The food industry is one of the most appealing investment opportunities in Mallorca, as the island is a renowned tourist destination. Both locals and tourists alike spend a significant amount of money dining out, making opening a restaurant in Mallorca a potentially profitable venture. Before you start your restaurant business on the island, it’s crucial to understand how the local business environment works. Seeking expert advice from our accountants in Palma is definitely a wise decision.

Location for the restaurant

Opening a restaurant is all about location, location, location. It is as crucial to its success as great food and service. It will influence many parts of your restaurant, including the menu. The city centre, beaches and the shopping malls are the most popular places in Mallorca. Make sure you select the right location for your style of restaurant. You should know that the higher the rent is, the more prominent is the location.

Licenses

Be very careful, as this is a crucial aspect when opening a restaurant in Mallorca. You will need an activity license, a music license, and if you plan to sell alcohol, you will also need a permit from the local authorities (ayuntamiento). Additionally, you must obtain a food handler’s certificate (carnet de manipulador de alimentos), which is required for safety and public health reasons and can be obtained from the regional government. It is also important to consider that, since a restaurant is an entertainment venue, a music license is necessary, particularly if you plan to have live music.

Staff

The people that make up your team will have just as much to do with the success of your restaurant as your food will. Rude or forgetful waiters can ruin everything. Make sure you take expert advice from an accountant in Mallorca who has experience in dealing with labour regulations in Mallorca and can advise you about the law and how it applies to your restaurant.

Legal form

Choosing the right business structure for your restaurant is crucial, as it can impact everything from tax obligations to legal liability. Our accountants in Palma can assist you in determining the most suitable structure for your business.

In Spain, you have three main options:

• Sole Trader: A sole trader is the simplest form of business structure and is relatively easy and inexpensive to set up., especially if you run your business on your own.
• Partnership: If you plan to go into business with more people, but you still want your structure to be flexible, you can run your business as a partnership.
• Limited Company: a limited company is the most complex, formal and expensive to set up and run. It also has a number of distinct advantages over the other forms, including limited liability and more favourable taxation.

Business plan

Write A business plan is especially helpful to those new to the food/restaurant industry. As you research information for your restaurant business plan, you may encounter problems you hadn’t considered previously, such as licensing, health codes and tax laws.