Obviously, you need to know how much it costs to open a restaurant if you want to get into this type of business. You can work out the estimates, but getting a restaurant up and running depends on a few factors. These factors may also depend on where you choose to open your restaurant.
restaurant size – It would cost you an average of $100 per seat if you go to a small restaurant that will have about 30 customers. While a larger stage of around 250 people might spend an average of $300 per seat. Of course, the cost would be higher if you want some custom made tables and chairs.
The smallest restaurant may be good at 900 square feet of space and the largest may need around 11,000 square feet to meet their goals. In general, you should consider that 30% of that space is allocated to your kitchen, storage, and other necessities.
To lease – There is a very big difference when it comes to the cost of leasing in different parts of the country. In one area you may be paying $15 per square foot, while in the city center you may end up paying $40 per square foot. Many landlords will ask for fees for basic maintenance, insurance, land taxes on top of the basic cost of the lease, which can cost you $5 to $16 more per square foot.
One that is common in this industry is that the cost of leasing should be around 9% to 11% of annual sales. If you think you would spend a little more than the average, then you need to be very careful because the restaurant business runs on small profit margins.
Kitchen – What meals will you provide? If you are planning to open a fine dining steak or seafood house then your meals will be expensive and you will also need expensive equipment to prepare and store them. On the other hand, you only need some basic equipment if you are going to set up a small coffee shop.
Equipment – A high-temperature rotisserie for beef and pork costs about $2,000 to $5,000. A small-scale chicken rotisserie starts at $1,600, while a convection oven costs $4,000 to $6,500. You can also opt for second-hand equipment, but you should take a close look at whether it is still in good working order.
Regulatory Permits – Most of the time, new owners don’t pay too much attention to permit costs and make sure their restaurant meets health and safety codes. Obtaining your health and safety permits can cost you anywhere from $790 to $1,900 and this will depend on your restaurant improvement needs.
