Restaurant Business Plan

Cost of Opening a Restaurant

Blake

Many people dream of opening a restaurant of their own. Unfortunately not many people understand the large cost associated to do so. I have read several articles about costs of opening restaurants online and none of them seem to be accurate. I have been involved in the restaurant equipment industry for over 20 years. I have seen thousands of restaurants come and go and I have constructed and supplied over 10,000 restaurant on my own. Hopefully I can help you understand what costs are truly associated in opening your very own restaurant.

Obviously not every restaurant is the same. I have designed some of the highest end restaurants in the nation and some of the cheapest ma and pa restaurants in the nation also. The price difference between these two is quite significant. Understand that not every situation is the same when reading this article and depending on your location you may be looking at much higher cost. The costs associated below are not put together to scare you out of starting up a restaurant they are just to inform you of the costs associated in doing so. Some prices may be slightly over stated depending on what type of restaurant you want to open.

Your concept.

A lot of people already know what style of restaurant they want to open and what type of food they want to serve. Putting together a restaurant menu is surprisingly a lot more work than you would think. Just because you know what type of food you are going to serve doesn’t mean that you aren’t going to have costs associated with printing menus, testing items on the menus, getting drug facts on cretin items, or even bringing in chefs to prepare a complete or partial menu for your restaurant. These costs can vary significantly so I can’t really help you here. Just make sure you have the extra cash to get through this whole process.

Finding a Location

Finding the perfect location is tough. There is so much that needs to go in to finding the perfect spot. A lot of restauranteurs believe that their great food or excellent service will bring customers to their location even if it is not in the best place or building, but this is completely wrong. You have to get customers in your doors and trying your food before they realize they like your restaurant. The more you spend on your location the better your chances are of making it. Studies show that around 50% of restaurants fail within 3 years. Location has a huge role in this massive failure percentage. For a good location expect to spend between ,000-5,000 a month or at least 0,000 if you decide to buy the building.

Restaurant Equipment

Now this is where I can really help you. I have been a new and used restaurant equipment dealer for over 20 years. The first decision you have to make is if you want to buy new or used equipment. I generally suggest that if it is your first time building a restaurant, especially with such a high failure rate, you try to find equipment that is slightly used. You can save over 50% on equipment that has been taken off of a showroom floor if you decide to buy slightly used. The big expenses you are going to look at are what type of power you have to run into the building to power your equipment, a walk in cooler, then hoods and fire suppression. If you have to run three phase into a restaurant that only has single phase this may cost up to ,000. A good sized walk in cooler/ freezer combo box new runs around ,000 installed but you can find them used for closer to the ,000 area with installation. Then hoods depending on how large of a hood you are looking at and if you need a makeup air system could run you between ,000 and ,000 new and ,500 and ,000 used.

Then you need to take into consideration your actual equipment. The average new restaurant we have supplied for standard equipment is around ,000-60,000. But we have supplied restaurants that run as high as 0,000. Here is where you can save a ton of money by buying used. If you wanted to go with a slightly used package you could look at spending around ,000-40,000. I have never build a restaurant using only used equipment where the customer has spend more than ,000 on used equipment. Also remember custom stainless steel in your kitchen for corners, behind hoods, tables, and counters. Plan on spending around ,000-10,000 here. And to think that other articles I have read believed that you could put a full restaurant together for ,000 or less!!! If you want to find the best deals on new and used restaurant equipment be sure to check out the free classifieds at http://RestaurantEquipmentListings.com.

Build Out

Remember that you have to hire someone to come in and make your restaurant look like a restaurant too. Keep in mind that you have general contractors, plumbers, electricians, carpenters, and several other workers to hire. Plan on spending at least ,000 for build out for your restaurant if it was perviously a restaurant and significantly more if it was not. Also keep in mind that you need to buy restaurant furniture like booths, tables, and chairs. Depending on how many you are looking at seating you should expect between ,000-20,000 for new booths, tables, and chairs new. Used boots are significantly less expensive so if you wanted to take this route expect something closer to ,000. Great general contractors, equipment dealers, technicians, and other restaurant service workers can be found on the free classifieds section on http://RestaurantEquipmentListings.com.

Advertising and Signage

You have to make sure people know you are out there. So how much should you expect to spend on your advertising and signage? Well advertising is completely up to the owner but I would spend at least 0 a month. This will get your name out so people at least know where to find you. But you need to look at an initial ,500-10,000 on just signage and branding for your restaurant. You need signs that say your name everywhere you can get them. The more you spend here the better known your company is. TV and radio commercials always pay off!!!

Cost of food

Remember that you have to order food before you can ever make any money. There is a saying in this business that goes if its made out of dough you can make dough. This means that your margins are much greater when you make your own product from scratch. If you buy your food from venders like US Foodservice or Sysco you are going to have significantly smaller margins. I can’t help you here very much because the range of how much you are going to spend a month on food is so large. Expect at least ,000 per month if you are buying your food form a food source.

Employees

Hiring employees is extremely expensive also. If you wanted to hire a 3 employee staff, this would be an extremely small restaurant, including the restaurant manager expect to spend around ,000 a month on labor. The average restaurant requires quite a few more employees.

Total Costs

Expect to spend no less than ,000 just to open your doors at a small time restaurant. That is assuming you get your equipment at a great price and rent your space. I have build restaurants where the budget was well over ,000,000 with land and building though so keep in mind what type of restaurant you want to open and where the location will be also.

Hopefully the figures listed above don’t scare you out of opening your very own restaurant. Several personal friends of mine have opened restaurants and later sold the franchise for multi millions of dollars and a very close friend sold his concept just a few years ago with six restaurants for over ,000,000. When you look at that these costs are quite small. I wish you luck in any business venture you plan on taking. Remember if you need to find restaurant equipment or restaurant services visit http://RestaurantEquipmentListings.com.

Blake has been involved in the restaurant industry for over 20 years. He has seen restaurants come and go as times get better and worse. He has personally been involved in over 10,000 restaurants that have been constructed or needed equipment. Blake is also the owner of the restaurant equipment classifieds and services site http://RestaurantEquipmentListings.com.

Start Up Restaurant Equipment Needs

Maxx Johnson

One of the most popular businesses to open is a restaurant. As you are doing all of your business planning, will need to know the restaurant equipment that you will need to create your success. Obviously your needs will be representative of the type of restaurant and the menu you will present. Some of the main pieces of restaurant equipment that you will need for you restaurant kitchen are:

Commercial Refrigerators – No matter whether your restaurant is at a hotel, golf course, country club or just a concession stand or snack bar, commercial refrigerators will be a necessity. The products that you will need to consider include commercial freezers, under counter refrigerators, wine caves, beverage refrigerators.

Commercial Ovens – Many manufacturers offer many commercial ovens and grills that can be further subcategorized into deck ovens, barbecue roaster ovens and barbeque grills, countertop and conveyor ovens, char-broilers and convection ovens. It is important that you take proper time to come up with an efficient layout and SOPs of your restaurant kitchen so once in operation there things will flow smoothly with out employees crawling all over each other.

Bar Equipment – The bar restaurant equipment that you will need to operate a bar for a restaurant bar that will accommodate all of the levels of entertaining outlined in your business plan you will need cocktail shakers, jiggers, strainers and condiment caddy. If you are creating a fine dining restaurant, you may want to add an elegant touch with champagne beverage fountains and punch bowls. If you are looking to create more of the sports bar experience then you will be looking for portable beverage tubs, beer refrigerators and keg wraps. In addition, frozen drink machines can help you create better profits for you country club restaurant, golf course restaurant or sports bar.

Commercial Ice Machines – If you have never operated a restaurant before you will be surprised at how much ice you will need to satisfy your clientele. This is definitely an important piece of restaurant equipment to your operation. Manitowoc offers ice bins to make dice, cube, nugget, or flake ice for your restaurant, hotel, golf course, snack bar, concession stands, a bar or a resort complex.

Commercial Dishwasher – Again, as you look at laying out your restaurant, you will want to make sure that the dishwashing area is in a convenient place for your employees as well as well hidden from your customers. Proper placement of the dishwashing area is important to make sure your customers have a good experience as this area tends to be very loud and disruptive. Typically the dishwashing area is close to the cooking equipment to make it easier for the chefs and the cooks to access pots and etc. when needed. Obviously the larger pots and trays will not fit into the dishwasher so you will also need a sink with multiple wash basins. The size of these will depend on the traffic of of yoru restaurant.

Above are just some of the pieces of restaurant equipment that you will need to start your restaurant.

Max Johnson of VGS Golf Click for Bar Equipment. Click for more info on Restaurant Equipment.

Going Green with Restaurant Equipment

Jeff Breeden

From a Green Thumb to a Green Kitchen

There was a time not too long ago when “going green” was a label reserved only for the hoticulturally inclined. The 21st century interpretation takes us well beyond gardens and landscaping and going green has emerged as the undisputed hot button on everyone’s ‘to-do’ list. The restaurant equipment industry can no longer stay out of the mix. If you own a commercial food service operation of any kind with even a modest budget for restaurant equipment, green is your color and echo friendliness is your magic mantra because that’s precisely what your customers expect from you today. Here are a few ways in which you can go green with your restaurant equipment without having to commit substantial amounts of resources:

Energy Star is your Restaurant Equipment Ticket

When buying restaurant equipment for your commercial kitchen, always consider buying equipment that displays the Energy Star logo. Energy Star® rated products are considered superior for the environment because of their eco friendly design and optimized energy consumption-both factors that can positively impact your bottom line. Many manufacturers have brought to market energy efficient restaurant equipment and have strategically positioned these product lines to generate savings on multiple fronts. These include refrigerators and freezers, ice machines, commercial dishwashers, ovens, griddles, fryers, steamers, heated cabinets and proofers.

The Miracle Resource from Nature

The average American home uses about 300 gallons of water every day and commercial kitchens go well beyond that. Water continues to remain a finite and tangible resource. There are many ways in which you can conserve water resources in your restaurant or food preparation operation. Restaurant equipment that uses water for cleaning purposes has been redesigned to work harder and reduce water consumption. There is much we can do as well to contribute to the cause. For starters, we should set our commercial dishwashers to the most efficient cycle while programming the appliance and only run full loads. Monthly maintenance checks for leaking or dripping faucets, installation of low flow faucets and fixtures and overall focus on eliminating unnecessary water use in commercial kitchens are other processes you can implement in your food service establishment.

Cooking without Looking

Look no further beyond eco friendly and energy saving restaurant equipment used for cooking, baking, frying and steaming because green appliances for your food service operations have arrived. Accelerated cooking ovens such as convection ovens and microwaves are both energy-efficient appliances that visibly reduce cooking time. You should also consider appliances which use induction cooking for the impressive energy savings they generate. Most importantly, you should turn off your restaurant equipment used for cooking when it is not in use. Allowing equipment like griddles to run idly when not being used for cooking, or leaving your dish machine booster heater on overnight, are rather costly practices, which you can avoid. And as simple as it seems, keeping the door closed on ovens, steamers, and even your walk-in cooler keeps your operation from using unnecessary energy to bring these items back to temperature.

Restaurant Equipment that Matters

You cannot afford to experience breakdowns in your commercial food service establishment owing to sub standard equipment. Therefore, while shopping for the best value, try and locate information about the company. Manufacturers often make claims that they are unable to substantiate and restaurant equipment that is merely a lighter shade of green may not be a wise and worthwhile investment in the final analysis.

Jeff Breeden is a well-known Food service Industry professional and has been recognized for his work at Cook’s Direct and as a member of the National Association of Food Equipment Dealers, (NAFED. Call Jeff Breeden, Chief Merchant Cook’s Direct at 800-956-5571, Write to him at jbreeden@cooksdirect.com. Visit: http://www.cooksdirect.com

Restaurant equipment for appearance and durability

rossmccullum

So you are getting ready to open up your own restaurant – where do you begin to figure out what you need? Going to a one stop shop like an online retailer is a great place to start. They tend to have just about every piece of restaurant equipment that you need to get started.

Starting with the major appliances, you must have a good refrigeration system, freezers and ice machines. An important part of restaurant equipment is the dishwasher. Prep and working tables along with large kitchen sinks are all must have restaurant equipment.

There are so many vital elements that make up comprehensive restaurant equipment. Having the right equipment for your individual needs is the key. You shouldn’t have to purchase a piece of equipment that is too larger or is too small to meet your requirements.

Quality is key in picking out your restaurant equipment. It generally becomes a pay me now or pay me later situation when deciding how much to spend on certain equipment for your restaurant, bistro or pub. But in the long run you will save both time and money if you look at the purchase of restaurant equipment as an investment in the future of your business.

Having the right prep table makes your chef’s job as well as the line cook’s jobs a lot easier. And having all of the right tools help them be able to prep faster and more efficiently cutting both your employee costs and food costs. Quality knives, the right ovens, fryers and microwaves and the added extras that help make running a restaurant a little bit easier can all be found in a good restaurant equipment store.

Unique equipment is also available at a full service restaurant equipment supplier. Things like waterbaths, pasta boilers, chargrills, barbecues, crepe makes, doughnut fryers and waffle makers may not be for everyone. But if you are setting up a breakfast buffet, a waffle maker is going to be an important part of your restaurant equipment.

If you are a caterer, you will be more focused on items such as catering toasters, contact grills and crepe makers may be in line with what you need to effectively handle your catering event. Maybe an onsite catering job will require the use of a tabletop fryer or charcoal or gas grill equipment.

Once you have all of the key equipment – refrigeration, ovens, prep tables – you begin to focus on the front of the house. Your table linens, plates, glassware, barware and additional accessories are the finishing touches that bring the whole thing together. Your choice of catering crockery is important in several ways. It must be appealing to the eye, yet stand up to rigorous use.

There are durable classic styled pieces that are no frills but can stand the test of time. And then there are durable yet stunning looking fine china pieces that are fancy enough to go on tables in the finest restaurants yet can take the wear and tear that comes from serving hundreds of people on a daily basis.

Welcome to Nisbets – the UK’s largest supplier of catering equipment with 25 years experience in the industry.For further information regarding our range of restaurant equipment, please visit our website at http://www.nisbets.co.uk

Restaurant Equipment – Cleaning Maintenance and Upkeep

Jeff Breeden

Launching and operating your very own restaurant is not exactly the same thing as starting your home business from your kitchen table where you invest a couple of thousand dollars and initially work a few hours a day. No matter how small your restaurant is, you have probably invested many thousands of dollars in your restaurant business. A significant portion of the investment is allocated to the acquisition of restaurant equipment. Since commercial kitchen equipment is expensive, you need to take additional care to ensure that it keeps humming at all times and never breaks down when your restaurant is brimming beyond capacity with a waiting line that extends far into the parking lot. Here are a few proactive steps you can take to keep your cash registers clinking even when there is standing room only space at your restaurant.

Cleanliness is Godliness

Using restaurant equipment that is not clean and well-maintained means that you are compromising on the hygienic standards you are expected to maintain at your commercial food service operation. This brings up not just moral but also legal issues. Clean and nutritious food cooked on clean kitchen equipment is one way of inviting your restaurant guests to return for an encore.

Cleaning Restaurant Equipment that Runs on Electricity

Electric Appliances at your Food Service Facility Before you clean electric appliances, unplug all the electrical connections and then clean the equipment. Make sure that water does not go inside the coil of the equipment. In case water goes inside the coil, wipe it well with a soft dry cloth until the coil dries properly. We recommend that you not use harsh abrasive detergents while cleaning the equipment. It is important that you closely follow the guidelines mentioned in the user manual that you received when you purchased the equipment.

Cleaning Kitchen Products and Accessories that do not Run on ElectricityYou should gently rinse, wash and clean non-electric equipment such as utensils, cookware and cutlery with either a premixed solution of soap and water or a mild detergent specially made for this purpose. Thoroughly rinse all the equipment with clear water, and then sterilize the utensils like serving bowls, dishes, plates and spoons. Take special care when cleaning kitchen knives. If you use a knife block, wash it at least once a week in mild soapy water since the slide compartments tend to get clogged quickly. So that there are no water stains on your kitchen appliances, serving dishes, cutlery and accessories, dry them soon after washing by using a soft towel. Check the labels before using your dishwasher to clean these kitchen products. Not everything in your restaurant kitchen can be loaded into your dishwasher for cleaning purposes.

Your kitchen is the center of your restaurant universe and not your dining room as most restaurateurs like to believe. Keeping your kitchen items clean and well maintained is your first ticket to successful restaurant ownership. While most of what we have said here applies to all the other types of food service operations such as college cafeterias, school lunch programs, hotels, resorts and even golf clubs, restaurants come first to mind not only because there are almost a million restaurants in the US but also because restaurants experience the maximum amount of customer traffic, more than any other food service facility. So follow the manufacturer’s instructions, standard practices and your personal instinct and watch how well your business performs not just in the future but also in the present.

http://www.cooksdirect.com”>Cook’s Direct provides a full range of commercial kitchen equipment including all types of commercial food service equipment and kitchen supplies. Call Jeff Breeden, Chief Operating Officer, Cook’s Direct at 800-956-5571, Write to him at jbreeden@cooksdirect.com. Visit: http://www.cooksdirect.com for the most exclusive range of food service equipment, restaurant supplies and commercial kitchen equipment on the Internet.

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