5 Effective Tips to Open a Restaurant With Minimum Budget

Not all people open a restaurant. People driven by passion, inspiration and creativity choose the hospitality industry, especially, food. Creating a world of culinary inventions and lovely interiors for the world to experience unforgettable dining moments is what restaurateurs wish to achieve.

Looking beyond these ambitious plans is the bitter reality of expenses. It is an undeniable truth that opening a restaurant is an expensive endeavor. Even opening a modest neighborhood restaurant will cost anything up to $25,000. And if you wish to start a fine-dining restaurant, you might have to burn up nothing less than $ 1 million before opening it up for the public.

After surveying nearly 500 restaurant owners , it was found that the median cost of opening a new restaurant was approximately $ 275,000.

Anybody intending to open up a restaurant will definitely work out a ‘perfect’ budget in advance. But, it is most likely that they spend over 15% of their estimated expenditure.

So, how will you know when and on what to spend while you are journeying towards the establishment of your restaurant?

Read on to know about 5 tips that will help you curtail your expenditures and adhere to the budget drafted by you.

• SPENDING ON NEW EQUIPMENT 

People aspiring to make a mark in the industry easily get carried away by the belief that everything at their budding restaurant ought to be brand new. But, this might lead to overspending. In reality, most restaurants can perform exceptionally well even with second hand equipment, as long as it is in a working condition. 

Restaurateurs can opt for purchasing used goods online or buying from restaurants that are closing business nearby. It is wise to buy only what is required at the moment for the current menu. If you wish to start the functioning of the restaurant on a stringent budget, buy new equipment wisely and manage wherever possible with used goods.

• USE TECHNOLOGY JUDICIALLY

Most people who are amateurs in the food industry will spend several sleepless hours finalizing on the menu, decor, atmosphere, etc. But, they tend to forget that without the aid of a smart technology, none of these efforts are likely to be fruitful. From accepting advance requests for table reservations, digitally entering orders or maintaining a track of inventory, technological assistance is mandatory for running a modern, organized restaurant business.  

Clearly identify the domains where you will need technology. It is essential to do it at the start itself rather than ending up infusing technology in unnecessary areas and also spending exuberantly on it. 

Before handing over every waiter a tablet or installing an iPad at every table, ask yourself if you have a book-keeping system in place already, an easy to use and reliable POS system. 

Decide on how much technology is needed, how advanced it has to be. Zero in on a top-rated system that kick starts and powers the entire system to the next level.

• BUDGET FRIENDLY DECOR 

Believing that the decor of the restaurant should necessarily be made up of expensive artefacts to wow the customers and spending heavily on it leads to heavy expenditures - far beyond what was allocated for the purpose. 

Rely on the Internet to collect information about pocket friendly hacks to make great interiors. 

• Visit Pinterest boards - Enhance those ideas with that of your own.

• Keep a constant watch on websites that offer inexpensive alternatives for your choice of fixtures, wall decor, seating, furniture and other essentials.

• You will be offered discounts if you are buying in bulk. 

• INGREDIENTS THAT RAISE THE BAR

Great ingredients make great dishes - no doubt. But, the price that you pay for its freshness and high quality need not be sky high. 

Engage in research and identify local farmers, food cooperatives or other markets that offer goods in bulk, at discounted rates. Also, build relationships with food suppliers so that you can continue to receive goods at a regular price. 

Conducting a menu audit is also important before the restaurant becomes operational. If there are excess items on the menu, cut them off immediately to save food expenses and preparation time.

• BUDGET MARKETING

What good is it if the restaurant is waiting to serve the public, yet nobody knows about it. In most cases, restaurant owners get tricked into paying exorbitant prices to external marketing firms. But, the efforts do not pay off. 

If you are about to start a restaurant, remember that you do not require a massive online marketing campaign or an advertisement executed by a reputed agency.

LOW-COST MARKETING ALTERNATIVES:

 

• Clutter free, create a restaurant website with a minimum budget using the best website builder

• Interactive social media platforms with photographs of the location and menu

• Low cost advertising on Facebook

• Connecting directly to customers during public events or food festivals

Opening a restaurant might be a challenge. But doing it within the budget is a greater challenge. Use the above tips and sail through the rough seas with ease.