How much does it cost to open a restaurant? | Ep. 24
Last updated on September 1st, 2023 at 11:55 pm
How much does it cost to open a restaurant?
Spoiler alert. A lot.
According to Felicia Middleton, an architectural designer specializing in restaurants and food spaces, you need to budget for at least $250,000 USD.
Yep, that’s a lot of money. But if you are still interested in opening a restaurant, bakery, cafe, food hall, or food facility, then Felicia will discuss restaurant start up costs, including:
- equipment costs and renovation costs for opening a restaurant
- The steps you need to take to open a restaurant
- How to prepare for working with Felicia
- Common mistakes & misconceptions about opening a restaurant
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Listen to this podcast episode on how much it costs to open a restaurant
How much does it cost to open a restaurant?: Other fees
Remember a few sentences ago, I said you need *at least* $250,000? Well, according to Felicia, this does not include:
- construction costs (building materials)
- construction labor
- restaurant location (renting or purchasing the restaurant building)
- professional expenses (permits, licenses, etc)
- food
- equipment
Restaurant equipment can cost up to $100,000 or more. Even for small restaurants.
One of the most expensive pieces of restaurant equipment is the hood. It will probably cost at least $10,000.
You can save money by purchasing used equipment.
To find used restaurant equipment, start by checking online marketplaces (Facebook Marketplace, Craigslist, etc) & restaurants that are going out of business.
What to know about opening a restaurant
Aspiring restaurant owners have so many questions. ‘How much does it cost to open a restaurant’ is one of many, but only the beginning.
Here are a few things to keep in mind when doing your research on how to open a restaurant:
- Hire people who are skilled at working on commercial spaces & restaurants. Yes, this includes the contractor.
- Construction will likely include plumbing & electrical. And it needs to be commercial. Restaurant equipment pulls more electricity than standard equipment, so keep this in mind when budgeting for construction costs and your electricity bill.
- Plumbing includes (but isn’t limited to) floor drains, multiple sinks, proper venting and more.
- Restaurants require permits and licenses. If you open a restaurant illegally, you will get caught and shut down.
How long does it take to build a restaurant or food space?
It depends. It can take a few weeks. It could take longer than a year.
The timeline will depend on your municipality’s rules & regulations, issues with the building, your landlord, re-negotiating your lease, etc.
Can you tell that we’re only scratching the surface for restaurant startup costs?
Need in-depth guidance on how much it costs to open a restaurant and how to open a restaurant?
Consider purchasing Felicia’s books or hiring Felicia.
Start with A Complete Guide to Creating Tasty Spaces, which walks you through the process of opening a restaurant.
From selecting a restaurant space with a real estate agent all the way to construction & final inspection of the building, this book has you covered.
Buy the paperback book or Kindle version on Amazon.
Working with Felicia Middleton to open a restaurant
Call Felicia in the beginning stages of opening a restaurant.
Even before you sign a lease or buy the building. Why?
Because Felicia can help you negotiate your lease BEFORE you sign it.
Keep in mind that some landlords will allow you to make updates to the building. But some landlords won’t be as flexible.
Felicia can help you navigate these conversations & negotiations for your future restaurant.
A glimpse into Felicia’s process for helping you open a restaurant:
The Foodie Builder website provides more details about Felicia’s services as an architectural designer.
But here are a few things you can expect to happen when working with Felicia:
- Felicia will conduct a building walkthrough (virtual and in-person). This helps her (and you) understand the condition of the building.
- Can the building accommodate what you want?
- A big problem that restaurant owners run into is the hood may have to run through several floors and even through the roof.
- Felicia may need to bring in a chef consultant depending on the type of cuisine you plan to serve. That’s why it’s important to get your menu to Felicia as soon as possible.
- Your menu dictates the restaurant equipment you need.
- Then Felicia works on the designs & concepts for your restaurant or food space.
Documentation & information you need to have ready before working with Felicia:
- building deed (if you own the building)
- building address if the client already rents or owns the building.
- Felicia needs to research the status of the building. Does it have violations? Correct zoning?
- your menu
Open a restaurant: Resources mentioned in this episode
- The Foodie Builder blog
- National Restaurant Association Show
- ServSafe Allergen training
- ServSafe COVID-19 training & resources
- A Complete Guide to Creating Tasty Spaces book that walks restaurant owners through the process of opening a restaurant.
- Your Path to Green: Designing an Eco-Friendly Map for Your Life and Your Space book
- Homeowners Guide to Renovations & Maintenance book
- Guide to Understanding Construction Documents (in progress). Felicia runs into contractors that don’t know how to read architectural or engineering drawings.
- Aesthetically Speaking: Podcast on YouTube about the design, planning & construction of restaurants and food facilities.
- Season 1 is about gentrification and how it affects designers and people in the food industry.
- Season 2 is about restaurants and based on A Complete Guide to Building Tasty Spaces (walking you through the process of opening a restaurant).
- Season 3 is about building renovations and commercial kitchens post-COVID.
- Metamorphosis: Aesthetic Poetry book
This post explained various details to answer the question, ‘how much does it cost to open a restaurant?’
To recap, budget for at least $250k USD.
You can learn more about restaurant startup costs by hiring Felicia Middleton and/or buying her book, A Complete Guide to Building Tasty Spaces.
Need more ‘how to open a restaurant’ content?
- How to find investors for your business w/Kube Nice Cream | Ep. 29
- How much does it cost to buy a food truck? w/Houston Sauce Co. | Ep. 25
- Top mistakes food entrepreneurs make with their food business w/Chelsea Rainey | Ep. 11
Connect with Felicia Middleton & the Foodie Builder
Instagram: @foodiebuilder
Twitter: @foodiebuilder
LinkedIn: https://linkedin.com/in/urbanaesthetics
Website: foodiebuilder.weebly.com
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