How much to invest if you want to have a food and beverage business?

Food and beverage business

When it comes to investing to create a business, you must take into consideration different factors: the business category, its scope, the raw material, the space where it will work and more. In turn, all of these depend on a key element: capital.

Putting together a budget, being clear about the expenses it will generate, and even knowing how to choose the type of food to sell, are concepts of great importance before starting your gastronomic business; especially if you want to overcome all the challenges that come with being an entrepreneur in this area. 

Find a pencil, paper and have a calculator within reach, because today we will give you the basic guidelines that you must take into account to know how much is invested in a restaurant. 

Also read: How to start a franchise

How to create a budget for your food business?

The first thing will be to make it clear what a budget is and how it helps us figure out how much to invest in a restaurant. 

Specifically, a budget is a calculation and/or advance planning of the expenses that are needed to achieve an objective. With a detailed budget it will be easier:

  • Organize and/or make a better distribution of money.
  • Make necessary adjustments to reach the goal. 
  • Know in advance if you are on track to achieve financial goals. 

For that reason, when you put together a budget you should be clear: 

  • The cost of the venue. If it will be your own or the monthly rent of it. 
  • The number of employees the restaurant needs to operate.
  • How much money each of them will be paid per hour? 
  • The step-by-step menu will be offered.
  • The cost of the necessary raw materials. 
  • The type of furniture, utensils and decorations that you will need according to the concept of the restaurant.

You should also ask yourself about the type of advertising that you will use to publicize your business since marketing actions depend on this amount. This point should not be taken lightly, as it will be necessary for them to get to know you and choose your potential clients. 

Once you gather this data, you must classify it by fixed, variable and investment expenses. All of this data is put into a spreadsheet to form the various parts of the budget. 

What are the key expenses/investments to consider?

As we mentioned before, a budget has several parts and many of them vary depending on the line of business. Since we want to know how much to invest in a restaurant, let’s first define what the key expenses and investments will be in this type of enterprise: 

Rental and services

They are part of the fixed expenses of any business. At this point, you must include the monthly cost of rent and the payment of basic services, such as electricity, gas, water, Internet and taxes. 

the cost of food

Food is your raw material, so you must consider each ingredient or condiment in the kitchen separately, even those that are from the same category. Pay special attention to meats, vegetables and fruits. Why?

  • They expire faster
  • Its price may vary according to the season and the quality of the product. 


The cost of labor directly impacts the price that a diner will pay for their food. Take this detail into account so that the business is profitable and sustainable over time. 

In turn, the hours of the restaurant and the number of staff you hire to meet the demand influence the monthly amount of wages. 


Furniture, appliances, uniforms and decoration are part of the investment in restaurants. Although they are done only once, they are a key factor when defining the capital needed to open. 

Marketing actions

Word of mouth is effective. However, when such an ambitious project is started, you must accompany it with:

  • A good service.
  • Quality food.
  • An original proposal.
  • Appropriate promotion strategies. 

Whether you choose to advertise on public roads, in brochures, advertisements in the press or on social networkseach of them has a cost. Ideally, it should come out of the local budget and not out of your pocket. 

Now you know the main points to know how much to invest when opening a restaurant in the United States or anywhere else in the world.

Also read: How to choose the best place for a business?

How to choose a good place based on your product?

The success of a business will be determined by the quality of the product, but also by other factors such as the place that best fits the style of premises you want to build. 

Follow the tips below: 

The best areas for your restaurant

This point is essential to reach your target or objective directly. For example, if it is a healthy food place, it is better that you place your business near the gyms. On the other hand, if it is a step menu, it will work better for you to be in one of the exclusive areas of the city.

How many square meters do you need?

The style of food you serve will help define the space you need to get the project off the ground. Of course, the space for the kitchen is not negotiable. Try to make it comfortable. 

You will choose the room based on the number and style of the tables you have. You can even create a takeaway model. The possibilities are endless!

Find the best rental

After you have the list with the areas, the next step will be to compare the cost of rent or sale (as the case may be) of the premises that you like. This way you will know which one to lean towards without putting your restaurant’s investment at risk.


To open your own gastronomic business, you must not only know about culinary techniques, cuts, and how to put together a menu but also about finances and numbers. Do it to make smart decisions and decide how much to invest in a restaurant

The good news is that if you are willing to venture into the field and become the owner of your own business, at the Learn Institute we offer you the tools that will allow you to successfully plan a venture. 

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