Some people have a passion for food; these people often pursue a livelihood by opening their own restaurant. However, once the restaurant is open for business, reality starts to set in as they see that business isn’t as great as they hoped. Within a year or two, their business is in the brinks of collapse, and they end up having to layoff all their workers and close their doors. One of the main reasons most restaurants fail is due to the fact that there was too little capital to begin with. If opening a restaurant, you will need enough capital to get the business going and enough to cover roughly two to four years’ worth of expenses because that is generally the length of time it takes for an eating establishment to really start bringing in noticeable revenue. It is best that you have a Restaurant start-up plan set in place; you can do this with the help of a restaurant consultant. In the beginning, your focus will mainly be on the planning. This includes the total estimated cost. The restaurant start-up cost varies depending on many factors, such as the location, the size of the facility and the type of cuisine you are serving. Generally, you can expect the figure to be in the six digit ranges. You will have to go through a lengthy application process to obtain the necessary license and permits. Once you have a facility, you will also have to spend money to have the place renovated and refurnished. This includes purchasing restaurant equipment, such as tables and chairs as well as kitchen equipment. This will include ovens, freezers, stoves and ventilation equipment. Once you have the basic appliances and furniture, you will also need utensils, menus, to-go boxes, napkins, toiletries and other smaller items. Of course, you will obviously need to buy the food and beverages as well. This one is really tricky because the price of food fluctuates so often. You will have to look around to find where you can obtain the necessary food items in bulk quantity at the lowest prices. With a restaurant start-up plan, you will be able to better track the money spent. If you are not good at crunching numbers, then you should hire a restaurant consultant who can help you in the planning phase. Don’t open a restaurant without a Restaurant start-up plan set in place. A restaurant start-up plan helps you manage your financial assets and ensures that you have just enough to cover the initial expenses during the first few months of business.
How To Open A Restaurant And The Costs Involved
by admin | Mar 19, 2013 | Hotels and Motels
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