Starting a new restaurant is an exciting venture, but expenses can overwhelm you. You have to spend money to make money, especially with a startup, but there are ways to conserve finances while making your dreams come true.
On average, startups spend about $275K depending on your particular vision. While some expenses are unavoidable, you can still trim costs in a few areas. Move forward into this new chapter smarter and better prepared by taking time to save some money.
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Cost-Saving Solutions
Equipment
While it’s necessary to set your kitchen up with the proper equipment it needs to run, you don’t have to go overboard emptying your wallet. Look for secondhand options and shop online for cheaper alternatives before making a commitment. In some cases, you can even haggle for a more affordable price point especially if other sellers can offer similar deals nearby.
Marketing
You need a strong campaign strategy, but not an expensive sales agency. Rather than overspending on ads right off the bat, market smarter.
Digital ads improve your SEO and help direct traffic to your online ordering platforms.
Social media improves brand recognition and forges deeper connections with engaged customers.
Find places where online advertising is relatively cheap, like Facebook or Twitter. This especially drives sales if your audience already spends a significant amount of time on the site you choose.
Use your website and professional blog to tell your story and appeal to guests’ emotions.
Hand out flyers and post them in the storefront to attract more foot traffic.
Advertising is critical but don’t overspend. Use some of the more affordable tools available to spread brand recognition without breaking the bank.
Decorating
Creating a homey atmosphere makes guests more comfortable and engenders an emotional response that makes them want to return. Find little ways to set your brand apart; it doesn’t have to be anything big or flashy. Funny salt shakers or an eye-catching wall color are just two small, inexpensive ways to make your brand unique.
Food Costs
Menus are the focal point of the restaurant. While creating delicious options, track your inventory to reduce food waste and identify other places where you’re losing money: Perhaps portions are too large to finish or ingredients expire because you’re buying too much at once. Smart POS systems help with this as well as menu optimization to maximize your sales potential.
Diversifying your suppliers helps. Connect with a variety of vendors to see who offers the most affordable options. This also opens the door for price matching and haggling.
Technology
A cutting-edge technological ecosystem takes any restaurant to the next level, but pare down to only what’s necessary and affordable. Since a Kitchen Display Screen speeds up order turn times and improves accuracy as well as customer satisfaction, perhaps that’s a more worthwhile investment than giving every server a mobile POS tablet from the start.
Look for technology vendors that care. Take the time to research and shop around so you’re not stuck in a contract that doesn’t prioritize your primary concerns. When it comes to your startup, take care to find the right fit for your unique needs.
Control Your Startup Budget
Finance companies help restaurant startups like you make affordable budgets that cover what you need without excess spending. Even if you receive investors for the business, still put some finances away for a rainy day. If, four months after opening, an important piece of equipment breaks during the holidays, you’ll be glad to have some savings to fall back on. Watch your profit margins to guarantee continued growth as you streamline operations as much as possible.
Opening a restaurant startup doesn’t have to be expensive. You can thrive with low-cost options like the ones mentioned above as well as by investing in state-of-the-art POS systems to monitor sales data and identify unnecessary expenses.
