Opening a Restaurant Costs

We have all seen it happen; a new restaurant opens with a winning concept, superb cuisine, and a popular location – yet it still fails. According to experts, the cause most likely is one of under funding. Start-up costs have a way of ballooning, and can sink a business before it even gets a chance to open. How much opening a restaurant costs is determined by many factors; there are ways a frugal businessperson can keep costs low to help ensure a restaurant’s success. If an expense can wait, put it off until your restaurant is turning a profit.

  1. Facilities Costs vary widely, depending on whether you will be leasing or buying your facility. While construction costs can add up quickly on new buildings, taking over a unit from a similar business can drastically lower your outlay. You will need signage so customers can find your restaurant.
  2. Equipment New building costs can run as high as $500,000 for ventilation systems, refrigeration and cooking appliances, and bar equipment. If your space is already outfitted for a restaurant, you will just need to take care of upgrades and any equipment specific to your cuisine. You will need to obtain furniture, linens, furnishings, and pots, pans, dishes, glasses, utensils, cutlery, and storage containers.
  3. Food and Drink Your bar and wine cellar will need to be stocked before you open. Have about a week’s worth of food and staples to get you started. Experts suggest starting with a limited number of menu options – you can always add more, but this helps avoid losing money from food wastage.
  4. Marketing and Advertising You need to invest in print and radio ads, flyers to distribute locally, and grand opening signage to start building a customer base before you open. Social media is a very effective, low cost option to raise interest in your restaurant.
  5. Reserve Some experts recommend reserving 10% of your start-up budget for unforeseen expenses so you are not caught short at a critical time. An alternative is to establish a line of credit that you can tap if necessary.
  6. Miscellaneous
  • Licenses and Permits
  • Insurance- property, general liability, liquor liability, and Workers’ Compensation
  • Accounting (software or company)
  • Telephone system and internet
  • Staff uniforms
  • Menus

7. Point of Sale System Pinnacle Hospitality Systems POSitouch point of sale system helps lower your operational costs while keeping you firmly in charge of your restaurant. Pinnacle’s POS for restaurants eliminates the need for third party terminals and additional phone lines with its integrated credit authorization software. Each touch screen terminal can process credit authorization, eliminating bottlenecks  that can occur at stand-alone credit machines, and terminals can be used for other POS functions while the transaction is processing. Split dial and direct deposit functionality are both available. Pinnacle reduces tendering mistakes and increases cash accountability by tying credit card information to the guest check.

Pinnacle’s powerful POSitouch POS system saves you the expense of hiring an accountant by seamlessly integrating with QuickBooks. Easy to setup and even easier to use, with no file import/export routines; you simply select the date from the screen and send it directly into QuickBooks. You can easily transfer your POSitouch sales journal, house charges and purchase orders to QuickBooks.

Build your business with Pinnacle’s MercuryLoyalty, a seamless, all-in-one loyalty solution featuring social media integration to help you increase your customer base. Automated online enrollment process and automated marketing make it simple for anyone to run marketing promotions. Rich and intuitive campaign analysis allows you to measure your ROI.

Pinnacle Hospitality Systems is committed to helping restaurants succeed. Pinnacle can help you manage your business efficiently and profitably, with proven computer hardware and software designed for the hospitality industry, and unmatched business consulting and accounting resources. Contact Pinnacle today at 1-800-771-7100 to get your restaurant off to a profitable start!


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