How to Sensibly Open Your Dream Restaurant in the Current Financial Climate

Opening a restaurant is the dream of many: the idea of creating a cozy eatery, an innovative must-visit destination, or a traditional establishment offering hearty fare is a tempting proposition.

But it’s important to be realistic: the current financial climate is tricky, and taking it into account is vital if you’re considering opening a new business. But it can be done! Use the hints, tips, and hacks below to sensibly get your restaurant up and running as cost-effectively as possible.

Avoid Overspending on Furniture

Opening a restaurant is exciting, and it’s easy to get caught up in the moment and spend an inordinate amount on furniture when this isn’t necessary.

Take some time to assess your options regarding restaurant furniture properly – many vendors offer high-quality, durable, stylish items without the designer-brand price tag. As long as it looks good, is hard-wearing, and comfortable for your guests, the tables and chairs you choose for your establishment needn’t cost the Earth.

You could also consider buying pre-loved items; if you’re prepared to do a bit of sanding and painting, you could end up with some unique, gorgeous pieces that have cost very little. This sustainable strategy is likely to be appreciated by your guests, too!

Negotiate With the Landlord

It’s not guaranteed to be successful, but negotiating with your prospective landlord is definitely worth a try!

Ask the landlord if they’d be prepared to consider giving you the first few months at a discounted rental rate to help you get established. Ultimately, they want a successful business inhabiting their premises, and helping you get on your feet is in their interests.

If they’re not moving on the rent, see if they’d be prepared to throw in some other perks – would they be happy to split the decorating cost with you or to add a break clause to the lease: the latter means that you can back out of the contract penalty-free after a certain period, if the business isn’t working. It’s a valuable safety net and especially worth considering in the current climate.

Save on Food Costs

Ingredients will be a significant cost for your business, but it may be possible to reduce this, too. Firstly, building great relationships with local suppliers can be the most effective way to get competitive prices and discounted deals. Creating seasonal menus is also an excellent means of keeping food costs down – produce in season is invariably cheaper than ingredients that aren’t.

Cutting back on food waste is vital and can greatly impact your restaurant’s bottom line. Again, create your menus with this in mind, ensuring that a range of dishes can be made from the same ingredients, for example. You could also consider offering daily specials – such as soups, pies, or quiches, all of which are excellent ways to use up surplus ingredients.

Claim Capital Allowance

Claiming capital allowance means you can deduct certain business expenses and assets from your taxable income and could therefore save hundreds of dollars.

As part of this process, you’ll need to identify the costs, equipment, etc., that are eligible, apply, and then wait to have this application approved. The system can be complicated, and you may wish to consider hiring an accountant to take care of this side of things for you.

Look for Restaurants That Are Closing

As sad as it is, closing-down restaurants can be found everywhere. These unfortunate establishments, however, can represent an opportunity to help you get your own business up and running as cheaply as possible.

Restaurants that are closing down will often offer everything from kitchen equipment to glassware at rock-bottom prices, meaning you could save big. Plus, the owners may be willing to put you in touch with reliable, conscientious waiting staff or skilled chefs they previously employed.

Start by Offering Beer and Wine

Obtaining a full liquor license can be a costly and time-consuming process. So why not start by just offering beer and wine – it’s usually much easier to get the consent necessary to offer just these beverages compared to the license required for a full bar.

Once you’ve been open for a few weeks or months and have regular revenue coming in, you could look again at applying for a full liquor license.

Hire a Food Truck!

Depending on the level of renovations the building may need, there’s a chance that you’ll have to wait a while before getting into your new space.

Why not use this time profitably and hire a food truck to sell a sample, ‘takeaway’ selection of some of the dishes you’ll be offering in your finished restaurant? As well as bringing in some much-needed cash that can be plowed into your new business, it’s also an excellent opportunity to test out the market and get some priceless feedback on the menu from your food truck customers!

From Dream to Reality

The current financial climate may make opening a new restaurant challenging – but it doesn’t make it impossible! Use the tips above to save money throughout the process. Think creatively at every stage to come up with more ways to keep spending down while keeping your customers coming through the door!