Opening up a fancy Restaurant or a Café is still a dream of many. The costs involved can intimidate anyone, but they can be eliminated with the help of loans and other financing options if you are serious about opening a restaurant.
To create a proper budget, I have come with the necessary costs that will be required to operate a restaurant. Costs can fairly vary as per the nature, location, size, and concept of the restaurant. Hence, here is a list of item costs that will help you identify the major expenses and get ahead in the planning process.
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Some important costs involved in opening a restaurant are as follows-
- Down payment or Security Deposit
This amount can vary as per the location you choose for the restaurant. The better the location, the higher would be the cost involved. With a restaurant, the key is the location, and therefore, you need to know where the property would be best suited and the amount of cost associated with such property. - Renovation/Construction
Whether you are constructing a whole new space or simply renovating a building or space, costs would be incurred. Such costs usually take up a lot of your share of your budget. Depending on the extent of construction or renovation you are willing to undertake, the costs will be determined according to that. - Kitchen Equipment
This is again a big cost as there are lots of equipment a restaurant needs to be equipped with like cooking utensils, flat-top grills, stoves, refrigeration units, dishwashers, cutlery, serving utensils and more.
Try to lease our second-hand equipment to save money and if you are planning to use brand new equipment, then get ready to shed out a good chunk of your budget on these. - Licensing
Any restaurant would require certain licenses to open its doors. Without these permits, you cannot start serving customers at any cost, or it might attract penalties/punishment.
It becomes more tedious when you want to set up a bar at your restaurant and need a liquor license. Get ahead of this matter and be prepared to spend a good amount here as well. - Furniture & Lighting
It is not a restaurant if the customers have nowhere to sit. Ensure that the setting and concept of your restaurant match the kind of furniture you pick, or it might be off-putting to the ambiance. Decorate the place with some modern and stylish lighting to set the mood correctly. Both these things require a great eye and a good amount of money. - Salaries & Wages
The next point of expense and again an important one arises from the fact that you need people to prepare and serve the food to the hungry customers. Training the chefs and waiters/waitresses, plus their salaries is something you need to add to your budget right away.
These are the basic costs associated with opening a restaurant. Do comment on what other expenses should be added to the budget.