Quote:
Originally Posted by mojito
Psychlone, you speak of the "break-even point" ...how many years typically is that if we weren't in this dire economic market... for a new restaurant?
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That depends on too many factors to even begin to 'estimate'...personal $ investment, lease/rent/mortgage/etc., number of seats, type/style and cost of menu items, what type of service, labor, standard overhead (insurance, licenses, utilities, etc.) as well as 'incidentals' among other things.
It could take anywhere from 2 years to 10 depending on what kind of restaurant you're talking about, taking all the above into consideration.
My personal restaurant has 86 seats with banquet facilities for 130 upstairs, my menu is an average of $8 per plate, we are full-service with alcohol sales (full restaurant alcohol license), we run an average of 30% labor including all salaries, and pump roughly $1500 in just natural-gas per month (to give a rough idea of utilities expenditures) - and we met our break-even after year 3...but I think we were lucky. And, considering the state of the economy now, I would either bet the same restaurant opening right now would take 10+ years, or that it would simply fail within the first year.
Anyway, good luck to whomever is contemplating this - as I've said before, when people begin drawing in the reigns of their expenditures, eating out is the *FIRST* thing to get dropped!
Psychlone