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Know Your Restaurant’s Start Up Cost

Know Your Restaurant’s Start Up Cost

The cost of opening your own restaurant business is one very important matter to be dealt with and often the hardest to determine because, to a great extent, it depends on the type of restaurant that you desire to open.

Your restaurant ìstart-up costsî are outlined as expenses incurred for the acquisition or creation of your restaurant business. ìStart-up costsî are comprised as any incurred amounts or out-going capital in relation with your restaurantís activity directed for income generation before your restaurant business starts.

ìStart-up costsî generally include the following expenses:

ï Potential markets surveys.
ï Evaluation of available supplies, labor, facilities, etc.
ï Advertisements.
ï Business equipment and fixtures
ï Equipment and fixture installation
ï Decorating and remodeling
ï Employee uniforms
ï Salaries for employees undergoing training and their trainers.
ï Costs of travel for acquiring prospective suppliers, distributors or customers.
ï Fees and salaries for consultants and executives and other similar services.

Estimating your restaurant businessí ìstart up costsî:

It is a wise decision to study your ìstart-up costsî estimate with a qualified accountant. 1.Begin by recording then add up your entire restaurantís equipment which you consider is necessary to begin and manage your restaurant. See the chapter on selecting equipment and furnishings for more help on this. 2.On your list, mark off certain items or equipment that aren’t really necessary and can wait. Restaurant startup costs cannot be overlooked! Get $200,000 US Government Grants for new businesses. Claim your FREE $79 Gov Grant book! Determine what kind of equipment needs to be bought brand new, and what type can be purchased used.

Determine what things may be leased, for the moment.

2. When adding up the physical cost (building or office) of your restaurant, remember to also add in the remodeling costs, decorating costs, fixtures, installation and delivery fees for equipment and fixtures.

3. Include professional fees, utility deposits, permits and licenses.

4. When computing your advertising costs, make sure to add trademarks, logo expenses as well as other graphics to be used.

5. Come up with ways where you may be able to lower some expenses. Call vendors and suppliers and work out certain deals.

6. Estimate that all expenses will be much higher than expected. It is sensible to add about 1-5 percent to your estimate.Guaranteed US Government Grant for USA Citizens at

7. Write your business plan before you come to your final estimate for ìstart up costsî. Generally, a business plan functions to reveal more ìstart-up costsî that weren’t really thought of. Again, see the chapter on preparing your business plan.

8. Include your restaurantís first 3-6 months operating investment in your ìstart-up costsî. These expenses will usually include employee salaries, advertising, rent, supplies, delivery expenses, utilities, taxes, insurance, maintenance, professional services, loan payments, inventory, etc.

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