How to Start a Japanese Steakhouse Business

Start a japanese steakhouse business by following these 10 steps:

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

We have put together this simple guide to starting your japanese steakhouse business. 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 very important. Read our detailed guide on how to name your business. We recommend checking if the business name you choose is available as a web domain and securing it early so no one else can take it.

What are the costs involved in opening a japanese steakhouse business?

Your start-up cost will depend on your location. If you are going to lease, the cost will be lower. If you want to buy the property, your cost is going to be higher. It also depends on if you are buying an existing building or building something new. If you start from scratch, it could cost you close to $300,000 to open your Japanese Steakhouse. You do not want to forget about licenses, insurance, and permits. You will need to hire staff and purchase food. 

What are the ongoing expenses for a japanese steakhouse business?

Your ongoing expenses will differ based on the size of your restaurant. You are going to have to pay for utilities, food, and employees. That will most likely cost an average of $20,000 per month. Then you have insurance and lease or loan payments to consider.

Who is the target market?

While this may be an obvious target market, it does not make it any less true. Your target market is those that love sushi and Japanese cuisine. 

How does a japanese steakhouse business make money?

A restaurant makes money by charging customers for the food you prepare and serve to them. The menu may vary along with the price you charge per item. You can also make money by selling alcohol. 

How much can you charge customers?

The prices of your dishes are going to vary. You can expect the price of a sushi roll to range from $6 to $13. Steak prices vary based on the type of steak, but they can start around $18 and go up to $60 from there. Alcohol also varies based on drink and brand of alcohol, but you can expect drink prices to start around $5.

How much profit can a japanese steakhouse business make?

The average profit of a restaurant is about $80,000. Your restaurant can have a higher profit based on how many customers you serve and the options you offer. 

How can you make your business more profitable?

A great way to make your business more profitable is to update your menu options. You can create a seasonal menu and signature dishes. You can also throw parties or host special events throughout the year. You can also offer pickup orders or curbside to go orders. You can also partner with delivery services to expand your customer base. 

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 japanese steakhouse business 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.

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?

This business is ideal for someone that enjoys steak and sushi. It may also be ideal for someone with restaurant management experience. You do not have to have this experience, but it can be helpful for you to run your business. 

What happens during a typical day at a japanese steakhouse business?

Regardless of the type of food your restaurant sells, they all have some of the same basic daily activities. You will spend your day ordering food, receiving food, and preparing it. You will manage your employees, serve your customers, and ensure your restaurant is clean. You will spend time paying bills and marketing your business. 

What are some skills and experiences that will help you build a successful japanese steakhouse business?

While you do not need to be skilled at preparing the specific type of food for your restaurant, you should be skilled at hiring the right people. You want to create an authentic environment, so you should have some knowledge of Japanese culture. 

What is the growth potential for a japanese steakhouse business?

The growth for restaurants, no matter the type, is modest. It is most likely to hold steady for another year or so and then may improve. There has been an increased appetite for steakhouses and sushi restaurants.