How to Start a Pop-Up Restaurant: 7 Steps to Success

Pop-up restaurants are still a hot trend in the food industry. It makes sense. These limited-time establishments allow operators to test restaurant concepts, generate buzz, and connect with guests—all while minimizing long-term overhead and risk. They also allow guests to have new and exciting experiences. In other words, pop-up restaurants are a win-win proposition for all. 

In this article, we explain how to start a pop-up restaurant and make it successful. So, whether you're a brand-new operator or a seasoned restaurateur, this guide will help. 

What Is a Pop-Up Restaurant? 

Before we tackle the question, "How to start a pop-up restaurant," let's talk about what a pop-up restaurant is and how it can benefit operators of all kinds. 

Definition and Concept 

A pop-up restaurant is a temporary dining establishment hosted in a non-traditional or short-term venue. Venue examples include event spaces, rooftops, and retail stores. These temporary restaurants enable current and aspiring restaurant owners to test menu ideas, experiment with pricing structures, implement marketing strategies, build a brand, and more. 

4 Benefits of a Pop-Up Model 

There are many benefits to the pop-up restaurant concept. Four of the more important ones include lower status costs, built-in urgency and exclusivity, quick feedback, and press potential. Learn more about these four perks here: 

1. Lower Startup Costs: Opening a permanent location is expensive. Pop-up locations allow operators to get started for less capital. After all, they don't have to sign a long lease, pay for utilities on a monthly basis, or worry about ongoing food and labor costs. 
2. Built-In Urgency and Exclusivity: Pop-up eateries are temporary. As such, they offer something traditional restaurants can't—urgency. The people in your community will want to eat at your pop-up now because they might not be able to later. You can also add an element of exclusivity by designing a special pop-up restaurant menu. This will allow you to try new ideas and turn a simple meal into a must-attend dining experience. 
3. Quick Feedback from Real Guests: What do people think about your new menu items? What about the staff you just hired or the atmosphere you created? The pop-up concept will give you immediate feedback from guests. Simply ask them to fill out a questionnaire before they leave. Or, collect emails and send a post-meal survey. 
4. Earn Press Coverage and Create Buzz: Journalists need things to write about. A new pop-up restaurant provides content for newspaper, magazine, and blog articles. Also, people like building their social media presence. An Instagram or TikTok post about your pop-up business will spread the word about your temporary location. 

How to Start a Pop-Up Restaurant in 7 Steps 

There isn't a "best way" to start a pop-up restaurant. Your approach depends on your concept, location, marketing plan, and other factors. That said, most successful pop-up restaurants follow a similar process, outlined below. Use this list of seven steps as a blueprint for your efforts. 

1. Define Your Concept and Target Audience

First, choose a thingspecialty or concept. What do you want your pop-up business to be known for? New restaurant concepts usually revolve around specific themes, cuisines, or unique experiences. 

Your pop-up restaurant concept can take a similar approach. For example, you might choose a 50s theme and ask your waitstaff to deliver food on roller-skates. Or partner with regional food vendors and only serve food grown in your local area. The options are limitless. 

To help choose the right restaurant business concept, consider your target audience. Who do you want to serve and what gap can you fill for them? You might have an existing restaurant that attracts working professionals due to the expensive food menu. So, you could decide to start a pop-up restaurant that serves ice cream, has a bright color scheme, and attracts young families. 

2. Choose the Right Location

Where will you host your pop-up restaurant? Popular options include breweries, galleries, rooftops, and food halls. But almost anywhere can work, including a local retailer's parking lot. 

Before you choose a location, consider foot traffic, licensing requirements, kitchen access, and ambiance. Will people find your pop-up on their own or will you need to heavily invest in advertising? Does the location you want require special licenses and permits? And do you have the money to pay for them?  

Also, think about pop-up restaurant design. Find a location that fits the theme, full food menu, and/or experience you want to create for guests. 

Pro Tip: Build partnerships with local businesses. This could help you save money on rent, ingredients, and other expenses. It can also relieve stress. After all, co-hosting a pop-up restaurant is a lot less work because you can split hosting duties. 

3. Secure Licenses and Permits

You need to secure licenses and permits to operate in the restaurant industry. This goes for full-fledged eateries, food trucks, underground supper clubs, and everything in between.  

Important restaurant licenses include food handler permits and health department inspections. You might also need a temporary food facility permit or catering license, depending on your city. And don't forget about temporary occupancy agreements and liability insurance. 

While pop-up restaurants offer a cheap way to test exciting concepts and reach new audiences, you still have to comply with local laws. Don't skip this important step! 

4. Develop a Pop-Up Menu

Your concept and location don't matter much if your food underwhelms. So, take time to design an amazing pop-up menu that balances taste, speed, execution, and profitability:  

• Taste: Design signature dishes that your diners will want to eat 
• Speed: Create dishes that your chefs can make in a timely manner 
• Execution: Build menus that your chefs can make at your location. (Will you have access to a deep fryer? If not, remove items that require deep frying from your menu.) 
• Profitability: Design a menu that can turn a profit. (Dishes that taste good and are easy to make but lose money might not fit the goals you have for your pop-up restaurant.)

5. Set Up Operations and Logistics

You can't run a successful restaurant without a handle on operations and logistics. Figure out where you'll source ingredients and whether you'll need to prep offsite. 

You'll also need to plan your kitchen. Does your location already have one? If not, you'll need to rent portable kitchen equipment, sanitation stations, and food storage options. Then you'll need to set them up in a way that allows your chefs to achieve compliance and efficiency. 

Last but not least, invest in a POS system that can handle online ordering. That way you can take orders in-person and via the internet. If possible, we recommend an app that offers a QR code menu as well. Finally, prepare your loyalty and/or CRM tool to capture guest information. This will give you a marketing advantage if you turn your pop-up into a permanent restaurant. 

6. Price Strategically

Your pop-up restaurant business plan should include detailed pricing information. How much will you charge for each dish? Just as important, how can you increase profitability? 

There are many restaurant costs to think about: location and equipment rentals, ingredients, staff wages, marketing spends, and so on. Your cost-per-plate number should cover these expenses. Just make sure your prices don't exceed your pop-up's perceived value. This is a surefire way to disappoint guests and minimize repeat customers. 

What happens if you design a menu that will cover costs, but not turn a profit? You look for upsell opportunities. For example, you might be able to offer large family meals or limited-edition drink pairings. Both options can increase perceived value and profitability. 

7. Market Your Pop-Up Restaurant in Advance

Pop-up restaurants are all the rage, but if your ideal customers don't know about your temporary establishment, they won't show up to support it. That's why marketing is essential. 

Use social media channels like Instagram and TikTok to get the word out. If you have the money, invest in geo-targeted ads. We also suggest partnering with local influencers, seeking press in local newspapers and magazines, and adding your pop-up business to local event listings. 

Remember, pop-up restaurants offer built-in urgency. Use this fact to your advantage in your marketing efforts. How? By highlighting the number of nights your pop-up will be open, or the limited seats you have available. These things will make your target audience think, "Wow, we need to check this place out before we miss our chance!" 

Tools to Streamline Pop-Up Restaurant Operations 

The steps above will help you open a pop-up restaurant. The tools below will help make said pop-up successful by streamlining operations and increasing efficiency metrics. 

Simple POS and Inventory Systems 

Point of sale software, POS software for short, is vital. Without it, you can't accept credit card payments from guests. Look for a mobile POS system you can easily bring to your temporary restaurant. Then make sure the system can also track costs, sales, and inventory in real time. This will give you a full picture of your pop-up business and allow you to fully evaluate performance. A tool like Square is ideal for most pop-ups because it's user-friendly and runs on mobile devices. In other words, you can use the phone in your pocket to take orders, view inventory, and more—which is incredibly convenient. 

Online Ordering and Mobile Menus 

Mobile menus allow guests to choose their meals ahead of time. Online ordering capabilities allow them to order said dishes before they arrive. Both reduce waiting times and increase turnover. The faster guests get their food, the more they'll enjoy their experience at your pop-up. They'll also stick around for less time, which means you can serve more guests and increase profitability. Software tools like Paytronix make it easy to build mobile menus and accept online orders, which creates happier guests and wealthier restaurateurs. 

Loyalty and Guest Engagement Software 

If you want to own a successful restaurant, you have to build a loyal customer base. Pop-ups can help by introducing your culinary expertise to new people. But this will only happen if you use specific software to collect emails and phone numbers from guests, then use this data to track visits, offer personalized awards, and send important updates. Apps like Paytronix were designed for this purpose and give you tools to connect with guests on a deeper level. The result? More visits, higher spending, and a better reputation in your community. 

How to Turn Pop-Up Success into Long-Term Growth 

Want to turn your pop-up restaurant into a permanent location? These three tips will help make it happen. At the very least, they'll ensure your pop-up is as successful as possible. 

Collect Guest Feedback and Data 

Ask guests to fill out comment cards and leave reviews. That way you can learn what guests like and dislike about your pop-up restaurant. Then use this information to create a better dining experience. For example, you might learn that certain dishes sell better than others. Highlight these options on your menu, while eliminating dishes that aren't well received. You can also use software to track repeat guests, then reward them for their loyalty. 

Build a Community and Loyal Following 

Don't just collect guest feedback, use it to build a vibrant following around your pop-up restaurant. You can do this by inviting guests to follow your journey in the culinary world on social media and via email and text messages. You can even use these channels to offer VIP invites to future events and/or pop-ups. Doing so will make your audience feel special, while ensuring your next endeavor is successful. Put simply, an investment in community building is a great way to work towards a permanent location, if that's your goal. 

Consider Scaling or Going Permanent 

If you create enough demand, consider scaling your pop-up. There are two ways to do this: host additional pop-ups or open a permanent location. Hosting additional pop-ups will let you try new ideas and continue to grow your community without the high costs of a traditional restaurant. Opening a permanent location will let you execute your full restaurant vision and increase your financial potential. Good news: a successful pop-up will make it easier to secure funding for a traditional restaurant as you can use its performance to pitch to investors and secure a lease. Whatever you decide, a pop-up is a great first step towards your culinary goals. 

Frequently Asked Questions About Starting a Pop-Up Restaurant 

Starting a pop-up restaurant is a large undertaking. While we answered many questions above, you might have more. Let's answer a few of the more popular queries on the internet. 

Are pop-up restaurants profitable? 

Like any restaurant concept, some pop-ups are profitable, and others are not. It depends on many factors, such as your menu, location, business savviness, marketing acumen, and execution. If you get these things right, then your pop-up will likely be profitable. Especially since your overhead costs will be so low, in comparison to a permanent restaurant.  

What do you need to start a pop-up restaurant? 

To open a pop-up, you'll need a few things: 

• An understanding of your local market 
• A knowledge of who your target audience is 
• An exciting and profitable pop-up restaurant menu 
• A pop-up restaurant location that fits your desired vibe 
• A short-term, pop-up restaurant team you can rely on 
• Ingredients and technology to fulfill orders and satisfy guests 
• A realistic pricing plan that guarantees profitability 
• A strong marketing strategy that will generate attention 

How much does it cost to start a pop-up restaurant? 

It depends on your menu, location, staff size, marketing strategy, and other factors. For example, a pop-up restaurant in your backyard, using food you grow in your garden, and staffed by family members who donate their time, will cost significantly less than a pop-up restaurant hosted in your city's best venue that serves high-end, seven course meals and is staffed by a small army of well-trained employees in formal attire. Generally speaking, expect to spend $5,000 to $25,000 on your pop-up restaurant concept. 

How do pop-up restaurants attract guests? 

There are many ways to attract guests to your pop-up restaurant. Start with a unique angle. Will you serve a rare kind of food or treat guests to a specific themed experience? Next, connect with local journalists and earn press opportunities. A well-written newspaper, magazine, or blog article can reach thousands of potential guests.  

Then develop a strong marketing plan that includes the right mix of social media posts, influencer marketing campaigns, digital advertisements, and any other channel that's both available to you and reaches your target market. Finally, partner with other businesses to get the word out. For example, you could agree to buy ingredients from local farmers if they give you a discounted rate and post about your pop-up on their personal and professional social media channels. 

How do you attract customers quickly? 

The quickest way to attract customers to your pop-up restaurant is to invest in paid advertising. Social media sites like Facebook, Instagram, and TikTok will help you reach your target audience in exchange for a small fee. The same goes for Google Search and YouTube. There are other advertising opportunities in newspapers and magazines, on radio channels, and via billboards.  

The key is choosing advertising channels that reach your target customers (i.e. young professionals) at a price you can afford. One more thing: an effective PR campaign can also generate customers quickly. The right article in the right publication can create a buzz around your pop-up restaurant that drives attention, traffic, and financial success. 

Create a Pop-Up Restaurant That Builds Buzz and Profit 

Pop-ups are a flexible, low-risk way to get into the restaurant business. Opening one will help you learn the ropes of the industry, build a brand, connect with customers, get feedback, and not lose your life savings. Of course, you have to open a pop-up the right way. 

Fortunately, after reading this article, you know the seven steps to take. If you start with a strong concept, plan smartly, and use the right tools, your temporary restaurant can create real impact. 

Want to streamline operations and capture more guest data at your pop-up? Discover how Paytronix helps emerging concepts grow fast. Book your demo today.