How to Start a Healthy Fast Food Restaurant

Start a healthy fast food restaurant by following these 10 steps:

1. Plan your Healthy Fast Food Restaurant
2. Form your Healthy Fast Food Restaurant into a Legal Entity
3. Register your Healthy Fast Food Restaurant for Taxes
4. Open a Business Bank Account & Credit Card
5. Set up Accounting for your Healthy Fast Food Restaurant
6. Get the Necessary Permits & Licenses for your Healthy Fast Food Restaurant
7. Get Healthy Fast Food Restaurant Insurance
8. Define your Healthy Fast Food Restaurant Brand
9. Create your Healthy Fast Food Restaurant Website
10. Set up your Business Phone System

We have put together this simple guide to starting your healthy fast food restaurant. These steps will ensure that your new business is well planned out, registered properly and legally compliant.

Exploring your options? Check out other small business ideas.

STEP 1: Plan your business

A clear plan is essential for success as an entrepreneur. It will help you map out the specifics of your business and discover some unknowns. A few important topics to consider are:

• What will you name your business?
• What are the startup and ongoing costs?
• Who is your target market?
• How much can you charge customers?

Luckily we have done a lot of this research for you.

What will you name your business?

Choosing the right name is important and challenging. If you don’t already have a name in mind, visit our How to Name a Business guide or get help brainstorming a name with our Healthy Fast Food Restaurant Name Generator

If you operate a sole proprietorship, you might want to operate under a business name other than your own name. Visit our DBA guide to learn more.

When registering a business name, we recommend researching your business name by checking:

• Your state's business records
• Federal and state trademark records
• Social media platforms
• Web domain availability.

It's very important to secure your domain name before someone else does.

What are the costs involved in opening a healthy fast food restaurant?

The restaurant itself must be built or leased. Food prep stations, cookware, dishes, silverware, dishwashers, napkins, trays, refrigerators, ovens, cash registers and ingredients are necessary. The business requires insurance, utilities, employees, advertising and possibly a drive-thru lane. Plan on spending tens of thousands of dollars for all of the equipment listed above. Building a fast food restaurant will cost hundreds of thousands of dollars. Alternatively, you can lease/rent a space on a monthly basis.

What are the ongoing expenses for a healthy fast food restaurant?

The facility's mortgage/rent payment will likely run between $500 and several thousand dollars per month. Budget in upwards of $500 per month for insurance. However, if your healthy fast food restaurant sells strictly raw food, there won't be a need for ovens. As a result, you will enjoy a considerable insurance break as the odds of a fire are dramatically reduced. Utilities will run a couple hundred dollars per month. Budget several thousand dollars per month for ingredients. Facility maintenance will run at least a couple hundred dollars per month. Budget $500 to $1,000 or more for monthly marketing. Cashiers, cooks, and food prep workers will earn $8 to $12 per hour. If you do not want to handle marketing and accounting duties, budget an annual salary of $30,000 to $50,000 for these professionals. Plan on paying a maintenance expert $15 to $25 per hour.

Who is the target market?

The target market is individuals who are health-conscious yet do not have the time or skill necessary to make delicious food at home. These individuals tend to be busy full-time workers who are looking for a quick meal after leaving work, heading home from the gym and so on. These individuals tend to be young, well-educated and savvy about the nuances of health and nutrition. Shape your menu so it appeals to this demographic and you will enjoy a steady stream of customers.

How does a healthy fast food restaurant make money?

This business makes money by selling high-quality, delicious and nutritious food and beverages to customers.

How much can you charge customers?

In general, healthy fast food restaurant meals typically cost between $5 and $15.

How much profit can a healthy fast food restaurant make?

It is possible to make millions of dollars. Build a successful initial restaurant, reinvest the proceeds in additional restaurants and you will have quite the profitable business. In general, aim to make $50,000 to $100,000 per year at each of your locations. Strive to increase this per-restaurant profit year-by-year and you will gradually build a business empire that rakes in millions of dollars.

How can you make your business more profitable?

One of the best ways to enhance profitability is to brand your products and sell them on the web or at local stores. As an example, consider Taco Bell's popular hot sauce products. These hot sauces are available at Taco Bell restaurants as well as WalMarts and other stores throughout the country.

STEP 2: Form a legal entity

The most common business structure types are the sole proprietorship, partnership, limited liability company (LLC), and corporation.

Establishing a legal business entity such as an LLC or corporation protects you from being held personally liable if your healthy fast food restaurant is sued.

You can form an LLC yourself and pay only the minimal state LLC costs or hire one of the Best LLC Services for a small, additional fee.

STEP 3: Register for taxes

You will need to register for a variety of state and federal taxes before you can open for business.

In order to register for taxes you will need to apply for an EIN. It's really easy and free!

There are specific state taxes that might apply to your business. Learn more about state sales tax and franchise taxes in our state sales tax guides.

STEP 4: Open a business bank account & credit card

Using dedicated business banking and credit accounts is essential for personal asset protection.

When your personal and business accounts are mixed, your personal assets (your home, car, and other valuables) are at risk in the event your business is sued. In business law, this is referred to as piercing your corporate veil.

Open a business bank account

Besides being a requirement when applying for business loans, opening a business bank account:

• Separates your personal assets from your company's assets, which is necessary for personal asset protection.
• Makes accounting and tax filing easier.

Get a business credit card

Getting a business credit card helps you:

• Separate personal and business expenses by putting your business' expenses all in one place.
• Build your company's credit history, which can be useful to raise money later on.

STEP 5: Set up business accounting

Recording your various expenses and sources of income is critical to understanding the financial performance of your business. Keeping accurate and detailed accounts also greatly simplifies your annual tax filing.

Make LLC accounting easy with our LLC Expenses Cheat Sheet.

STEP 6: Obtain necessary permits and licenses

Failure to acquire necessary permits and licenses can result in hefty fines, or even cause your business to be shut down.

Federal Business Licensing Requirements

There are federal regulations regarding what can and cannot be added to, sold as, and processed with food. Attached is a resource from the Food and Drug Administration detailing the process of starting a food business: How to Start a Food Business

State & Local Business Licensing Requirements

Certain state permits and licenses may be needed to operate a healthy fast food business. Learn more about licensing requirements in your state by visiting SBA’s reference to state licenses and permits.

Certificate of Occupancy

A healthy fast food restaurant is generally run out of a storefront. Businesses operating out of a physical location typically require a Certificate of Occupancy (CO).  A CO confirms that all building codes, zoning laws and government regulations have been met.

• If you plan to lease a location:
• It is generally the landlord’s responsibility to obtain a CO.
• Before leasing, confirm that your landlord has or can obtain a valid CO that is applicable to a healthy fast food restaurant.
• After a major renovation, a new CO often needs to be issued. If your place of business will be renovated before opening, it is recommended to include language in your lease agreement stating that lease payments will not commence until a valid CO is issued.

• If you plan to purchase or build a location:
• You will be responsible for obtaining a valid CO from a local government authority.
• Review all building codes and zoning requirements for your business’ location to ensure your healthy fast food restaurant will be in compliance and able to obtain a CO.

Food Regulations

When selling food, you will need licensing from a local health department; all establishments serving food are required to pass a health inspection. Tips for faring well on a health inspections

STEP 7: Get business insurance

Just as with licenses and permits, your business needs insurance in order to operate safely and lawfully. Business Insurance protects your company’s financial wellbeing in the event of a covered loss.

There are several types of insurance policies created for different types of businesses with different risks. If you’re unsure of the types of risks that your business may face, begin with General Liability Insurance. This is the most common coverage that small businesses need, so it’s a great place to start for your business.

Another notable insurance policy that many businesses need is Workers’ Compensation Insurance. If your business will have employees, it’s a good chance that your state will require you to carry Workers' Compensation Coverage.

Is this Business Right For You?

If you are looking for a way to improve the eating habits and consequently, the health of those in your community, start a healthy fast food restaurant. This is your chance to alter the way people eat, reduce sickness, combat cancer and generally improve the human condition. A healthy fast food restaurant is also ideal for those who have culinary skills, an interest in human health and a passion for delicious but nutritious food.

What happens during a typical day at a healthy fast food restaurant?

Customers place orders, wait a brief period of time for their food to be made and served and enjoy a satisfying meal. Healthy fast food restaurant employees take customer orders, prepare food, cook food, serve customers and clean the facility. Managers delegate work to cashiers, cooks, the maintenance crew, and custodians. Marketing professionals and accountants handle the advertising and financial aspects of the business. The owner oversees each of these employee groups, researches possible additions to the menu, changes recipes, modifies prices, and establishes/manages relationships with suppliers.

What are some skills and experiences that will help you build a successful healthy fast food restaurant?

An individual who has experience in the fast food industry or as a traditional restaurant owner, manager, chef or server will make a fairly seamless transition to owning and operating a healthy fast food business. The entrepreneur should have a sincere passion for healthy food, providing his community with nutritious meals and filling customer orders without delay. It will also help if the entrepreneur is interested in organic food and vegetarian/vegan fare. Most important is an understanding of basic business principles. Nutritious food that is fresh and delicious tends to cost a significant amount of money. Furthermore, such food usually takes a considerable amount of time to prepare. High costs and extensive preparation/cooking time are direct threats to the profitability of healthy fast food restaurants. In order to turn a consistent profit, this business requires a delicate balancing of costs, customer service and diverse offerings.

What is the growth potential for a healthy fast food restaurant?

This is the best time to start a healthy fast food restaurant business. People are looking for healthy alternatives to traditional fast food offerings. If your employees can make and serve tasty food in little time, your business will thrive. If your business is especially successful, you can expand operations across the country or even the world. The growth potential is truly limitless.