Food · South Africa

How to start a food business or restaurant in South Africa

By Uminathi Business Start-Up ServicesPublished Updated 5 min read

Quick answer

To start a food business in South Africa, choose your model (restaurant, takeaway, catering, food truck or home kitchen), register the business and tax, and get the approvals your municipality requires. Any premises where food is handled needs a Certificate of Acceptability from the municipal environmental health office under Regulation R638. You may also need a business licence, zoning approval and, if you sell alcohol, a provincial liquor licence. Then plan your menu costs, suppliers and marketing.

Read the complete guide below.

At a glance

Business typeRestaurant, takeaway, catering, food truck, bakery or home-based food production
Common structureSole proprietor for small home production; (Pty) Ltd for premises and contracts
Key approvalsCertificate of Acceptability (R638), municipal business licence and zoning, liquor licence if selling alcohol
Start-up costsLow for home catering; high for a restaurant fit-out
Typical customersWalk-in customers, offices, events, schools, corporate and government catering
Biggest riskHigh fixed costs (rent, staff) and food waste

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?

  1. Choose your model, menu and target customers
  2. Register the business with CIPC (or trade as a sole proprietor) and register for tax
  3. Find premises that are zoned for your use, or confirm home use is allowed
  4. Apply for the Certificate of Acceptability and any municipal business licence
  5. Apply for a liquor licence if you will sell alcohol
  6. Fit out the kitchen, appoint suppliers and train staff in food hygiene
  7. Cost your menu, then market and launch

How much does it cost to start a food business?

Cost itemNotes
PremisesRent, deposit and possibly key money; home kitchens avoid this
Kitchen equipmentStoves, fridges, freezers, extraction, prep surfaces, hand-wash basins
Fit-out and compliance workChanges needed to meet health requirements
ApprovalsCertificate of Acceptability, business licence, liquor licence where applicable
Opening stockIngredients and packaging
StaffWages, uniforms and hygiene training
MarketingSignage, 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 typeHow to reach them
Local walk-in customersVisible location, signage, Google Business Profile, opening specials
Online ordersDelivery apps, WhatsApp ordering, Instagram and Facebook
Offices and eventsCatering menus, tasting sessions, a company profile
Schools and institutionsContracts and supplier registration
Government cateringCSD 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

  1. Choose your model and menu. Decide between restaurant, takeaway, catering, food truck or home production, and design a focused menu.
  2. Register the business and tax. Register with CIPC or trade as a sole proprietor, and register with SARS.
  3. Confirm premises and zoning. Check zoning and building rules before signing a lease or using your home.
  4. Get your Certificate of Acceptability. Apply to the municipal environmental health office and pass the R638 inspection.
  5. Get other licences. Apply for a business licence, trading permits and a liquor licence where they apply.
  6. Set up kitchen and suppliers. Install compliant equipment, choose suppliers and train staff in food hygiene.
  7. Cost the menu and launch. Price every dish from real costs, then market your opening.

Frequently asked questions

Can I sell food from home in South Africa?

Yes, but your home kitchen must meet the food hygiene requirements and you need a Certificate of Acceptability. Check that your municipality allows the business activity at your address.

How long does a Certificate of Acceptability take?

It depends on the municipality and on whether your premises pass the first inspection. Apply early and fix any issues the inspector raises.

Do I need a liquor licence to sell alcohol?

Yes. Selling alcohol requires a licence from the provincial liquor authority. You cannot sell alcohol while the application is pending.

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

It varies widely with location, size and fit-out. Catering or a small takeaway costs far less to start than a sit-down restaurant.

Do I need to register a company to start catering?

Not for small private orders, but corporate and government catering contracts usually require a registered company, tax compliance and CSD registration.

Do food handlers need training?

Food handlers must follow the hygiene rules in R638, and the person in charge must make sure staff are trained in food hygiene.

Official sources

Uminathi Business Start-Up Services is a private company. We are not part of, or acting for, CIPC, SARS, National Treasury (CSD), CIDB, the Department of Employment and Labour or any other government body. Requirements change, so always confirm with the official source.

Written by: Uminathi Business Start-Up Services
Reviewed by: Uminathi Business Start-Up Services
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