Opening a restaurant is about more than just serving people food that you enjoy cooking. There are plenty of business expenses you need to acknowledge before you get started. Make sure you are in a position to afford these expenses so you can open your restaurant successfully.
The first expense you should account for is the cost of the space you will be using. Before you settle on any one space, you should take some time to shop around. You want to explore a couple of locations to see if they would be a good fit for your restaurant. As you look around, you should also evaluate the different prices for each spot.
You can certainly find a space that is within your budget. To help you determine if a space is a good fit for you, calculate how much revenue you will need to make in order to afford the space, cover other business costs, and still make a profit. If you believe you can afford a space, then begin working on negotiating a lease.
A restaurant can’t operate without the right equipment. In a restaurant kitchen, you’ll need a lot of hardware in order to cook everything. This will include ovens, stovetops, food processors, mixers, refrigerators and freezers, storage, basic cooking supplies, and any specialty items you may need. All this equipment doesn’t come cheap.
However, you can find ways to lessen the cost. Buying older but well-treated equipment can prevent spending money on replacements. You can also make deals with some vendors to help you get a lower price. Some equipment can even be leased rather than bought and this can save you money.
Your restaurant won’t get very far if you don’t market it well. Marketing costs can be quite expensive and if you want the best results, you’ll end up paying more. To market your restaurant, you will need a polished and helpful website your patrons can use. This website should include your location, contact info, a menu, information about catering/delivery/etc., and anything else that’s pertinent. You may also want to set up a few social media accounts for your restaurant as well. Of course, don’t forget about the benefit of print marketing. Signs, billboards, and posters all help bring business in.
It can be expensive to open up a restaurant and you should understand all the major costs before you get started. Create a budget for yourself and make sure you don’t overextend. Making smart financial decisions will help you create a more successful business.
Did you enjoy reading this article? Here’s more to read: You Need More Than Good Food: Elements that Make or Break a Restaurant