Are you an aspiring restaurant owner?
If you’ve got a lifelong love of food and an entrepreneurial mind, then starting a restaurant can be a great idea. That said, with new restaurants popping up all the time, all across the country, you’ve got to know how to get it off the ground the right way.
Part of doing this is putting forward the finances to ensure that you’re giving your restaurant the best chance to survive. In this post, we’re going to talk about the average cost to start a restaurant and how you should be budgeting so that your restaurant can succeed against some of your competitors.
What Do You Need to Start a Restaurant?
When you’re starting to figure out a startup budget for your new restaurant, the first thing you need to do is take stock of what you need to obtain in order to open a restaurant. To do this, you’ll need to figure out what sort of restaurant you want to run.
For instance, a food truck has a much lower startup cost than a brick and mortar restaurant. Likewise, if you’re able to take over the lease of an existing restaurant, it’s much cheaper than equipping a new space with everything you need to start a restaurant.
Assuming you’re starting from scratch, you’ll need to purchase or rent a building for your restaurant. You’ll then need to equip it with things like ranges, ovens, dishwashers, sinks, mixers, and other kitchen and service supplies. Once that’s done, you’ll need to finish your space to make it look the part, which you may need to hire an interior designer to help you with.
Once the restaurant itself is equipped and ready to open, you’ll need to hire staff and create a menu, which you’ll need food inventory to produce. You’ll also have to obtain licenses, permits, insurance, and have cash set aside for rent and utilities. If you want to advertise your new restaurant to get customers in the door, you’ll have to consider hiring a digital marketing firm as well.
What Is the Average Cost to Start a Restaurant?
All in all, the average cost to start a restaurant is anywhere between $150,000 to $500,000. Everything that we mentioned above costs a substantial amount of money and even if you run a bare bones operation to start, you’ll need a lot of startup capital to get things going.
Few aspiring restauranteurs actually have all of this cash on hand, so the best thing to do is to look into restaurant financing. Yes, it can be daunting to think about all of these startup costs, but you can quickly make your money back if you do things the right way. Restaurants are capable of making thousands of dollars per night, so even with a startup on the expensive end of the spectrum, you can break even fairly quickly.
Culinary Success On a Budget
Now that you know the average cost to start a restaurant and all of the behind the scenes work that goes into a restaurant opening, you can start to find financing to fund your new restaurant. Everyone has to start somewhere and if you want to achieve your dream of owning a successful restaurant, you’ve got to put your money where your mouth is.
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