Tips

Marketing Fees: Save 75% on OpenTable fees with reservations that originate on your own website. Make sure you have the link set up properly to realize these savings.

POS Systems: Select POS systems based on total cost: this should include the cost of maintenance and upgrades, not just in year 1 but beyond - ask about this when you obtain price quotes.

Occupancy Costs (or Lease Negotiations): Don’t forget triple net! Make sure you understand estimated NNN, or triple net (sometimes called CAM) charges and negotiate a cap and maximum annual increase.

Start up Costs: Budget for deposits you’ll be required to fund, not only your lease security deposit but also prepaid insurance costs, including general liability and workers comp (typically 25% of the annual policy), utility deposits and sales tax deposits with the Board of Equalization. Don’t let these cash expenditures leave you with less working capital than you desire upon restaurant opening.

Build out Costs: Get it right in the design! Change orders to correct design and operational flaws cost two to three times more than to get it right the first time.