How to Start a Restaurant in South Africa

Entrepreneurs continue to be attracted to the food and beverage sector. The industry, which encompasses sit-down, fast food, and catering, continues to benefit from low entry barriers, little capital investment, and few skill requirements.

The majority of firms founded by township entrepreneurs are in the food and beverage industry, as opposed to agriculture, clothes and textiles, manufacturing, or engineering, according to a 2013 study of township entrepreneurs conducted by the South African Black Entrepreneurs Forum. In June 2014, compared to June 2013, the food and beverage industry’s overall revenue climbed by 4,2%, according to Stats SA.

Food sales had a positive yearly growth rate of 5.9%. The most significant rules that owners of businesses in this industry must follow are those pertaining to health and safety, licenses for the sale of alcohol and tobacco, and zoning permissions to operate in certain places.

What to know before establishing a restaurant in South Africa?

1. Building planning
Make sure you adhere to all regulations, especially those pertaining to parking, zoning, and usage rights.

2. Fire inspection
The Fire Department will see that the proper fire inspection is performed. Before requesting a construction permit for any non-residential structures, the Fire Department must review the designs for those structures.

3. Trading license
Certain types of enterprises are required by law to hold a current business or trade license. Businesses like restaurants, coffee shops, pubs, or spas for health and wellbeing might fall under this category.

4. Health
Every food business must apply for a Certificate of Acceptability for Food Premises. Owners of businesses must make sure the proper health inspection is done.

Regarding smoking in public locations, your restaurant must abide by the Tobacco Products Control Act if it has a designated smoking area.

5. Taxation
Register for PAYE, Skills Development, VAT, and Company Tax. Businesses that make more than R335 000 in revenue must pay taxes.

6. Labour
Businesses must abide by labor laws, which include regulations for minimum pay and working conditions. Additionally, companies must sign up for Workmen’s Compensation.

7. Consumer protection
The Consumer Protection Act 68 of 2008 (the Act), which encourages fair, accessible, and sustainable business, must be followed if you provide products or services.

8. Entertainment
Make license requests for television. A license from the Southern African Music Rights Organization (SAMPRO) or the South African Music Performance Rights Association is necessary if you are broadcasting or playing sound recordings in your establishment (SAMRO).

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