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Philippines Restaurant Guide

How to Open a Restaurant in the Philippines

Tap into a 115M-strong, English-speaking market with one of the fastest-growing F&B sectors in SEA

Philippines Restaurant Market Overview

₱650 billion (~US$11B)

Market Size

7.5%

Annual Growth

180,000+

Restaurants

12,000+

New/Year

₱3.5 million/year

Avg Revenue

1.8 million

Employed

Startup Costs in Philippines

Estimated investment ranges based on restaurant size and concept (in PHP)

Small

₱300,000 - ₱1,500,000

Carinderia, food cart or small cafe (under 30 seats)

Medium - Most Popular

₱1,500,000 - ₱5,000,000

Casual dining restaurant (30-80 seats)

Large

₱5,000,000 - ₱20,000,000

Fine dining or mall flagship (80+ seats)

Required Licenses & Permits

Essential permits you'll need to legally operate a restaurant in Philippines

DTI / SEC Business Registration

Sole proprietor via DTI; Corporation/Partnership via SEC

Authority: DTI (sole prop) or SEC (corp)

₱500 - ₱2,000

1-7 days online

Mayor's Permit / Business Permit

Annual local government business permit

Authority: Local Government Unit (LGU)

₱5,000 - ₱30,000/year

2-4 weeks

BIR Registration & Books of Accounts

Tax identification, official receipts, books registration

Authority: Bureau of Internal Revenue (BIR)

₱500 + receipts printing

1-2 weeks

FDA Licence to Operate (LTO)

For food manufacturers; cafes/restaurants needing pre-packaged sales

Authority: Food & Drug Administration (FDA)

₱3,000 - ₱25,000

4-12 weeks

Sanitary Permit

City Health Office sanitation approval for premises and staff

Authority: City Health Office

₱500 - ₱2,500

2-4 weeks

BFP Fire Safety Inspection Certificate

Required before mayor's permit issuance

Authority: Bureau of Fire Protection (BFP)

₱1,000 - ₱5,000

1-3 weeks

Liquor Licence

Required to sell beer, wine, or spirits

Authority: Local Government Unit (LGU)

₱3,000 - ₱15,000/year

2-6 weeks

Typical Operating Costs

Rent₱30,000 - ₱500,000/month (Metro Manila prime malls highest)

Labour Cost18-25% of revenue

Food Cost32-40% of revenue

Utilities₱15,000 - ₱80,000/month

Insurance₱20,000 - ₱100,000/year

Tax Information

Sales Tax / VAT

VAT: 12% (mandatory if revenue > ₱3M/year)

Corporate Tax

25% (20% for SMEs with assets ≤ ₱100M)

Employment Tax

SSS, PhilHealth, Pag-IBIG: ~12% employer contribution

Key Regulations to Know

Important compliance requirements for restaurant operators in Philippines

RA 10611 (Food Safety Act of 2013)

FDA Administrative Order 2014-0029 (food establishments)

RA 7394 (Consumer Act)

Sanitation Code of the Philippines (PD 856)

Labour Code (minimum wage ₱610/day NCR, varies by region)

Data Privacy Act of 2012 (RA 10173)

Fire Code of the Philippines (RA 9514)

Market Opportunities

English-speaking workforce
115M population, young demographics
7.5% annual F&B growth
Strong food delivery (GrabFood, foodpanda, Pickaroo)
Booming OFW remittance economy supports dining out
Mall-anchored chain model proven (Jollibee, Mang Inasal)

Key Challenges

Lengthy permit process (Mayor's permit renewals)
High mall rentals (Ayala, SM, Robinsons)
Power costs & outages outside metros
Traffic affecting dine-in
Foreign equity caps (60/40 rule for some setups)

🍽️Popular Cuisines in Philippines

Filipino (Adobo, Sinigang, Lechon)

Fast Food (Jollibee-style)

Korean

Japanese

American Comfort

Chinese

Cafe & Milk Tea

Italian

Top Locations to Consider

Metro Manila (BGC, Makati, Ortigas, Eastwood, QC)

Cebu (IT Park, Ayala Center)

Davao

Iloilo

Boracay

Pampanga (Clark)

Tagaytay

Official Resources

Government and industry resources to help you get started in Philippines

DTI Philippines

Business registration for sole props

SEC Philippines

Corporate registration

BIR

Tax registration and compliance

FDA Philippines

Food safety regulator

Philippine Restaurant Owners Association

Industry association

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