How much money is needed to open a restaurant? Initial costs

When planning to open a restaurant or invest in similar models, many people are concerned about the capital required. For a detailed plan, you need to calculate costs for each part, anticipate risks, and evaluate market fluctuations in the future. Let’s find out how much money is needed to open a restaurant with Kamereo in the following article!

*Opening a restaurant requires a significant amount of capital for construction and operation*

Cost of renting a restaurant space
Cost of decorating restaurant interiors
The cost of buying restaurant equipment
1. Customer service area
2. Kitchen area
Cost of using management software
Cost of buying raw materials
Costs for Marketing activities
Costs for restaurant staff
Other types of expenses

Cost of renting a restaurant space

The cost of the venue often accounts for up to 30% of the total budget for opening a restaurant. Therefore, you need to calculate carefully to minimize this cost as much as possible while still ensuring business criteria. Calculating the cost of renting a venue depends on various factors such as area, location, renovatability, traffic density, and the security situation in the area.

In addition, most landlords will require a deposit of 3 to 6 months, so you need to plan for a reasonable source of funds. Rental costs typically range from 15 to 30 million VND per month. Be bold in proposing a rent reduction if the venue does not meet business requirements, such as a narrow kitchen, lack of hygiene facilities, low ceilings, etc. Also, consider the cost of renovating the venue if the available space does not meet business needs.

*Rent costs make up a significant portion of the restaurant opening cost*

Cost of decorating restaurant interiors

To attract customers, you need to decorate the interior to create a unique space that aligns with the restaurant’s development plan. This cost includes the money spent on purchasing tables, chairs, wall decorations, wallpaper, curtains, etc. The total budget for interior decoration usually accounts for about 5 – 10%. Some specific items may include:

Cost of repainting the venue: Ranges from 15 – 30 million VND, depending on the scale and design style.
Cost of purchasing tables and chairs: For a set of 20 tables and chairs, the cost will be around 50 million VND. However, if the restaurant has a luxurious style, the cost of high-quality wooden tables and chairs can go up to 100 million VND.
Cost of buying decorative items: About 5 – 10 million VND for common items, but can go up to 200 million VND for displaying antiques, feng shui items, etc.
Cost of hiring decoration staff: If you hire an external service, the package cost is usually between 50 to 100 million VND.

*Interior decoration costs help transform the space to attract customers*

The cost of buying restaurant equipment

Items and equipment in the restaurant such as freezers, dishes, pots, stoves, bars, coffee machines, etc., need to be selected from reputable brands with high quality and durability to ensure long-term cost savings. When shopping, carefully calculate the quantity to avoid over-purchasing, which can lead to waste and additional costs for storage. Main areas that need to purchase equipment and tools include:

Customer service area

Items, equipment in the customer service area need to be carefully invested to avoid affecting the customer experience. Some cost items may include:

Fans, air conditioners: 1 – 10 million VND per device
Dish, cutlery storage box, disposable utensils, and spices: 2 – 3 million VND, depending on quantity
Curtains, doormats: 3 – 4 million VND, depending on quantity
Tablecloths: 1 – 10 million VND, depending on quantity

The total cost of investing in equipment and utensils for the customer service area is around 7 – 27 million VND. In addition, there may be additional costs such as flowers, decorative flowers, cold towels, etc. This depends on your restaurant’s needs and development direction.

*Investing in customer service items requires careful consideration*

Kitchen area

The kitchen area contributes significantly to the investor’s budget, especially when equipping modern electronic devices and specialized cooking utensils to optimize the sales speed. Below are some basic items and estimated costs for the kitchen area:

Freezer, refrigerator: 50 – 70 million VND, depending on quantity
Dish storage cabinet, pots and pans: 10 – 20 million VND, depending on quantity
Dishes, pots and pans, cooking utensils: 20 – 30 million VND, depending on quantity
Exhaust system, cooling system; 20 million VND
Gas stove, electric stove: 20 million VND, depending on quantity

The total cost for the kitchen area alone can be up to about 150 million VND. Before investing, you should list all the tools and utensils needed to determine the quantity, find a place to buy at a good price, and choose a suitable brand.

*The cost of kitchen items is quite high to ensure standards*

Cost of using management software

Restaurant management software is designed with many utilities, such as helping to manage revenue, finances, and materials remotely without the need to be at the restaurant. Moreover, customers can order directly at the table via QR code or waiters can receive orders via electronic devices. The cost for restaurant management software usually ranges from 170,000 to 250,000 VND per month.

*Costs for management software help managers save time*

Cost of buying raw materials

An important factor to retain customers is the quality of the food. Therefore, using fresh and delicious ingredients, ensuring food safety and hygiene is crucial. Typically, the cost of raw materials in the initial stage will range from 10 to 20 million VND.

To save costs while ensuring the quality of ingredients, choosing a reliable supplier is crucial. If you haven’t found a reputable supplier yet, Kamereo is a worthy consideration. We currently supply food and ingredients to many large restaurants in Ho Chi Minh City and Binh Duong such as Pizza 4P’s, Lay Haye Kitchen & Bar, Lilliput Diamond, etc.

In addition, Kamereo has a user-friendly website and ordering app, making it easy for you to find the desired products. All products are distributed directly from reputable sources, ensuring VietGAP standards and food safety certification. Therefore, you can confidently prepare the best quality food and drinks.

Currently, Kamereo has many price promotions for HOT products, you can refer to them HERE. Orders with a value of over 400,000 VND also receive free delivery support. You can contact Kamereo via the hotline 0812 46 37 27 for consultant support!

Read more: Introduction to Kamereo

*Cost of buying raw materials is mandatory when opening a restaurant*

Costs for Marketing activities

Many restaurant owners often underestimate the importance of marketing activities due to the large initial construction costs. However, this is an effective method to promote the restaurant’s image to customers. Listing and calculating specific expenses for advertising, printing flyers, banner design, etc., is essential for allocating the budget reasonably.

Moreover, you also need to measure the effectiveness of the campaigns deployed. This helps you adjust the strategy timely in each stage, ensuring the appropriateness and effectiveness of your advertising campaigns. Generally, the total amount for restaurant marketing activities in the initial stage can range from 25 to 100 million VND. Subsequent marketing activities usually account for about 6 – 15% of revenue depending on your needs and strategy.

*Marketing costs help many customers become aware of the restaurant*

Costs for restaurant staff

Typically, initial staffing costs include recruitment and training fees. This cost for a service staff member is around 1 million VND, for a chef or head chef, the cost can go up to 3 million VND per person. In addition, you also need to budget for salary and bonuses for staff based on the scale and regulations of labor law. The average cost for an employee will be around 5 million VND per month, gradually increasing based on the level and role in the restaurant.

*Staff costs depend on the scale of the restaurant*

Other types of expenses

These expenses are directly related to the restaurant’s operations such as electricity, water, hygiene fees, security fees, etc. Therefore, depending on the scale and operation method, determining these specific costs from the beginning is quite difficult.

To get a more accurate estimate, you should refer to restaurants of a similar scale. Usually, the total monthly incidental expenses can range from 10 to 15 million VND.

*Monthly water usage costs are included in the miscellaneous expense category*

Read more:

So, how much money is needed to open a restaurant? The total budget required to open a restaurant typically ranges from 500 to 800 million VND. This is a substantial amount, so allocating the budget reasonably is crucial. Create a detailed business plan to control investments, identify which items bring efficiency, and where adjustments are needed. Don’t forget to follow the Business Tips category for more useful information!

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