How do you estimate restaurant startup costs?


Quick Answer

To estimate restaurant startup costs, consider the approximate cost of buying kitchen equipment and tools, paying staff and renting the property for the restaurant. Consider minor expenses, such as utilities, and major expenses, such as marketing and advertising.

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Full Answer

Consider and calculate operation costs first. This includes choosing a place to rent and knowing approximately how much it costs per month, paying the security deposit and first month’s rent, and paying for utilities at the location, such as phone, Internet, electricity, and heating and electricity costs. Utilities can be high due to refrigerators, freezers and other big appliances used in a restaurant kitchen. There is also the option of building or owning the property, so consider those costs as well.

Buying equipment and supplies is the next big purchase. This includes all appliances, stovetops and ovens if the location does not have the right equipment in the kitchen area. It also includes tables and chairs, linens, cooking tools, eating utensils and a supply of dishes. Even if a restaurant occupied the space previously, the former tenant may have taken most of these items.

When calculating restaurant expenses, additional expenses to consider include the permit and license, ordering technology, accounting costs and insurance. Marketing and advertising are other essential costs to consider.

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