Are you planning to open a restaurant? Great idea! There were a recorded 660,936 restaurants in the United States in 2021. That shows us just how popular being in the food service industry is.
Doing your research and having a plan will ensure you have a profitable restaurant. You’re in luck reading this article. You’ll find a restaurant expenses checklist straight from our own experience.
In this article
Startup Expenses for a restaurant can include a variety of costs, such as
Leasing property can be the largest startup expense for a restaurant. In addition to the rent, additional costs may be associated with the space, such as insurance, deposits, and fees for painting and cleaning.
Depending on the type of restaurant, additional signage may need to be purchased for proper display. These are just a few of the various expenses of opening a restaurant. Restaurant owners must prepare for all startup expenses before taking the plunge.
Cost of Inventory & Supplies
Cost of inventory refers to the price of items you buy in bulk for running a restaurant, such as food, beverages, and other items used in daily operations.
Supplies, on the other hand, are those items that you use regularly. These are utensils, paper products, and cleaning supplies. Both need to be taken into account when budgeting for your restaurant and need to be monitored and tracked regularly to ensure that no unexpected expenditure arises.
It is important to purchase quality products so that they have minimal breakdowns in the course of use. The cost of inventory and supplies must be taken into account when calculating overall profits and losses in a restaurant.
Maintenance & Operating Costs
Maintenance and operating costs are an inevitable part of running a restaurant. Maintenance costs include holding safety inspections and keeping up with plumbing. It also includes electrical and HVAC repairs, as well as performing other building upkeep.
Operating costs include utilities, payroll, food and beverage costs, and marketing expenses. Other costs may include expenses such as:
- upkeep of equipment
- restaurant staff training
- new hires
Restaurants bring communities together, create jobs, and provide customers with an enjoyable dining experience.
Marketing & Advertising Expenditures
Advertising today may consist of digital marketing, including search engine optimization (SEO) and social media advertising. SEO involves designing the website and increasing its visibility by optimizing words, phrases, and links for higher ranking on search engine results pages.
Social media advertising, meanwhile, consists of targeting specific demographics with ads placed on platforms such as Facebook, YouTube, and Instagram.
Watch Out for These Restaurant Expenses
Your restaurant expenses checklist and the guide gave you the power to review your budget, plan for large purchases, and stay prepared for any unexpected costs. Take the knowledge you’ve gained and plan a future menu of savings. Put your plan into action today to ensure the long-term success of your restaurant business.
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