Does the thought of restaurant business excite you? Have you always been complimented for the food you prepare for your friend at parties?
If yes and you are considering making a mark in the restaurant industry, one question that would have come to your mind is ” How much does this cost?”
While restaurants come in all shape and sizes and varying budgets, the key point when you are getting in with your hard earned money to launch your restaurant business is to minimise the initial capex budget.
One of the biggest stumbling block as a independent owner without access to big funding is that you tend to run out of cash, so every step to successfully conserve money is something you should watch out for.
Get your concept right
The first key point in understanding how much money you will need is to decide on a concept. The food industry has something for every one, from avant garde concepts to tried and tested comfort food out of a food truck, you will have a choice of pick.
Food trucks and small eateries are least expensive to start but have a glass ceiling on the amount you can earn, while a coffee shop or a themed restaurant while expensive to begin with might be the answer to fame, and long term wealth.
Consider used equipment for the restaurant
The restaurant industry is notorious for a high churn and at any point in time you might find 2nd hand kitchen equipment on sale on various sites. Now not all used equipment can be guaranteed to work for your situation and I certainly would ask you to double check and make sure that every thing is in working order, this is a cost saving initiative. So if it turns out to be more expensive in the long run to maintain these equipment , it would be better off to buy a new equipment.
As a rule of thumb, use 2nd hand equipment for things which don’t have moving parts, like kitchen tables, kitchen sinks, etc. Unless you have a very good technical person who can guide you on the electronics of the oven or the mechanics of the food processors, avoid 2nd hand for these equipment.
Get your license in place before you start your procurement
How is this a money saving strategy? Simple , India is moving towards anti corruption. We are not yet there. Avoid getting into trouble with the law by getting all your licences in place. This will avoid the future trouble of delay, and harassment which in turn costs money.
In India laws which affect restaurants are changing fast and FSSAI is getting more strict. Having an understanding of what will work and what will not will help you in the long run.
Hire a consultant
While a consultant sometimes can get a bad rap, a person who knows what they are doing will ultimately save you money by providing you with solutions which are tailor made for you. As a tailor would say, measure twice, cut once… an experienced person can make a difference between saving money and spending extra out of your pocket.
In case you are really on a shoe string budget, one good DIY source for consultation is the content library on this website. You can access resources which can help you on the way to opening your restaurant on a shoe string budget.