Opening a Restaurant: Licenses and Permits

Before opening a restaurant in NYC, you’ll need to make sure that you have all of the food permits and food licenses required by the State of New York to operate legally. You’ll want to conduct your own due diligence as some of these requirements may change.

The restaurant licenses that you’ll need are:

Food Service Establishment Permit

New York City’s food service license costs $280 for initial application fees and renews at the same rate annually. You’ll find that all eateries or any establishment that plans to serve customers will need to apply for a food license in NYC. A few of them are:

• Restaurants
• Pizzerias
• Bars
• Night clubs
• Senior centers
• Schools

Even charitable organizations and religious centers that serve food will need this permit to operate legally.

Food Protection Certificate

The Health Code requires you to have on duty a supervisor for food operations that has the Food Protection Certificate during all hours of operation.

A classroom course is required, spanning over five days and ending on the final day when you take your exam. You can complete the classroom portion of the certificate online, but all tests will need to be done in-person. Application fees cost $24 to $114.

Liquor License

A liquor license in NYC can cost $12,000 to $400,000 if you plan to operate an establishment that can serve all forms of liquor. Many restaurants offer only beer and wine to their patrons. The license cost for serving beer and wine can be as low as $3,000.

Factors that are involved in determining price vary by location, but include:

• Operation size
• Operation scope

You can contact your local officials to inquire about the cost of the liquor license in your area. A New York City liquor license is not difficult to obtain but it can be costly.

There are also two main types of liquor licenses:

• On-license means that you’re selling the liquor, which the consumer will drink in your establishment.
• Off-license is often obtained by establishments, like stores, where the customer is going to consume the alcohol off-site.

A beer and wine license may be limited, but it is the most common business license in NYC for restaurants that do not want to serve hard liquor.

Also, the restaurant license will require that you cannot earn too much, often 40% of all sales, from alcohol.

Music Licensing

Often overlooked but a necessity, if you plan on playing music in your restaurant. If you fail to license or obtain music legally, you can be charged between $750 and $30,000 per song. The music licensing cost is negligible compared to the costs of violating license requirements.

Of course, you should have a valid business registration in New York. The filing fees will vary based on the county, so contact a lawyer or accountant to register your business. Online services can also help you with starting a business in NYC.

Employer Identification Number (EIN)

You will use it in the same way that you use a social security number, but for your business. It’s a requirement from the federal government. If you plan on hiring employees, you’ll need to obtain your EIN from the IRS. When you file taxes, you’ll need to provide an EIN to identify your business.

Certificate of Occupancy

If you purchase or rent a building, you’ll need to obtain what is called a Certificate of Occupancy, or CO.

You’re not legally allowed to operate your restaurant without this certificate. The CO will ensure that the business is:

• Safe for employees
• Safe for patrons

An inspector will survey the building and determine whether or not a CO will be issued. If it is not issued, the inspector should provide you with information on why your building failed inspection.

Sign Permit

The sign permit is not required if your sign is:

• Under 6 square feet in size
• Not illuminated

Otherwise, you may have to obtain a permit based on the borough you live in. You can find all of the local telephone numbers on the NYC Buildings official website.

If you plan to install a sign that requires a permit, you may also need one of the following permits:

• Electrical
• Illuminated sign permit

Note: Keep in mind that NYC business licensing will differ based on the establishment you’re opening. For more information on permits and licenses, NYC.gov should be consulted.

Source: https://mcdonaldpaper.com/blog/how-to-open-a-restaurant-license-and-permit-checklist