Do you already know that the starting capital for the opening of a restaurant is estimated to be around €450,000? For most people who dream of opening their own restaurant, these are high costs. As a budding restaurant owner, you need a lot of resources, both from yourself and externally, to realize your dream.
Many investments speak for themselves, but not all. Some costs are overlooked when you create the budget, which can cause you financial problems later in the process.
Premises
You have 2 ways to get a building for your business: rent or buy. When you sign a commercial lease, you commit yourself for several years and pay a deposit, usually in the amount of three to six months of rent. So how much do you have to expect? This depends on your location. Once you have a room, you may need to renovate to repair certain things and/or customize the room to your liking. The amount of the renovation costs depends heavily on the amount of work you want to do (or have done). Finally, don’t forget to set aside money for electricity, gas supply, internet connection, etc.
Kitchen equipment and utensils
You can’t open your own restaurant without the right facilities. Your biggest issue in this category is kitchen appliances. Most commercial kitchens require at least a fridge, stove, oven, fryer and countertops. Expect a few thousand euros for these big purchases. After that you have to buy table accessories and decorations: napkins, cutlery, glasses, tablecloths, etc. Depending on the size and quality of the equipment, you should plan a few hundred to a few thousand euros here.
Furniture
Furniture, of course, includes the tables and chairs your dining room needs, and bar stools if your restaurant has a bar. The lighting and accessories complete the décor. If you need a painting services from professionals, go check interior painters Abilene Texas and make an appointment.
You don’t have to commission an interior designer to make your restaurant visually appealing. With a little creativity and energy, a lot is possible with a limited budget. On Pinterest you will find a lot of inspiration for restaurants and bars.
Franchise costs
If you plan to open a franchise, you will have to pay compensation for the rights to the name and intellectual property. For example, McDonald’s charges a franchise fee of €46,000 which is around USD54,591. It’s best to contact your franchise’s headquarters for detailed information about franchise costs.
Technology
In a modern restaurant, you need technology to work efficiently. Choose the technological tools that will help you automate your processes and collect data to make everything run smoothly in front of and behind the counter. Good software and hardware is essential for running a successful and modern restaurant.
Staff
Don’t forget to include labor costs in your restaurant’s investment costs. Since you won’t make a profit right away, it’s a good thing to put an amount back for a longer period of time. Don’t know how many employees you should hire in the beginning? Your workforce is determined by your service model and the size of your business.
For example, a fast-food restaurant needs more staff behind the counter than in front of the counter. According to Nestle Professional, it is advisable for this type of catering establishment to hire a waiter for every 12 tables and a staff behind the counter for every 12 guests.
For full-service restaurants, Nestle recommends a waiter for every 5-6 tables and a staff behind the counter for every 12 tables. Double this number for fine-dining restaurants, as guests there can expect a personal service.
Stock
You can’t open your own restaurant without food. Store durable products, such as dry products, soft drinks and liqueurs, in large quantities. Buy products with limited shelf life, such as .B fruit and vegetables, meat and dairy products, fresh. You can spend a few hundred to a thousand euros on your initial stock.