How to open a restaurant or café in Philadelphia
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 Pennsylvania business name records and the free federal trademark search before you print signs. This is research, not legal clearance.
Talk to a free City business services manager
Philadelphia's business services managers are free, have food-service expertise, and can connect you to financing and support. Email business@phila.gov or call (215) 683-2100.
Business setup
Register the business and its taxes.
Register your LLC or corporation with the PA Department of State
If you form an LLC, file a Certificate of Organization with a docketing statement with the Department of State. A Certificate of Organization doesn't have to be prepared by an attorney.
Pennsylvania Department of State, Bureau of Corporations and Charitable Organizations ↗
Register a fictitious name if you use a trade name
If you do business under a name other than your full legal name, register it with the Department of State. If an individual is listed, you must also publish notice in newspapers in your county.
Pennsylvania Department of State, Bureau of Corporations and Charitable Organizations ↗
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 Pennsylvania Sales Tax License
Restaurants must register for and display a valid PA Sales Tax License; prepared food and non-alcoholic drinks are taxable whether eaten in or taken out. Register online through myPATH.
Open a Philadelphia tax account (BIRT)
Every business operating for profit in Philadelphia must file the Business Income & Receipts Tax, even without a profit. Register on the Philadelphia Tax Center by choosing "Register a new taxpayer."
Get a free Commercial Activity License
Anyone doing business in Philadelphia needs a Commercial Activity License. You need your EIN or SSN and BIRT ID, and must be current on City taxes; there is no cost and it does not need renewal. Apply through eCLIPSE.
City of Philadelphia Department of Licenses and Inspections ↗
Your site
Find a location where your business is allowed.
Check zoning and get a use permit if the use changes
If the space wasn't already used as a restaurant, you need a Zoning Permit to change the use. If your use doesn't meet the code, you'll need a variance or special exception from the Zoning Board of Adjustment.
City of Philadelphia Department of Licenses and Inspections ↗
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.
Submit a food business plan review to Public Health
Anyone opening a stationary food business must get plan review approval. Submit site and layout plans, equipment, plumbing and ventilation details, food safety certification, and your menu to Environmental Health Services at (215) 685-7495.
Philadelphia Department of Public Health, Office of Food Protection ↗
Get building permits before renovating
You need a building permit to change a building's interior or exterior or increase its occupant load. In most cases you need a zoning permit first, and a licensed Philadelphia contractor must do the work.
City of Philadelphia Department of Licenses and Inspections ↗
Get a mechanical permit for a commercial kitchen hood
Commercial kitchen hoods need a mechanical permit, and the hood may also need a fire suppression permit. A licensed contractor must do the work.
City of Philadelphia Department of Licenses and Inspections ↗
Get a Certificate of Occupancy if required
A Certificate of Occupancy is required for new construction, additions, alterations affecting exits or fire ratings, and changes of use. When tied to a building permit, it is issued after a successful inspection with no separate application.
City of Philadelphia Department of Licenses and Inspections ↗
Get a Sidewalk Café License for outdoor seating
To put seating on the public sidewalk, first get Streets Department approval of a sidewalk café plan, then apply for the license. You need liability insurance naming the City, and a City Council ordinance if the area isn't already authorized.
City of Philadelphia Department of Licenses and Inspections ↗
Get sign permits before installing signs
Permanent exterior signs generally need both a zoning permit and a building permit. Some interior and window signs also need permits depending on fasteners, size, and placement.
City of Philadelphia Department of Licenses and Inspections ↗
Licenses
Get the licenses that let you open.
Get a Philadelphia food safety certificate
Every food business must have at least one person certified in food safety at all times. Take a food manager course with an approved provider, then apply to the Department of Public Health for the City certificate.
Philadelphia Department of Public Health, Office of Food Protection ↗
Get a Food Preparation and Serving License
You need this license to prepare or serve food to the public. Apply through eCLIPSE with your BIRT ID, Commercial Activity License, proof of occupancy, and a Public Health License Eligibility Report dated within 30 days.
City of Philadelphia Department of Licenses and Inspections ↗
Get a PA liquor license, usually by transfer
Pennsylvania generally allows one retail liquor license per 3,000 county residents. Where the quota is full, you must have an existing license transferred to you, or bid on one in a PLCB auction.
Register for Philadelphia's Liquor Tax
If you hold a PA license to sell alcohol, you owe the City's 10% Liquor Tax on drink sales. Register on the Philadelphia Tax Center, pay monthly by the 25th, and file quarterly returns.
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.
Register for PA unemployment compensation tax
If you have even one employee, full or part time, register with the Office of UC Tax Services within 30 days after they start work. Register online through myPATH.
Get workers' compensation insurance
Pennsylvania employers with at least one employee generally must carry workers' comp, through a private insurer, the State Workers' Insurance Fund, or approved self-insurance. Post your insurer's information where workers can see it.
Follow Philadelphia's paid sick leave law
If you have 10 or more employees, they earn one hour of paid sick time for every 40 hours worked, up to 40 hours a year. All employers must keep sick leave records for three years.
City of Philadelphia Department of Labor, Office of Worker Protections ↗
File a recycling plan and set out trash and recycling cans
Commercial properties with waste collection must complete a Commercial Solid Waste and Recycling Plan. Businesses selling prepared food must provide trash and recycling cans within ten feet of the public entrance.
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 food license yearly and stay tax-current
Renew your Food Preparation and Serving License every year. To renew, you must be current on all City of Philadelphia taxes and have a valid email address.
City of Philadelphia Department of Licenses and Inspections ↗
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.