7 Essential Steps for Opening a Restaurant in Japan

Key takeaways 

1. Opening a restaurant in Japan requires local licenses, permits, and a Business Manager Visa. 2. Startup costs range from ¥5–20M depending on city and size. 3. Cultural fit matters—Japanese customers expect consistency and top-tier service. 4. Location, legal structure (KK or GK), and funding sources must be chosen strategically.

Step 1 – Understand Why Japan Is a Strategic Market

Japan’s growing hospitality and tourism demand

Opening a restaurant in Japan’s thriving hospitality market, with its strong tourism recovery and appetite for diverse cuisines, makes it an ideal place for foreign restaurant ventures. Inbound tourism hit a record 36.87 million in 2024, with a significant share of spending going to dining. Locals are also embracing new formats like takeout, plant-based menus, and global flavors, creating a strong demand for niche, authentic concepts.

Beyond Tokyo: Other Cities Gaining Traction

Japan’s dense urban centers make it perfect for testing brick-and-mortar models. While Tokyo and Osaka remain top choices, cities like Fukuoka and Sapporo offer lower costs and startup-friendly incentives, including support for foreign entrepreneurs applying for the Startup Visa.

But which city is the best fit for your concept, and what kind of help can you expect? Use our Japanese Cities to Start Your Incorporation guide to compare key locations and find the right environment for your restaurant.

Step 2 – Plan Your Concept and Budget

Match your concept with Japanese preferences

With your target city selected, the next step is refining your restaurant concept and building a practical budget. Japanese consumers value authenticity and quality, but your idea also needs to align with local tastes. Whether you’re planning a cozy izakaya or a specialized bakery, research what similar establishments charge, how they attract customers, and where your niche fits.

Estimate startup costs

Startup costs depend on the city and scale of your venture. In Tokyo, total initial investment typically ranges from ¥10–20 million, while Osaka and Fukuoka are more accessible at ¥5–12 million. The biggest expenses are usually property deposits and key money, followed by renovation, equipment, licensing, and working capital for your first few months of operation.

Save Smart with Inuki properties and second-hand equipment

To stretch your budget, look for an inuki (居抜き) property—spaces already fitted with kitchen infrastructure since these can significantly cut renovation costs. Buying second-hand kitchen gear and starting with a focused, streamlined menu also help reduce upfront spending. You can find inuki listings through platforms like 居抜き物件.com (specializing in furnished restaurant spaces, especially in Fukuoka) or by working with local bilingual agents who often have access to unlisted deals. 

Explore funding sources available to foreigners

Many founders fund their ventures through Japan Finance Corporation (JFC) loans, which can offer up to ¥72 million in low-interest capital. Regional governments may also offer subsidies or incentives for opening in designated startup zones. Crowdfunding is another effective way to raise early support and test market interest. Learn how it works in Japan through this guide on Crowdfunding in Japan.

If you’re unsure where to start with funding or subsidies, our team can point you in the right direction. Book a consultation to get personalized support tailored to your business plan.

 If you’re unfamiliar with these programs, be sure to check out Smart Start Japan’s Government Subsidies for Small Businesses in Japan guide – it explains where to apply, who qualifies, and how long the process usually takes. 

Step 3 – Register Your Business 

Select the right business structure for your restaurant.

To legally open a restaurant in Japan, you’ll need to establish a company and secure the appropriate visa. Most foreign founders choose either a Kabushiki Kaisha (K.K.) or a Godo Kaisha (G.K.). Kabushiki Kaisha (K.K.) is similar to a joint-stock company or corporation. It’s Japan’s most traditional and widely recognized structure. While setup costs are higher and procedures more formal, a K.K. can boost your credibility in Japan’s conservative business culture.

Where to Apply for K.K. or G.K. Incorporation

Legal Affairs Bureau, Ministry of Justice – This is the official government agency where you register your company in Japan.

• For full registration requirements and procedures, refer to the Japanese Ministry of Justice website. 
  
• Office Locator: Find your local Legal Affairs Bureau
  

There’s no requirement for a Japanese partner or director, but having a local address and point of contact can make the process smoother. Our Guide to Rental Offices in Japan can help you secure a registered address if needed.

How to register your company in Japan

Once you’ve chosen your structure, you’ll need to formally register the company with the Legal Affairs Bureau (法務局, Homukyoku) in your jurisdiction. Here’s what the process involves:

1. Draft Your Articles of Incorporation (定款, Teikan)

• What it is: A legal document stating your company’s purpose, name, location, directors, shareholders, and capital.

• Where to do it: You can draft this yourself or use a judicial scrivener (司法書士, shihō shoshi). For K.K., notarization is required (see next step).

2. Have Your Articles Notarized (for K.K. only)

• What it is: K.K. incorporations must have their Articles of Incorporation notarized to become legally valid.
• Where to do it: At your local notary office (公証役場, Koushou Yakuba).
• Cost: Around ¥50,000–¥55,000 for notarization + stamp duties.

3. Submit registration documents to the Legal Affairs Bureau, including:

• Articles of incorporation (定款, Teikan) – The legal foundation of your company, includes the business purpose, name, location, capital, and director details.
• Notification of Incorporation  (設立登記申請書, setsuritsu tōki shinseisho) – This is the official application form for company registration. It must match the details in your Articles of Incorporation exactly.
• Proof of paid-in capital (払込証明書, harai-komi shōmeisho) – A bank statement or capital contribution certificate showing that the startup capital was deposited into the incorporator’s account. It must be an actual bank transfer, cash deposits are not accepted. 
• Registered seal (inkan) certificate (印鑑証明書, inkan shōmeisho) – After creating your company seal (hanko), it must be registered with the city or ward office. This certificate proves the legal use of your seal for corporate documents.
• Director and shareholder information – Copies of passports, residence cards (if applicable), and signature samples of all directors and shareholders. If you are not in Japan at the time of registration, notarized passport copies may be required.

After approval, you’ll receive your company registration certificate and corporate number, this is the foundation you’ll use to apply for permits, open a bank account, and apply for your visa.

(Optional) Apply for a Business Manager Visa 

Many successful founders have limited Japanese fluency at first. With the right bilingual staff, local advisors, and Smart Start Japan’s tools, you can succeed while learning along the way.

To run your business on the ground, you’ll need a Business Manager Visa. This visa requires either a ¥5 million capital investment or hiring two full-time local employees. A signed lease for your restaurant space is also required. You’ll need to submit a business plan, financials, and company documents to obtain the Certificate of Eligibility (COE).

Smart Start Japan’s Business Manager Visa guide can help you avoid delays and ensure every document is correctly prepared.

Consider Startup Visa as an entry path

As of 2025, Japan has introduced a nationwide Startup Visa, giving foreign entrepreneurs up to two years to launch their business before meeting full visa conditions. This provides greater flexibility for testing and scaling your concept before committing capital.

Use Smart Start Japan’s Startup Visa guide covers the full application process, requirements, and timelines

Step 4 – Secure a Location and Negotiate the Lease

Be prepared for leasing challenges

Choosing the right location is critical, and navigating Japan’s commercial leasing process can be challenging for foreign entrepreneurs. Common hurdles include high upfront costs, large deposits, and landlords often requiring a guarantor (保証人, hoshōnin). Some may also be hesitant to lease to foreign-run businesses without local partners or credit history.

Work with specialists and read the fine print

To avoid surprises, work with bilingual real estate agents who understand the needs of foreign tenants. Expect to pay several months’ rent upfront in the form of a deposit and key money, and budget for guarantor service fees if you don’t have a local co-signer.

Look for high foot traffic areas that suit your concept, and revisit any inuki options identified during your planning phase to keep renovation costs down. Be sure to clarify lease terms, like renewal fees, restoration obligations, and utility responsibilities, and always have a legal advisor review your contract before signing.

Step 5 – Apply for Permits and Comply with Regulations

Get your Restaurant Business Permit

To legally operate a restaurant in Japan, you’ll need a Restaurant Business Permit (飲食店営業許可, inshokuten eigyō kyoka) from your local public health center (Hokenjo). This permit ensures your facility meets hygiene and structural standards set by the Food Sanitation Act—like proper ventilation, separate sinks for handwashing and food prep, and waste management areas. You’ll need to submit an application form, a floor plan, proof of water quality (if not using municipal water), and the Food Sanitation Manager’s certificate. After an on-site inspection, permits are typically issued within two weeks. Fees vary by location but are generally around ¥18,000.

You must also appoint a Food Sanitation Manager (食品衛生責任者, shokuhin eisei sekininsha). If you or a team member don’t already hold a qualifying certification (like a chef or nutritionist), one person must complete a one-day course offered in Japanese by the local health association. The course costs about ¥10,000 and must be completed before the facility inspection. Once certified, the qualification is valid nationwide.

For detailed guidance on local procedures and variations, see our Business Licensing in Japan article to stay compliant with food service regulations.

Fulfill fire safety and late-night alcohol laws

Fire safety compliance is mandatory for all restaurants. If your space has 30 seats or more, you must appoint a Fire Prevention Manager (防火管理者, bōka kanrisha) and file a fire prevention plan with the local fire department. Smaller spaces must still meet basic safety rules: clear emergency exits, posted evacuation signage, and proper extinguisher installation.

If your restaurant plans to serve alcohol after midnight, you’ll need to file a late-night alcohol service notification (深夜酒類提供飲食店営業の届出) with the local police. This applies even if you’re not operating as a bar or club, as long as alcohol is served past 12 a.m.

Ensure full location compliance

Before launch, confirm that your property is properly zoned for restaurant operations. This includes checking local urban planning codes and signage ordinances. Most cities restrict business types in residential areas and limit external signage sizes or lighting styles. Inspections are usually conducted by the municipal planning department during the permit process.

Finally, ensure all permits and certificates are visibly posted, and your staff is trained in basic hygiene and safety procedures before opening.

Cost Breakdown of opening a restaurant in Japan

Once you’ve chosen your structure, registered your company, and applied for the necessary permits, you’re ready to calculate your true startup costs. The table below gives a snapshot of the total estimated costs you should plan for, from incorporation and licensing to equipment and working capital. Most foreign owned restaurants in Japan launch with an initial investment between ¥5 million and ¥20 million, depending on city, size, and format.

Category	Estimated cost range (JYP)
Company registration (KK or GK)	¥200,000–¥300,000
Notarization (for KK only)	¥50,000–¥55,000
Visa application (Business Manager)	¥0–¥5,000,000
Office or restaurant lease (initial costs)	¥1,000,000–¥4,000,000
Renovation & equipment	¥2,000,000–¥6,000,000
Licensing & permits	¥100,000–¥300,000
Initial working capital	¥1,000,000–¥3,000,000
Total estimate cost range	¥4,350,000–¥18,655,000

These estimates cover the major startup expenses but can vary based on property type (e.g., inuki vs. new build), city-specific fees, and whether you’re applying for a Business Manager Visa.

Step 6 – Align Your Concept with Japanese Consumer Expectations

Adapt your service to Japanese expectations

To succeed in Japan’s restaurant scene, foreign founders must align their customer experience with local norms—without losing their unique brand. Japanese diners value spotless cleanliness, refined presentation, and consistent service grounded in omotenashi (thoughtful, anticipatory hospitality). Even casual restaurants are judged on fine details like staff demeanor, table setup, and noise levels.

Tailor your menu and feedback process

Keep your concept authentic, but adapt formats and portions to fit local habits. Seasonal dishes, smaller lunch sets, and clear allergen labeling help build trust. Bilingual menus are increasingly expected, especially in tourist-heavy cities. Feedback is often subtle in Japan, so monitor review platforms like Tabelog for patterns you may miss in direct conversation.

Avoid legal and cultural missteps

If you’re taking over an existing property, do thorough due diligence. Check for back taxes, unpaid wages, and lease obligations. Engage a legal advisor early. Hiring also has restrictions: there’s no visa category for waitstaff, so you’ll need to hire Japanese nationals, residents, or skilled workers.

Culturally, business in Japan relies on group consensus (根回し, nemawashi) rather than fast decisions. Rushing negotiations or being overly transactional can damage trust. Take time to build relationships and show respect for the decision-making process.

Take time to build relationships and show respect for the decision-making process, this Japanese Business Etiquette guide can help you navigate these expectations with confidence.

Step 7 – Launch and Promote Your Restaurant

Build visibility on Japan’s restaurant platforms

Launching your restaurant in Japan means building visibility where locals actually look. Platforms like Tabelog, Gurunavi, and Retty dominate restaurant discovery, so claim and optimize your listings with quality photos, clear menus, and accurate hours. For visual appeal, Instagram outperforms Google, especially among younger diners, so showcase your dishes and vibe there. To retain customers, use LINE for loyalty programs and direct promotions.

Use social and messaging platforms that locals prefer

Community outreach also matters. Partner with bilingual food influencers to tap into local and expat audiences, and connect with chambers of commerce or international entrepreneur networks to gain credibility and referrals.

To better tailor your concept to local preferences, read this article on How to Localize for the Japanese Market.

Case Study: Napoletan pizza in Japan

Italian chef Salvatore Cuomo built a restaurant empire in Japan by combining authentic Neapolitan pizza with local expectations. He adapted portion sizes, presentation, and service to match Japanese dining culture, embracing omotenashi to earn customer loyalty.

Cuomo also understood the importance of local visibility. He strategically leveraged platforms like Tabelog, collaborated with Japanese media, and tailored his branding to resonate with local sensibilities. His approach wasn’t just about food, it was about cultural fluency.

Today, his brand operates more than 85 locations across Japan and generates over €80 million annually, offering a compelling example of how foreign entrepreneurs can succeed in Japan by aligning with local expectations and building trust with Japanese consumers.

Conclusion: Enter the Market with Confidence

Opening a restaurant in Japan requires careful planning, regulatory understanding, and cultural sensitivity, but with the right approach, it is entirely achievable. From selecting your business structure and securing permits to localizing your service and marketing, each step lays the groundwork for long-term success.