1. Get investment to fund your restaurant business

Most aspiring restaurateurs’ dreams never succeed due to a scarcity of funds, and this is one of the most important aspects that should be taken into consideration while thinking of beginning a restaurant business.

There are two ways through which you can raise funds for your business:


If you have sufficient wealth in the bank, then you have passed over the first obstacle of starting a restaurant. It is also a useful idea to open a restaurant in partnerships, as it reduces the risks of investment. So you can look for other restaurant owners or other businessmen for partnership.


You can take a loan from a bank to achieve your dream of starting a restaurant.

2. Evaluate all the costs required for the restaurant

Restaurant costs are an important part of running a restaurant and need to be calculated and planned carefully.

Here are some costs required in opening a restaurant business:

Food Costs

Food cost is the expense of all the raw materials utilized in making a dish. Generally, the food cost must be around 30% of your menu rate. You need to confirm the dealers for providing the raw materials beforehand, to assure an easy and time-to-time supply of stock of ingredients.

Labor Costs

Labor cost is the other most essential restaurant cost that sums up the expenses while starting a restaurant. You have to discuss the workforce you need to begin a restaurant.

Overhead Costs

Overhead costs are the additional expenses that are not connected to food or labor. It includes,


The rent covers an important portion of your restaurant costs, and is depending on the location of the restaurant. Yet, the rent should never surpass 10% of your whole income.


You can agree on the interiors depending on your restaurant’s concept and theme, and which suits your budget.

Kitchen appliance

buying the right appliance may appear to be expensive, but they always regain their expenses in the long run. You should know about the different types of necessary equipment without which you cannot run a profitable restaurant.


Restaurant authorization is a necessary expenditure of your restaurant, and it cannot be excluded. The license fee varies according to the business of your restaurant.

3. Get a workforce for your restaurant

There are three types of staff expected in a restaurant:

Kitchen staff

Your kitchen staff should comprise the chefs, cooks, support staff, etc.

Service staff

The servers/waiters, housekeeping staff, etc. are included in your service staff. Since this staff has to communicate with consumers, they need to be good at interaction and must be instructed properly.

Management staff

Your restaurant’s, manager, cashier, etc. come under the management staff, and they should be educated as well as skilled

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