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7 Reasons Opening a Restaurant Should Scare You

Chef Steven Howard | Chef's Blade

6. Add Staff and Food to Determine Sales

Let’s figure, in your first year you will run high food costs (40%) and high labor costs (30%), while you figure out customer flow, proper ordering, and scheduling. So multiply your fixed costs by 2.4 and this should give you your total monthly operating expense. Yes it’s very high, but, let’s face it, you might be too for wanting to open this place! Now, divide your total monthly expenses by your average dish price point, distill that figure down to weekly and daily expenses, and this will tell you basically how many customers you will need to be a success.

Seventh Step>>