How much does it cost to start a fancy restaurant?

Location

Finding a good location and negotiating a lease can take a big bite out of your budget, with many retail leases running thousands of dollars a month. Depending on your negotiating skills, you may even start paying long before you open your doors. In fact, the Quantified Marketing Group estimates it can take you as long as 12 weeks to prepare the space before you see any revenue.

Decor

The decor of your restaurant draws people in and creates ambiance. It can also drain your coffers of all your cash. Nice spaces don't happen on a whim. Expensive designers, builders and decorators make your vision real...for a price. Those attractive chairs can cost $500 each, and the bar stools could set you back over $1,000. Designing and decorating your upscale establishment could cost you hundreds of thousands of dollars.

Equipment

Kitchen equipment such as stoves, coolers, broilers and counters is also expensive. They are designed to be extremely durable and easy to clean. With high-end ranges costing as much as a sports car, kitchen equipment can easily account for over half your total budget.

Staff

Finding an executive chef, service manager and waitstaff are vital to running a successful upscale restaurant, but can also be a drain on a restaurateur's budget. Fine-dining establishments require additional staff in the kitchen as well out serving customers. Fully 25 percent of your total budget should be set aside for staff payroll, according to All Business. Expect to pay your executive chef upwards of six digits in annual salary.

Marketing

Your restaurant will need a logo, a sign, menus, a website and of course a marketing plan. While this is one area an owner can completely control, your success will be judged by how many people you can attract into your business. If you are presenting yourself as an upscale brand, expect to pay at least $25,000 in marketing fees before you open your doors.

Everything Else

In addition, you will need to pay for your operating licenses and permits, stocking your kitchen, plates, cutlery, linens, and a point-of-sale system to manage the orders and the cash. With so many details to consider, it is no wonder why it costs so much to open an upscale eatery. Starting an upscale restaurant can be an expensive endeavor. But, for those who get the formula right, it can also be an extremely satisfying process.

Source:

Quantified Marketing Group

AllBusiness.com