Opening a restaurant how much will it cost

View All Growth Resources. Brand Expansion Commissary Expansion. Franchising Increasing Sales Makeover - Remodel. Volume Purchasing. View All Leadership Resources. Accountability Coaching Company Values Culture. Excellence Hospitality Incentives Management. Mission Statements Teambuilding. How do you figure out where your dream restaurant falls on that spectrum? Before the fun of becoming a restaurateur starts, there is a lot of planning to do from hiring staff to choosing a restaurant POS.

However, if you go into your venture planning for that, you stand a better chance of being around for the long haul. The best thing you can do to make your restaurant a success is prepare yourself for the cost of opening a restaurant, and estimate as realistically as possible what it will cost to operate it.

Thinking of opening a new restaurant? Well, it all depends on your costs, of course. Whichever tools you use, start with a very clear vision of your dream, with as many specifics as possible. The more specific and realistic you are right from the start, the better, especially since more than half of restaurant owners launch their business using their own savings.

For more, check out this great guide on restaurant costs from our friends at 7shifts! According to RestaurantReport. Just remember, a broader menu means more inventory.

And more product means the potential for more loss—losses that definitely factor into restaurant startup expenses, as well. The breakdown of these costs will be based on where you are opening your restaurant, as well as other factors, such as the need to purchase kitchen equipment. For example, if you open up a restaurant in Manhattan, your rent will likely be a far bigger portion of your budget.

However, if you open up a restaurant in Pittsburgh, your rent or mortgage will probably be much lower — but you may spend more on interior finishes or marketing.

When you sit down to make a business plan for a new restaurant, you may quickly become overwhelmed looking at all of the zeroes on the spreadsheets. At Budget Branders, we are also small business owners. We understand the demands facing entrepreneurs, and how frightening it can be to make your dream a reality.

As a company, our goal is to offer custom-branded disposables for less, making it affordable for small and medium sized businesses to have branded cups , coffee sleeves , bowls , and bags. Instead, we offer our products in quantities that make sense for you. To learn more, press the live chat button, give us a call at , or email us at any time. David Kranker. Common Restaurant Start-Up Costs Each person will have a different experience when it comes to starting a restaurant.

Unless you take over for an existing restaurant, you will probably need to budget for appliances such as: Freezers and refrigerators Ranges and ovens Ventilation hoods Dishwashers Slicers A stream table Mixers Food processors In addition, you will need to buy items that you can use to prepare and cook your food. Thinking About Starting a Restaurant? We Can Help. Contact Us. Support Hours. Short on time, high on curiosity?

Get clear, concise answers to common business and software questions. Not sure how to use a particular tool in your software solution? Learn how using our software-specific feature walk-throughs and how tos. Looking for the best tips, tricks, and guides to help you accelerate your business? Use our research library below to get actionable, first-hand advice.

But how much does it cost to open a restaurant? This guide will give you some answers and show you how to reduce your expenses. We may receive compensation from partners and advertisers whose products appear here.

Compensation may impact where products are placed on our site, but editorial opinions, scores, and reviews are independent from, and never influenced by, any advertiser or partner. Opening a restaurant can be a pricey endeavor. However, expenses will vary depending on location, size, and a range of other decisions you'll make along the way.

No matter what kind of restaurant you want to open, starting the process with the right budget will help you answer the question of how to work for yourself in the restaurant industry without breaking the bank. How much does it cost to start a restaurant? Expenses vary greatly, beginning with the type of concept you choose, but regardless of choice, you'll want to consider these six main startup costs:. Once you secure a space, you will likely need to make some renovations before it's ready for customers.

How much does restaurant renovation cost? Again, costs will vary depending on your restaurant's concept, target market, and commercial space condition. Prioritize, make smart choices, and work in stages. Concentrate on those things that will bring in revenue.

Expert advice from architects, designers, and consultants are nice, but the essential professionals are a good lawyer, accountant, and insurance agent. Quickly reconcile accounts using accounting software, like Xero. Source: Xero software. The ambiance you create inside and outside your restaurant sets the mood, but be cautious, costs can quickly run out of control. Items to consider when planning your business budget :. Many restaurants can overpay when it comes to purchasing equipment.

One way to save money is to look for used equipment from a closing business or a used equipment store. Quality used equipment can save you some much-needed capital. You'll need plenty of inventory to get you through your opening period, including a full bar, food, plates, soft drinks, cups, water pitchers, to-go boxes, napkins, and condiments.

Contact local food and liquor vendors to determine your initial cost. The better your technology, the better your restaurant will run. Start with a reliable point-of-sale POS system and, depending on your budget, a handheld POS system for faster turnover and better restaurant customer service. Technology providers have different pricing models. Legacy systems usually have flat rates that can run into the six-figure range, while more modern POS providers have more cost-effective monthly fees.

The average lifespan of a new restaurant is 4. Analyzing restaurant startup costs is essential but keeping a handle on your monthly restaurant expenses is the key to longevity.