Setting a Budget: Expenses You Can Expect Before the Grand Opening

Opening a food service business is a big expense and it is important that you prepare for it accordingly.  Prior to acquiring funding and embarking on the process of purchasing the necessary equipment, you must create a budget. This will ensure that you do not overspend as you make those important purchases, and it will also give you a guideline as to what type of funding you will need. There are several things that you must be prepared to pay for long before the day your establishment opens its doors for the first time. Setting a Budget: Expenses You Can Expect Before the Grand Opening


The location will be a large part of your budget. Whether you are  acquiring a building or buidling a new structure, it will cost you big bucks. Whether you are purchasing or renting an established building and making any renovations,  it must be added to your budget.


If you purchase an established restaurant then you may be fortunate enough to find one that includes much of the equipment that you will need. This could save you quite a bit of money. However, you want to make sure the equipment meets all health codes and law requirements. You will also need to purchase anything that was not included.


You will want the establishment to have the look and feel that you have created in your mind. This means purchasing those items that will create the proper atmosphere. You may decide to invest in new tables and chairs or you may just update the ones that are already on location. You will also want décor in the main areas that is appealing. Another thing to take into account is that you budget for the small things like condiments, plates, cups, napkins and silverware. All of this is important to the atmosphere you wish to create.

Licenses and Permits

Another thing you must plan for is the cost of any licenses or permits that you will require. You will be required to pay for any inspections needed before opening. This is an expense that is not expendable, so it should be planned into the budget from the beginning. Along with this you may need contractors to repair damage or upgrade your establishment to meet the codes. These contractors also cost money. It is always advisable to set back some funds for situations such as these.

Food Costs

It isn’t possible to open a food service business without food and beverages. As you establish yourself with vendors you will have to pay for the items that you order. It will be important to have enough food and beverages to sustain your business in between orders. For this reason you will want to budget enough money to cover these costs. You will also find other things throughout the business that you will need to spend money on such as computers, POS systems, signage for inside and outside your business and more. Advertising for your grand opening must also be considered an expense. You will also need to be able to pay staff for their time working - even before your business opens its doors to the public.

After you have taken all of these factors into consideration, you can feel well-prepared to greet the excited customers lining up o try out your new restaurant. 

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