Are You Ready To Open a New Restaurant? Find Out Here!
If you’re a food lover or love to cook, or both, you’ve probably thought about opening your own restaurant. Everyone knows that starting a new business isn’t easy, and opening a new restaurant is even harder—but it’s not impossible to make your dream come true.
First and foremost, you need to get an estimate of how much this new venture is going to cost. Before you decide to get a loan or invest your own money, find out what it actually takes to open a restaurant.
Do research on the cost of renting a space in the area(s) you want your restaurant to be. If you don’t know what size space you’re looking for, take note of all the options in your preferred area and see what fits your budget.
Depending on what type of cuisine you plan to serve, you’ll need to look for a space that has a kitchen big enough to fit all the appliances you’ll need. Some spaces come completely empty, just with outlets for appliances, and some have them there and already installed. This is an important factor when it comes to choosing a location because even if you find a great space in an area you like, and for a fair price if the kitchen doesn’t have space for a fryer or a big enough freezer, it won’t work for you.
Look Into Suppliers
The most important part of a restaurant: food! Call local fruit and vegetable vendors and look into meat, poultry, and seafood suppliers to get quotes on how much food you estimate you’ll need. Someone with the cheapest prices, might not have a high-quality product. You may find a supplier who has chicken breast in BULK, which will save you money. If you treat your vendors well, they’ll treat you well and may give you discounts or take extra care to get you the best product.
It’s important to weigh the cost against the quality of the product because your food is what will keep customers coming back. When outlining your budget, make sure to include the price of not only these vendor quotes but how often you’ll need to order from them. Finding and maintaining a relationship with vendors is important to the success of a restaurant, so take your time with this step in planning for your restaurant.
Look up the process and any fees for obtaining a business license and any necessary permits. Do you plan to serve alcohol? You’ll need a liquor license. This is required to open and operate a business and needs to be added to your estimate for your business plan. Familiarize yourself with the food service regulations and laws you’ll have to follow. You should know how you’ll need to store and label your food, train employees, and what’s expected during an inspection.
Lastly, look into restaurant insurance. Some types of insurance may be required by law, but others you can choose to add to your policy to protect yourself and your employees. For example, if an employee slips on the floor while working in the kitchen, you’ll need to be covered for workers’ compensation. If you serve alcohol, liquor liability insurance can help cover your business if a customer harms themselves or others after drinking at your restaurant.
Remember that are other expenses needed to make a successful restaurant. To make patrons come back you have to have good food, but also a great atmosphere. This is why spending money on the design of your restaurant is another necessary cost. Other costs include paying employees, marketing, cash registers, tableware, and more.
Once you’ve got an idea of how much your business will cost, it’s time to check your finances and see how you’re going to afford it. If you need to get a business loan, make sure you’re ready to apply so you don’t get denied. Before you apply, ready your business plan, make sure you have all the required documents and check that you have the required credit score and any collateral you’re putting up against the loan. If you have a solid plan, finances ready, and motivation, there’s no reason you won’t be able to open your new business soon!