The Unexpected Costs of Opening a Restaurant
While restaurants can fail for many reasons, about 80% of those that fail go under because they underestimated the startup capital needed. There are always unexpected things that come up with opening a new restaurant, and it almost always costs more than what you would think. Today's blog from Fast Fix LLC offers some advice to those just starting out in the restaurant business. Below you will learn several of the common unexpected costs of opening a restaurant.
When opening a new restaurant, you want it to have a certain look. Obtaining that look can result in a pretty large expense. While you will start with a budget, any changes to in the plans after the project is started can incur extra costs. Maybe the materials you thought you wanted don't look at great in-person and you need to upgrade to something better. Be prepared to go over budget to get your restaurant to look great!
When it comes to a building project, you never know what you might find. Hopefully, you had a good inspection done before you bought the property. However, electrical and plumbing issues are often very common finds when remodeling commercial buildings. Issues like that can easily add thousands of dollar to your construction budget. They can also push back your timeline for when you'll be able to open your restaurant.
If you've been in the restaurant industry for a while, you likely have an idea of what the food needed each week is going to run. Those brand new to the business however often way underestimate food costs, especially that of proteins. Another common underestimation when it comes to food is what it takes to get that food on the plate. Burgers for example need a bun and condiments. In addition, you can budget for the menu you've created, but that often changes after opening when you see what consumers are wanting.
Do you want to play music in your restaurant? Most restaurants do, and a license is required to do so. Music licensing can run you upwards of $1,000, so be sure to add that into your budget. Businesses today have a variety of other licenses and permits that need obtained before you can open your doors to the public. These costs often take new restaurant owners by surprise. In addition, building permits often take extended amounts of time to obtain. Therefore, you have to consider the costs of keeping the lease or mortgage current while you're waiting.
Large expenses like the ones mentioned above aren't the only unexpected costs you need to budget for. Small things can quickly add up as well. You aren't going to be able to imagine every detail. When opening a new restaurant, you're likely to make several trips to the local store for things your forgot or didn't even think about at all. Since you aren't buying it in bulk from a wholesaler, you're likely going to spend more on it and those miscellaneous costs needs to be accounted for in the budget somewhere.
While you likely budgeted for the new kitchen equipment needed, be sure to consider the costs of Missouri restaurant equipment maintenance and repair. If you have bought new equipment, you hopefully won't need repairs for awhile. However, if you chose to save money and go used, you'll likely need some maintenance or repair. When you do, Fast Fix LLC is here to take care of all your Missouri and Western Illinois food-service equipment repair and maintenance needs. Just give us a call at 573-544-0456.
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
1. Design Materials.
When opening a new restaurant, you want it to have a certain look. Obtaining that look can result in a pretty large expense. While you will start with a budget, any changes to in the plans after the project is started can incur extra costs. Maybe the materials you thought you wanted don't look at great in-person and you need to upgrade to something better. Be prepared to go over budget to get your restaurant to look great!
2. Construction Surprises.
When it comes to a building project, you never know what you might find. Hopefully, you had a good inspection done before you bought the property. However, electrical and plumbing issues are often very common finds when remodeling commercial buildings. Issues like that can easily add thousands of dollar to your construction budget. They can also push back your timeline for when you'll be able to open your restaurant.
3. Food Costs.
If you've been in the restaurant industry for a while, you likely have an idea of what the food needed each week is going to run. Those brand new to the business however often way underestimate food costs, especially that of proteins. Another common underestimation when it comes to food is what it takes to get that food on the plate. Burgers for example need a bun and condiments. In addition, you can budget for the menu you've created, but that often changes after opening when you see what consumers are wanting.
4. Licensing and Permits.
Do you want to play music in your restaurant? Most restaurants do, and a license is required to do so. Music licensing can run you upwards of $1,000, so be sure to add that into your budget. Businesses today have a variety of other licenses and permits that need obtained before you can open your doors to the public. These costs often take new restaurant owners by surprise. In addition, building permits often take extended amounts of time to obtain. Therefore, you have to consider the costs of keeping the lease or mortgage current while you're waiting.
5. Miscellaneous Costs.
Large expenses like the ones mentioned above aren't the only unexpected costs you need to budget for. Small things can quickly add up as well. You aren't going to be able to imagine every detail. When opening a new restaurant, you're likely to make several trips to the local store for things your forgot or didn't even think about at all. Since you aren't buying it in bulk from a wholesaler, you're likely going to spend more on it and those miscellaneous costs needs to be accounted for in the budget somewhere.
While you likely budgeted for the new kitchen equipment needed, be sure to consider the costs of Missouri restaurant equipment maintenance and repair. If you have bought new equipment, you hopefully won't need repairs for awhile. However, if you chose to save money and go used, you'll likely need some maintenance or repair. When you do, Fast Fix LLC is here to take care of all your Missouri and Western Illinois food-service equipment repair and maintenance needs. Just give us a call at 573-544-0456.
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
Comments
Post a Comment