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Starting a cafe or food business in Australia

Last reviewed 2026-07-17

Cafes and food businesses have more moving parts than most start-ups — council rules, food safety, leases and staff costs. This guide covers the common path.

1. Council food business registration

Almost every cafe, takeaway, food truck or bakery needs to notify or register with the local council as a food business before trading. Requirements vary by council and risk classification (for example low-risk packaged food vs high-risk ready-to-eat meals).

  • Contact your local council early — do not wait until after you sign a lease.
  • Ask about kitchen fit-out standards, grease traps, exhaust and waste.
  • Some councils inspect before you can open.

ABLIS — Australian Business Licence and Information Service

2. Licences you may also need

  • Liquor licence if you serve alcohol.
  • Outdoor dining / footpath dining permit.
  • Signage approval.
  • Music / APRA AMCOS if you play commercial music.

3. Structure, ABN and GST

Many cafes start as sole traders or companies. If your turnover will exceed $75,000 quickly (common for cafes), plan for GST registration from the start so your pricing and POS are set up correctly.

ATO — Registering for GST

4. Staff and Fair Work awards

Hospitality staff are usually covered by the Hospitality Industry (General) Award. Penalty rates for weekends, evenings and public holidays add up fast. Use the Fair Work Pay Calculator before you set roster budgets.

Fair Work — Pay Calculator

5. Costs people underestimate

  • Lease bond + fit-out (often the biggest cost).
  • Equipment (espresso machine, refrigeration, POS).
  • Opening stock and packaging.
  • Insurance (public liability, contents, business interruption).
  • 3 months of wages and rent as a buffer.
TipRun our start-up cost and break-even calculators with cafe numbers before you commit to a lease.
Heads upGeneral information only. Confirm council, liquor and food safety requirements for your exact location.

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