Why there is no single figure
Two restaurants of the same size can cost twice as much as each other depending on the state of the premises, the extraction system or the level of finish. That's why, before asking for quotes, you should be clear about which items to budget for.
The nine items
- The premises. Deposit, key money if any and the months of rent until you open. Negotiate rent-free months while the work is going on.
- Technical project and licences. The professional who signs the project, the fees and the licence or declaration that applies to your activity.
- Building work and installations. Building, electrics, plumbing, air conditioning, extraction and accessible toilets. This is usually the item that overruns the most.
- Kitchen equipment. Hobs, ovens, cold rooms, dishwashers and hood.
- Furniture and tableware. Tables, chairs, bar, crockery, glassware and cutlery.
- Technology. POS, bookings, stock control and dashboard.
- Brand, website and photography. Identity, menu, signage, website and the first photo shoot.
- Opening stock and uniforms. The first order of food and drink, uniforms and small equipment.
- The start-up cushion. Money to cover fixed costs for the first few months while the restaurant finds its feet.
The cushion: the item people forget most
A restaurant takes three to six months to find its feet. If the investment only covers the building work and equipment, you reach month four with no cash. A simple rule: set aside at least three months of fixed costs. With fixed costs of €39,000 a month, that's €117,000.
And then: do you get it back?
The investment only makes sense if the business pays it back. A healthy project recovers it in 24 to 36 months; beyond 48, the risk is high.