How to open a restaurant in Spain?

Do you want to open your own restaurant but don't know where to start? Spain is one of the most dynamic hospitality markets in Europe, and also one of the most demanding. Regulations, licences, procedures, financing, choosing premises... There are many fronts to manage at once. Discover the steps to follow to open the doors of your restaurant. From market research to legal permits, through the business plan and sources of financing.

Key figures

• 266,837 catering establishments in Spain in 2024 (restaurants, bars, cafés and collective catering) with growth of +1.3% compared to 2023. (1)
• 166,211 million euros in turnover in 2024, representing 6.7% of national GDP. The restaurant sector alone contributes 4.7% of GDP and employs 1.39 million workers (1)
• 94.4% of hospitality establishments are micro-enterprises with fewer than 10 employees. A sector where management and organisation make the difference from day one (1)
• 38,015 new hospitality businesses opened in 2023 versus 34,247 closures; a positive balance of +3,768 businesses. The sector is growing, but so is competition (1)

1. Conducting a market study before opening a restaurant

The market study allows you to validate the viability of your restaurant project before investing a single euro. And in a sector as competitive as Spanish hospitality, skipping it is one of the most common — and most costly — mistakes.

Analyse the restaurant market

Start by understanding the sector at national level and in your specific catchment area. How many establishments are there in your area? What type of catering dominates? Is the market saturated or are there uncovered niches? In Spain, the sector varies greatly by autonomous community and type of city. Opening a restaurant in Madrid or Barcelona is very different from doing so in a medium-sized inland city.

Analyse the competition

Identify your direct competitors (same type of cuisine, same price range) and indirect competitors (other catering formats in your area). For each one, analyse:

• Their offer and positioning
• Their prices and average ticket
• Their footfall and opening hours
• Their strengths and weaknesses

This analysis will allow you to identify differentiation opportunities and avoid positioning yourself in an already saturated segment.

Analyse local demand and your future customer

Who is going to come to your restaurant?

Define your target customer precisely: their profile, purchasing power, consumption habits and expectations.

In Spain, don't forget to take into account the weight of tourism in your area. In destinations like Barcelona, Seville, San Sebastián or the Mediterranean Coast, tourists can represent a very significant portion of your clientele. This completely changes the rules of the game in terms of opening hours, languages, menu and average ticket.

2. Finding premises for your restaurant

The choice of premises is one of the most important decisions you will make when opening your restaurant. A good concept in a bad location has very little chance of surviving.

When choosing your premises, make sure that:

• There is sufficient footfall in the area
• The neighbourhood is well connected by public transport and has nearby parking
• The frontage is visible and attractive from the street
• There is no excessive direct competition in the surroundings
• It is close to activity hubs (offices, shops, shopping centres, tourist areas...)

Also check that the premises are large enough to accommodate a dining room, a functional kitchen and the necessary spaces: storage, cold room, toilets and reception area.

Depending on your project and restaurant budget, you can buy premises, rent them or opt for a business transfer.

3. Drawing up a business plan for your restaurant

Before opening your restaurant, you need a solid business plan. This document is your roadmap. It defines the commercial strategy and financial forecasts for your project for the first 3 years. It is also your main tool for convincing banks, investors and partners that your project deserves financing.

A good business plan for a restaurant should include:

• An executive summary: brief, direct and compelling. It is the first thing any investor will read, so it must capture attention from the first line.
• Team presentation: your experience, skills, training and those of your partners. If you have no prior experience in the sector, surround yourself with complementary profiles.
• A SWOT analysis: strengths, weaknesses, opportunities and threats to your project.
• Key elements of the market study: target customer, estimated footfall, average ticket, break-even point, competitive analysis…
• Concept description: type of cuisine, menu, positioning, services, opening hours.
• Action plan: objectives, resources required, communication and marketing strategy.
• Premises characteristics: location, size, type of establishment.
• Chosen legal form: sole trader, Limited Company (SL), Single-Member Limited Company (SLU)...
• Financial analysis: projected income statement for 3 years, monthly cash flow plan for the first year, financing plan (works, equipment, furniture, stock, working capital) and projected balance sheet.

Don't hesitate to have your business plan validated by an accountant or tax adviser specialised in hospitality. They can help you with both the legal structure and financial planning or the management of your restaurant.

4. Completing the legal and administrative procedures to open your restaurant

Choosing the legal form

The Limited Company (SL or SLU) is the most recommended legal form for opening a restaurant in Spain. It protects your personal assets and facilitates access to financing.

But it is not the only option. For smaller projects, sole trader status is also possible. And for larger ones, a Public Limited Company (SA) may be an option.

In any case, always consult a tax adviser before deciding. They are not only there for your VAT returns. They can also advise you from the outset. Because the legal form you choose will determine your tax position, your financing capacity and your risk exposure from day one.

Registering your company

Among the first documents needed to open a restaurant that you will need to process:

• Registration with the AEAT (State Tax Administration Agency) and the IAE (Economic Activities Tax)
• Registration with Social Security as a sole trader or as a company
• Registration in the Mercantile Registry if you opt for a company

Obtaining the opening licence

One of the most important permits is the opening licence, which is processed with the town hall of your municipality. It certifies that your premises comply with urban planning, safety and accessibility regulations.

The type of licence depends on whether you want to open a restaurant, a bar, a café, a beach club… Each category has its own operating conditions regarding capacity, opening hours, alcohol sales and music broadcasting. Defining your concept clearly from the outset is key to applying for the correct licence.

Depending on the municipality, it may be processed via an ordinary licence or a responsible declaration, which can considerably reduce processing times. In any case, allow for several months of waiting and plan ahead for this procedure from the start of your project.

Health registration

Every catering business must register in the Health Registry of their autonomous community. This procedure certifies that your establishment complies with European food hygiene regulations (Regulation EC 852/2004) and is mandatory before commencing activity.

This permit varies by autonomous community and may also vary by locality. Check in advance.

Taking out mandatory insurance

Among the requirements for opening a restaurant also included is taking out the necessary insurance: public liability insurance, premises and equipment insurance. Some autonomous communities may require additional cover.

Other permits and licences to consider

Depending on the characteristics of your project, you may need to manage additional permits:

• Terrace licence: if you want to set up tables on public roads. In Spain, terrace culture is a central element of hospitality. But its regulation is entirely the responsibility of the town hall and can be competitive in high-demand areas.
• Building permit: mandatory if you are going to carry out works on the premises before opening.
• Background music authorisation: if you are going to play music in your premises, you must regularise your situation with SGAE.

A strategy for opening a restaurant on a good footing involves anticipating all these procedures and not underestimating them. Administrative delays are one of the main reasons why opening a restaurant takes longer than planned.

5. Seeking financing to open your restaurant

Raising the investment to open a restaurant is one of the greatest challenges of the project. Premises, works, kitchen equipment, furniture, licences, initial stock... costs add up quickly. In Spain, several sources of financing can help you cover these needs:

• Bank loan: to obtain one, you will need a solid business plan for opening a restaurant and a personal contribution that banks typically set at between 20% and 30% of the total amount.
• ICO lines: the ICO Businesses and Entrepreneurs line allows financing of asset investments, equipment and liquidity needs, with repayment periods of up to 20 years. It is processed through your usual bank.
• Grants and public aid: there are several specific grants for those wanting to start a catering business (regional grants, unemployment lump-sum payment, ENISA grants for young entrepreneurs, …).
• Crowdfunding: allows obtaining financing from individuals through online platforms, in exchange for rewards or participation in the project.
• Gastronomic business angels: an interesting option if you are looking not only for financing but also mentoring and a network of contacts.
• Equipment leasing: instead of buying kitchen equipment, you can opt for leasing or renting.

Ideally, combine several sources so as not to depend on a single funder.

6. Completing mandatory training to open a restaurant

To open a successful restaurant, there are several types of training you need to be aware of and comply with before starting:

• Food hygiene training (food handler): this is the most important training and applies to all staff in contact with food. The regulations do not require a certificate as an official document, but do require that all food handlers receive food hygiene training and can prove it to health inspectors.
• Allergen training: Regulation (EU) 1169/2011 requires the correct management and communication to customers of the 14 allergens requiring mandatory declaration. This training is usually integrated into the same food handler course.
• Occupational risk prevention (ORP): as an employer, you are obliged to guarantee the safety and health of your employees, provide them with the necessary training in occupational risk prevention and equip them with appropriate personal protective equipment.

Is everything ready to open your restaurant? The next step is to manage it well from day one: reservations, dining room, customer experience, …. Covermanager helps you get off to a good start.

Try Covermanager

FAQ

How much money do you need to open a restaurant in Spain?

There is no single answer. The budget for opening a restaurant in Spain varies considerably depending on the concept, location and size of the premises. It can start at €20,000 for a small restaurant up to hundreds of thousands of euros for a gastronomic venue.

Can you open a restaurant without qualifications?

Yes. In Spain, no specific qualification is required to open a restaurant. However, certain training is mandatory: the food handler certificate, allergen training and the implementation of the HACCP system. For the team, occupational risk prevention training is also mandatory.

How long does it take to open a restaurant?

Generally, between 6 months and 1 year from the start of the project to opening. The main factors that extend timelines are administrative procedures (especially the opening licence), renovation works and the team recruitment process.

Sources:

1 - Hostelería de España