What are a general restaurant business's start up costs?

Question

I have been thinking about starting up a small restaurant business and I am wondering relatively what other business owners found their startup costs estimates were and how close they were to meeting them. Also what their profit margins were and what they did for advertising...If anyone would like to fill me in, it would be greatly appreciated.

Answer 1

Totally depends on the geographic area and scale of the restaurant. You might do it in a remote small town with $10,000, but in a major city to open a quality restaurant might cost you upwards of $1,000,000. Rent is only the beginning. Figure 3 months before you are paying the rent and a year before you might draw anything out of the business for starters. The most common mistake is to start with too little capital.

Answer 2

Hi, I have a home business that is just getting its expansion in California. One of my friends who is now my business partner was actually sitting down and filling out an application to go to a pastry school when I called her about this. It was going to cost her alot of money.We talked about the economy and people being afraid to spend so much. She took a look at this business and saw that it is affordable, and we are simply helping people save money on what they are already paying for. Plus we have access to a mall with over 1100 stores where you get rebates from everything. There is really too much to mention in an answer format like this. But if you want to get in on the beginning of a great companies expansion and help people at the same time, letme know. Neeless to say, my friend is not doing the pastry school and doing this new business full time with great success.

Answer 3

A great way to look at costs is to compare businesses that you might be considering to similar franchise operations or you might even consider looking at a franchise instead of creating your own. A UFOC (Uniform Franchising Offering Circular) may offer you the information that you are looking for. What type of restaurant, deli, etc?