Startups & Financing
Opening Your First Restaurant
- We begin with an understanding of the owner’s vision: menu, price points, branding, restaurant size, demographics, locations and financial capabilities and opportunities.
- From this basis, we put together initial projections of sales, followed by project costs of operating the business.
- We also put together estimated costs to open the restaurant: construction, soft costs (including leasing, licenses, permits, professional fees, financing costs, initial marketing, etc.), time-lines, and operating capital.
- We then create an initial business plan for potential lenders, investors, landlords, and other stakeholders.
- At this point of the planning phase, we can get a clearer understanding of the size of the space and rent/debt service that is affordable.
- We then begin the search for the ideal space that fits the demographics and “people traffic” needed to support the projections and vision. After identifying a space, we negotiate a Letter of Intent with the property owner.
- For businesses that will have investors (outside of traditional lenders), we create an investor scenario for sales and returns on their investment.
- Next comes the appropriate financing to build, open and operate the restaurant, followed by initial designs, permitting and licensing processes.
- With permits and financing in place, we can start construction, implement marketing strategies, and initiate management, staffing and training.
- FOR THE SUCCESS OF A NEW RESTAURANT, THE RIGHT AMOUNT OF OPERATING CAPITAL is critical, therefore budgets are put in place for all aspects of building and opening the restaurant. These budgets will have the necessary oversight and supervision to ensure that there is money available for initial operations.
- For a brand new restaurant space, the entire process can take from 6 – 18 months. For a property that had been a restaurant, this can take from 3 months to a year.