How to open a restaurant or café in Dallas
Seven stages from idea to opening day, in the order most owners work through them, with links to the agencies involved.
Concept and numbers
Test the idea and the budget before you commit.
Draft your startup budget and break-even
Use your own numbers to see how much you need and what sales cover your costs. Revisit it as quotes come in.
Check that your name is available
Search Texas business name records and the free federal trademark search before you print signs. This is research, not legal clearance.
Get free guidance from Dallas Economic Development
The city's Office of Economic Development can guide you on starting a business, navigating city processes, and finding funding and technical-assistance resources.
Business setup
Register the business and its taxes.
Form your LLC or corporation with the Secretary of State
If you're setting up an LLC, corporation, or limited partnership, you form it by filing a certificate of formation with the Texas Secretary of State. You can file online through SOSPortal.
File an assumed name with the Dallas County Clerk
If you operate as a sole proprietor or partnership under an assumed name, file an assumed name certificate with the Dallas County Clerk in person, online or by mail. It is valid for ten years.
Get a federal EIN if you need one
An EIN is needed if you hire employees or operate as a corporation or partnership. It is free from the IRS; be wary of sites that charge for one.
Get a Texas sales and use tax permit
If you sell taxable items in Texas, you need a sales and use tax permit from the Comptroller. You can apply online through eSystems; the Comptroller says to allow 2–3 weeks to receive it.
Understand mixed beverage taxes if you'll serve alcohol
With a mixed beverage permit, your alcohol sales are subject to mixed beverage gross receipts tax and mixed beverage sales tax, and you still need a sales tax permit. Wine-and-beer or beer-only on-premise holders owe only sales tax on those sales.
Your site
Find a location where your business is allowed.
Check zoning and prior use before you sign a lease
Dallas requires a new certificate of occupancy for a first use, a change of use, or a change of tenant. If your use differs from the previous one, expect Building Code and Zoning review.
Review your lease before you sign
Confirm the lease allows a restaurant and check who pays for build-out and upgrades. Consider having a lawyer review it; OpeningIQ can’t give legal advice.
Plan for accessibility
Businesses open to the public must follow the ADA. New construction and alterations must be accessible, and barriers in existing spaces must be removed where that’s readily achievable. Small businesses may qualify for a tax credit.
Plans, permits and build-out
Get the approvals to build out and prepare the space.
Get a commercial building permit for construction or remodel
You need a commercial building permit before constructing, altering, or renovating the space. Apply through DallasNow; plans are reviewed and work is inspected.
Pass the health construction review of your kitchen
Before your health permit is issued, the city's Health Inspections team reviews the construction and interior of your food prep, storage, and restroom areas.
Get a fire permit for your kitchen hood suppression system
Dallas Fire-Rescue requires a permit to install an automatic fire-extinguishing system for commercial cooking, such as a kitchen hood system.
Get your certificate of occupancy (CO)
Apply through DallasNow with the application and a Land Use Questionnaire. After review and all inspections pass, the CO (or a temporary CO) is released.
Get a sidewalk café license for tables on the sidewalk
To run a sidewalk café in the city right-of-way you need a license. You apply with drawings and photos, owner authorization if you rent, and an insurance certificate; clear any outstanding taxes, fines, or code violations first.
Get a sign permit through DallasNow
You need a sign permit for signs over 20 sq. ft., over 8 feet high, lit or electrical, or over a public roadway. A registered contractor must apply, and your CO must be approved first.
Licenses
Get the licenses that let you open.
Register your certified food manager with the city
Each fixed food establishment must have a Registered Food Service Manager on site while operating. Register the manager's state food manager card with Consumer Health; the page lists a $30 yearly fee.
Apply for a TABC permit or license to serve alcohol
Apply through TABC's AIMS system for the right on-premise permit (e.g., Mixed Beverage, Wine and Malt Beverage Retailer's, or Beer On-Premise). Complete the public notice, publisher's affidavit, and city, county, and state certificates; TABC says issuing can take 30–35 days after a complete application.
Choose the right TABC on-premise permit type
A Mixed Beverage permit (MB) covers spirits, wine, and beer on-premise; a Wine and Malt Beverage Retailer's permit (BG) covers wine and beer; a Retail Dealer's On-Premise license (BE) covers beer. Restaurants may also qualify for a Food and Beverage Certificate.
Post TABC's 60-Day Sign at a new location
If your location wasn't licensed by TABC for on-premises consumption in the prior two years, you must post the 60-Day Sign outdoors, visible to the public, for 60 days before TABC can issue your permit. You may post it before you apply.
Get your City of Dallas food establishment permit
Apply to Consumer Health with photo ID and a copy of your Texas sales and use tax permit, and schedule the required health inspections. The annual fee depends on your risk level and size.
Get city certification for your TABC application
Submit your completed TABC application, Alcohol Measurement Certification Checklist, and notarized Alcohol Certification Affidavit forms through DallasNow. The city verifies zoning and certifies the application.
Pay the city's local alcohol fee
Dallas charges a local fee every two years to businesses selling beer or liquor at retail, managed by Dallas Water Utilities Special Collections. Check the fee schedule for your permit type.
Register with TTB before you sell alcohol
Businesses that sell alcohol must register with the federal Alcohol and Tobacco Tax and Trade Bureau before they start, for each location, and keep records of the alcohol they buy.
Get ready to open
Cover people, insurance and suppliers.
Make sure food employees finish food handler training
Texas rules say all food employees must complete an accredited food handler training course within 30 days of employment. Accredited food handler cards are recognized statewide.
Register with TWC for state unemployment tax
Once you pay $1,500 or more in gross wages in a calendar quarter, or have at least one employee in 20 different weeks of a year, you're a liable employer and must register with TWC within ten days, using its Unemployment Tax Registration (UTR) system.
Decide on workers' comp — and notify if you opt out
Most Texas private employers can choose not to carry workers' comp. If you don't, file a notice of no coverage with DWC after hiring your first employee and yearly (Feb 1–Apr 30), post a no-coverage notice for employees, and give new hires written notice.
Texas Department of Insurance, Division of Workers' Compensation ↗
Install a grease trap and use a city-permitted hauler
Every Dallas food service establishment must have a grease trap or interceptor. Have it pumped by a city-permitted transporter at least every 90 days (or at 25% full), witness each cleanout, and keep manifests on site 3 years.
Meet fire safety rules for your dining room and hood
For restaurants with an occupant load of 50 or more, Dallas Fire-Rescue expects a valid CO, a Class K extinguisher within 30 feet of the hood, lit exit signs, and the occupant load posted near the main exit. Service hood suppression systems at least every 6 months.
If you’ll hire, set up federal payroll taxes
Withhold federal income tax using each employee’s Form W-4, pay Social Security and Medicare taxes, and pay federal unemployment (FUTA) tax, which isn’t withheld from pay.
Complete Form I-9 for every hire
Employers verify each new employee’s identity and authorization to work on Form I-9 and keep it on file.
Report new hires to your state
Report each new employee to your state’s new hire directory within 20 days of hiring; some states require it sooner.
Put up required workplace posters
Which federal posters you need depends on the laws that cover you; the Labor Department’s free Poster Advisor tells you. States have their own posters too.
Arrange business insurance
Ask an insurance broker what coverage your lease, lender and licenses call for. This is an OpeningIQ suggestion, not an agency requirement.
Line up equipment, POS and food suppliers
Get quotes early and compare delivery, payment and support terms. Your budget should guide the choices.
Check every approval is in hand
Gather your permits, licenses, certificate of occupancy and certificates in one place, and confirm each matches your address and business name.
Open and stay current
Keep licenses, permits and filings current.
Renew your health permit by Dec. 31 each year
Your food establishment permit fee is due each Dec. 31, and late payment adds a reinstatement fee. An inspection score below 80% brings a re-inspection fee.
Track these steps in a free private plan
Save your progress, notes and target dates, and see your next step at a glance. Your plan stays private and is never shared with suppliers.