Restaurant Start-Up Costs: 8 Expenses to Consider

Opening a restaurant? The first thing you might want to clarify is the overall restaurant start-up costs. Unfortunately, there is no formulated answer. However, a recent survey by reveals a good starting point. The median start-up cost  (without land purchase) among 700 restaurant owners surveyed was about $275K. That may seem like a lot, but starting up a restaurant is no small venture. Below are 8 restaurant start-up costs to consider.

1. Professionals

You can’t do this alone. You’ll want to make sure you hire some professionals that get the job done right. Consider a:

  • Real Estate Agent
  • Accountant
  • Lawyer
  • Marketing Firm
  • General Contractor

2. Location, Location, Location

Will you be looking to own or rent? Will you build or buy an existing location with renovations? Make sure you do your research. A cheap location may be inexpensive for a reason. You’ll want to make sure you have ample foot traffic. Spending more up front at first will be better in the long run than spending a lot of money for years to come on advertising dollars.

3. Administrative Costs

You will need to form a business entity, submit fees to your state, pay franchise taxes, and ensure that all legal needs are met.

4. Equipment and Supplies

You will need to invest in kitchen equipment and supplies. There is no getting away from these restaurant start-up costs. Here is a short list:

  • Ovens, stove, grill, fryers, blender, mixer, etc.
  • Walk-in refrigerators, freezers, heat lamps, dishwasher, coffee machine, ice maker, soda fountain
  • Prep table, counters, storage area
  • Cooking utensils, dishes, silverware, glasses
  • Furniture, booths, tables, chairs, linens, bar equipment

5. Insurance Coverage

In an environment that welcomes many guests, and puts employees at risk for injuries in a busy atmosphere, insurance protection is critical. Consider general liability insurance, workers compensation, and even product liability.

6. Licenses and Permits

No restaurant can open without permits and licenses. You’ll need to obtain a food service license, liquor license (if you plan to serve alcohol), food handler’s permit, and a sign permit.

7. Marketing

How will people find out about your delicious menu and location? You’ll need some help with public relations and marketing. Set a yearly budget with a plan that includes evaluating your efforts.

8. Your POS

A point-of-sale (POS) system is the central part of how your business operates. It can record sales transactions; automate your processes like inventory management; track sales, trends, product orders, employee hours, and more.

For more than 40 years, Bepoz has been delivering POS solutions to restaurant owners to help increase efficiency, profitability, and revenue. Bepoz’s full set of features works with small and large multi-restaurant groups. Learn more about Bepoz’s features for restaurants.

Restaurant start-up costs may seem steep, but the investment is worth it. Consider these 8 steps before you open up your restaurant. Don’t forget to consider Bepoz’s POS software to help run your operation smoothly and efficiently.