It’s an aspiration of many people to open their own restaurant. Regardless of whether it’s a corner café, an elegant bistro that concentrates on farm-to-table, or a neighborhood pizza place, there are a lot of costs involved in establishing an eatery. Continue reading for a closer look at what to expect and the variety of items you’ll have to purchase.
Recent statistics show that it requires an average of $375,500 to start a restaurant. However, that figure will depend on a variety of variables, including the size of the establishment; its location; how much equipment you already have; the type of decorations you choose; and more.
Start by contemplating the kind of restaurant you want to run. Do you already have ideas on what décor and ambiance you want to have? Will it be a QSR (quick-serve restaurant) or a sit-down restaurant? What variety of food will you offer? What’s your capacity? What hours would you be open? Some of the replies to these questions may change as you look for a suitable location and distribute your budget, but it’s smart to have clear plans as you move forward.
Before you search for the space for your restaurant, it would be wise to assemble a team of specialists to help. You may want to retain an attorney to review contracts, leases, and other documents; an insurance agent to advise on the appropriate insurance and to find the best deals, and an accountant or financial advisor to help you establish the accounting system that your restaurant will utilize.
When finding commercial space for your restaurant, you can either purchase a place or rent it. The price will depend on where the building is located, but a standard lease can range between $1.00 and $5.00 per square foot. Whether you purchase or lease space, consider whether you will have to remodel and how much that would cost. You’ll also want to include funds in your budget for exterior features such as signage and outdoor lighting; as well as interior features including chairs, tables, barstools, and lighting for “front-of-house.”
Additionally, you’ll probably need kitchen appliances, stainless steel counters, cooking utensils and assorted tools (such as pans, pots, strainers, and knives), dishes, glassware, and flatware for serving food. Before your grand opening, you’ll also need to fully stock your freezers and pantries, so consider those costs as well. The accompanying image describes more of the expenses you can expect when you open a restaurant.