A restaurant is one of top performing and profitable business ventures today because food is the staple need of everybody and we all need to eat to survive. Because of its profitability and feasibility, numerous individuals ventured into this type of business. However, it is not that easy to form or develop your own restaurants due to the numerous elements and requirements you need to comply to become successful.
Some people believed that restaurant business is one easy task to hurdle, but they are wrong. There are lots of factors to consider when opening a new food stall.
These are the restaurant start-up costs elements:
- Lease – Since not all entrepreneurs can afford to buy a new space and a new building where they can operate their food stall business, you need to consider lease costs, which include deposits and monthly rental payments.
- Lease improvements – Once you have signed a contract with your tenant or landlord, you need to make the needed improvements to the space to meet your desired ambiance. You have to make the needed changes to the walls, interiors, flooring, rewiring, lighting, plumbing, shelving, furniture fixtures and many more.
- Beginning inventory – Like any other businesses around, you need to buy the needed supplies and equipment for your restaurant such as tables, tablecloths, spoons, forks, knives, cutlery sets, casseroles and other kitchen utensils. Since you need to buy several pieces of these things, you can source out suppliers which offer discounts on bulk purchases. Since you will use these supplies several times, you should buy those which are durable and made from quality materials. You also need to print menus for your customers to use when choosing their dishes.
- Marketing – To let your target customers know your existence, develop an effective marketing strategy to inform them of your menus and services. You can distribute fliers, business cards, send electronic mails and SMS messages to your customers.
- Legal Documents – Before you start operating your restaurant, you need to comply with all the legal papers such as business permit, sanitary permit, building permit, health permit and business license. You also need to pay the corresponding taxes in opening a start-up restaurant. You need to pay the associated fees when complying with all these documents.
- Employees – You have to hire credible, experienced and reputable employees who will help you manage and operate your restaurant. You need to employ cooks, waiters, cashiers, dishwashers, accountant, manager and delivery personnel, in case you cater to food delivery services.
- Insurance – To prepare for untoward accidents and calamities, it is best that you get the needed insurance for your restaurant, machinery and other devices. Insurance really helps especially when your business is impacted by a calamity or disaster.
- Emergency funds – It cannot be avoided that businesses also encounter emergency situations such as sudden breakdown of one equipment or device. To avoid bottlenecks, you need to have emergency funds to address these cases.