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How much to open a small restaurant?
With about 20 tables and a bar. Lease amount already known, but what about kitchen equipment, tables, chairs, etc. and some redecoration? It’s about 2000 sq ft.
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Technorati Tags: chairs, kitchen equipment, redecoration, sq ft
September 22, 2009 | Filed Under Equipment Leasing Questions
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- Dawn M on Please read the whole post regarding this Atlanta family?
- pakawaddle on Please read the whole post regarding this Atlanta family?
- Thomas Kristy on How to start up a restaurant/business? where to start? costs? profit?
- Henry on How to start up a restaurant/business? where to start? costs? profit?
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- laughter_every_day on What can I legally do to fight back a commercial landlord who discriminately declines us an option to renew?
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lease the equipment or buy used, specialize in a particular dish. About $100,000.
You will need to have on hand at least 6 - 12 months of lease payments (three to be paid up front as security, first & last), 6 months’ utilities (@ 2 months’ worth as deposits), funds to finish the interior (walls, flooring, paint, lighting, decor). Plus furniture and furnishings, then all the kitchen equipment (sinks, stoves, food prep tables, ad infinitum) and pots, pans, utensils. Then you need a 3 to 6 month supply of staples (flour, canned goods, etc), and enough money to pay for at least 6 months worth of fresh fruits & veggies, meats and other foods. Don’t forget publicity, advertising and promotion; getting your menus printed, etc! And this list is not comprehensive — it only hits the big stuff.
With used equipment, it will cost you a minimum of $100,000 to prepare the place to open, plus costs of staff, training, linen services, et al. Most experts figure you need to have a million bucks to keep you going for 3 to 6 months to try to establish a clientele. Much more for a franchise operation or an upscale establishment.
More people have big-buck busts in the restaurant biz than any other. And restaurant business is down substantially across the country.
Do not attempt without extensive experience in restaurant management, and preferably a hotel & restaurant management degree plus several years experience.
Go to http://www.score.org/template_gallery.html and download the Excel template for estimating start up costs.