The views of this article are the perspective of the author and may not be reflective of Confessions of the Professions.
The Hidden Costs Of Running A Restaurant
Starting a restaurant can be one of the riskiest endeavors for a budding entrepreneur. There is tremendous pressure upon new establishments to turn a profit, and turn one quickly, which is why it is essential to comprehend anticipated start-up costs in addition to operational expenses.
It’s not just about finding a space, hiring a staff and creating a menu. Data compiled by Bid on Equipment goes deeper into marketing and P.R. expenses, garbage and grease disposal, renovation and staff training costs in addition to everyday maintenance.
Restauranteurs have to decide between owning a space and having more control over the décor and future of the building, or opting for a cheaper up-front leasing cost. If a restauranteur can come up with a large enough investment, buying space might be a better option. However, with ownership comes additional costs for permits, upkeep and taxes which averages $178 per square foot.
Another key expense restauranteurs have to consider is the type of staff they want on board. The customer’s experience often relies on interactions with waiters and other staff. A savvy restaurant owner might want to consider investing in more qualified personnel to ensure customer experience down the line.
In a competitive sea of restaurants, it’s abundantly important for new eateries to get their name out there. A polished web presence, strong marketing campaigns and even potential promotional activities might be the key to getting people into a new establishment and trying out the food. With so many things to consider, Bid on Equipment broke down all these factors and more to show the real cost of starting a restaurant.
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