What You Should Know About New Restaurant Expenses

It takes more than good cooking skills, a delicious menu and a unique concept to open a restaurant and succeed in this business. To start with, you need a capital. Depending on your preferred location, theme, service type, and target market, you might spend a few hundred thousand dollars to a million (even more) before you could operate your own restaurant.

Based on a survey, the median cost to open a new restaurant is $275,000. That’s about $3,046 per seat. It’s true – restaurant can be a lucrative business but it’s a costly one too.

Here is a breakdown of the major expenses that you should be prepared for when you decide to open a new restaurant.

LocationHow much your commercial space will cost per month depends on your location. If you plan to put up your resto in high-end states like New York or California, expect to spend more on the venue costs. In Manhattan, which is considered as a gastronomic capital in the US, commercial spaces could cost around $120 per square…