Expenses Involved in Starting a Restaurant

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So you have an amazing restaurant theme idea, and you’ve already thought of a few things for you want to put on your menu. But before getting too excited about putting up your restaurant, ask yourself if you’re ready for the expenses.

Starting a restaurant involves shelling out a lot of money to put into your capital. That’s why it takes people years before they can make their restaurant vision into reality. All that time in between is spent saving up to be able to afford all the expenses involved. If you’re thinking of starting your own restaurant, here are the expenses you have to save up for.

Administrative fees

Starting a restaurant isn’t all about the food. In the background, a lot of business principles come to play, which requires the undertaking of administrative tasks. Before you can even start functioning as a corporate entity, you already need to begin paying administrative fees. To get a business or franchise permit, you have to pay a certain filing fee, plus filing tax. And in case you want to work with a lawyer to successfully form a legally recognized restaurant, attorney’s fees will be another cost.


The location of your restaurant is an important thing to consider. It will determine how many people will actually pass by and eat in your restaurant. The location you choose will give your restaurant visibility. That’s why it’s not ideal to choose a deserted place just because the rent there is cheaper. If you want to put up your restaurant somewhere with a lot of traffic, you’re looking at a hefty amount for your monthly rent. And don’t forget your renovation costs too.


What’s a restaurant without cooking equipment and chairs and tables for your customers to eat on? Kitchen appliances are very costly, but it’s an investment you have to make for your business. Here are the tools you’ll be needing:

  • Cooking equipment like pots, pans, spatulas, knives, chopping boards, etc.
  • Kitchen appliances like refrigerators, freezers, filling equipment, dishwashers, etc.
  • Workstations for chopping, seasoning, and preparing the final dish
  • A lot of dishes like plates, utensils, glasses, etc.
  • Furniture like tables, chairs, booths, etc.


Restaurant space

The restaurant business is a tricky one because you’re dealing with food — and perishable goods can spoil. Every restaurant owner, or at least the person managing the inventory, should be smart when stocking up on supplies. If you buy too much, it will spoil and you just wasted a ton of money without any return on your investment. If you stock too little, you might not be able to meet the demands of the consumers, hence no income for your restaurant.

Depending on how many customers eat in your restaurant or shop on a daily basis, you’ll have to set aside a huge part of your daily budget for goods and supplies. This will take up more than half of your restaurant’s income.


You can’t run your business on your own. One or two people helping you out can be feasible in the beginning. But as your business grows, more and more people are going to come in, and you’re going to need more help around the kitchen. The salary of the staff you’re going to hire is another expense you need to take into consideration. Be wary of the minimum wage requirements so that you pay your waiters, cooks, and other staff right.

Starting a restaurant is not cheap. Before getting too excited about it, make sure you’re ready for all the expenses.

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