What kind of food business can I start?
- Restaurant or café: sit-down service, highest set-up cost
- Takeaway or fast food: smaller premises, faster service
- Catering: events, offices and contracts, often run from a central kitchen
- Food truck or stall: lower rent, but needs trading permits for each location
- Home-based food production: baking, meal prep or sauces sold to customers or shops
Start with the model that fits your budget and experience. Many restaurant owners start with catering or a stall to test their menu.
How do I start a food business in South Africa?
- Choose your model, menu and target customers
- Register the business with CIPC (or trade as a sole proprietor) and register for tax
- Find premises that are zoned for your use, or confirm home use is allowed
- Apply for the Certificate of Acceptability and any municipal business licence
- Apply for a liquor licence if you will sell alcohol
- Fit out the kitchen, appoint suppliers and train staff in food hygiene
- Cost your menu, then market and launch
How much does it cost to start a food business?
| Cost item | Notes |
|---|---|
| Premises | Rent, deposit and possibly key money; home kitchens avoid this |
| Kitchen equipment | Stoves, fridges, freezers, extraction, prep surfaces, hand-wash basins |
| Fit-out and compliance work | Changes needed to meet health requirements |
| Approvals | Certificate of Acceptability, business licence, liquor licence where applicable |
| Opening stock | Ingredients and packaging |
| Staff | Wages, uniforms and hygiene training |
| Marketing | Signage, menus, social media, delivery-app listings |
What is a Certificate of Acceptability?
A Certificate of Acceptability (COA) confirms that your food premises meet the hygiene requirements of Regulation R638 (Regulations Governing General Hygiene Requirements for Food Premises). You apply to your municipality's environmental health practitioners, who inspect the premises. It applies to restaurants, takeaways, caterers, food trucks and other places where food is handled, including home kitchens used for a food business.
The inspection looks at things such as clean surfaces, hand-wash facilities, safe water, pest control, cold storage, waste disposal and staff hygiene. You must display the certificate and keep meeting the standards.
What other licences and permits do I need?
- Business licence: many municipalities require one for businesses that sell or supply meals or perishable food, under the Businesses Act. Ask your municipality.
- Zoning and building approval: the property must be zoned for a restaurant or food business, and alterations need approved plans.
- Liquor licence: selling alcohol needs a licence from your provincial liquor authority. This takes time, so apply early.
- Trading permits: food trucks and stalls need permission for each trading location.
- Fire safety: the fire department may inspect kitchens, extraction and gas installations.
- Signage: outdoor signs usually need municipal approval.
What tax and labour requirements apply?
Register for income tax, and for VAT once taxable turnover exceeds R2.3 million in 12 months (from 1 April 2026). Restaurants and takeaways reach this level quickly, so watch your turnover. As an employer, register for UIF, PAYE where it applies and COIDA, and pay at least the national minimum wage of R30.23 per hour from 1 March 2026. The hospitality sector has its own conditions of employment, so check the current rules with the Department of Employment and Labour.
How do I price my menu?
Cost every dish: the ingredient cost per portion, plus a share of wages, rent, utilities and packaging. Many food businesses aim for ingredient costs to be a set share of the menu price and review prices whenever supplier prices change. Track waste, because thrown-away food is cost without revenue. See how to price your services.
How do I find customers for a food business?
| Customer type | How to reach them |
|---|---|
| Local walk-in customers | Visible location, signage, Google Business Profile, opening specials |
| Online orders | Delivery apps, WhatsApp ordering, Instagram and Facebook |
| Offices and events | Catering menus, tasting sessions, a company profile |
| Schools and institutions | Contracts and supplier registration |
| Government catering | CSD registration and tenders for meetings, events and institutions |
What are the common mistakes?
- Signing a lease before confirming zoning and health requirements
- A menu that is too big, which increases waste and stock costs
- Not costing dishes, so popular items lose money
- Underestimating how long a liquor licence takes
- Relying only on delivery apps, whose commission eats the margin
How can Uminathi help?
You can follow every step here yourself. Uminathi can register your company, handle tax and CSD registration for catering contracts, write a business plan for funding, and build a website for ordering and bookings.
Step by step
- Choose your model and menu. Decide between restaurant, takeaway, catering, food truck or home production, and design a focused menu.
- Register the business and tax. Register with CIPC or trade as a sole proprietor, and register with SARS.
- Confirm premises and zoning. Check zoning and building rules before signing a lease or using your home.
- Get your Certificate of Acceptability. Apply to the municipal environmental health office and pass the R638 inspection.
- Get other licences. Apply for a business licence, trading permits and a liquor licence where they apply.
- Set up kitchen and suppliers. Install compliant equipment, choose suppliers and train staff in food hygiene.
- Cost the menu and launch. Price every dish from real costs, then market your opening.