What Is The Average Overhead Cost To Open A New Family Restaurant From Scratch?

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Matthew Porter answered
The costs that are involved in the opening of a new restaurant from scratch obviously are dependent on a large number of variable factors, such as how upmarket you want your restaurant to be, the nature of the premises that you are planning on occupying, the amount of customers you wish to cater to and the hours that you plan to open at. estimate that a 'blank slate approach' to opening a new restaurant will cost anywhere between $100,000 and $300,000. This money would be put towards buying such things as:

• Industrial cooking and ventilation equipment
• Refrigerators and freezers
• Tables, chairs and bar stools
• Shelving and counters for the kitchen

If you are renovating an existing eating establishment, as opposed to starting your business completely from scratch, then obviously the start-up costs involved would be somewhat less expensive.
You must also remember to obtain all of the relevant permits before you open your establishment. A guide to restaurant permits is available if you visit

Forbes state that new restaurants will often fail because they are under-capitalized and spend money unnecessarily from the very start. They cite the advice of the Boston University expert John Vyhnanek, who says that people should ask themselves: "Do I really need this now to open, or could I wait three months?"

For more information about restaurant start-up costs and some useful information, try these websites:


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