How Much Does It Cost To Open A Restaurant
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How much does it cost to open a restaurant ? Is a common question and depends if you are opening a restaurant in new york city, small town, etccc!
The amount of restaurant capital to open a restaurant will vary on the size and type of restaurant you are thinking of opening, what part of the country you are thinking of opening, and how the economy is at that time.
If you are opening a restaurant where it is a well known area that has a name for itself, leases and building costs are expensive in these areas, as well in locations near attractions that attract large numbers of people, such as stadiums, beaches etccc.
If you are wondering how much does it cost to open a restaurant during a good economy for construction purposes, it is more expensive, then it is when we are going through a recession as we are going through at this moment due to mortgage crisis!
3 General Categories of Expenses - Costs of Starting A Restaurant
- Initial Planning: Restaurant Marketing, restaurant consulting, legal, market research, general & administrative expenses such as telephone, copies, transportation, designing and cost estimating, etccc
- Supplies - Equipment - Construction: Renovating or building a restaurant, buying and installing of restaurant equipment, getting initial inventories and operating supplies.
- Pre-opening expenses and working capital: Training, advertising, hiring, picking up after up construction leaving the place clean, having sufficient working capital funds to meet payroll and other bills until your cash flow can cover your restaurant operating costs.
If you are looking for a restaurant owners forum to network with like minded restaurateurs, restaurant marketing ideas, menu costing worksheets, menu costing methods, people you can speak via a restaurant owners forum, restaurant accounting software ideas, restaurant accounting systems ideas, etc
Call now: 718-512-8587
Restaurant Startup Costs Sample:
The restaurant capital startup costs involved in opening a restaurant can vary from restaurant to restaurant, therefore, no 2 restaurants are the same in terms of cost.
Below you will find some figures to go by based on a survey done by www. restaurantowner.com a super organized restaurant owners forum, resource site for restaurant chain or independent restaurant operators!
I highly recommend this site for any serious restaurateur determined for restaurant success vs restaurant failure.
You will not only find surveys on how much does it cost to open a restaurant, but you will also be able to gain access to lots of information surrounding restaurant marketing ideas, menu costing worksheets, menu costing methods, ask for recommendations to restaurant accounting software - restaurant accounting systems ideas from people using them, restaurant business plan samples, access to restaurant consultants or a form of free consulting via the forum….hint—-;>)
To see more actual surveyed data startup costs by service type, geographic region etcc - click here how much how does it cost to open a restaurant!
Source: ( http://www.restaurantowner.com/public/811.cfm )
| Cost Estimates | Lower Quartile | Median | Upper Quartile | Average | # of Respondents |
| Total startup cost (no land purchase) | $125,000 | $225,000 | $550,000 | $451,966 | 267 |
| Total startup cost (with land purchase) | $175,000 | $375,000 | $850,000 | $700,866 | 101 |
| Startup cost per sq. ft. (no land purchase) | $42 | $83 | $159 | $125 | 266 |
| Startup cost per sq. ft. (with land purchase) | $56 | $125 | $250 | $174 | 101 |
| Startup cost per seat (no land purchase) | $1,244 | $2,500 | $4,955 | $3,759 | 263 |
| Startup cost per seat (with land purchase) | $1,750 | $3,728 | $7,212 | $5,195 | 101 |
| Cost overrun compared to budget | 0% | 18% | 46% | 32% | 367 |
| Construction cost-$ | $50,000 | $140,000 | $400,000 | $267,547 | 317 |
| Construction Cost-% of Overall Startup | 29% | 47% | 67% | 50% | 317 |
| Construction cost per sq. ft. | $16 | $46 | $91 | $68 | 314 |
| Construction cost per seat | $500 | $1,250 | $2,795 | $2,004 | 314 |
| Kitchen & bar equip. cost-$ | $30,750 | $75,000 | $150,000 | $120,982 | 331 |
| Kitchen & bar cost per sq. ft. | $50 | $94 | $153 | $150 | 330 |
| Land & building cost-$ | $50,000 | $150,000 | $400,000 | $301,426 | 101 |
To see more actual surveyed data for restaurant start up costs - click here how much how does it cost to open a restaurant!
Call now: 718-512-8587