how much does it cost to open a small restaurant course he

According to a survey conducted by Restaurantowner.com, the average startup cost depends significantly on the size of the restaurant:

• Average annual sales of $550,500/2,000 square feet average: average start-up cost of $175,500
• Average annual sales of $1,125,000/3,070 square feet average : average start-up cost of $375,500
• Average annual sales of $1,880,000/5,000 square feet average: average start-up cost of $750,500

Full Answer

Buying versus Leasing Your Restaurant Space

Your upfront costs for buying a restaurant space will be much higher than if you rent one. And of course, the cost of that space will vary dramatically based on the square footage and market. Here are some cost details for both leasing and buying.

Permitting, Licensing, and Legal Fees

To cover your legal bases, you’ll need to comply with certain permitting and licensing rules. And some of these come with a cost.

Remodeling and Renovations

Once you’ve secured your space, you’ll probably want to do some renovations to make it your own.

Kitchen Equipment and Cooking Tools

This has the potential to be the largest line item in your cost planning. Reliable kitchen equipment is vital to anyone who plans to serve food! You will probably need ovens, flat tops, and fryers for cooking, a hood vent for ventilation, a commercial dishwasher, refrigerators and freezers, and more.

Restaurant Furniture and Supplies

This is another area where your restaurant style and size will have a major impact on your costs. You’ll need to outfit your dining room with tables and chairs, barstools, server stations, and a host stand. You’ll also need plates, silverware, glassware, and possibly linens.

Pre-Opening Expenses

Estimated Cost: Varies based on cuisine, market, size of staff, training required, etc.

Marketing Expenses

It’s easy to let marketing costs spiral out of control if you’re not careful. But this is also where you can DIY some of the work as you get on your feet.

Breakdown of Costs for a Restaurant Startup

Starting a restaurant business comes with various costs that you will need to consider to get things going. While we did provide a rough estimate on the average startup cost of a restaurant, the actual numbers will vary.

One-Time Costs

As the name implies, one-time costs are the things that you will only have to spend once. However, while most of these are one-time costs, there are others that you will need to replace down the line due to natural wear and tear. With that said, here are some of the one-time costs that you will need to consider for your restaurant business:

Recurring and Ongoing Costs

To keep your restaurant running, you also need to acknowledge the recurring or ongoing costs that you will need to consider as your business operates. Like one-time costs, several recurring costs will come along with your restaurant business. If you want to thrive, you must ensure that all of these costs are met and settled regularly.

Common Mistakes of Opening a Restaurant

The thought of starting a restaurant business is an exciting experience. However, calculating the total restaurant startup costs while formulating winning strategies can be a lot to navigate. For that matter, there’s also potential for getting stuck in preconceived notions of what should or shouldn’t be done.

Final Notes – Why Having a Billing Software is Essential

Once your restaurant grows, you might want to venture towards other offers such as catering or a function venue. It’s always important to keep adding new things to your business to increase your influence and earning potential. With that said, you also need to make sure that you get paid for these additional services.

How much does it cost to start a restaurant?

According to a survey from Restaurant Owner, restaurant startup costs can range anywhere between $175,500 and $750,500. That’s a lot of money, but how do you know exactly how much money you’ll need?

How much does it cost to open a bar?

According to a survey released by Restaurant Owner, the median cost to open a bar or tavern is $425,500 with the lowest being $275,500 and the highest being $650,500.

How much do restaurant owners make?

In the first one to four years of operation, owners can expect to make between $36,000 to $72,414.

What is restaurant expense?

A restaurant expense is a recurring payment like rent, food costs, payroll, marketing and utilities. A restaurant cost is any one-time expense for things like kitchen equipment, dishes or furniture.

What is mixed expense?

Mixed expenses have both a fixed and variable component. The biggest mixed cost each restaurant has to deal with is labor.

How much does a food service license cost?

Food service licenses cost between $100 and $1,000.

How much does a food handler's permit cost?

In the United States, a food handler’s permit costs between $100 and $500 and can be obtained online in most municipalities.

Buying Versus Leasing Your Restaurant Space

Permitting, Licensing, and Legal Fees

Remodeling and Renovations

Restaurant Furniture and Supplies

• Estimated Cost: $40,000 – $80,000 4 This is another area where your restaurant style and size will have a major impact on your costs. You’ll need to outfit your dining room with tables and chairs, barstools, server stations, and a host stand. You’ll also need plates, silverware, glassware, and possibly linens. A chic fine dining restaurant will wan...

See more on escoffier.edu

Pre-Opening Expenses

Marketing Expenses

Know What to Expect by Getting Educated