Starting a BBQ restaurant can be profitable, and anyone who wants to start a standard BBQ restaurant should budget about $150,000. The bottom line is that certain factors can determine how much you are expected to spend to open your BBQ restaurant.
A BBQ restaurant is a profitable business especially if the business is located in an area where you have loads of BBQ lovers. Of course, you know that a BBQ restaurant business will not thrive in an area that is dominated by vegetarians.
Estimated Cost Breakdown for Opening a BBQ Restaurant
- Lease and Rent (6 months): $30,000
- Renovations and Interior Design: $25,000
- Kitchen Equipment and Appliances: $35,000
- Furniture and Fixtures: $15,000
- Initial Inventory (Food and Beverages): $10,000
- Licenses and Permits: $5,000
- Marketing and Advertising (initial 3 months): $10,000
- Staff Salaries (initial 3 months): $20,000
- Point of Sale (POS) System and Technology: $5,000
- Utilities (initial 3 months): $5,000
- Miscellaneous Expenses: $5,000
- Contingency Fund: $5,000
Total – $150,000
Factors That Determine the Cost of Opening a BBQ Restaurant
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The Size of the BBQ Restaurant
Anyone who wants to start a BBQ restaurant can either decide to start the restaurant on a small or large scale from a restaurant or commercial kitchen facility with home delivery or takeaway options.
The truth is that it is far cheaper to start a small-scale BBQ restaurant than starting the restaurant from a standard facility or even a drive-thru BBQ restaurant. The cost of renting, equipping, and operating a standard restaurant facility will consume the bulk of your budget.
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The Location Where You Want to Start the BBQ Restaurant
In the United States of America, some cities are pretty expensive to start and run a business, while some cities and locations are way cheaper to run a business.
When you choose an expensive city to start your BBQ restaurant, such as Las Vegas or Los Angeles, the costs will be significantly higher than opening in a more affordable city like Albuquerque or Detroit.
High rents, labor costs, and stricter regulations in major metropolitan areas drive up expenses. Conversely, cities with lower costs of living offer cheaper real estate, wages, and operational expenses.
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The Cost of Equipping Your BBQ Restaurant
If you have plans to start a standard BBQ restaurant, you are required to equip the facility with the needed equipment, electronics, and furniture.
Aside from getting comfortable furniture such as stools, couches, sofas, tables shelves et al, you will also need electronics such as flat-screen televisions, sound systems, and perhaps public address system.
For your cooking utensils and equipment, you will need to purchase a commercial BBQ smoker, charcoal or gas grills, commercial-grade refrigerator and freezer,
Prep tables and cutting boards, commercial oven, deep fryer, food warmers, and steam tables, ventilation, and hood system, point of sale (POS) system, meat slicer, stainless steel prep tables, and dishwashing equipment, et al.
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The Number of Staff You Want to Recruit
The only reason why this might not be an issue for you is if you choose to start your BBQ restaurant with your family members handling all aspects of the restaurant.
But, if you choose to start a standard BBQ restaurant business, then you must make plans to recruit and train employees who will occupy different roles in your organization. You should make plans to recruit a manager, an accountant or cashier, cooks or chefs, servers, delivery guys, and kitchen staff.
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The Cost of Obtaining the Needed Licenses and Permits
This cost may vary across different states and cities in the United States. The fact that different states require different types of licenses and permits means that your budget for permits and licenses will be determined by the state you want to start your restaurant.
You should budget for a business license, food service permit, health and safety, permit, liquor license, zonal permit, signage permit, operational state facility inspections, a live entertainment license if you want to provide entertainment, and a dumpster placement permit that specifies where you can put your trash dumpster, etc.
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Your Ongoing Expenses
Ongoing expenses for a BBQ restaurant are unique to the BBQ restaurant owner and their preferences. Basically, for a BBQ restaurant, you should budget for supplies such as:
Meat, sauces, seasonings, disposable utensils, napkins, plates, cleaning supplies, charcoal, wood chips, aprons, gloves, and takeout containers.
Apart from that, you should also have a budget for regular maintenance and repair of equipment, utilities, and delivery and logistics.
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Miscellaneous Expenses
Although there is no one mold fits all when it comes to miscellaneous expenses for a BBQ restaurant, but you may decide to include the:
Cost of hiring and paying tax consultants, an attorney, the cost of branding, promotion, and marketing of the BBQ restaurant, the cost for logistics and outreach costs, your insurance and premiums, the cost of the purchase and customizing of uniforms, shoes, and caps for your employees, and the cost for the grand opening of the BBQ restaurant as part of your miscellaneous expenses.