‍

How to Run a Café or Restaurant Business in Australia — Accounting, Compliance & Trinity’s Expert Support

‍

Opening and running a café or restaurant in Australia can be incredibly rewarding, but it also comes with financial, operational, and regulatory challenges. With high competition, tight margins, and complex tax rules, it’s critical to have an accountant who understands the hospitality industry.

‍

At Trinity Accounting Practice, we work with cafés, restaurants, and takeaway businesses across Australia — helping them stay on top of finances, manage cash flow, reduce tax, and grow with confidence.

‍

In this blog, we’ll walk through everything you need to know to successfully operate a hospitality business, including:

• ✅ How to start and structure your café or restaurant
• ✅ Legal, tax, and regulatory obligations
• ✅ What expenses you can claim
• ✅ Payroll, staff, and award compliance
• ✅ Financial reporting and POS systems
• ✅ How Trinity supports hospitality businesses across Australia

1. Starting a Café or Restaurant — First Steps

Choose a Business Structure

Your business structure affects your tax, liability, and expansion:

• Sole Trader – simple, but not ideal for hospitality risk
• Partnership – used for family or joint ventures
• Company – preferred for growth, liability protection, and branding
• Trust – used for tax planning and asset protection

📌 Trinity will advise and help you set up the right structure from the beginning.

Get the Right Registrations

You’ll need:

• ABN (Australian Business Number)
• TFN and GST registration (if turnover exceeds $75,000)
• Food business registration with your local council
• Liquor licence (if serving alcohol)
• Music licences (APRA AMCOS, PPCA, OneMusic)

2. Understanding Hospitality Regulations

Restaurants and cafés must comply with:

• Food safety laws (training, hygiene, storage)
• Fair Work Awards – especially the Hospitality Industry (General) Award
• Health inspections and council regulations
• Superannuation and payroll tax
• COVID-safe or hygiene protocols, where applicable

3. What Expenses Can You Claim?

Cafés and restaurants have a wide range of claimable tax deductions, including:

✅ Staff Costs

• Wages and salaries
• Superannuation
• Payroll tax (where applicable)
• Staff uniforms
• Training and upskilling

✅ Stock & Ingredients

• Coffee, tea, food supplies
• Alcohol (if licensed)
• Packaging (takeaway containers, napkins, bags)

✅ Equipment & Furniture

• Coffee machines
• Fridges and freezers
• Point-of-sale systems
• Tables, chairs, fit-out costs
• Kitchen appliances and utensils

Assets over the threshold may be depreciated, or written off under instant asset rules.

✅ Cleaning and Waste

• Cleaning products and services
• Pest control
• Commercial waste disposal

✅ Marketing and Branding

• Signage and window decals
• Menus and branding
• Website, SEO, Google Ads
• Food delivery app subscriptions

✅ Software & Tech

• POS systems (Square, Lightspeed, Kounta)
• Rostering apps (Deputy, Tanda)
• Accounting software (Xero)
• Online booking and delivery platforms (UberEats, Menulog, Doordash)

✅ Rent, Utilities & Insurance

• Commercial rent
• Electricity, gas, water
• Public liability and equipment insurance

📌 Trinity will ensure you claim every legal deduction to reduce your tax bill.

4. Payroll and Award Compliance in Hospitality

Payroll is one of the most complex areas in the café and restaurant sector.

You must:

• Pay the correct award rates under the Hospitality Award
• Comply with penalty rates for weekends and public holidays
• Lodge Single Touch Payroll (STP) reports
• Pay superannuation quarterly
• Keep up with changes to minimum wage

💡 Trinity helps you set up accurate, award-compliant payroll systems using platforms like Xero and Deputy.

5. Managing Cash Flow in Hospitality

The food and beverage industry is notorious for tight cash flow. Here’s how to manage it:

• Use real-time POS systems to track daily takings
• Monitor cost of goods sold (COGS) and margins weekly
• Keep wage costs under 30–35% of revenue
• Track wastage and portion control
• Use cloud accounting tools like Xero or MYOB for visibility

6. BAS, GST, and Tax for Cafés & Restaurants

Business Activity Statements (BAS)

Most hospitality businesses must:

• Lodge BAS quarterly
• Report GST collected from food and beverage sales
• Claim input tax credits on purchases

Income Tax

• Sole traders include business income in their personal return
• Companies pay a flat 25% tax rate (small business entity)
• Fringe Benefits Tax (FBT) may apply to meals or staff perks

📌 Trinity ensures accurate lodgement and helps with ATO audits, reviews, or payment plans.

7. Tips for Growing a Café or Restaurant

Here are tips from successful clients we've worked with:

• Control cost of goods (get multiple supplier quotes)
• Keep menus short but high-margin
• Offer combo deals and loyalty programs
• Monitor Google reviews and online ratings
• Consider franchising or second locations after stabilising operations
• Review supplier contracts annually

8. Real Café & Restaurant Clients We’ve Helped

We’ve helped food businesses:

✅ Set up companies and trusts
✅ Transition from paper receipts to full digital accounting
✅ Reduce tax bills through legal tax planning
✅ Negotiate with the ATO for payment relief
✅ Survive COVID lockdowns with JobKeeper and cash flow boost
✅ Expand to second and third locations

9. How Trinity Accounting Practice Supports Cafés & Restaurants

We understand the unique pressures hospitality business owners face — long hours, staff turnover, regulatory audits, and cash flow crunches.

Here’s how we help:

✔️ Bookkeeping & Reporting

• Xero or MYOB setup
• POS integration (Square, Kounta, etc.)
• Monthly reporting: profit/loss, margins, KPIs

✔️ Payroll Setup & Management

• Award-compliant pay runs
• Super and STP lodgement
• Leave tracking and staff onboarding

✔️ BAS & Tax Returns

• Quarterly BAS
• End-of-year company and trust tax returns
• Capital gains and depreciation schedules

✔️ Budgeting & Strategic Advice

• Expansion planning
• Menu pricing strategy
• Lease negotiation support

10. Why Café and Restaurant Owners Trust Trinity

✅ We’re available after-hours and weekends
✅ We work with food and beverage businesses across Australia
✅ We use Xero, MYOB, and cloud systems that integrate with hospitality software
✅ We simplify BAS, GST, and award compliance
✅ We take care of the numbers so you can focus on serving customers

Let’s Grow Your Café or Restaurant Business

You’re already managing staff, food quality, customers, and operations — let us manage your accounts, tax, and cash flow.

👉 Trinity Accounting Practice
✅ Accounting Firm in Beverly Hills
📍 159 Stoney Creek Road Beverly Hills NSW 2209
☎️ 02 9543 6804
🌐 www.trinitygroup.com.au
📅 Book an appointment: https://calendly.com/ramy-hanna

‍