It’s a dream of many people to open a restaurant. Regardless of whether you want to own a corner café, an elegant bistro that specializes in farm-to-table, or a neighborhood pizza joint, there are a lot of costs involved in launching an eatery. Read on for a closer look at what to expect and the types of items you’ll have to buy.
Recent stats reveal that it costs an average of $375,500 to open a restaurant, However, that number will depend on a variety of factors, including the size of the restaurant; its location; how much equipment you already have; the type of décor you choose; and more.
Start by considering the type of restaurant you want to operate. Do you already know what décor and ambiance you want to have? Will it be a QSR (quick-serve restaurant) or a sit-down establishment? What type of food will you offer? How many diners do you want to serve? What will be your hours of operation? Some of the answers to these questions may change as you look for an appropriate location and deal with your budget, but it’s smart to be clear about your plans as you move forward.
Before you locate the space for your restaurant, it would be wise to put together a team of experts to help. You may want to hire an attorney to review contracts, leases and other documents; an insurance agent to recommend the appropriate insurance and to find the best deals; and an accountant or bookkeeper to help you set up the accounting system that your restaurant will use.
When locating a commercial space for your restaurant, you can either purchase a location or lease it. The price will depend on where the space is located, but a typical lease may range between $1.00 and $5.00 per square foot. You may also have to pay a deposit.
Regardless of whether you buy or lease space, consider whether you will have to make renovations and how much they will cost. You’ll also want to budget for exterior features such as signage and outdoor lighting and interior features including chairs, tables, barstools and lighting for “front-of-house.”
Additionally, you’ll likely need kitchen appliances, stainless steel workspaces, cooking implements and assorted tools (such as pans, pots, strainers and knives), dishes, glassware and flatware for serving food. Before you open, you’ll also need to fully stock your kitchen and pantry, so consider that expense as well. The accompanying resource describes more of the expenses you can expect when you open a restaurant.
