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Opening your Restaurant – Part 2 – Creating a Projection – Budget
Before we move on to creating a projection, let’s start with creating a budget. First question you should be asking yourself is “Do you have a enough budget?” and this matters. Many people do not fully understand how much it would cost to open up a restaurant or maintain it. So many unknown issues can come up, for example, construction could be delayed, equipment problems, gas and electricity connection problems, permits can be time consuming, violations with different departments, and more. One of the biggest hurdles you will face is having a opening team. It is very difficult to keep opening team members, especially if for some reason your opening…
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Opening your Restaurant – Part 2 – Creating a Projection
Part 2 – Creating a projection If you have a promising product/restaurant concept, let’s create a projection! P&L Projection & Profitability Ok, so let’s say now you have the right product for the right market, is your product going to be profitable? This is probably one of the biggest questions you must ask yourself. There are many “great” products that will make people happy. But would it be profitable enough for you to make you successful? What if it causes a loss? Are you financially stable enough to bear the losses in the beginning? If so, for how long? The truth is that many newly opening restaurants do not do…