Opening New Small Restaurant – Limited Budget
Prospective restaurateur just came back from living, working and traveling overseas for 5 years.
Operator wants to put this experience and knowledge into opening and operating his own new small restaurant – from which he hopes to grow many.
The concept is an Asian street food menu with low to moderate price points using the specialty foods and spices of his adopted home.
He has saved $30,000 to put into the new operation. After review of opening and operating expenses, we determine a budget of $100,000 – if we can find an ideal location that had been a previously existent restaurant. Doing so would avoid many new restaurant business expenses: zoning/legal expenses, infrastructure (plumbing, exhaust, electric, etc.) construction expenses, etc. This type of property is in great demand, so to compete with other potential property users, we put together a sound business plan for potential landlords of a successful concept with the right owner/operator who will be able to pay rent on time, all the time.
The operator identifies where and how he can get access for the $70,000 budget gap. This is identified so we move forward.
The property is found – the right location, the right size, the right rent. The operator sells himself to the property owner and a lease agreement is reached.
To stay within budget, a lot of the work that is often done by other professionals that can be done by the individual is identified. Although it will take longer, the owner has the time to do so to save the money to proceed forward in all areas. He gets “over the counter” zoning use approval that the property is being used for purposes allowed; he gets his EIN federal number and City Business license; he draws and presents plans to the health department; he contacts the water, gas and electric companies to open accounts and review of utilities with kitchen and building plans; he gets other appropriate licenses such as: sign permits, sales tax license, etc.; he builds the counter, paints the interior and exterior. His spouse becomes Quickbooks trained and learns bookkeeping with the advice of their accountant.
After two months and lots more planning and organizing: website, menu, other marketing, kitchen equipment, service equipment, furniture and fixtures, purchasing, production, etc., THE DOORS ARE OPENED – and they are VERY VERY BUSY!!!