While some restaurant start-up costs are relatively obvious, others are less so. As a result, inexperienced restaurateurs sometimes overlook them when setting initial budgets and subsequently find themselves facing budgetary challenges. Insufficient planned operating capital and poor financial planning have been cited by restaurant experts as one of the 12 causes of restaurant failure.
So we spoke to consultants and experienced restaurant owners to come germany whatsapp number up with a list of the nine main restaurant startup costs to factor into your budget .
Commercial space
Kitchen equipment and supplies
Furniture
Franchise fee
Technology
Staff
Stocks
Operating licenses and permits
Marketing
Commercial space
Commercial space for a restaurant can be obtained through rental or purchase.
When you sign a commercial lease , you must commit up front to occupying the premises for several years and pay a refundable deposit — usually three to six months' worth — to secure the lease.
How much will this deposit be? It will depend on where you want to settle.
If you are buying a commercial space , you will need to put down a deposit of 10 to 20%. For premises valued at around $1 million, you will need to put down a deposit of $100,000 to $200,000.
Once you have your premises, you will need to carry out renovation work , either to renovate the premises, or to personalize them according to your concept, or both. Renovation costs vary greatly and depend on the extent of the work to be carried out.
Finally, don't forget to budget for the various services you may need, such as electricity, gas, internet, etc.
Kitchen equipment and supplies
It is not possible to operate a restaurant without having the proper equipment. In this category, your main expenses will be kitchen appliances .
Most professional kitchens should be equipped with at least a refrigerator, stove, oven, fryer and sufficient preparation surfaces. Plan on spending several thousand dollars to cover these essential purchases.
You will also need to purchase tableware and cutlery —dishes, silverware, glasses, table linens, etc. Depending on the quality and quantity of the tableware and cutlery needed, this investment can amount to several hundred or even several thousand dollars.
Furniture
When it comes to furniture , you will need tables and chairs for the dining room, as well as bar furniture.
You will also need lighting and decoration to complete the layout of the place. It is not absolutely necessary to call on an interior designer to create an attractive decoration: with a little creativity and a little effort, you can achieve a great interior, without going over your budget.
Pinterest often offers original and interesting ideas for decorating bars and restaurants . You will find very nice ideas there, to be implemented within the limits of your forecast budget.
Franchise fee
If you open a franchise, you must pay a fee for the restaurant's name and intellectual property. McDonald's , for example, charges a franchise fee of about $60,000, while Bagels & Beans charges about $25,000. Contact the headquarters of the franchise in question to find out the fees required.