Startup costs for a restaurant

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					Startup costs for a restaurant




What will it cost to open an eatery and how much should you bankroll to keep it afloat
until it can start turning a regular profit? These are questions every would-be restaurateur
should get answers for before they begin the long, but rewarding process of becoming
business owners. The expected costs of starting up a restaurant can range from as little as
five to six thousand dollars for a small, deli-type locations with low rent, to a hundred
thousand for a posh, upscale establishment in a better neighborhood. And that's just for
start up costs.

The small deli-type eatery can be located in a strip mall or on a side street. It will operate
primarily for a breakfast, lunch and early dinner crowd. The furnishings will be
inexpensive and sturdy, not meant to impress or even offer excessive comfort. This is a
business selling convenience, not cuisine. Thus the overhead will be lower and the start
up fees reflect the lower rent, lower staffing costs, cheaper furnishings and smaller supply
orders.

The upscale dining club, however, will have to either rent an entire building, which is, in
this instance, preferable, or else they will have to locate in prime commercial real estate.
Thus the restaurant's rent payment for a month may be equal to the start up fee for the
deli. The decor will have to be high-class and well made. The staff will be experienced
and quality oriented. All in all, as a more expensive venture it offers hopes of bigger
profits but will cost more in initial outlay.

The expected costs of starting up a restaurant are always approximate numbers. There is
no magic formula, since the type of business; the location, the market and the economic
situation in that area all play key roles. These figures are very simple approximations.


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