{"id":7424,"date":"2022-08-18T09:45:10","date_gmt":"2022-08-18T13:45:10","guid":{"rendered":"https:\/\/scramblersrestaurants.com\/franchise\/?p=7424"},"modified":"2025-08-12T09:53:32","modified_gmt":"2025-08-12T13:53:32","slug":"understanding-restaurant-startup-costs","status":"publish","type":"post","link":"https:\/\/scramblersrestaurants.com\/franchise\/understanding-restaurant-startup-costs\/","title":{"rendered":"Understanding Restaurant Startup Costs"},"content":{"rendered":"\t\t
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If you are planning to open a restaurant, crunching the numbers will help you get your establishment off the ground successfully. Take time to understand restaurant startup costs as you delve into your business plan.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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Foodservice Industry Cites Gains<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Propelled by job growth and robust savings, eating and drinking places registered total sales of <\/span>$86.1 billion<\/span><\/a> in June alone. <\/span>Despite high gas prices and record inflation, the foodservice industry is on track to generate $898 billion in sales and add 400,000 new jobs this year, according to the <\/span>National Restaurant Association<\/span><\/a>. Although most restaurants are still in recovery mode in the aftermath of the pandemic outbreak, the future is bright for restaurant owners. Focus on online ordering, streamlined menus, and equitable pay for restaurant workers is enabling restaurant owners to meet customer demands and continue to provide solid service.<\/span><\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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An Open-Ended Price Tag<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Restaurant startup costs can vary widely, and starting a restaurant from scratch includes a number of one-time costs, such as down payments, permits, legal fees, equipment, and supplies. There are also ongoing expenses you need to consider, including employee salaries, food costs, and more. Navigating the requirements can be tricky for fledgling operators.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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Franchising Offers Direction<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Making sure your finances are in order to achieve your dream of owning a restaurant is time-consuming, and unexpected surprises may crop up. Opening a franchised eatery can cut down on the guesswork. <\/p>\n

Restaurant franchises paint an accurate picture of your expenditures by offering a guidebook to follow. The Franchise Disclosure Document, or FDD, offers an itemized list of all of your restaurant startup costs to help eliminate unexpected costs. Opening a foodservice franchise allows you to start a restaurant with an established brand and a business model with a successful track record. To be considered for franchise ownership, you\u2019ll need a certain amount of liquid capital and net worth to get started.<\/span><\/p>\n

Here are some of the <\/span>restaurant franchise costs<\/a> you need to anticipate when opening a franchise.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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Initial Franchise Fee. <\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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All franchisees are required to pay an initial franchise fee to purchase the rights to use the company\u2019s brand, menu, and trademarks. While some entrepreneurs may balk at this expense, it\u2019s important to remember customer habits and routine often drive dining decisions. Operating a widely-recognized brand with consistent menu items can make all the difference.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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Real Estate<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Location costs vary widely depending on real estate value in your market and whether you choose to lease or buy your space. Regardless, you\u2019ll need to pay for a mortgage or rent, as well as any construction costs to get your restaurant ready for business.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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Equipment and Supplies. <\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Whether you choose to open a franchise or start a new concept, you\u2019ll need equipment and supplies. Making sure your restaurant has quality kitchen equipment, easy-to-use point-of-sale systems, and ample seating is necessary.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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Permits and Insurance. <\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Opening any business requires red tape and restaurants are no different. You will need to secure the proper permits and insurance to pass inspections and serve customers.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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Marketing<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Franchise owners are typically required to contribute to a marketing fund to help promote the brand and drive customer traffic. Many franchisees are also required to invest in a grand opening celebration to highlight their new location. Having marketing support helps limit some of the workload for new entrepreneurs.<\/p>

In addition to avoiding hidden fees and unexpected expenditures, franchise owners benefit from initial training and ongoing support as well as menu and product development.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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Scramblers Franchise Corners Brunch Market<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Scramblers is one of the leading concepts in the competitive breakfast market. With more than 30 years of restaurant experience and at least 26 locations, Scramblers offers a promising investment opportunity. It costs $450,000 to $850,000 to open a Scramblers location. As an added bonus, the company maintains relationships with third-party lenders that offer financing to cover equipment, inventory, accounts receivable and payroll.<\/p>

If starting a restaurant with a partner to help serve as a guide will help you achieve your goals, Scramblers is seeking franchise owners to help grow the brand. To learn more about opening a restaurant franchise, contact Scramblers to <\/span>get started<\/a> and connect with one of our franchise business consultants.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"

Understanding restaurant startup costs is top of mind for new owners. 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