2018-1912% – 2019-20PAYG Australian Taxation Office (ATO) Nil • Register for PAYG when you applyfor your ABNWorkersCompensationWorkCover SA % of salary / wages • Register online atwww.workcover.com.au• Invoice will be issuedNoNo other licences requiredP 20DEPARTMENT FOR MANUFACTURING, INNOVATION, TRADE, RESOURCES AND ENERGY

Licence and Regulatory InformationAre you considering employing any apprentices or trainees?Options Requirements Contact Cost NotesYes Training Contract Traineeship and ApprenticeshipServices (Skills for All)Nil • No application fees required• Incentives are available to employers• Visit http://www.skills.sa.gov.au/or http://www.skills.sa.gov.au/apprenticeships-traineeshipsNoNo other licences requiredFringe benefits taxRegistration is required on a range of non-salary employment benefits provided to employees. There are no fees but you mustlodge returns.Contact the Australian Taxation Office for more information: www.ato.gov.au6. OperatingWill you use your vehicle for your business?Options Requirements Contact Cost NotesYesCommercialVehicleRegistrationDepartment of Planning,Transport and InfrastructureVaries • This is the annual registration thatapplies to all commercial vehicles• A commercial vehicle is defined asone built solely for carrying goods• Visit www.ezyreg.sa.gov.auNoNo other licences requiredP 21

A step-by-step guide to starting a Restaurant / Café / Take-away BusinessLicence and Regulatory InformationWill you be playing recorded or live music for the benefit of your customers?Options Requirements Contact Cost NotesRecordedmusic(Including CDs,tapes, records,music videos,radio andtelevision),and / or publicperformanceof musicalworksMusic Licence– publicperformanceor broadcastingMusic Licence– publicperformance ofprotected soundrecordingsAustralasian Performing RightsAssociation / AustralasianMechanical Copyright OwnersSociety (APRA / AMCOS)Phonographic PerformanceCompany of Australia (PPCA)Varies • The Australasian PerformingRights Association (APRA) and TheAustralasian Mechanical CopyrightOwners Society (AMCOS) collectrevenue for all copyright musicwww.apra-amcos.com.auVaries • Must also hold music licencesfor public performances and anybroadcasting www.ppca.com.auMusic video clipsPhonographic PerformanceCompany of Australia (PPCA)Varies • Must also hold music licencesfor public performances and anybroadcasting www.ppca.com.auNoNo other licences required7. Requirements specific to the restaurant / café / take-away industryTo operate a restaurant / café / take-away food business you must be registered with the council and the design and layout of thepremises must comply with the Food Act 2001 – further information is available from your local council.You must notify your council that you intend to operate a food business.Options Contact Cost NotesFood BusinessNotificationFormCouncil Nil • Licensed Food Businesses may have more than one registeredpremises• Most councils provide on-line notification• All food businesses must be licensed with the council in which their foodbusiness is situatedDo you intend providing alcohol to your customers?Options Requirements Contact Cost NotesYesApply for aLiquor License(on Premise)Consumer and BusinessServices (CBS)Varies • Required to serve liquor forconsumption on the premisesand subject to the conditionsof the license• Visit www.cbs.sa.gov.auNoNo other licences requiredP 22DEPARTMENT FOR MANUFACTURING, INNOVATION, TRADE, RESOURCES AND ENERGY

Licence and Regulatory InformationThe South Australian Government website Service SAwww.service.sa.gov.au and Australian Business LicenceInformation Service (ABLIS) https://ablis.business.gov.au/pages/home.aspx provide detailed and easy to find governmentservices and regulatory information that will be extremelyhelpful for any start up restaurant, café or take-away business.DisclaimerWhile all care is taken to ensure all pricing quoted in thisdocument is current and correct; it is advised that youconfirm costing with the appropriate authority as fees mayvary without notice.P 23

A step-by-step guide to starting a Restaurant / Café / Take-away BusinessKey Contacts and Industry AssociationsContact Telephone Email / Web Address PostalAustralasian Performing (02) 9935 7900 apra@apra.com.au16 Mountain Street,Locked Bag 5000,Right Association /(08) 8239 2222 sa@apra.com.auUltimo NSW 2007Strawberry HillsAustralasian Mechanicalwww.apra-amcos.com.au Suite 29, 8-20 O’Connell NSW 2012Copyright Owners SocietyStreet, North Adelaide(APRA / AMCOS)SA 5006Australian Securities& InvestmentCommission (ASIC)(08) 8202 84001300 300 630info.enquiries@asic.gov.auwww.asic.gov.auLevel 7, 100 Pirie Street,Adelaide SA 5000GPO Box 9827,Adelaide SA 5001Australian TaxationOffice (ATO)Australian Business LicenceInformation Service (ABLIS)13 28 66 www.ato.gov.au Refer website for nearestATO office1800 188 018 DMITREInfo@sa.gov.auhttps://ablis.business.gov.auGPO Box 9990,Adelaide SA 5001GPO Box 1264,Adelaide SA 5001Equal OpportunitiesCommission (EOC)1800 188 163(08) 8207 1977www.eoc.sa.gov.auLevel 10, 30 Currie Street,Adelaide SA 5000GPO Box 464,Adelaide SA 5001Franchise Councilof Australia (FCA)1300 669 030 www.franchise.org.au Suite 6, 307 WattletreeRoad, Malvern EastVIC 3145PO Box 2195,Malvern EastVIC 3145Intellectual PropertyAustralia (IP Aust)1300 65 1010 assist@ipaustralia.gov.auwww.ipaustralia.gov.auDiscovery House,47 Bowes Street,Phillip ACT 2606PO Box 200,Woden ACT 2606Consumer and BusinessServices (CBS)131 882 www.cbs.sa.gov.au Customer Service Centre,91 Grenfell Street,Adelaide SA 5000GPO Box 1719,Adelaide SA 5001Consumer and BusinessServices (CBS) – formerlyOffice of the Liquor andGambling Commissioner131 882 olgc@agd.sa.gov.auwww.olgc.sa.gov.auConsumer and BusinessServices, Chesser House,91-97 Grenfell Street,Adelaide SA 5000GPO Box 2169,Adelaide SA 5001P 24DEPARTMENT FOR MANUFACTURING, INNOVATION, TRADE, RESOURCES AND ENERGY

Key Contacts and Industry AssociationsContact Telephone Email / Web Address PostalPhonographic PerformanceCompany of Australia (PPCA)(02) 8569 1100 ppca.mail@ppca.com.auwww.ppca.com.auPO Box Q20, QueenVictoria BuildingNSW 1230Restaurant & CateringSouth Australia (R&CSA)(08) 8351 7837 rcsa@restaurantcater.asn.auwww.rcsa.asn.auwww.restaurantcater.asn.au10 Kingston Avenue,Richmond SA 5033PO Box 3261,Rundle Mall,Adelaide SA 5000SA Water (08) 7424 1336 tradewastebranch@sawater.com.auwww.sawater.com.auTrade Waste Branch,Level 6, SA Water House,250 Victoria Square,AdelaideTrade WasteBranch, Level 6,SA Water House,250 VictoriaSquare, AdelaideSafeWork SA 1300 365 255 www.safework.sa.gov.au Level 4, World Park A,33 Richmond Road,Keswick (Coffey building)GPO Box 465,Adelaide SA 5001Service SA 13 23 24 ServiceSAcustomerservice@sa.gov.auwww.service.sa.gov.auEDS Centre, 108 NorthTerrace, Adelaide SA 5000PO Box 8045,Station Arcade,Adelaide 5000Traineeship andApprenticeship Services(Skills for All)1800 506 266 skillsforall@sa.gov.auwww.skills.sa.gov.au/apprenticeships-traineeshipsGround Floor, 55 CurrieStreet, Adelaide SA 5000Skills SA,Department ofFurther Education,Employment,Science andTechnology,GPO Box 320,Adelaide SA 5001WorkCover SA 13 18 55 info@workcover.comwww.workcover.com400 King William Street,Adelaide SA 5000GPO Box 2668,Adelaide SA 5001P 25

Department for Manufacturing,Innovation, Trade, Resources and EnergyLevel 9, The Conservatory131–139 Grenfell Street, Adelaide SA 5000GPO Box 1264, Adelaide SA 5001T +61 8 8303 2400F +61 8 8303 2509E dmitresbs@sa.gov.auwww.dmitre.sa.gov.au/sbsCompiled and Presented byRestaurant and Catering SAand The Department forManufacturing, Innovation,Trade, Resources and EnergyDISCLAIMERNo responsibility for any loss ordamage caused by reliance onany of the information or adviceprovided by or on behalf of theState of South Australia, or for anyloss or damage arising from actsor omissions made, is acceptedby the State of South Australia,its officers, servants or agents.COPYRIGHTProduced by the South AustralianDepartment for Manufacturing,Innovation, Trade, Resourcesand Energy © June 2013