Important considerations when operating a restaurant

Currently, the demand for dining and entertainment has become increasingly essential. Among the various business models, restaurants remain a popular choice for entrepreneurs to pursue. However, it is also a highly competitive and challenging industry. This article aims to clarify common questions and provide crucial insights for those intending to enter restaurant businesses.

I. Current situation of restaurant businesses 

A wide range of restaurants and hotels are being established and broadly developed to meet customer demands such as accommodation, food and beverage services, and entertainment. However, a major challenge facing restaurant businesses in Vietnam today is the imbalance between supply and demand. Therefore, it is essential for restaurant operators to identify strategies to survive in a fiercely competitive environment while remaining profitable.

II. What does restaurant business mean?

Operating a restaurant (restaurant business) refers to activities involving the preparation, sale, and serving of food and beverages and entertainment purposes, with the ultimate goal of generating profit. In essence, the restaurant business is a type of food and beverage service.

1. Definition of restaurant business
Restaurant business means the operation process of various departments from management, supervision, reception, service staff to cashier. Each department performs a specific role and receives training according to service standards of the restaurant, thereby enhancing service quality and ensuring a positive experience to customers while generating revenue. 

2. Industry code for restaurant businesses
According to Decision No. 27/2018/QĐ-TTg, the relevant industry codes for registering a household or business entity in the food service sector are:

III. Legal requirements for restaurant businesses under current Vietnamese Law

To legally operate a restaurant, the following licenses and conditions must be met:

1. Business license for food and beverage services

- For household businesses: Register under the category “restaurant,” “eatery,” or “food and beverage service.”

- For companies: Register with the relevant food and beverage business activity.

- For foreign-invested enterprises: Register the project objective as food and beverage supply services.

2. Legal use of business premises (location)
The business must have lawful rights to use the restaurant’s location.

3. Certificate of Food Hygiene and Safety (Certificate of Eligibility for Food Safety)
Businesses must obtain a Certificate of Food Hygiene and Safety from the competent authority.

4. Licenses for alcohol and tobacco sales
If the restaurant sells alcoholic beverages or tobacco, additional licenses are required for those items.

IV. Application dossiers and procedures for the Certificate of Food Hygiene and Safety

1. Required dossiers 

- An application for the Certificate of Food Hygiene and Safety.

- Certified copy of the Business Registration Certificate including food-related business activities.

- Description of facilities and equipment ensuring food safety, including:

+ Floor plan and layout of the facility and surrounding area;

+ Flowchart of the food production, storage, or distribution process;

+ Detailed description of equipment and tools used.

- Certificate of food safety training for the owner and food handlers.

- Health certificate for the owner and food handlers. 

2. Application procedures

- The organization or individual submits the application to the competent authority.

- Within 15 working days of receiving a valid dossier, the authority will conduct an on-site inspection to assess compliance with food safety standards. If the conditions are met, the certificate will be granted.

3. According to Article 35 of the Law on Food Safety 2010:

V. Questions regarding restaurant businesses

1. Which authority issues the Certificate of Food Hygiene and Safety? What is its validity?

Under Article 35 of the Law on Food Safety 2010, the Ministry of Health, the Ministry of Agriculture and Rural Development, and the Ministry of Industry and Trade are responsible for issuing and revoking the certificate within their assigned scope. The certificate is valid for 03 years from the date of issuance.

2. Should I establish a company or a household business to operate a restaurant?
 
If you plan to expand your business or scale up operations, establishing a company is advisable. For small, local operations, registering as a household business is more suitable. 

3. What are fines for operating a restaurant without the Certificate of Food Hygiene and Safety?

Under the Law on Food Safety 2010 and Article 18 of Decree 115/2018/NĐ-CP, operating a food service business without a valid certificate may result in a fine of 20,000,000 VND to 30,000,000 VND.

4. Are there additional licenses required besides the Certificate of Food Hygiene and Safety?

The Certificate of Food Hygiene and Safety is both a necessary and sufficient condition for legally operating a restaurant. No additional licenses are required for the restaurant business itself.

5. Is the Certificate of Food Hygiene and Safety required for restaurants located inside hotels?

According to Article 12 of Decree 15/2018/NĐ-CP, restaurants within hotels are exempt from obtaining a separate Certificate of Food Hygiene and Safety.