How To Start A Restaurant Business In Nigeria

How To Start A Restaurant Business In Nigeria

How to start a restaurant business in Nigeria –– The restaurant business is one of the most profitable businesses in Nigeria. Starting a restaurant business can be daunting, however with proper management, good location, and consistency, it can be quite lucrative.

 The restaurant business in Nigeria has undergone tremendous growth in recent years, owing to a growing middle class and the country’s vibrant food culture. This expansion in the industry is expected to persist as the Nigerian economy continues to grow.

Therefore, setting up a restaurant business in Nigeria is an excellent strategy for establishing a booming business. So, are you interested in starting a restaurant business? Then this article is for you. In this article, we bring you a comprehensive guide on how to start a restaurant business in Nigeria. Without further ado, let’s dive in.

How To Start A Restaurant Business In Nigeria

Below is a step-by-step guide on how to start a restaurant business in Nigeria.

1. Conduct Market research

The first and one of the most critical steps in establishing a successful restaurant business in Nigeria is to conduct market research. Where is the best location for the restaurant? who are the target customers? What is the current condition of the food industry in Nigeria? etc. Above are some questions you should consider when conducting your research.

Conducting market research will help you under the latest trends in the industry. It would also help you avoid mistakes when starting. The restaurant business, just like every other business is governed by regulations for its success. Market research will help you get familiarized with those regulations, thereby properly utilizing them for the success of your restaurant business.

2. Create a business plan for your restaurant business

After conducting extensive market research, the next step is to create a business plan. Creating a business plan for your restaurant business is important, especially if you intend to establish a large restaurant. Your business plan should contain valuable information like the type of restaurant you want to start, the estimated cost for setting it up, marketing strategies, the types of equipment you need, etc.

Furthermore, your business plan could identify alternative sources of funding such as investments, loans, etc. By drafting a comprehensive business plan, you will be more focused and understand all the procedures involved in opening a restaurant business. It will also serve as a guide to making good and informed decisions for your business.

3. Generate your capital

Capital is an essential part of setting up a restaurant business in Nigeria. This is because there are vital things you need to purchase that are necessary for keeping the restaurant business running. You will need money to build or rent a business place, purchase cooking tools and equipment, pay your workers (during the first few months, before the business begins to generate income), buy furniture, etc.

The amount you will need depends majorly on the location and the size of the restaurant business. Meanwhile, the average amount for starting a restaurant business in Nigeria is about N500,000 to N1M.

There are several ways to raise capital for your restaurant business. This includes using your savings, applying for loans or grants, seeking investors or partners, etc. As stated earlier, capital is important for the business, therefore it is pivotal to raise capital for the business before taking any major step toward establishing your restaurant business.

4. Register your restaurant business

The next step in this article on how to start a restaurant business in Nigeria is to register your business with the Corporate Affairs Commission (CAC). Corporate Affairs Commission (CAC) is a regulatory entity or body of the Nigeria Government responsible for the management and administration of businesses or companies in the country.

After registering your business with CAC, you should also obtain all the required permits and licenses. Some of the necessary licenses required for the restaurant business include the National Agency for Food and Drug Administration and Control (NAFDAC). You might also require permits from your state or local government.

5. Rent or build a shop for your restaurant business

Getting a shop where you can serve your food or snacks to customers is important. You can either rent a shop, or space or even build your property if you have enough capital. This is important because the customers will require a physical place to visit and eat.

Choosing a place for your restaurant is a crucial task, you will want a place that is suitable for attracting your target customers. To maximize productivity, the restaurant should be located in an open and busy location that has lots of foot activities. They should also be low competition in the area where the restaurant will be located.

6. Setting up your restaurant

Once you have successfully completed all the paperwork and have gotten a place for your restaurant, the next step is setting up your restaurant. This includes designing how you want the place to look, purchasing the necessary supplies and tools for cooking, hiring staff (if needed), creating a menu, etc. You should also decide on the cuisine the restaurant will offer and the overall aura the restaurant will give.

Meanwhile, when designing the restaurant’s kitchen and selecting suitable equipment, you should consider the right food safety regulations.

7. Create awareness for your new restaurant

Before officially launching your restaurant and opening it to the public. It is important to create awareness and raise public interest in your restaurant. You can do this by creating a buzz about the restaurant through social media advertising, TV adverts, influencer marketing, public relations, and more. Moreover, you can decide to create a grand opening ceremony with family, friends, and other important personnel to display your restaurant to the public and attract customers.

8. Hiring And Training Staff

Running a restaurant business alone can be daunting, especially if it is a large-scale business. Therefore, you need to surround yourself with an excellent team who know their onions. You should hire and train the right people to ensure the success of your business. Some of the training includes food preparation, customer service, health regulations, etc. Additionally, after hiring the staff, you need to create a schedule for the members of your staff and manage payroll.

9. Knowing how to handle challenges

Running a restaurant business in Nigeria comes with several challenges, such as issues with supplies. It’s important to know how to deal with challenges and find solutions to them quickly. You could seek help or advice from other already established restaurant owners. You should also constantly attend seminars, meetings, and conferences held by the restaurant owners association to get familiarize yourself with new updates on best and effective practices.

10. Running your restaurant

When you successfully set up your restaurant and have begun giving out services to the public, it is important to know how to run the business effectively. You need to know how to provide excellent customer service, manage your finances effectively, and learn how to maintain your facilities. Also, ensure to stay updated about the current trends in the food industry and adapt to the changes. To improve your services, you can decide to always ask for feedback or reviews from your customers.

Essential Equipment You Will Need When Starting A Restaurant Business In Nigeria

Below are some of the required tools required for starting a restaurant business in the country.

1. Cooking equipment

The cooking tools you will require depends majorly on the type of food you intend to serve. Common Cooking equipment includes grills, ovens, fryers, stovetops, ranges, cookers, etc.

2. Food preparation equipment

Food preparation equipment includes knives, measuring cups, cutting boards, mixing bowls, and others.

3. Refrigerator equipment

You will need this equipment for storing food items, drinks, and other ingredients. This includes freezers, refrigerators, cookers, etc.

4. Dishwashing tools

You will also require dishwashing equipment to ensure that your plates, spoons, and other utensils are kept clean. This includes sinks, dishwashers, and drying racks.

5. Storage Equipment

Storage machines are also necessary for storing dry ingredients and other supplies. This includes storage containers, shelving units, racks, etc.

6. Furniture

Another essential set of equipment for your restaurant is furniture. You will need quality chairs, booths, and tables that your customers can seat when they visit your restaurant.

7. Kitchen tools

Other essential tools your kitchen needs include pans, pots, spatula, tongs, ladles, and other utensils.

8. Safety Equipment

To ensure safety and minimize losses in cases of unfortunate incidents like fire outbreaks, you should acquire safety equipment like smoke detectors, fire extinguishers, first aid kits, safety signs, etc.

9. Audio-visual Equipment

To make your restaurant lively and more attractive to customers, you should create a soothing ambiance by playing music in the restaurant. To do this, you may need to acquire audio-visual equipment such as microphones, speakers, and projectors.


There you have it! Above is a step-by-step guide on how to start a restaurant business in Nigeria. This article will walk you through the entire process seamlessly. Starting a restaurant business in Nigeria is not as hard as it seems. By having the right mindset, consistency, and hard work, starting a restaurant business in Nigeria can be a profitable venture.

Frequently Asked Questions

How much money do I need to start a restaurant business in Nigeria?

Depending on the scale of the business, you will need an average of N500,000 to start a restaurant business in Nigeria.

How much do restaurant owners make in Nigeria?

The amount restaurant owners make in Nigeria differs depending on the location, dishes served, and marketing strategy. However, a profitable restaurant business generates an average of N100,000 monthly.

What are the most popular types of dishes in Nigeria?

The type of dishes in Nigeria varies depending on the location. However, the most popular dishes in Nigeria include egusi soup, jollof rice, pounded yam, pepper soup, and more.

Is the restaurant business lucrative in Nigeria?

Yes, a restaurant business can be lucrative in Nigeria. Depending on the location, target market, dishes served, and marketing strategies adopted.

How can I market my restaurant business in Nigeria?

To market your restaurant business in Nigeria, you can utilize social media, billboards, flyers, partner with influencers, online directories, and more.

References – How to start a restaurant in Nigeria – How to start a restaurant business in Nigeria – How to start a restaurant business in Nigeria — The essential restaurant equipment guide — Equipment needed to open a restaurant


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