March 02, 2020
Average restaurant startup costs vary and are impacted by your location, type of restaurant, and more. That being said, typical averages for small restaurants are around $50,000 to $500,000 or more in investments to open. So, where can you save on other startup costs for your new restaurant? We've got your back. Dive into five supplies new restaurants often overspend on. Let's optimize that budget and boost your profitability together!
Restaurant Food Suppliers Share Cost-Saving Tips
Here we share five items startup restaurants typically overspend on and how you can avoid unnecessary expenses. From savvy purchasing strategies to innovative cost-saving practices, let's ensure your restaurant operates efficiently without breaking the bank.
1. New Restaurant Equipment
Kitchen and dining room equipment is necessary for every restaurant, but startups should be cautious not to overspend. It’s easy to want the kitchen outfitted with all the newest and best equipment, but restaurant equipment costs can quickly add up, many estimate the average cost of equipment is around $24,000 to $100,000 plus. Plan to purchase only what you need. Think about buying second-hand equipment to save some extra dollars. Look for other restaurants in your area that might be unloading some of their supplies and equipment.
2. Restaurant Technology
Even though restaurant technology is trending more than ever, many startups make the mistake of spending too much on high-tech equipment. Just like your kitchen equipment, start with only the essentials. Make sure you have an easy-to-navigate POS system and a user-friendly accounting system to help track costs.
Most new restaurants don’t require much more technology than these two systems. While it might be cool to outfit all your servers with iPads for ordering, is it really essential? Evaluate your tech needs after your first year and see if adding more high-tech is within your budget.
Here are a few restaurant technologies worth investing in.
3. Restaurant Marketing
New restaurant owners will often shell out some serious cash on sleek restaurant marketing campaigns. The average marketing budget for a restaurant to maintain its website and other channels is often around 3-6% of the business’s total sales. But, this can vary depending on the size and location of the restuarnt. While marketing is crucial to get the word out for new restaurants, there’s no need to break the bank. Use low-cost marketing tools to promote your restaurant and get people through your doors.
Promoting your new brand on social media tends to be more affordable and is a great way for customers to find and interact with your brand. You can also reach new customers on platforms such as TripAdvisor and other user-based platforms. But, don’t stop there, get creative with your marketing!
Check out these 5 unique marketing tips for new restaurant owners.
4. Decorating
We all want our restaurants to have a wow factor, but it’s easy for decor costs to get out of hand. When designing the interior of your restaurant, go for low-cost but high-impact solutions. Get adventurous with paint colors, start with one large statement piece like an impressive chandelier above the bar, invest in quality lighting to create an atmosphere, and look for inexpensive landscaping options. Check online resources like Pinterest for some out-of-the-box, cost-effective DIY decor ideas.
Thinking about having an outdoor patio? Expand your restaurant seating outdoors with these tips.
5. Food
Most startups will unnecessarily overspend on food costs. This is partly due to inaccurate food cost projections and ordering amounts in the first year. Work on calculating your food cost percentage right away. Always evaluate your food costs and menu prices at least once a year to keep costs in check.
Combat rising food costs with these 4 solutions.
You will have unexpected costs in the first few years of your restaurant. It’s important to keep that in mind when budgeting for marketing, equipment, and decorating costs. Be frugal in your spending habits so when the unexpected happens—like a broken freezer or leak in the ceiling—you’ll have it covered.
US Foods CHEF’STORE - Your Startup Restaurant Solution
New restaurateurs can overspend on ingredients. Avoid exclusively working with high-end boutique vendors with expensive products. Instead establish a relationship with your local wholesale restaurant supply store, where you can get high-quality products at reasonable price points.
Let CHEF'STORE help you save on food costs. From fresh produce to high-quality meats, and dry goods, we offer exceptional products at wholesale prices. What’s more? We carry a variety of cleaning and kitchen supplies to further your savings.
Sign up for an account, search our full line of products, and start saving today!
Download Our Infographic: Average Startup Costs For Restaurants
