Worksheets and Costs Associated with Startup, plus FoodService Equipment and Supply Requirements

Worksheets and Costs Associated with Startup, plus FoodService Equipment and Supply Requirements

These are a few of the Basic Steps that you should take when considering opening a Restaurant or Bar.

First
Design your Menu
Determine Recipes, Food Costs, and Equipment Specifications. You do not want a 35# electric fryer if you sell a lot of fried food. You won't get enough production to cover a four seat restaurant, and the recovery time on the fryer will be much too long to get out a second batch of food. When buying equipment Don't be Penny Wise and Pound Foolish. Many operators save a few dollars on their core pieces of equipment only to find out that it costs them thousands in lost revenue once they open for business. Clarify your concept and put all the proposed details--from decor to dessert choices--in writing. If you can't write about them, they need more thought.

Second
Business Plan
Most Successful FoodService Operators STRONGLY RECOMMEND putting together a Business Plan BEFORE making any kind of monetary investment. Without a GOOD Business Plan you could lose Tens of Thousands of Dollars. If you can successfully create a Detailed Business Plan, you have gotten past your Second Hurdle.
Click Here to see a Restaurant Pre-Opening Checklist

Small Business Tools & Templates Page
Sample Restaurant P&L (excel file)
Restaurant Market Analysis.pdf - University of Wisconsin-Extension Center for Community Economic Development and the Small Business Development Center.

Third
Financing
Even people with a lot of experience in the FoodService Business Lose their Shirts. The primary reason for this is Under Capitalization. Make sure that you have enough money to operate your restaurant for Six Months to One Year without making a profit.

Fourth
Licensing and Regulations
If you plan on selling Alcohol, make sure that you fully understand, and are prepared (Financially & Personally) to meet State, County, and City Regulations. Research Local FoodService Establishment Requirements & Health Code Regulations BEFORE looking for a property (See the Santa Barbara Example). This will give you the ability to intelligently negotiate a Lease Agreement. Look very carefully at the property to make sure that there will not be any MAJOR changes required to the physical plant by the local Health Department. Even if the location was a restaurant previously, does NOT mean that it meets current Regulations. Many people have found out after they signed their lease that they would need to spend $5,000.00 to $15,000.00 to upgrade the Greasetrap and Septic Tank Systems.

Fifth
Get a professional Contractor
One that can stick to a schedule and is familiar with local regulations and inspectors. Don't rely on your cousin Ernie just because he has built a few Houses. Everyday that you go over schedule will cost you Thousands of Dollars in Operating Expenses and Lost Sales.

Sixth
Shop for Goods and Services
Once you have gotten past these hurdles, you can start pricing the equipment, Smallwares, Goods, and Services that will go into your operation.
Use the Spreadsheet in conjunction with prices that you can get from the Restaurant Equipment And Supply Store

Sample Restaurant P&L (excel file)
This is a (relatively) complete list of supplies needed to open a 100 seat restaurant. If your restaurant has 75 seats, multiply the total listed by .75, If your restaurant has 187 seats, multiply total listed by 1.87 etc.
If you get a pop-up screen asking for a Password, just click the cancel button and the document will download.