The following guidance is based on practical experience and is for general reference only. It does not constitute legal, engineering, or insurance advice. Requirements may vary depending on the property, building rules, and scope of work. Please consult your architect, contractor, insurance provider, and attorney for professional guidance.

Once the lease is executed, the space does not move directly into construction or operations. In most U.S. cities (using New York as a common example), the process typically follows these steps:

1️⃣ Submit Insurance (COI) → Schedule Key Handover

Before receiving the keys, tenants are usually required to purchase Commercial General Liability Insurance.

• Purpose: To protect both the tenant and landlord from potential injury, property damage, or construction-related risks once you enter the premises.
  
  

• Your insurance provider will issue a Certificate of Insurance (COI) that must meet the landlord/building’s specific formatting and coverage requirements.
  
  

• Once the COI is submitted and approved, both parties can schedule the key handover.
  
  

2️⃣ First Step After Receiving Keys: Set Up/Confirm Utility Accounts

After receiving the keys, the most essential operational step is to ensure that electricity, water, and gas (if applicable) accounts are properly opened or transferred. Without this, construction and soft opening may be delayed.

Typical tasks include:

• Contacting the local utility provider (e.g., Con Edison) to open or transfer the electric account, ensure the meter is under your name, and confirm adequate temporary power for construction.
  
  

• If the space uses gas, confirm who is responsible for setting up and transferring the gas account, and clarify future meter readings.
  
  

• Water/sewer charges may be included in rent or billed separately by sub-meter—confirm with the landlord how these utilities are billed and who pays.
  
  

Key Notes:

• Set up utilities before construction begins to avoid outages or delays.
  
  

• If additional electrical capacity is needed later (power upgrade), coordinate early with the landlord, utility company, and engineer.
  
  

3️⃣ Pre-Construction Preparation: Design, Contractor, and Plans

Once utilities are arranged, you can begin formal construction planning:

• Select a General Contractor (GC) and Architect:
  
  

  • GC handles physical construction.
    
    

  • Architect designs layouts, electrical plans, plumbing, exhaust/ventilation, fire safety, and equipment placement.
    
    

• Prepare Construction Plans:
  Plans typically include walls, electrical, plumbing, HVAC, exhaust, fire systems, and kitchen/coffee equipment layout.
  Purpose: To allow the landlord, building, and city agencies to review and approve what you intend to build, preventing violations or rework.
  
  

• Submit GC’s Insurance:
  The contractor must provide their own COI, naming the landlord and building as Additional Insured.
  Without this, construction teams cannot enter the building.
  
  

4️⃣ Apply for Construction Permits & Confirm CO / Legal Occupancy (Critical Step)

This stage determines whether you can legally build and legally operate.

A. Construction Permits

(Usually filed by the Architect or GC)

Permits may not be required for very light cosmetic work, but are typically necessary if the project involves:

• Structural changes
  
  

• Electrical upgrades
  
  

• Kitchen hood, exhaust, or gas lines
  
  

• HVAC or fire safety modifications
  
  

Most cities require filing with the local building department (e.g., NYC DOB) to obtain permits before beginning work.

B. Certificate of Occupancy (CO)

Every property has a designated use type and maximum occupancy, listed on its CO.

Key Points:

• Your intended use (restaurant, café, retail, etc.) must match the permitted use on the current CO.
  
  

• If a change of use or occupancy adjustment is required, the landlord and architect must apply for a CO update or a Letter of Completion before the business can fully operate.
  
  

In short:
Permits allow legal construction; the CO determines legal operation.

5️⃣ Construction Phase

Once plans and permits are approved, construction can begin. Typical work includes:

• Demolition
  
  

• New partitions, walls, or storefront work
  
  

• Electrical, plumbing, exhaust, HVAC, fresh air systems
  
  

• Kitchen/coffee equipment installation
  
  

• Fire sprinklers, alarms, or smoke detectors
  
  

• Flooring, ceiling, painting, and finishing work
  
  

During construction, you may encounter:

• Building management inspections
  
  

• City agency (e.g., DOB) inspections during or upon completion
  
  

These are standard parts of the approval process.

6️⃣ Apply for Business-Specific Licenses & Permits

Required permits vary by business type.

For Coffee, Tea, or Food Service Establishments:

• DOH Food Service Establishment Permit
  
  

• For kitchen hoods or gas-powered equipment:
  
  

  • Mechanical/Gas filings with final inspections
    
    

• Sign Permit for exterior signage
  
  

• Separate Liquor License if alcohol is served (not covered here)
  
  

For General Retail Stores:

· Ensure the CO allows retail use
· Ensure construction permits and inspections are completed
· Provide COI as required
· Maintain fire safety compliance

Important:
You can apply for business permits while construction is nearing completion to avoid delaying the opening timeline.

7️⃣ Equipment Delivery & Interior Setup

After construction and inspections, the final preparation phase begins:

• Delivery and setup of furniture, lighting, fixtures, and POS counter
  
  

• Installation and testing of coffee machines, refrigerators, ovens, etc.
  
  

• Setup of POS systems, internet, Wi-Fi, and security cameras
  
  

• Merchandising, stocking, and placing branded materials
  
  

• Hiring and training staff
  
  

• Deep cleaning and final sanitation prep
  
  

8️⃣ Soft Opening

Before the official launch, most operators conduct a 1–3 day soft opening:

• Team practices workflow and equipment handling
  
  

• Calibrate recipes, adjust menu pacing, refine service steps
  
  

• Stress-test operations and identify issues
  
  

• Make final adjustments before opening to the public
  
  

9️⃣ Grand Opening

When construction, CO/permits, inspections, staff training, and equipment setup are all complete, you’re ready to open:

• Confirm all required operational permits are approved
  
  

• Schedule marketing and opening promotions
  
  

• Officially open to the public
  
  

📌 One-Sentence Summary

“After signing the lease, you’ll need to: submit insurance → receive keys → set up utilities → complete design and plans → apply for construction permits & confirm CO → begin construction and inspections → obtain business permits → install equipment and fixtures → soft open → officially open for business.”

The above is provided solely as practical reference. Actual requirements vary by property, building rules, and scope of work. Please follow the professional guidance of your architect, contractor, insurance provider, and attorney.