4 Tips for Starting a Restaurant on a Low Budget
The restaurant industry is thriving, and opening a restaurant is a dream many people have. While the industry is challenging, it can also be fun, exciting and rewarding. There's nothing like the freedom of owning your own business. Unfortunately, the startup costs can seem unobtainable in some cases. From the commercial kitchen appliances to the dining room furniture, restaurant startup costs are not cheap. Today's blog from Fast Fix LLC offers a few tips for starting a restaurant on a budget:
When you decide to open a new restaurant, you might be tempted to just start spending money left and right on the things you think you need. Before buying anything for your restaurant, sit down and draft up a budget. Think about everything you are going to need and how you can keep the costs as low as possible. While some areas of your budget may be non-negotiable, others may have some wiggle room to help reduce your initial expenses. Budgeting is key to a successful restaurant business.
While it may seem like placing your restaurant in the busiest part of town is a no-brainer, getting people in the door isn't your only feat. If the rent (or purchase price) is astronomical, with a low profit margin, you're going to have to sell a lot of food. Keep in mind that your success isn't measured just by the number of people that walk through your door, but by the profit those customers generate for your business. When choosing a location, take into consideration all your expenses. A building that used to be a restaurant is probably the best option, as plumbing, ventilation and room for appliances may already be there. By keeping your expenses low during your "test run" of your new restaurant, you'll be able to generate more initial profit which can serve as the funding for expanding your concept in the future.
When it comes to marketing, printing and other business needs, try to use local businesses. Large agencies typically charge more than your local shops. Not only will you be helping the local community, but you could save on your startup costs. When it comes to your food suppliers, keeping it local will cut down on transportation & processing costs, while also giving you that "feel-good" factor you and your customers get when you say you buy local. You might also see if any businesses are willing to offer a trade, some restaurant credit for some of their services. Be resourceful and look for mutually benefiting connections that you can make.
One of the largest expenses for a startup restaurant is the equipment or appliance costs. Depending on the type of food your restaurant will be serving, you're going to need refrigeration units, ovens, fryers and more! Buying brand new equipment isn't your only option. Do some searching around to see what equipment you might be able to lease or rent instead of buy, at least to start with. You can also look into purchasing used equipment from an old restaurant that went out of business, etc. By cutting down on the initial equipment costs, you'll be greatly reducing your startup costs for your new restaurant.
One thing that's key to running a successful restaurant is having great partners standing by you. This includes not just your staff, but your food providers, wholesalers and your restaurant equipment repair company in Missouri. Having people you can trust and rely on to get the job done right when you need them will only help with your success. If you're looking for an honest, reliable and professional food service equipment maintenance company in Western Illinois or Missouri, look no further than Fast Fix LLC.
Fast Fix LLC. Restaurant Services
9403 County Road 154
Auxvasse, MO 65231
Phone: 573-544-0456
St. Louis Customers: 636-FASTFIX
Website: www.FastFixLLC.com
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1. Create Budget in the Beginning.
When you decide to open a new restaurant, you might be tempted to just start spending money left and right on the things you think you need. Before buying anything for your restaurant, sit down and draft up a budget. Think about everything you are going to need and how you can keep the costs as low as possible. While some areas of your budget may be non-negotiable, others may have some wiggle room to help reduce your initial expenses. Budgeting is key to a successful restaurant business.
2. Select the Right Location.
While it may seem like placing your restaurant in the busiest part of town is a no-brainer, getting people in the door isn't your only feat. If the rent (or purchase price) is astronomical, with a low profit margin, you're going to have to sell a lot of food. Keep in mind that your success isn't measured just by the number of people that walk through your door, but by the profit those customers generate for your business. When choosing a location, take into consideration all your expenses. A building that used to be a restaurant is probably the best option, as plumbing, ventilation and room for appliances may already be there. By keeping your expenses low during your "test run" of your new restaurant, you'll be able to generate more initial profit which can serve as the funding for expanding your concept in the future.
3. Keep It Local When You Can.
When it comes to marketing, printing and other business needs, try to use local businesses. Large agencies typically charge more than your local shops. Not only will you be helping the local community, but you could save on your startup costs. When it comes to your food suppliers, keeping it local will cut down on transportation & processing costs, while also giving you that "feel-good" factor you and your customers get when you say you buy local. You might also see if any businesses are willing to offer a trade, some restaurant credit for some of their services. Be resourceful and look for mutually benefiting connections that you can make.
4. You Don't Have to Buy All Equipment Outright.
One of the largest expenses for a startup restaurant is the equipment or appliance costs. Depending on the type of food your restaurant will be serving, you're going to need refrigeration units, ovens, fryers and more! Buying brand new equipment isn't your only option. Do some searching around to see what equipment you might be able to lease or rent instead of buy, at least to start with. You can also look into purchasing used equipment from an old restaurant that went out of business, etc. By cutting down on the initial equipment costs, you'll be greatly reducing your startup costs for your new restaurant.
One thing that's key to running a successful restaurant is having great partners standing by you. This includes not just your staff, but your food providers, wholesalers and your restaurant equipment repair company in Missouri. Having people you can trust and rely on to get the job done right when you need them will only help with your success. If you're looking for an honest, reliable and professional food service equipment maintenance company in Western Illinois or Missouri, look no further than Fast Fix LLC.
Fast Fix LLC. Restaurant Equipment Service & Repair -
One Call Does It All!
Fast Fix LLC. Restaurant Services
9403 County Road 154
Auxvasse, MO 65231
Phone: 573-544-0456
St. Louis Customers: 636-FASTFIX
Website: www.FastFixLLC.com
"Like" us on Facebook
"Follow" us on Twitter
"Follow" us on LinkedIn
"Follow" us on Google
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