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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