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How to Avoid Overspending as a Start-Up Restaurant

  • Published on : 14/01/2020

The blueprint is in place, the location has been chosen, and you have selected a fancy name. All set to open your dream restaurant.

Opening a restaurant can be exciting. However, before you open the restaurant door for your customers, it is essential to have an idea of the costs that may be incurred. 

Right now, the value of the Indian food industry 3.7 trillion. In the competitive market which is currently picking pace, overspending is comparetively easy.

Some of these spends may be one-time expenditures while others are recurring payments. Some of the costs that a startup restaurant has to take care of are:

  • Restaurant real estate
  • Building deposit
  • Restaurant safety permits and licenses
  • Renovation (in case the facility is acquired)
  • Kitchen equipment
  • Dining room furniture
  • Cutlery

It is essential to understand a restaurant’s overall cost to avoid miscalculated forecasts. By forming a strategic business plan, you can also alleviate the risk of failure. Here are some ways of how a startup restaurant can avoid unnecessary costs and overspending:


It is essential to have a budget so that you can keep a tab on the spend. Also looking at different areas to save money can help your restaurant business run smoother and be less stressful. Operational cost is another factor that shouldn’t be overlooked. Everything that keeps a restaurant running, be it spending on inventory, employee salaries, and building cost should be properly planned so that you don’t end up overspending.


As the restaurant owner, it is quite natural to have a loose hand when spending on kitchen equipment. It can also be quite tempting to buy the latest products available, that might burn a large hole in your pocket. Before making purchases, discuss with your staff to gauge the equipment and tools they might need. This way you can not only procure essentials but also save from unnecessary spending.


Another vital component where money can be overspent is marketing. Though it is crucial for the success of your restaurant, make sure you don’t overspend on unnecessary marketing strategies. Choose techniques that will give you a higher ROI and also attract your target audience.

 Restaurant Décor

No doubt, a good-looking restaurant is quite attractive. But ask yourself if you actually need to blow up money on this. In order to attract a crowd, restaurant owners tend to spend a lot of expensive artwork, chandeliers and furniture. Quality over quantity always triumphs. So, when decorating a restaurant remember to keep embellishments to a bare minimum. This way you can create a memorable impression and also enhance the ambience.


It is natural to think that your staff doesn’t require new technology. But, you certainly do. Even if you have a small cafe, you can use a POS system for taking orders and keeping a track of inventory. Using the right tech can help you reduce operational glitches and improve the cost-efficiency of the business. 

The restaurant space can be ruthless with cut-throat competition. Careful planning and management of finances not only helps you save big but also ensures your restaurant is up and running.


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