A Complete Guide On Restaurant Startup Costs

Restaurant startup costs can range anywhere from $175,500 to $750,500. That is definitely a wide range. So, how exactly does one know how much it costs to open or start a restaurant? The answer is simple - a lot of careful planning.

The restaurant industry is renowned for its thin profit margins, high operating costs, and heavy competition. Thus, one thing that you must do to churn out profits is to project the startup costs and an estimate of ongoing expenses before even applying for external funding.

It is important to add the cost of restaurant website building while estimating the restaurant startup costs. A restaurant website is not just a directory of worthy credentials, it is also a platform to generate online food orders and revenue. Make use of a DIY, template-based restaurant website builder that is affordable, allows customization, provides unlimited food orders and direct payments, does not levy any commission per order or charges hidden costs. Use a credible food web constructor that will get your restaurant business online within minutes.

Through this blog, you will get to know the ways to project the following costs of your upcoming restaurant:

i) Startup Costsii) Fixed Expensesiii) Variable Expensesiv) Mixed Expenses

Once these costs are projected, you will arrive at an almost precise amount of money needed to open and operate your restaurant.

Before we start, it is important that you understand the difference between RESTAURANT EXPENSES and RESTAURANT COSTS. An expense is a recurring payment like space rent, raw material costs, staff payroll, marketing and other utilities. Whereas, a restaurant cost is any one-time expense (also like an investment) made on things like kitchen equipment, interiors, furniture, dishes, etc.

RESTAURANT STARTUP COSTS

This cost will fluctuate and vary depending on whether you own a space or are going to rent it, renovation costs, the kind of equipment needed for the restaurant and so on.

The following are the categories into which your restaurant startup costs will fall into:

1. Commercial Space:

You can either lease or buy a commercial space. While signing a commercial lease, you commit to several years of occupancy. You must pay a refundable deposit that is usually three to six months worth the amount so that you book your slot.

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