When compared to other kinds of businesses, the opening cost of a restaurant is pretty considerable. But, you cannot start a restaurant below $100,000 as you need to bear a lot of start-up costs and expenses. Careful budgeting is necessary to make the most out of the start-up fund. Besides the start-up cost, you need to have the capital for six months or about a year down the track. Without proper funding and resources, your restaurant is sure to fail. In fact, the revenue growth of most businesses is slower than what is expected before opening the restaurant. This is why more capital is needed to bear the expenses.
Anyone looking to open a restaurant must set out the budgeting schedule to buy the items that are needed. It’s helpful to purchase used accessories and items if you are too concerned about how much are restaurant start-up costs. Finding a good building for your restaurant and ensuring that it meets the needs as far as location, zoning, space, and kitchen setup is not a step to take lightly. The cost of setting up can again vary as per the location and whether you are willing to rent a property, buy a property or to build the restaurant from scratch.
How to determine the cost of starting a restaurant?
The ones who have no idea about the cost of starting a restaurant can use a financial projection automated tool to find out the capital needed at every stage of a start up. The software, designed only for restaurant purpose, will give answers to all your questions relating to the cost.
Cost considerations to be made
When starting a new restaurant, the following cost considerations have to be made:
Lease: If you’re leasing a property, be sure to take into consideration the monthly payment to be made, the advance deposit which is required. This can be a few hundred dollars or cost equivalent to the rent for 6-12 months.
Restaurant equipment: You may either buy the restaurant equipment or rent them. Some of the restaurant items include: Commercial fridges Sydney, benchtop equipment, Pizza ovens for italian restaurants, kebab machines, etc.
Beginning inventory: Food, beverage and liquor costs need to be established. It is good to establish rates and payment options as soon as possible with vendors to assure you’ll have your shipments on time and with the correct products.
Renovation cost: When you acquire property for the restaurant business, you may need to change interiors, and the lighting fixtures, carry out painting and rewiring, undertake re-plumbing preferably with an affordable plumber Sydney and shelving.
Permits and licenses: Be sure to keep aside some money to cover the costs relating to health permit, license, and taxes to be paid.
Make your restaurant business successful
If you can serve delicious food items for all seasons whether it is summer, spring, fall or winter, your business will be successful. While menus don’t necessarily need to change per season, it may not be a bad idea to start experimenting with a few items and measure their appeal and customer feedback.
When it comes to winter menu ideas, including warm drinks and beverages can help to add a seasonal flair to your menu appeal. Coffee cocktails, apple cider, and hot cocoa can keep the guests happy and warm.
Sunday penalty rate is the minimum pay rat paid to employees working on a Sunday.
On Monday, 5 June 2017 at 2pm, The Fair Work Commission Australia’s national work place relationship tribunal decided to slash Sunday penalty rates for Hospitality, Pharmacy, Fast food and Retail employees.
Various employer organisations and industry lobbies led by The Australian Industry Group had lodged a complaint with the Fair Work Commission pleading that the commission should reduce the Sunday penalty rate to match the Saturday rate claiming that the rates were unfair and irrelevant. After hearing from all the parties, the Full Bench determined that there should be a phased reduction over the next four years starting on 1 July 2017 until the year 2020.
The phased reduction by industry takes effect as summarized below:
Retail industry full-time and part-time employees will have their Sunday rates reduced by a whopping 50 per cent over a four-year period from the highs of 200 per cent to the lows of 150 per cent.
On the other hand, casual employees will have to make good with a 25 per cent reduction from the current 200 per cent to 175 per cent stretched over a three-year period.
Over a two-year period, fast food level one full-time and part-time employees will have their Sunday penalty rates reduced by 25 per cent from 150 per cent to 125 per cent and 175 per cent to 150 per cent for casual employees.
No cuts for level two and level three fast food employees.
Full-time and part-time hospitality employees will have their earnings slashed from 175 per cent to 150 per cent over a two-year period.
Casual hospitality workers Sunday rates remained at 175 per cent.
Full-time and part-time Pharmaceutical workers working between 7am and 9pm will have their penalty rates reduced by 5 per cent in the first year and 45 per cent over the subsequent three-years and 225 per cent to 175 per cent for casual employees over the same period.
Interested Parties Submissions
Labor union bosses believe that the Sunday penalty rate reduction will negatively affect a significant percentage of the Hospitality, Fast food, Retail and Pharmacy employees.
However, the Council of Small Businesses argued that big businesses employees 80 per cent of workers with enterprise agreements and they will not be affected by the ruling.
The Full Bench was persuaded by the claims that the current Sunday penalty rates had made doing business unsustainable stating that by cutting the Sunday penalty rates they will spark employment in the affected industries.
With the Sunday penalty rates effected, small business owners are rejoicing. It means that the cost of doing business will significantly reduce while the margin of profit expands. Nevertheless, there might be a spike in employment levels in the short-term but it is uncertain whether it will be sustained. However, it will be more affordable to buy expensive commercial combi oven Sydney, which restaurants require to operate.
As highlighted with the changes above the big losers in this debate are the workers, as they will have to do with less than they used to. It might take a toll in some households but the sooner you get across the changes the better.