Startup cost
$10k–$15k
TRUiC Business Ideas
How to Start a Carryout Restaurant
Decision Snapshot
Carryout
Idea Score
53
Profit margin
5%
Break-even
4 mo–12 mo
Time to launch
2 wk–8 wk
Demand trend
Stable
5-yr failure rate
—
Capital intensity
Medium
Time commitment
Full time
Part 1 - How to start a Carryout Restaurant business - Background
With modern busy lifestyles, it’s hard to cook every night. Carry out/takout restaurants offer an easy solution to this problem. A carry out/take out restaurant is a food place where you can order food over the phone or in person and then take it with you. It’s convenient for people who don’t have time to sit down and eat at the restaurant, or for those who want to eat at home, but don’t feel like cooking for themselves.
Delivery-only restaurants are also growing in popularity. Opening a carry out restaurant is a great way to enter the restaurant business with low overhead, as carry out places only need space for a kitchen and greeting area, and can forgo paying for a dining area.
Our guide is in 3 parts:
- Part 1 - How to start a Carryout business - Background
- Part 2 - Our planner tool to see if this idea is the right fit for you
- Part 3 - Action plan to get started
What are the costs involved in opening a carryout restaurant?
You’ll need a stove, cooking utensils and basic cooking equipment, a hood, countertops, and food and supplies. Even so, costs for a small carry out restaurant are minimal. A low-budget restaurant can be started for about $10,000 to $15,000 if you buy used equipment and find undervalued space you can rent cheaply in your town or city.
What are the ongoing expenses for a carryout restaurant?
Ongoing expenses include building rental, food, labor costs, insurance, utilities, and maintenance of your kitchen (cleaning, maintenance and repair of appliances, etc.). These costs may exceed several thousand dollars per month, or hundreds of thousands of dollars per month, depending on the size of your restaurant.
Who is the target market?
Target market for this business are busy professionals, families, elderly individuals, and people who either can’t cook for themselves or don’t want to.
How does a carryout restaurant make money?
Carry-out restaurants make money by charging customers for food preparation and delivery.
How much can you charge customers?
What you charge clients depends entirely on what food you serve and where you’re located. A sandwich shop will charge less than a take-out seafood restaurant.
How much profit can a carryout restaurant make?
Most restaurants operate on thin profit margins of between 2% and 8%. However, this depends entirely on your menu and pricing. If you generate good word of mouth, it’s possible to have profit margins exceed 20%.
How can you make your business more profitable?
Make your restaurant more profitable by offering delivery options and by specializing in a particular kind of food. Instead of being a general cafeteria-style restaurant, niche down and offer only pizza or submarine sandwiches. Or, start a seafood, sushi, Thai, Mexican, or some other specialty take-out business.
Day-to-Day and Growth
What happens during a typical day at a carryout restaurant?
A typical day in this business is very busy. Orders come in and prep cooks need to stay on top of them. If the business delivers food, then a strict delivery schedule needs to be maintained. If the business is successful, expect orders to be non-stop from open until close.
Aside from order taking and fulfillment, managers must take stock/inventory in the morning and reorder supplies as necessary. Owners must oversee and manage the workforce and labor requirements based on business volume.
What are some skills and experiences that will help you build a successful carryout restaurant?
You must have good organizational skills. If you plan on preparing food, you must also be a good line or prep cook (or a trained chef) and have good communication skills. You should also have excellent managerial skills for a restaurant business, which includes expediting orders and managing a fast-paced working environment.
What is the growth potential for a carryout restaurant?
Growth potential is amazing. A small take-out or delivery company can operate on a skeleton crew of between 3 and 5 people. However, the business can also grow into a franchise operation. Mello’s Carry Out in Chicago is an example of a successful small carry out restaurant. Ando Food, in New York City, is an example of a larger restaurant.
What are some insider tips for jump starting a carryout restaurant?
Reach out to your local community. At the end of the day, people will come to your restaurant for the food, not the atmosphere — especially since this is a carry-out/take-out restaurant. Focus on making high-quality food people can afford. Host some prominent members of your community for a special “grand opening”, where you offer them samples of your menu. You might even rent out space at a local park or set up a table and a few chairs outside your establishment. Call the local T.V. and radio stations and invite them to your grand opening.
How and when to build a team
Build a small team to start of at least 5 people. You’ll need several prep cooks and staff to manage the deliveries and expediting. You’ll also want someone handling the paperwork (legal, HR work, payroll, etc.).
Part 2 - Is a Carryout Restaurant business the right fit for you?
Business Evaluation & Strategy Tool
We'll walk you through the four pillars every business needs: Points of Leverage, Marketing Strategy, Financial Model, and Personal Compatibility. At the end you'll see a personalized report and your action plan below will be tailored to your answers.
Step 1 of 4 — Points of Leverage
Every viable business has natural advantages. Below are common leverage points across four categories. Pick the ones that apply to your Carryout business. We've pre-suggested a few based on your idea — review and adjust.
Step 2 of 4 — Marketing Strategy
Without a way to connect with customers, even great businesses fail. Pick the channels you plan to use to reach your customers.
Step 3 of 4 — Financial Model
Enter your monthly baseline costs — the minimum overhead to keep the business running. Then we'll calculate how many sales per month you need to break even.
Step 4 of 4 — Personal Compatibility
A business that doesn't fit your life will fail no matter how good the numbers look. Tell us how this business fits you.
Your Carryout Evaluation Report
Complete the four pillars and your personalized summary will appear here.
Points of Leverage
Marketing Strategy
Financial Model
Personal Compatibility
Part 3 - Action plan to launch your Carryout Restaurant business in 90 days
Nine concrete steps to take you from idea to open business, grouped into 30-day phases. Complete the planner above and we'll highlight what's most important for your situation.
First 30 days — Foundation
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Form your legal entity
An LLC keeps your personal assets separate from business debts and lawsuits — the most common reason small business owners choose this structure. Sole proprietorships and partnerships do not provide this protection.
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Get an EIN and register for taxes
Apply for your free Employer Identification Number through the IRS, then register for any state or local taxes that apply to your business (sales tax, franchise tax).
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Open a business bank account and credit card
A dedicated business account is required to maintain personal asset protection. Mixing personal and business finances ('piercing the corporate veil') can void your LLC's liability shield.
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Set up business accounting
Recording expenses and income from day one makes tax filing easier and lets you see when the business is actually profitable. Use software (QuickBooks, Wave) or a part-time bookkeeper.
Days 30–60 — Compliance & Risk
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Get permits and licenses
State and local requirements vary widely. Brick-and-mortar businesses typically need a Certificate of Occupancy; service businesses may need specific professional licensing; food businesses need health permits.
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Get business insurance
General Liability Insurance is the most common starting point. If you'll have employees, most states require Workers' Compensation. Specific industries need additional coverage (product liability, professional liability, etc.).
Days 60–90 — Launch
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Define your brand
Your brand is how customers perceive and remember you. A clear name, logo, and visual identity make every later marketing decision easier and protect you legally as you grow.
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Create your business website
Every legitimate business needs a website. Social media pages are not a substitute — you don't own the platform. Modern website builders mean you can launch a clean site in a weekend without a developer.
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Set up your business phone system
A dedicated business number keeps your personal life private, makes the business look legitimate, and lets you route calls professionally. Cloud phone services start under $20/month.