Survey Results: How Independent Operators Finance Their Restaurants
Have you ever wondered what it costs to get a restaurant open? As part of our
"Financing Your First Restaurant" survey, we asked
RestaurantOwner.com
members to tell us how much they spent getting their restaurant open. This
survey yielded nearly 500 results, creating a valuable resource for those
planning to open a new restaurant.
The cost to finance the opening of a restaurant can vary greatly. The
following table illustrates how various factors affect the overall investment
based on the type of venture and whether the restaurant is purchased or leased.
|
Venture Type |
# of Respondents |
% of Overall |
Median
$ Spent |
Average
$ Spent |
|
Created New Concept |
278 |
59% |
$250,000 |
$501,236 |
|
Leased Space |
212 |
76% |
$250,000 |
$371,191 |
|
Purchased
Land & Building |
61 |
22% |
$500,000 |
$972,967 |
|
Other |
5 |
2% |
$80,000 |
$260,000 |
| |
|
|
|
|
|
Took Over Existing Concept |
141 |
30% |
$160,000 |
$281,128 |
|
Leased Space |
90 |
64% |
$150,000 |
$251,033 |
|
Purchased
Land & Building |
49 |
35% |
$225,000 |
$341,551 |
|
Other |
2 |
1% |
$155,000 |
$155,000 |
| |
|
|
|
|
|
Purchased Franchise |
28 |
6% |
$300,000 |
$451,786 |
|
Leased Space |
25 |
89% |
$300,000 |
$374,800 |
|
Purchased
Land & Building |
3 |
11% |
$425,000 |
$1,093,333 |
|
Other |
- |
- |
- |
- |
| |
|
|
|
|
|
Other |
25 |
5% |
$450,000 |
$673,520 |
|
Leased Space |
14 |
56% |
$350,000 |
$486,285 |
|
Purchased
Land & Building |
7 |
28% |
$800,000 |
$1,107,143 |
|
Other |
4 |
16% |
$325,000 |
$570,000 |
| |
|
|
|
|
|
All Respondents |
472 |
100% |
$250,000 |
$441,675 |
|
Leased Space |
341 |
72% |
$200,000 |
$344,468 |
|
Purchased
Land & Building |
120 |
25% |
$357,500 |
$725,975 |
|
Other |
11 |
2% |
$200,000 |
$353,636 |
We also asked respondents to tell us "how" they raised the money to get their
restaurant open. The response was tremendous, resulting in several hundred in
depth testimonials on how these operators raised capital. Moreover, each of the
respondents share the lessons they learned on everything from budgeting, finding
money, and pitfalls you should try to avoid. The results have been grouped based
on the amount spent.
View comments & results for
restaurants that cost:
$50,000 and less
$51,000 - $100,000
$101,000 - $250,000
$251,000 - $500,000
$501,000 - $1,000,000
More than $1,000,000
Others
|
Who Should Join
