Things You'll Need:
- Determination
- Money (how much depends on what you want to do)
-
Step 1
Before opening a restaurant, you should seriously consider buying a preexisting one. There are a number of advantages to this. Starting a business that involves renovation will have many unexpected expenses. By acquiring one you will have an exact number of what it will cost you. A bank might also be more willing to give you a loan if you already know the revenue and costs. Check BizBuySell or make an appointment with a business broker. You don't have to make any commitment and it will be a fun adventure to tour various restaurants you could end up owning.
-
Step 2
The first thing to consider is the location and the size of the restaurant. The midwest is cheap and you might be able to find a decent location for $10 per square foot. If you want to open a restaurant in Manhattan, don't be surprised if the going rate is $250 for the same amount of space. Meat with a real estate broker to get a better idea about the general area. If there has never been a restaurant in the location you might need to make a number of improvements. A grease trap can easily cost over $10,000. Roughly 30% of your space will be allocated for the kitchen and storage. Chairs and seats can run from $100 to $300 depending on how fancy you are. Add $25 to $150 per seat for dinnerware.
-
Step 3
The equipment you will need depends on what type of cuisine you intend on serving. Seafood will require a large refridgerator (walk-ins start at $5000 and can go to $25,000), a steamer ($3,000), a charboiler ($2,000) and stove (starting at $2,000). An over for baking can cost from $4,500 to $15,000. Meanwhile a coffee cafe may only require a relatively inexpensive coffee setup. You can get used equipment for 25 to 50% off but there of course will be no warranty so it requires a sharp eye. Many equipment suppliers allow you to lease equipment if you have a good credit rating.
-
Step 4
Ambiance can be very important for restaurants. This line item really depends on what type of place you intend to own. A casual place might run a couple thousand while something opulent could easily run into the six figures.
-
Step 5
There will be a lot of miscellaneous items. Permits can run a couple thousand and that doesn't even include an alcohol license. Be sure to figure for staff training costs before a restaurant opens and funds for a marketing campaign. Leases require 1-2 months upfront and utilities require a months deposit (figure a grand for gas/electric).
