Full-service restaurant startup costs
Illustrative case · 60-seat independent restaurant in an existing leased restaurant space; no alcohol sales · United States · illustrative case, no city selected
Explore this business · Startup costs
The illustrative opening budget is $487,000. It includes $262,000 of capital assets and $160,000 of opening cash, as well as preopening expenses, inventory and a refundable deposit. This is the cost of the stated format under explicit assumptions, not a national average.
What this opening budget covers
Illustrative operating case. 60-seat independent restaurant in an existing leased restaurant space; no alcohol sales. Approximately 2,400 square feet, existing permitted kitchen infrastructure subject to inspection; no property purchase. All figures are before income taxes. Costs and demand are planning assumptions unless explicitly identified as observed evidence.
The budget treats the existing kitchen infrastructure as usable after inspection. It allows for fit-out and remediation, but does not finance a completely new shell, a property purchase or a liquor license. Dining seats are an operating assumption, not an approved occupancy count. Confirm the permitted layout, lease use clause and landlord consent before using this budget to make a funding request.
Opening uses of funds
| Use | Amount | Treatment |
|---|---|---|
| Premises works / fit-out | $140,000 | Illustrative capital allowance |
| Operating equipment and tools | $65,000 | Illustrative capital allowance |
| Furniture and fixtures | $25,000 | Illustrative capital allowance |
| Systems and setup assets | $7,000 | Illustrative capital allowance |
| Capital contingency, assumed spent at opening | $25,000 | Illustrative capital allowance |
| Preopening expenses | $35,000 | Expensed before opening; not deducted again in Year 1 |
| Initial operating inventory | $12,000 | Working-capital asset |
| Refundable premises deposit | $18,000 | Restricted opening asset, not an expense |
| Opening cash reserve | $160,000 | Available to fund ramp losses and timing |
| Total opening uses | $487,000 | Capital + preopening + working capital + deposit + reserve |
Scope reference; quote still needed: Avantco six-burner countertop range specification. A six-burner countertop unit is one component, not a complete cook line. No current installed price was verified; obtain a quote covering ventilation, gas, fire suppression, refrigeration and commissioning. Open the equipment reference.
Why the major allowances need project evidence
The opening total is a worked scenario, not a verified market average or a supplier quotation. The largest decisions below explain what the amount assumes and what would invalidate it. Supporting a small purchased item does not validate a larger budget line.
| Budget line | Case amount | Status | Basis to test |
|---|---|---|---|
| Existing restaurant adaptation | $140,000 | Planning allowance | The allowance depends on retaining serviceable kitchen infrastructure. Survey ventilation, fire suppression, grease handling, gas and power before costing finishes; major replacement changes the project. |
| Kitchen schedule | $65,000 | Planning allowance | Size refrigeration, cooking, washing and storage for the actual menu and peak covers. A range price cannot substantiate the entire kitchen. |
| Dining fit-out | $25,000 | Planning allowance | Count tables, chairs, service furniture and usable aisles against the 60-seat layout. Unit prices, delivery and assembly remain unquoted. |
| Systems | $7,000 | Planning allowance | Unquoted allowance for this defined format. Obtain an item or measured trade schedule, scope exclusions and payment dates; reconcile any components already included in another line. |
| Contingency | $25,000 | Planning allowance | Assumed spent at opening in this model, not an untouched reserve. Replace the round allowance with identified project risks and prevent overlap with quoted trade work. |
| Preopening | $35,000 | Planning allowance | Specify the preopening period, paid recruitment/training, permits and professional work. No local fee or duration schedule has been verified for the full allowance. |
| Opening inventory | $12,000 | Planning allowance | List actual opening stock by quantity and supplier terms. Distinguish stock held from goods consumed; reconcile initial purchase and replenishment timing. |
| Deposit | $18,000 | Planning allowance | Refundable lease security, kept as an asset. Confirm the signed lease amount, due date and release conditions; do not expense or spend it as available cash. |
| Cash reserve | $160,000 | Planning allowance | Cash retained after the other opening uses. Test the modeled monthly cash trough and changes in collections, payroll commitments and procurement. |
HoodMart EXH012B production listing displays $6,628.92 for the base hood/fan selection. Required configuration and site installation remain unresolved. Use it to investigate the replacement branch of the retained-kitchen case, not to certify the whole fit-out allowance or assume that the existing system can be retained.
Download the material-cost and operating-input evidence register (CSV). Fill the measured scope, quotation and payment dates before replacing the assumptions. Unpriced work remains unresolved; zero is not its estimated cost.
Check documented prices and the missing installed scope
These are specific item or fee observations, not national startup-cost averages. Each row prices one item or application within the stated scope. They do not replace the scenario allowances above or establish a complete equipment schedule.
| Item / configuration | Observed price | Basis and date | Evidence still needed |
|---|---|---|---|
| CPG S36-N natural-gas range with oven 351S36N | $1,299.00 | Regular item price; not the paid Plus-member price 2026-10-02 | One range only. Confirm menu suitability, gas connection, hood/fire system, commissioning and site works. Advertised free shipping is not an installation quote. |
Download the supplier-price and quote worksheet (CSV). Enter quantities and actual delivered/installed quotations for your project. Record tax, freight, unloading, installation, site works, quote validity, deposits and payment dates separately. Blank/unpriced costs are unresolved, not zero.
Match each item to an existing budget line before adding it. Do not add these reference prices on top of an allowance that already contains the same equipment. Reconcile one-time uses separately from refundable deposits and working capital.
Turn allowances into a project quotation
| Workstream | Evidence to obtain |
|---|---|
| Existing restaurant premises | Check permitted use, hood and grease systems, power, accessibility and the condition of included equipment. |
| Kitchen and dining equipment | Price a menu-specific equipment schedule, delivery, installation, commissioning and seating layout. |
| Opening payroll and stock | Separate training, opening inventory and paid coverage before the first service. |
Record supplier, exact scope, quantity, price basis, tax, freight, installation, exclusions, validity and payment dates. Reconcile overlapping work before adding quotes. Keep refundable deposits and operating cash separate from expenses.
Fund the ramp, not only the equipment
Opening cash pays for the interval between hiring the team and establishing repeat traffic. Ingredients turn quickly, but payroll, rent and insurance continue through quiet services. The model pays suppliers without trade credit and recognizes a short card-settlement balance. It does not treat customer tips or collected sales tax as available business revenue.
During the first weeks, daily sales reconciliation matters more than an annual margin forecast. Track covers, average spend, voids, complimentary meals and waste separately. A reserve should cover a slower demand ramp as well as timing differences; it should not be justified by assuming every seat will be occupied immediately.
The base model reaches a lowest closing cash balance of $30,922 across 60 months. The lower-demand case has an unfunded requirement of $506,696. A zero shortfall means only that cash stays nonnegative in that particular run; it is not a recommended reserve floor.
| Question | Modeled amount | Interpretation |
|---|---|---|
| Two months with no sales and mature roster committed | $105,572 | Additional fixed operating costs and debt service; excludes new construction overruns. |
| Collections take 15 extra days at mature sales | $44,460 | Extra receivables funding; no change to operating profit. |
| Rate is two percentage points above the assumed rate | $4,304 | Recalculated monthly debt payment at the same principal and term. |
Check the paid roster
BLS reports a May 2025 national employee median of $15.24 per hour for food and beverage serving and related workers. National employee wages for a broad front-of-house occupation, not a blended restaurant wage or a minimum-wage rule. The modeled kitchen and service rates are separate assumptions. Read the occupation source.
| Role or input | Assumption |
|---|---|
| Primary employee hours / week | 200.0 |
| Primary employee base wage / hour | $22.00 |
| Support employee hours / week | 100.0 |
| Support wage / hour | $18.00 |
| Owner base compensation / month | $5,500 |
| Employer-burden allowance | 15.0% |
What can change this budget
The largest site sensitivity is the gap between the existing premises and the proposed menu. Cooking equipment can trigger ventilation, gas, electrical and fire-suppression work outside its catalogue price. Refrigeration, dishwashing, drainage, waste storage and accessible circulation also consume space and money. Ask bidders to quote the same scope so a lower equipment price does not conceal excluded installation.
Phase cosmetic work only when the resulting restaurant can still operate safely and serve the intended customer. Reducing seats while retaining the original payroll and loan creates a different economic case. Recalculate covers and contribution whenever the layout, service hours or menu changes.
Costs and activities outside the case
The allowance excludes buying an existing restaurant’s goodwill, land or building, alcohol revenue and licensing, major hidden structural defects, delivery commissions and owner personal living costs outside the modeled salary. It assumes no landlord improvement contribution. Sales/use taxes and freight on opening purchases must be reconciled into actual quotations; income taxes, major future replacements and exit proceeds are outside the forecast.
Replace each allowance with a dated quote covering quantity, tax, freight, installation and commissioning. Assign responsibility for approval dependencies and record which estimates can change before opening. The document checklist helps organize that work.
Sources and scope
- Operating-case methodology · Checked 2026-10-01 · Authored illustrative assumptions and a 60-month model. Budget allowances, prices charged, demand, payroll, rent and financing are not observed local averages.
- BLS — food and beverage serving and related workers · Checked 2026-10-01 · May 2025 national employee wage benchmark. National employee wages for a broad front-of-house occupation, not a blended restaurant wage or a minimum-wage rule. The modeled kitchen and service rates are separate assumptions.
- Avantco six-burner countertop range specification · Checked 2026-10-01 · A six-burner countertop unit is one component, not a complete cook line. No current installed price was verified; obtain a quote covering ventilation, gas, fire suppression, refrigeration and commissioning.
- FDA — How to Start a Food Business · Checked 2026-10-01 · State/local oversight of retail restaurants; scope and jurisdiction must be checked for the actual site.
- CPG S36-N natural-gas range with oven — original price source · Checked 2026-10-02 · Regular item price; not the paid Plus-member price. One range only. Confirm menu suitability, gas connection, hood/fire system, commissioning and site works. Advertised free shipping is not an installation quote.
- HoodMart EXH012B production listing · Checked 2026-10-03 · 12 ft × 48 in hood/fan base product price. Fire suppression and other required selections are not resolved in this observation; not a complete installed ventilation quotation.