How Much Does it Cost to Open a Restaurant?

You Can Also Read Our Article About How to Run a Restaurant

To open a restaurant, you must be ready to overcome all the challenges you encounter. The road to success and the drive to failure look alike. You must be bored and chase your goals. People have zeal and brilliant ideas on how to start and run a restaurant, but they lack confidence. For those willing to start a restaurant and you don’t have money, I am going to show you how to start a restaurant with no money.

Some people are afraid of making mistakes which might lead to collapsing of the restaurant. A goal without a plan is just a wish; you must have ideas on how your restaurant business will run, the restaurant startup costs and the management ways. This is part of preliminary plans, to look for ways of funding the project. If you are not interested in renting a house, you look for an Artech to give you an estimate of how much it will cost to build a restaurant. The question of how much it costs to open a restaurant is a tricky question since it depends on how you consider costs. The restaurant startup requires you to consider high might be low to another person. Some people who do not have adequate funds still want to know how they can open a restaurant with no money; it is still possible. Some of the restaurant startup cost that must be considered include:

Market Research Costs

You cannot open a restaurant without carrying out market research. You hire people to conduct research or you physically visit the location to determine if it will be a good idea to open the restaurant. The process will involve costs such as travel expenses, time and meals. It is not a one-day activity since you must have adequate information. Market research enables you to know how much you need to start a restaurant. It also allows you to determine the best location.

Cheap locations are accompanied by issues. Cheap is always expensive. It is better to spend on an excellent location. Restaurants located in suitable areas are expensive. As you calculate restaurant startup costs do not forget to include location costs where some landlords need a rent deposit.

Interior Design and Equipment

The best-decorated restaurants attract customers making the restaurateur make massive sales. A restaurant needs furniture and decorations to make it comfortable for the customers. The ribbons may include a sound system, attractive paints, and some crafts. These costs vary from individual to individual since some people may prefer not to use decorate the restaurant making it difficult to estimate restaurant startup costs.

A budget is required to control the operation to make sure you are not carried away by the expenses and spend all the money in this area. Equipment should not be too expensive since you are only beginning, you upgrade them as time flies. This is to cut the costs.

Legal Costs


A restaurateur should have a permit to run a restaurant. You cannot open a restaurant without first going through the relevant authorities and have all the required documents. Even those who want to know how to begin a bar with no money need to know permits are mandatory for any business. The certificates are issued to you when you pay some legal fees.

Sometimes you have to set up legal fees for your attorney who will process the documents and who will take care of the restaurant’s contracts. Some of these costs make the restaurant startup costs to be high.

Marketing Costs

Marketing depends on the location of the restaurant. A restaurant located in saturated markets requires heavy advertising, unlike restaurants that are operating in a franchised location. How much does it cost to start a restaurant will vary depending on the location of the restaurant. Restauranteur operating in saturated markets will incur high advertising cost unlike people operating in franchised areas.

Marketing is crucial since it makes people aware of the products and services your restaurant is offering and at what rates. Even if you are providing the best services but people are not aware of the products you will not make any sales.

Miscellaneous Costs

Restaurants take time to reach a break-even point. You do not expect to open a restaurant and the following day you receive a thousand customers. It is impractical. The restaurant will grow gradually as customers take time to become regulars. You must set aside funds to run the business before it starts paying for its expenses. The funds should be enough to run the business up to six months of low sales.

You plan for the better and prepare for the worse. How much money to start a restaurant will depend on the number of miscellaneous funds you have set aside. Those who set a low amount will have small restaurant startup costs.

Employee Costs

A business cannot run without employees. Since the restaurant is in its initial stages of development, it will not be generating enough capital pay for all the employees. As you calculate all the restaurant startup costs, you should also include the employees’ expenses. Workers are motivated by salaries. You do not expect the employees to work and when they go to withdraw money the ATM reads no money. However, it is advisable to start with a few employees you can manage to pay for a specified period and add them when necessary as the restaurant business grows.

How to Open a Restaurant Without Touching Your Savings Account This article is also useful to people who are want to know how to open a bar with no money. You can use the same concept to open the bar of your dream. I am going to show how easy it is to be a boss without closing your bank account.

The first thing to do is to plan. You calculate how much money you need to start the restaurant even if you don’t have money. You should have a rough estimate of the number of funds required. You can franchise the business where you will enjoy the use of an established brand name and cut advertising costs. Franchising might seem a doomed idea to many people, but it does not cause any harm. Franchising usually has support teams that act as your mentor and guide you in your new business. You at least have support from the team that help you not develop and grow so that the name of the franchise is not tarnished. However, you have to work hard to make it. The team cannot do everything for you. As you think about how to open the restaurant with no money you should also think about how you will run the business.

When determining how much it costs to open a small restaurant, you should consider sourcing financial support. Banks and other financial institutions, governments and some investors are willing to support bright business ideas. They do not give this support to anyone walks on the bank door with tattered clothes. You have to convince them the business will return the amount of money they will invest.

Come up with a business idea and as the first step of your journey to be an employer. It should be unique so that you can provide something different from another established restaurant. There is no need to buy the idea from someone; you will be increasing the restaurant startup costs. Generate the concept by yourself and chase it. The target market should love the idea.

Put the business idea into words and present it to them. It should be so brilliant such that they will be convinced. Highlight importance features in the business plan such as the duration it will take for the business to run and start making profits. The amount of money required to start the company and the mode of management also, include all the restaurant startup costs.

If things don’t work out as you expected and you don’t get an investor, you can secure a small business loan to start the restaurant. Business loans have some conditions that you should meet for the bank to process your loan. The restaurant business must be operating for profit, it must qualify as a small restaurant, and the restaurant will have a good credit score. The banks must be convinced that you want to open the restaurant and you will be making a profit for you to pay the loan. They do not want to keep on chasing you for payments.


Having no money should not kill your dream of becoming a restaurateur. You can still pursue your goals and be an employer. This article tells you how to open a restaurant with no money and the typical costs that must be catered for. Don’t be scared to share your business ideas with investors who can fund your restaurant idea and make it practical. You only need to develop a smart business plan with all the restaurant startup costs included and submitted it to the investors. Be ready to defend it by explaining to them until they are satisfied.

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