Calculating Startup Costs For Restaurants

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Startup costs for your restaurant depends on various factors such as the type, to whom you intend to cater to, the location and the number of persons you can engage at any given time. Just as every restaurant is unique, expenses for the same will also vary. Having a clear picture of the expenses involved will help with your financial projection with loans  and better management of your funds.


The location you choose should be the type that attracts traffic and the site should have parking facilities. The traffic to your restaurant is proportional to the footfall the area has. Rental properties at these areas will be quite expensive and hence you should enquire real estate agents to know the amount you need to allocate for the same. While you stack money for rental deposit, also save some for rent for the next few months.

Type Of Restaurant

The theme of a restaurant can increase or reduce the cost. Decide on the food that you are going to specialize in as your menu impacts the cost. If you aim at catering to families, not only will there be a change in the menu but also in the cost for bad credit people and operating hours of the restaurant. If it is for those who return home late and look for a dinner and drink, the restaurant hours will stretch to midnight and also there will be a change in menu and cost. Fine dining may be more expensive as everything about it right from the décor, menu and service are expected to be the ultimate quality.


You will be spending some money on fees to obtain permit, license and to insure your restaurant and staff. Accountancy fees and legal fees are among other fees that you need to spend.


Interior of your restaurant reflects the theme you have chosen. Hence, for a rich theme, you may have to spend more on the décor. Furniture for comfortable seating and dining, decorative features to enhance the appearance and the right lighting to accentuate your theme are required. The cost of all these will add up to a considerable sum. You may seek the help of professional interior designers to save up on the cost but remember, you will have to pay professional charges for the services availed.

Kitchen Equipment

The cost of kitchen equipment depends on your choice of restaurant. If it is an existing restaurant, the money spent on equipment will be lesser as you may have to only a few to replace old ones or just do some up gradation. If it is a new restaurant then you need more money as everything from plates, utensils to ovens is to be bought.

Advertising Expenses

Advertising plays an important role in promoting your restaurant. You can create a website and blog for your restaurant and upload images of your restaurant and foods. You can post ads in newspapers that the local people read. Gift coupons and offering discounts are inevitable part of any business and yours is no exception. Save some money to spend on advertising to see the results.