Resource Centre5 Key Things To Consider When Starting A Hospitality Business
5 Key Things to Consider When Starting a Hospitality Business
Starting a hospitality business in Australia is no small undertaking. Whether it’s a café in a coastal town, a boutique bar in the suburbs, or a fast-paced takeaway spot in the city, every successful business in the hospitality industry begins with a strong foundation.
While enthusiasm is important, it needs to be matched with planning, budgeting, and a clear understanding of how the hospitality industry works—especially in the context of hospitality in Australia, which comes with its own unique challenges and expectations. If you’re in the early stages of launching a hospitality start-up, here are five essential areas to focus on before you open your doors.
Watch this short video where our experienced team member Angus, gives you a quick rundown on what you need to know.
1.Menu – Start With What You Can Deliver Well
Your menu isn’t just about what’s popular. It should reflect what you can execute consistently, what aligns with your brand, and what your target customers actually want to eat or drink.
Be specific, not everything to everyone One of the most common mistakes for a hospitality start-up is trying to cater to every preference. Find your niche and focus on dishes you can prepare well under pressure. Less is often more.
Understand your audience Whether you’re aiming to attract local workers on their lunch break or families looking for weekend brunch, your menu should reflect your customer base. Understanding this is key to success in the hospitality industry.
Build flexibility into your offering Your menu should be able to adapt to ingredient shortages, price shifts, and seasonal produce. A rigid menu can cost you—literally.
Stay on top of costs Calculating your Cost of Goods Sold (COGS) isn’t just accounting—it directly affects your pricing, margins, and profitability. Reassess your COGS regularly, especially when supplier prices change.
2.Budget – Don’t Guess Your Way Through It
One of the biggest risks for a new hospitality business is running out of money before you even build momentum. Budgeting isn’t just about being frugal—it’s about being smart with every dollar.
Have a clear picture of your set-up costs Think leases, licences, staffing, insurance, POS systems, initial stock, marketing—the list adds up quickly. Get quotes and create a detailed start-up budget.
Know where the money is coming from Are you funding this with savings, a loan, or help from family? Each option has different risks. Consider renting commercial kitchen equipment to reduce upfront capital costs. Caterlink can help with our in-house rental solutionRent-it-Today.
Forecast cash flow realistically It might take months to turn a profit. Can your business survive a slow start? Budget for wages, stock, utilities, and even quiet periods.
Expect the unexpected Equipment breaks down, suppliers let you down, rent increases—always have a financial buffer in place. Contingency planning isn’t optional.
3.Location – More Than Just a Street Address Well
In the hospitality industry, location is often the difference between long lines and empty tables. But it’s not just about where your venue is—it’s about what surrounds it and who frequents the area.
Is it visible and easy to get to? Make it simple for people to find and enter your venue. Good signage, nearby parking or public transport, and foot traffic all matter.
Match the location to your customer base Launching a high-end wine bar in a suburb that’s mainly made up of young families might not work. Successful hospitality in Australia often depends on understanding the local demographic.
Scout out your competitors A little competition is normal, but if you’re one of ten coffee shops on the same street, you’ll need a clear reason for people to choose you instead. What makes your hospitality business different?
4. Kitchen Workflow – Don’t Leave It to Chance
A good menu is important, but a well-functioning kitchen makes it possible to deliver that menu efficiently. The layout of your kitchen directly impacts service speed, staff morale, and customer satisfaction. Getting this right from the start saves time, stress, and future renovations—especially important for a leanhospitality start-up.
Plan for peak times Your kitchen layout needs to support a fast and efficient workflow. Prep, cooking, plating, and cleaning areas should all be arranged in a logical, streamlined way
Make space a priority Overcrowded kitchens are not just frustrating—they’re dangerous. Ensure there’s enough room for staff to move, especially during peak periods.
Tick all compliance boxes Health and safety standards aren’t suggestions—they’re legal requirements. From ventilation to waste management, your design needs to pass inspection.
5.Equipment – Think Beyond Just Buying What’s Cheapest
Your kitchen equipment isn’t just background noise—it’s the backbone of your operation. Every second counts during a rush, and if your equipment can’t keep up, it impacts everything from food quality to staff performance.
Make sure it fits your workflow Equipment should be placed in a way that supports how your kitchen operates. That includes everything from oven placement to refrigeration access.
Look at lifetime cost, not just purchase price Consider energy efficiency, ease of maintenance, and warranties. In some cases, renting may be smarter than buying—particularly for new entrants in the hospitality industry trying to manage cash flow.
Starting a hospitality business in Australia takes more than just passion—it takes planning, budgeting, and the right tools. Whether you’re new to the hospitality industry or expanding an existing idea, getting the basics right is key.
Need help with equipment, kitchen layout, or compliance? Talk to the team at Caterlink. We know hospitality in Australia, and we’re here to help you get started on the right foot.
