Apologies if this was already discussed but those that restore from iCloud backup - doesn't iCloud only has 5gb? How are you able to back the phone and restore? Do you have the additional iCloud storage you pay for?
Yup. You buy additional storage according to your needs.
As a tip, if you don't actually just iCloud storage religiously but would like to in this case just for the transfer between phones (and need more than 5GB of storage), then upgrade to the suitable capacity and then downgrade back again to the free 5GB limit the following month.
That way you're only paying one month's fee and you get what you want.