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Factors to be considered before opening a Restaurant

Before starting your restaurant, you need to think about your budget and your initial expenses. This can help you to experience a smooth and successful launch of a restaurant, whether you are starting from scratch or buying an existing restaurant. These are the few points which you need to remember before opening up a restaurant.

If anything is good for pounding humility into you permanently, it’s the restaurant business – Anthony Bourdain

Restaurant type:

You should first identify the type of restaurant that you wish to build. The expenses depend on the type of restaurant.

Building expenses:

Starting from scratch will require more expenses than buying an existing restaurant. Both of them have their own benefits but immediate cash flow is possible if you buy an existing restaurant. And you should understand your budget and then only build your expenses.

Licenses and Permits: 

For opening a new restaurant, you need to purchase a business license or permit. You also have to obtain a food safety license, health/trade license, eating house license, liquor license (if you are going to serve liquor), to name a few.


Before opening your restaurant, you need to first launch your marketing campaigns. These campaigns also involve a lot of costs so you need to be careful in choosing your channel of marketing.

Kitchen Equipment: 

First, decide on the menu so that you are very clear about the equipment you require. Once that is decided, involve a vendor or supplier to provide you with the equipment to start off. You should decide on vendors depending on their delivery, work, and the kind of good working relationship with you.

Wages for employees:

Irrespective of whether you are building your restaurant or buying an existing one, you need to think hard on the personnel employed. It is better to start with less staff and then increase their number gradually as cash flows in.

Restaurant Furniture:

In case you are building a restaurant from scratch, you need to be ready with the expenses on basic furniture. In case you have bought an existing restaurant, the fixture may be included with the cost.


You should not take anything for granted during the start-up period. So everything needs to be taken into consideration when planning for startup costs. Restaurant Business looks attractive from outside but this Business is very risky and you can see lots of ups and downs. Find best space for your restaurant on

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