A Complete Guide On Restaurant Startup Costs

     Restaurant startup costs can range anywhere from $175,500 to $750,500. That is definitely a wide range. So, how exactly does one know how much it costs to open or start a restaurant? The answer is simple - a lot of careful planning.

The restaurant industry is renowned for its thin profit margins, high operating costs and heavy competition. Thus, one thing that you must do to churn out profits is to project the startup costs and an estimate of ongoing expenses before even applying for external funding.

It is important to add the cost of restaurant website building while estimating the restaurant startup costs. A restaurant website is not just a directory of worthy credentials, it is also a platform to generate online food orders and revenue. Make use of a DIY, template based restaurant website builder that is affordable, allows customization, provides unlimited food orders and direct payments, does not levy any commission per order or charges hidden costs. Use a credible food web constructor that will get your restaurant business online within minutes.

Through this blog, you will get to know the ways to project the following costs of your upcoming restaurant:

• Startup Costs

• Fixed Expenses

• Variable Expenses

• Mixed Expenses 

Once these costs are projected, you will arrive at an almost precise amount of money needed to open and operate your restaurant.

Before we start, it is important that you understand the difference between RESTAURANT EXPENSES and RESTAURANT COSTS. An expense is a recurring payment like space rent, raw material costs, staff payroll, marketing and other utilities. Whereas, a restaurant cost is any one-time expense (also like an investment) made on things like kitchen equipment, interiors, furniture, dishes, etc.

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A Complete Guide On Restaurant Startup Costs