Let’s begin with calculating the start-up costs of your new restaurant.
Everything is important here, even the box of pencils that you buy to do your staff training. Every little detailed cost will come into play, because unfortunately you won’t get revenue until you open, and you’re going to need to pay for all of those things without any income to offset them. And also in the beginning of the life of a restaurant, it’s rarely as busy as you want it to be, or as it will become.
One of the most significant start-up costs will be construction. Now if you’re taking over an existing restaurant, your construction costs might not be too great. But if you’re starting with a raw space it will cost you a great amount of money. And unfortunately, it’s usually more than you want it to be. All the equipment you need will add an extraordinary amount to your construction costs. So it will be more budget friendly if you start your restaurant over an existing one.
You will need to hire your staff in advance of your actual opening. You probably will want to hire your senior staff earliest, then your managers, and finally your hourly staff later and closer to the opening. But everybody need to have time to be trained in their position and in the space before the opening time, otherwise the opening night will be a disaster and it could create a very bad first impression.
Equipping your restaurant
There are a lot of costs involved in equipping a restaurant. Kitchen equipment, refrigeration, stoves, mixers, small utensils. And all the equipment you need in the dining room, Tables, chairs, glassware, plate ware, silverware, all of those cost money and need to be brought in before you open. You may have a need for fewer pieces of equipment to get open. Don’t buy equipment because you think it’s cool. Buy the equipment that you need and grow the restaurant’s equipment as the restaurant grows.
After estimating all of your start-up costs. It’s important to remember things are going to happen. Things are not going to go exactly the way you expect. So you need to build in some percentage of additional costs for your opening. Things might go wrong with the construction or other equipment. So, you might want to have some cash for those unfortunate happenings. Once you have all of your start-up costs prepared, it’s time to think about how to reduce the costs.
Here we will share with you ways to control the prices
Save your start-up cash by purchasing used kitchen equipment. You don’t need to spend all the cash on buying expensive brand new kitchen equipment. There are dozens of restaurants out there that will sell their stuff for cheaper price. This is a smart idea to do and decrease your start-up costs.
There might be different occasions at your restaurant so the overall view of your restaurant, all the table clothes must be clean and nice for any events. In order to save money, you’d better look for table clothes that are easy to launder and last longer and also give your restaurant a nice, formal look.
Do not spend a large amount of money on advertising. You can focus on one or two social media site. There are a lot of places to start advertising so you might want to hire some people to start advertising for you but we suggest you to delay it until your restaurant gets established and reduce the start-up costs.
At the beginning, there is no need for a website since a well-designed Instagram or Facebook page can even be more effective. You can share your location and contact numbers and also you can post your great-looking food pictures there at your page.
Keep following us we will share more restaurant management tips for you,
Yours, Mealsy Team.