How to Start a Restaurant in South Africa

South Africa is a nation that eats together. We meet at shisanyamas for a Saturday afternoon braai, line up for a quick kota after work and catch up with friends over cappuccinos at the corner café. Food isn’t just about taste - it’s about connection and that’s why so many entrepreneurs dream of opening a restaurant. It’s a chance to make a living while creating a place where people gather and share experiences.

But turning that dream into something real takes more than good recipes. If you’ve been thinking about how to start a restaurant in South Africa, you’ve probably also wondered: “how much does it cost to start a restaurant?” or even “how much money is needed to start a restaurant business?”

Some entrepreneurs dip their toes in with a pop-up by testing their ideas before investing in a permanent space. But, no matter which path you take, the journey follows the same foundation: plan carefully, know your market, manage your money and set up systems that keep you in control.

Start with your vision

Every restaurant begins with an idea and a vision, maybe it’s a café with a few outdoor tables and fresh muffins each morning or a takeaway counter where customers can grab affordable burgers on their lunch break. Perhaps it’s something bigger: a sit-down restaurant with a chef-driven menu and live music on weekends.

Whatever your vision may be, it should be rooted in the people you want to serve. Students, office workers, families or tourists, all have different needs and spending habits. A family-friendly spot might need space for kids, while an urban café might thrive near offices with fast Wi-Fi and takeaway coffee. If you clear on who you’re serving, the easier every other decision becomes.

Put your plan on paper

Ideas are exciting, but a business plan is what keeps you grounded. You can think of it less as a corporate document and more as a practical guide for yourself. Jot down your concept, estimate your startup costs and sketch out how you’ll cover them from savings, loans or investors. List your likely expenses (rent, staff, equipment) and what you’ll need to bring in each month to break even.

It really doesn’t need to be fancy but what matters is that you’ve thought it through. And when you’re ready to register your business officially, the plan will make that process smoother.

You can read our guide on how to register a business in South Africa if you’re not sure where to begin.

How much does it cost to start a restaurant?

The answer depends on the type of restaurant you want to run.

A modest café with a coffee machine, a fridge, and a few tables might get going for R80,000 to R150,000. A takeaway outlet with fryers, grills and branding could run closer to R150,000 to R300,000. If you’re aiming for a sit-down restaurant with waiters, décor and maybe a liquor license, you could easily spend R500,000 to R1 million or more.

Most of your costs will be in rent, renovations, kitchen equipment, salaries and licenses. Marketing also matters because people can’t visit a restaurant they don’t know exists.

While the numbers may sound steep, plenty of South African entrepreneurs start small and expand once they’ve built up loyal customers.

How much money is needed to start a restaurant business?

If you’re looking for a ballpark, you’ll likely need at least R250,000 to R500,000 to launch something professional. That could come from savings, a loan or partners who believe in your vision.

And remember, once you’re trading, you’ll have options to access funding quickly when you need it. Funding options like iK Cash Advance give you easy access to capital when you’re ready to expand or explore new opportunities, without the stress of traditional loans. For many small restaurant owners, this flexibility makes growth very possible.

Test your idea with a pop-up

What happens if you are not ready to spend half a million rand yet? Well, you don’t have to. That's where pop-up restaurants come in. They are a smart way to test an idea without the full commitment of a permanent space.

You might rent a stall at a weekend market, set up a food truck or partner with a café that’s closed in the evenings. It’s a chance to see if people love your menu, tweak dishes based on feedback and build up a following. It’s also much cheaper and you don’t need a full kitchen build-out or a long-term lease to get started.

The one thing you can’t skimp on is how you accept payments. Even at a pop-up, customers expect to tap their card or phone. Cash-only stalls naturally lose sales and that’s where a proper POS system becomes your best friend and business partner all in one.

Get the paperwork done

Before you serve your first meal, there is admin you will need to sort out. Specifically in South Africa, you’ll need to:

Register your business with the CIPC.
Apply for a food business license with your local municipality.
Meet health and safety standards.
Secure a liquor license if you plan to serve alcohol.

It may feel like a drag, but being compliant protects your business. Customers also trust restaurants that are licensed because it signals professionalism and care.

Choose a location that works

A great location won’t guarantee success, but the wrong one can set you back before you even begin. You need to think about foot traffic, accessibility and the type of customers nearby. A student-focused café will do better near a campus than in an office park. A family-style restaurant may thrive in a residential area but struggle in the city centre.

Don’t spend all your budget on décor if it means compromising on location. A humble but well-placed restaurant often outperforms a flashy one hidden on the wrong street.

Build a team that represents you

Your team will be the face of your restaurant. A chef who delivers consistent food, waiters who greet customers warmly and a cashier who handles payments quickly, all make the difference between a one-time visit and a regular.

That is why training matters, not only in service but also in how to use your POS system. If payments are fast and smooth, your customers leave satisfied. If they’re slow or clumsy, the experience sours, even if the food is good.

Get your POS right

This is where many restaurant owners cut corners, but it’s worth investing in the right solution from the start. Your POS system isn’t just about taking payments, it’s the engine that keeps everything running.

At iKhokha, we’ve built tools that fit restaurants at every stage:

iK Flyer: Our fastest, smartest card machine. Built for busy service where every second matters. Save your menu items in the Catalogue for quick checkout, print receipts in seconds and track sales in real time through the iKhokha app or on iK Dashboard.
iK POS: A complete point-of-sale till system built for restaurants and retailers who need more than just payments. Manage orders, keep staff accountable with individual logins, and track sales and more.

Anyone who’s worked in a restaurant knows the weekend rush. Every seat is taken, your staff are juggling trays and customers just want to pay and get on with their night and that is where iK Flyer and iK POS make a real difference. Tap, pay, receipt - done.

Market your restaurant

Even the best food won’t sell itself. Start building excitement before you open. Share behind-the-scenes updates on social media, hand out flyers in your community or invite local influencers to try your menu.

After launch, consistency is key. Post regularly, update your Google Business Profile with photos and hours, and encourage happy customers to leave reviews. Word of mouth in South Africa is powerful, and good service spreads fast.

Keep an eye on the numbers

A busy restaurant isn’t always a profitable one. Keeping an eye on your numbers will help you understand what’s working and where you need to adjust. With the iKhokha app, you can see sales as they happen, while iK Dashboard gives you a clear picture of your performance and helps you set goals for growth.

Data gives you clarity instead of guessing, which in hindsight, you’ll know when it’s time to adjust your menu, hire more staff or potentially even open a second branch.

Ready to open your doors?

Figuring out how to start up your own and opening it is as rewarding as it is challenging. It takes vision, planning and persistence but it also brings the joy of seeing people gather around your tables. So, to recap, start with a clear idea, be realistic about costs, test your concept if you need to and invest in systems that keep your business running smoothly.

And remember: food may bring people in, but efficiency and service keep them coming back. With the iK Flyer or iK POS, you can accept payments fast, keep sales organised, and run your restaurant like a professional from day one.

Get started with iK Flyer or iK POS today and turn your restaurant vision into reality.

FAQs

How much does it cost to start a small restaurant in South Africa?

A modest café or takeaway can start from around R80,000 to R150,000, depending on location and setup.

Is a pop-up restaurant a good way to start a business?

Yes. Pop-ups let you test your menu, get feedback, and build a following before committing to a permanent space.

What licenses do you need to open a restaurant in South Africa?

You’ll need to register your business with the CIPC, apply for a food business license, and comply with health and safety standards. A liquor license is required if you serve alcohol.

What’s the best POS system for restaurants in South Africa?

The iK Flyer is ideal for speed and simplicity. For full POS and order management, iK POS is the better all-in-one solution.