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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

 




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