How Much Does it Cost to Open a Restaurant?
The investment necessary to open a restaurant is often an afterthought, while the logistics take center stage. In the daydreaming phase, you focus on the location, your menu selections and your vision — you can’t wait to get started! But at some point, you must consider the money needed to make this a reality.
How much does it cost to open a restaurant?
What You Need to Know
To start this new venture, you will need a fair amount of capital. According to a survey of over 700 restaurant owners, the average cost to open a restaurant is $275,000, and that’s not counting the cost of the building.
Whether you will finance this yourself or find investors to help is just one of the decisions you will face in the early stages.
Advice from the Other Side: Don’t Overspend!
When you decide to open a restaurant, you are making one of the biggest investments in both your career and your life. But so many restaurateurs say they wish they could go back and make better spending decisions than the ones they made at the beginning of their journey.
Two expenses you may not realize you need to budget for before you start the process are:
- Music licensing fees: You need to pay to play music in your restaurant or you could face hefty fines.
- Utility deposits: You may need a sum of money up front to set up utility accounts.
There are also some areas where you may be able to cut costs in the early stages.
- Commercial kitchen equipment: Look for used equipment that still functions well, but doesn’t come at the high sticker price of a new model.
- Marketing expenses: Before you hire an expensive agency to handle your marketing, try to leverage free ways to get your message out. Use social media and local networking to drive foot traffic!
Always Count the Cost
While location and restaurant market will greatly determine the costs for your new eatery, one of the biggest mistakes new restauranteurs make is neglecting to fully understand the upfront investment. At Park City Culinary Institute, you’ll get the basics you need to realize your dreams of running a kitchen.
Entrepreneurs come to Park City Culinary Institute because its fast, intense program helps them hit the ground running. Whether you want to open a restaurant, bakery, catering company or other business, learning the science behind what you’re cooking is going to help you create the results you want.