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A list of typical restaurant startup costs must include both legal and accounting services. While some restaurant owners can get away with not needing accounting services, no business should do without legal help in the beginning. Initial legal fees for startups can reach $600. If the restaurant requires contracts or is , the startup cost for professional services then includes accountants and lawyers and can rise up to $2,000 before opening day. This includes filing papers with the various state authorities in regards to taxes, licensure or business formation. Bank records, tax forms, financial analysis and proforma statements are also part of this category of startup costs.

There are three significant concerns within this category that are typical restaurant startup costs regardless of the type of restaurant. Building permits, rental or mortgage payments and construction or build-out costs. These include any security deposits or down payments made just to gain entry to the building or site. Depending on the size of the establishment, the location and the market of the area initial costs can start at just over $4,000 but can quickly climb to $102,000; this is especially true for rental situations in regards to the dollar amount charged per square foot. Building improvements can also cover a large range depending on the amount of reconstruction. Starting at near $16,000 these costs can double. Smaller scale leasehold improvements, or remodeling of an existing restaurant will keep the cost on the lower end. Building from scratch can raise the cost significantly especially if the restaurant is a franchise where specific building requirements must be followed.

How Much Does It Cost To Start A Restaurant

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Restaurants vary widely on the type, size and menu. Restaurant costs can also vary widely. A common denominator is the typical restaurant startup costs associated with any operation regardless of type or size. Startup costs for any restaurant fall into one of six categories: professional services, permits and licensure, building costs, materials, labor, insurance and advertising. Every restaurant has these costs, the difference is the amount the restaurant owner will pay out both before and during the first weeks of operation.

Materials include equipment, fixtures and initial inventory. These are the typical restaurant startup costs that can be adjusted when needed to keep the restaurant within budget. These are also the costs that can cause undercapitalization quickly. Small operations can get by with minimal material and equipment and can start with $55,000. Larger operations requiring fancy fixtures or special material can spend to $140,000 in cost. Inventory can also vary widely depending on the menu, restaurant size and the expected customer base. Small family diners can find material and inventory at many wholesalers while larger establishments or franchises often are required to purchase through selected vendors.