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How to Open a Restaurant in Turkey As a Foreigner
Publish Date: 07-Nov, 2023

How to Open a Restaurant in Turkey As a Foreigner

How to Open a Restaurant in Turkey As a Foreigner 

How to open a restaurant in Turkey as a foreigner is one of top issues that matter to many people because of the resilience of this industry from one side and the diverse revenue streams of it from another.

The Popularity of Turkish Restaurants 

The popularity of Turkish restaurants has been steadily growing both within Turkey and around the world. Several factors contribute to the rising popularity of Turkish cuisine and Turkish restaurants:

Diverse and Flavorful Cuisine: 

Turkish cuisine is known for its rich flavors and diverse range of dishes. It offers a combination of influences from the Mediterranean, Middle Eastern, and Central Asian cuisines. Signature dishes like kebabs, baklava, Turkish delight, and Turkish tea have gained international recognition.

Healthy Eating: 

Many Turkish dishes are prepared with fresh and wholesome ingredients, making them appealing to health-conscious consumers. Mediterranean diets, which often feature Turkish cuisine, are considered among the healthiest in the world.

Cultural Appeal: 

Turkish restaurants often offer an immersive cultural experience. From traditional music and decor to the practice of drinking Turkish coffee and tea, these aspects contribute to the overall appeal of the dining experience.

Hospitality: 

Turkish hospitality is renowned worldwide. Visitors often find themselves welcomed warmly in Turkish restaurants, creating a memorable dining experience.

Global Expansion: 

Turkish restaurant chains have expanded internationally, making Turkish cuisine accessible in many countries. This expansion has exposed more people to Turkish food and contributed to its popularity.

Food Tourism: 

Turkey has become a popular destination for food tourism. Travelers seek out authentic Turkish dishes while exploring the country's rich culinary traditions.

Cultural Events: 

Turkish restaurants often participate in cultural events and food festivals, both in Turkey and abroad, which further promote Turkish cuisine.

Healthy Ingredients: 

The use of ingredients like olive oil, fresh vegetables, and lean meats aligns with contemporary dietary trends emphasizing healthy eating.

Social Media and Food Blogging: 

Social media platforms and food bloggers have played a significant role in promoting Turkish cuisine. Mouthwatering images of Turkish dishes and positive reviews shared online attract diners.

Vegetarian and Vegan Options: 

Turkish cuisine offers a variety of vegetarian and vegan-friendly options, catering to a broader range of dietary preferences.

Integration of Turkish Food in Other Cuisines: 

Turkish flavors have found their way into various international cuisines. For example, dishes like doner kebab and Turkish delight have influenced food trends globally.

Globalization and Multiculturalism: 

In an increasingly interconnected world, people are more open to trying international cuisines, and Turkish restaurants have benefited from this trend.

Guidelines of Opening Restaurant in Turkey

Opening a restaurant in Turkey involves several legal and administrative requirements. These requirements can vary depending on the type of restaurant, its location, and other factors. Here are some general requirements and steps to open a restaurant in Turkey:

Business Plan:

Start by creating a detailed business plan outlining your restaurant concept, target market, menu, pricing, and financial projections.

Legal Structure:

Decide on the legal structure of your business, such as a sole proprietorship, partnership, limited liability company (LLC), or joint-stock company.

Location:

Choose a suitable location for your restaurant. Ensure that it complies with zoning regulations and has the necessary permits for restaurant operation.

Business Registration:

Register your business with the local trade registry office (Ticaret Sicil Müdürlüğü) or the Chamber of Commerce (Ticaret Odası).

Tax Identification Number (TIN):

Obtain a tax identification number (Vergi Kimlik Numarası) for your business and employees.

Food Safety Regulations:

Comply with food safety regulations, which may include obtaining a food service establishment license from the local municipality (belediye) and adhering to hygiene standards.

Health and Safety Standards:

Ensure that your restaurant meets health and safety standards set by the Ministry of Health and local authorities.

Alcohol License (if applicable):

If you plan to serve alcoholic beverages, you will need to apply for an alcohol license from the local Alcohol and Tobacco Market Regulatory Authority (TAPDK).

Environmental Regulations:

Comply with environmental regulations, such as waste disposal and recycling requirements.

Fire Safety:

Install fire safety equipment and adhere to fire safety regulations to obtain a fire safety certificate.

Employment and Labor Regulations:

Register your employees with the Social Security Institution (Sosyal Güvenlik Kurumu) and provide them with appropriate contracts.

Licensing and Permits:

Depending on the type of restaurant and location, you may need additional permits, such as a music license or outdoor seating permit.

Financial Requirements:

Ensure you have the necessary capital to cover startup costs, including rent, equipment, licenses, and initial inventory.

Insurance:

Purchase insurance policies to protect your business, employees, and customers.

Marketing and Promotion:

Develop a marketing plan to promote your restaurant and attract customers.

Hiring and Training Staff:

Recruit and train your staff, including chefs, servers, and kitchen staff.

Menu Development:

Create a diverse and appealing menu that aligns with your restaurant's concept.

Interior and Exterior Design:

Plan the interior and exterior design of your restaurant, keeping in mind the atmosphere you want to create.

Financial Records:

Maintain accurate financial records for tax purposes.

Tax And Obligations for Opening a Restaurant in Turkey

Opening a restaurant in Turkey involves specific tax identification and obligations that business owners must adhere to. 

Here's an overview of tax-related considerations when starting a restaurant in Turkey:

1. Tax Identification Number (TIN):

Before you can operate a restaurant in Turkey, you'll need to obtain a Tax Identification Number (Vergi Kimlik Numarası or TIN). This unique number is essential for all tax-related transactions.

2. Value Added Tax (VAT):

VAT is applied to most goods and services in Turkey, including restaurant sales. Restaurant owners are required to charge and collect VAT on food and beverage sales. The standard VAT rate in Turkey may vary, so it's essential to check the current rate with the tax authorities.

3. Corporate Income Tax (CIT) or Income Tax:

The choice between corporate income tax or income tax depends on the legal structure of your restaurant business. Most businesses in Turkey are subject to CIT, while sole proprietors and some partnerships pay income tax on their earnings. CIT rates can vary, so consult with a tax advisor to determine your specific obligations.

4. Social Security Contributions:

If you hire employees for your restaurant, you'll be responsible for deducting and remitting their social security contributions. Both employers and employees contribute to social security in Turkey.

5. Real Estate Tax (for Property Owners):

If you own the property where your restaurant is located, you may be subject to real estate tax. This tax is levied annually and is based on the assessed value of the property.

6. Excise Tax (for Alcoholic Beverages):

If your restaurant serves alcoholic beverages, you'll be subject to excise tax. The tax rate may vary depending on the type and alcohol content of the beverages.

7. Stamp Duty (for Certain Documents):

Some legal documents related to your restaurant, such as contracts and agreements, may be subject to stamp duty.

8. Withholding Tax:

If you make payments to vendors, suppliers, or service providers, you may be required to withhold taxes from these payments and remit them to the tax authorities on their behalf.

9. Annual Tax Returns and Reporting:

Restaurant owners are obligated to file regular tax returns and reports with the Turkish Revenue Administration (Gelir İdaresi Başkanlığı). These reports typically include income statements, VAT returns, and other financial information.

10. Compliance and Record-Keeping:

Maintaining accurate financial records and complying with tax regulations is crucial. Keep all invoices, receipts, and financial documents organized for tax inspections and audits.

11. Seeking Professional Advice:

Given the complexity of tax regulations in Turkey, it's advisable to seek the guidance of a certified public accountant (CPA) or tax advisor who specializes in Turkish tax laws. They can help ensure compliance with tax obligations and optimize your tax strategy.

Exemplary & Successful Turkish Restaurants Opened by Arabs

There are several examples of successful Turkish restaurants that have been opened and operated by entrepreneurs from Arab countries. 

The Arabian Peninsula has a diverse culinary scene, and many restaurants offer a blend of Turkish and Middle Eastern flavors to cater to local preferences. 

However, Turkish cuisine is popular in many Arab countries, and these restaurants often cater to locals and tourists alike. Here are a few examples:

Al Nafoorah (By Jumeirah Group): 

Al Nafoorah is a renowned Turkish restaurant located in Dubai, United Arab Emirates. It is part of the Jumeirah Group, a luxury hotel and hospitality company. Al Nafoorah offers a wide range of Turkish dishes, including kebabs, meze, and traditional Turkish sweets, in an elegant dining setting.

Zahr El-Laymoun (By Zahr El-Laymoun Group): 

Zahr El-Laymoun is a popular restaurant chain with locations in several Arab countries, including the United Arab Emirates, Saudi Arabia, and Kuwait. While it primarily serves Lebanese cuisine, it also offers a variety of Turkish dishes, reflecting the close culinary ties between the two cuisines.

Lusin: 

Lusin is a restaurant chain with locations in Saudi Arabia and the United Arab Emirates, including Dubai and Abu Dhabi. It specializes in Armenian and Lebanese cuisine but also features a selection of Turkish dishes, such as kebabs, lahmacun, and baklava.

Saray Sultan (By Al Sufouh Investments): 

Saray Sultan is a Turkish restaurant in Riyadh, Saudi Arabia, known for its authentic Turkish flavors. It offers a diverse menu of Turkish dishes, from grilled meats to traditional desserts.

Tugra Restaurant (By Al Faisaliah Hotel): 

Located in Riyadh, Saudi Arabia, Tugra Restaurant is part of the luxurious Al Faisaliah Hotel. It offers an upscale dining experience with a menu that includes Turkish and Ottoman-inspired cuisine.

Saraya Gallery (By Al-Saraya Group): 

Saraya Gallery is a Turkish and Middle Eastern restaurant located in Manama, Bahrain. It offers a variety of Turkish dishes and a relaxing ambiance for diners.



References

Turkey, L.-T. (2019, May 8). Open a Restaurant in Turkey. lawyers in Turkey. Retrieved September 6, 2023, from https://www.lawyer-turkey.com/open-a-restaurant-in-turkey