What are the operating expenses for a restaurant?
Typical Restaurant Operating Expenses
- Occupancy cost. This is your rent along with electricity, water, cable, phone, internet, and property insurance.
- Food cost.
- Liquor cost.
- Labor cost.
- Inventory variance and shrinkage.
- Kitchen equipment cost.
- POS system cost.
- Marketing and advertising cost.
What is the average startup cost for a small restaurant?
Restaurant startup costs vary, ranging from $175,500 to $750,000. If the high startup costs feel overwhelming, don’t get discouraged. We’ll cover how much it costs to open your own restaurant and how an innovative strategy, like the ghost kitchen method, helps drastically reduce these costs.
How much does it cost to furnish a restaurant?
In general, expect to spend an average of $115,655 for kitchen and bar equipment. Furniture and tables can cost $40,000 alone, so be sure to plan accordingly.
What are operating costs examples?
What are examples of operating expenses? Common operating expenses for a company include rent, payroll, travel, utilities, insurance, maintenance and repairs, property taxes, office supplies, depreciation and advertising.
How much does it cost to build a restaurant from the ground up?
Key Takeaways. On average, you’re looking at anywhere from $95,000 to $2 million to build a restaurant from the ground up. If you’re on a limited budget, it may be best to invest in an existing property and fix it up to your liking.
How much does it cost to open a fine dining restaurant?
Opening a restaurant can be a pricey endeavor. It costs over $1 million to open a popular fast-food franchise, and financing a fine dining restaurant can easily top that. The average cost to open a restaurant is $375,500, according to a Restaurant Owners’ survey.
How much profit should you make in a restaurant?
The range for restaurant profit margins typically spans anywhere from 0 – 15 percent, but the average restaurant profit margin usually falls between 3 – 5 percent.
How much does it cost to furnish a small restaurant?
What is an example of a restaurant expense?
For example, if servers regularly bring unfinished plates of food into the kitchen, it may be time for smaller portions Restaurant utility costs (technically, an expense) include water, electricity, natural gas, internet, cable, and cell phone costs.
What are the costs of opening a restaurant?
Variable costs include food, hourly wages, and utilities. These costs are harder to predict when opening a restaurant because they vary according to output. After several months, you’ll know what to expect each month. Prime cost is the sum of direct labor costs and the cost of goods sold (CoGS).
What should be included in an operating budget?
In order to account for all operational costs — potential and actual revenue — an operating budget should include the following sections: Keep in mind that while many expenditures are recurring, you need to simultaneously consider one-time costs.
What are restaurant utility costs?
Restaurant utility costs (technically, an expense) include water, electricity, natural gas, internet, cable, and cell phone costs. Estimates and research suggest that many restaurants budget less 5% of their total costs to utilities and that the following averages and costs apply in the U.S: