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Restaurant Start-Up Costs To Consider

Vilen Sami by Vilen Sami
August 24, 2021
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Many people fantasize about opening their own restaurant. Opening a business, whether it’s a corner cafe, a vegan farm-to-table restaurant, or a neighborhood pizza parlor, comes with a slew of expenses.

According to recent studies, the average cost of opening a restaurant is roughly $375,500. That figure, on the other hand, will fluctuate depending on a variety of factors. Including the structure’s size, area, the quantity of equipment and resources you currently have, the type of decorations you pick, and that’s just the start.

Consider the type of restaurant you want to open. Do you have any ideas for the look and feel you want to achieve? Is it going to be a family restaurant or a quick-service restaurant? What kind of cuisine are you planning to serve? What is your restaurant’s seating capacity? When do you intend to close for the night? While some of the answers to these questions may change as you search for a suitable site and implement your financial strategy, it’s important to have a clear plan in place as you proceed.

Prepare a team of pros to assist you before you begin looking for a restaurant location. You may need a lawyer to examine contracts, leases, and other documentation; an insurance specialist to ensure you have the correct coverage and receive the best deals; and a bookkeeper or financial counsel to help streamline your restaurant’s accounting system.

Once you’ve located a retail site for your restaurant, you can either buy it or lease it. The cost will vary depending on the location of the building, but a typical rent can range from $1.00 to $5.00 per square foot. Regardless of whether you buy or rent, consider whether you should renovate the area and how much it would cost. Outside features like signage and open-air lighting, as well as inside features including seats, tables, barstools, and “front-of-house” lighting, should all be budgeted for.

Kitchen equipment, treated steel counters, cooking utensils and other instruments (such as pans, pots, sifters, and knives), plates, glasses, and silverware are likely to be required for serving meals. Keep in mind that you’ll need to properly equip your coolers and cabinets before your grand opening. See the accompanying infographic for more details on each of these charges.

 

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