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This Page Contains Valuable Information and Tools to Open, Own, & Operate a Profitable Restaurant.

Worksheets and Costs Associated with Startup, plus FoodService Equipment and Supply Requirements

These are a few of the Steps that you should take when considering opening a Restaurant or Bar.

First

Design your Menu

Determine Recipes, Food Costs, and Equipment Specifications.   You do not want a 35# electric fryer if you sell a lot of fried food.  You won't get enough production to cover a four seat restaurant, and the recovery time on the fryer will be much too long to get out a second batch of food.  When buying equipment Don't be Penny Wise and Pound Foolish.  Many operators save a few dollars on their core pieces of equipment only to find out that it costs them thousands in lost revenue once they open for business.  Clarify your concept and put all the proposed details--from decor to dessert choices--in writing. If you can't write about them, they need more thought.

Second

Business Plan

Most Successful FoodService Operators STRONGLY RECOMMEND putting together a Business Plan BEFORE making any kind of monetary investment.  Without a GOOD Business Plan you could lose Tens of Thousands of Dollars.  If you can successfully create a Detailed Business Plan, you have gotten past your Second Hurdle. 

Click Here to Download a Pre-Opening Checklist in Adobe PDF Format.

Small Business Tools & Templates Page

Sample Restaurant P&L (excel file)

Restaurant Market Analysis.pdf - University of Wisconsin-Extension Center for Community Economic Development and the Small Business Development Center.

Third

Financing

Even people with a lot of experience in the FoodService Business Lose their Shirts.  The primary reason for this is Under Capitalization.  Make sure that you have enough money to operate your restaurant for Six Months to One Year without making a profit.  Check out the Link to the Small Business Development Center Below

 

Restaurant Financial Basics (Paperback)

Restaurant Financial Basics (Paperback) List Price: $30.00 Your Price: $19.80 & eligible for FREE Super Saver Shipping on orders over $25. Details You Save: $10.20 (34%)

Fourth

Licensing and Regulations

If you plan on selling Alcohol, make sure that you fully understand, and are prepared (Financially & Personally) to meet State, County, and City Regulations.  Research Local FoodService Establishment Requirements & Health Code Regulations BEFORE looking for a property (See the Santa Barbara Example).  This will give you the ability to intelligently negotiate a Lease Agreement.  Look very carefully at the property to make sure that there will not be any MAJOR changes required to the physical plant by the local Health Department.  Even if the location was a restaurant previously, does NOT mean that it meets current Regulations.  Many people have found out after they signed their lease that they would need to spend $5,000.00 to $15,000.00 to upgrade the Greasetrap and Septic Tank Systems.

Fifth

Get a professional Contractor

One that can stick to a schedule and is familiar with local regulations and inspectors.  Don't rely on your cousin Ernie just because he has built a few Houses.  Everyday that you go over schedule will cost you Thousands of Dollars in Operating Expenses and Lost Sales.

Sixth

Shop for Goods and Services

Once you have gotten past these hurdles, you can start pricing the equipment, Smallwares, Goods, and Services that will go into your operation.

Use the Spreadsheet in conjunction with prices that you can get from the Ace Mart Website (link Below).

Smallwares Requirements Cost Worksheet.xls

This is a (relatively) complete list of supplies needed to open a 100 seat restaurant. If your restaurant has 75 seats, multiply the total listed by .75, If your restaurant has 187 seats, multiply total listed by 1.87 etc.

If you get a pop-up screen asking for a Password, just click the cancel button and the document will download.

Assorted Articles About Starting, Owning, & Operating Food Service Operations

Determining Total Cost of Ownership
Many factors go into figuring out the total cost of owning foodservice equipment over its life cycle.
By Lisa White, Contributing Editor -- Foodservice Equipment & Supplies, 2/1/2006

So You Want To Open A Restaurant —

Are You Crazy? Part 1/10 by Spence Cooper

This is the first installment in a 10-part series on “How To Open and Run a Restaurant“.

Restaurant Failure Rates Recounted: Where Do They Get Those Numbers?
by G. Sidney

"A longitudinal study of restaurants in Columbus, Ohio found the failure rate for restaurants was 57 to 61 percent for a three year period"

Opening a Restaurant?
This is a step-by-step guide to getting through the Santa Barbara County Environmental Health Services health permit process. These are the instructions for Santa Barbara County, Ca, but the tasks are similar to those for any county in the United States.

Solutions dished out for restaurant failure rate
By JENNIFER ROBISON
REVIEW-JOURNAL

No Free Lunch - Myths and Costs associated with starting a restaurant business.

Romance vs. reality Running successful restaurant not as easy as ...

Food & Beverage - Elusive Cash Flow
By Joe Dunbar
It is quite common to see restaurant owners work hard all year and make nothing at all. The difference between a winning operation and a loser is cash management.
Download Article Here

Search 280,000+ Recipes!

Advice from the National Restaurant Association

Opening a Restaurant

Each year, the National Restaurant Association fields hundreds of inquiries from people interested in opening their own restaurants. If you have dreamed of owning a restaurant but need some guidance, check out these resources we've assembled to help you get started.

National Restaurant Association How-To Series

• How to put charitable work to work for your business
• How to build lunch business
• How to control pests
• How to establish an EAP
• How to get publicity for your restaurant
• How to make your operation more environmentally friendly
• How to prevent or recover from fires
• How to reduce no-shows
• How to resolve employee conflict
• How to write an employee manual
• Teaching servers how to sell

Food Safety
• How to prepare for a health inspection
• How to keep salad bars safe
• How to reduce food spoilage

Legal Topics
• Serving alcohol responsibly
• Complying with the Americans with Disabilities Act
• Complying with immigration laws
• Paying the federal minimum wage
• Complying with OSHA regulations
• Paying overtime to tipped employees
• Setting and enforcing a sexual- harassment policy
• Terminating employees
• Reporting tips
• Claiming a federal tax credit for FICA taxes paid on tips
• Protecting your restaurant's name under trademark law
• Using the Work Opportunity Tax Credit

©Copyright 2005 National Restaurant Association
1200 17th St., NW Washington, DC 20036 202-331-5900

Opening a Restaurant

Small Business Tools & Templates Page

State Restaurant Association Links

2000 Traffic Analysis Zones

New-Online Employee Turnover Calculator

About the ASBDC

The mission of the Association of Small Business Development Centers is to represent the collective interest of our members by promoting, informing, supporting and continuously improving the SBDC network, which delivers nationwide educational assistance to strengthen small/medium business management, thereby contributing to the growth of local, state and national economies.

Pre-Opening Checklist- FREE!!

A comprehensive checklist that that covers many aspects of the pre-opening process. 

(Available In Pdf Format.)

Smallwares Requirements - FREE!!

A complete list of supplies needed to open a 100 seat restaurant.  If your restaurant has 75 seats, multiply the quantity listed by .75.  If your restaurant has 175 seats, multiply quantity listed by 1.75. (Available In Pdf and Excel Formats.)

Restaurant 
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