OPEN A FAST FOOD RESTAURANT: How Much Does it Cost? (How to Start)

open a fast food restaurant
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One of the best ways for entrepreneurs to establish their first business in a successful market is to open a fast-food restaurant. Fast food is a flexible industry with a lot of room for growth due to the wide variety of cuisines, market niches, and business models available. But some questions arise when you decide to go for it and start your restaurant. First and foremost, “how much does it cost to open a fast food restaurant?” Take these best practices into account and use them as a guide while preparing to open your fast-food restaurant.


One sector of the American economy is continuously expanding despite the health risks it poses fast food. But opinions on what counts as fast food are changing. A fast food restaurant often serves food that has been prepared in a specific manner and follows a specific business plan. Whether you decide to buy a franchise or not, there are a few things to consider while running a fast food restaurant in order to optimize profits.

However, opening a restaurant comes with its own set of costs to consider. Although it’s important to take into consideration what it will cost you to open a fast food restaurant first. Remember that the average fast food restaurant startup cost varies depending on size, location, and the number of options you’ll have when it comes to the finer points. For example, trying to open a 200-seat restaurant in a ritzy part of town will cost significantly more than opening a sandwich shop, fast food restaurant, or other type of takeout restaurant. Some people who want to open a new restaurant have tried out their idea at a “pop-up” restaurant first.

Is Opening a Fast Food Restaurant Profitable

The business is profitable. One fast food establishment can make $50,000–$100,000. 

How Much Money Do Fast Food Restaurants Make a Day?

Fast food restaurant profits vary by day. On busy days, they might make $10,000–$12,000.

Benefits of Opening a Quick-Service Restaurant

As the proprietor of a fast food business, you may provide a useful service to your community while enjoying a booming income stream. Fast food is an intriguing industry for people who are passionate about both food and advertising.

They have the potential to be profitable and can be relatively simple to run, especially if you purchase a ready-made franchise unit. Fast food outlets are also known as quick-service restaurants.

The Top Tactics for Advertising Your Fast Food Joint

There are many strategies to advertise your new fast-food restaurant:

  • commercials on social media.
  • Coupons
  • Loyalty programs
  • TV ads
  • opening formalities
  • using bloggers or journalists as partners

To promote your new business, consider utilizing a variety of marketing techniques. Examine the outcomes of their efforts to decide which options are best.

How Can I Open a Fast Food Restaurant?

Start your fast food restaurant by following these steps below

  • Make a plan.
  • Create a legal entity 
  • Fill out a tax registration form. 
  • Create a business bank account and a credit card.
  • Establish an accounting system.
  • Get the permits and licenses you need.
  • Purchase fast food restaurant insurance.
  • Establish a fast food restaurant brand.
  • Make a website for your fast food restaurant.
  • Configure your business telephone line.

How Much Does It Cost to Open a Fast Food Restaurant?

There isn’t a straightforward answer to this problem because what it will cost a beginner to open a fast food restaurant will vary substantially based on the location, concept, size, materials, new or existing location, and equipment. Opening a coffee shop will be much less expensive than opening a full-service French restaurant. The general consensus is that unskilled restaurateurs often go over budget by 33%. The months to profitability (finishing in the black) may range from 6 to 24 depending on the style and size of the restaurant you operate.

Furthermore, a fast food franchisee may have to pay an initial setup and franchise fee that will cost you $250,000 to $1 million or more to open a restaurant. However, these numbers might vary greatly depending on how well-known and prominent the brand is.

#1. One-Time Costs

One-time expenses are precisely what they sound like; they are expenses that only need to be made once. Keep in mind that while some of these costs (like the security deposit on the property) are actually one-time outlays, others (including kitchen and cooking equipment, tableware, and linens) may eventually need to be replaced due to normal wear and use.

  • Loan security deposit or down payment for a lease: For a lease, the typical security deposit ranges from $2,000 to $12,000.
  • Permissions and licenses for businesses: The costs for the city’s licenses, alcohol permits, and compliance permits for things like health and safety are included. It could cost anywhere from $100 to $300.
  • Processing and attorney fees: Budget between $500 and $2,000 to have a lawyer at your disposal to review documents on your behalf.
  • Building improvements: A restaurant’s kitchen renovation might cost between $250,000 and $350,000.
  • Cookery and cooking utensils: For as little as $50,000 for a small business or as much as $150,000 for a larger company, you could launch from scratch.
  • tables, chairs, and other items: Tables, chairs, decorations, and other sundries often cost $80,000.
  • Advertisement and publicity: To make it really count, you’ll need to invest between $20,000 and $30,000.

#2. Continuous and Ongoing Costs

There are numerous ongoing costs that you must pay if you want to flourish as a restaurant owner. It is true that to make money, you must spend money; the major costs are stated here.

  • Rent or Mortgage payments: Your condo may cost between $2,000 and $12,000 per month.
  • Employee Compensation: To keep things orderly, you should allocate between $28,000 and $55,000 for a paid manager. Your prep and line cooks will be paid $575 to $650 per week, while your master chefs will be paid $1,300 to $1,800 per week.
  • Utilities: When you factor in the price of the utilities (gas, electric, water, waste removal, phone, and Internet), you’re looking at a monthly expense of almost $2,500.
  • Insurance and Permits: Costs that keep on rising can accumulate. Common insurance, licenses, and permits can run you about $10,000 when they need to be renewed.
  • Marketing and Advertising: If you want to achieve, you must regularly be present. If you want to use print or broadcast media, ad space is pricey. Web advertising is frequently less expensive or even free if you use social media.

How Much Does a Fast Food Owner Make?

Business owners in the restaurant industry can make between $24,000 and $155,000 annually.

How Much Does It Cost to Own a Taco Bell?

The sum required to become a Taco Bell franchisee. $1,200,000 and How much money you need on hand before applying to become a Taco Bell franchisee. $1,500,000

How Much Is a 7 Eleven Franchise?

7-Eleven requires that prospective franchisees have at least $150,000 in liquid assets and $50,000 in cash on hand.

How to Open a Fast Food Restaurant

Creating a successful eatery from scratch is no easy task, but it can be done with some careful planning and organization. If opening a restaurant is something you’re interested in, we’ve put together a guide to get you started.

#1. Choose Your Idea Brand and Restaurant

If you’ve ever dreamed of opening your own restaurant, you know how important it is to carefully examine both the name and the overall concept. If you’re thinking of starting a restaurant, the most fun part is probably coming up with the concept for your business.

The brand of your restaurant is the way it stands out from the competition and communicates to the public what it stands for. It’s crucial that your restaurant’s branding be consistent across all touchpoints, from the name and logo to the food and swag. It’s crucial that the voice and attitude of your advertising campaigns are consistent across channels and mediums, and reflect the character of your business.

#2. Put Together a Menu for Yourself

When opening a restaurant, coming up with the menu is the next creative challenge. Choosing which meals to include can be fun for any true foodie, but it’s necessary to give careful consideration to each possibility. The type of cuisine you plan to offer will dictate the appliances you’ll need in the kitchen, the staff you should hire, and the type of customers you should seek out.

#3. Draft A Restaurant Business Plan.

An organized business plan is essential before starting a restaurant, just as it is before starting any other kind of business. Those without prior experience in company plan development may struggle at this stage. Your restaurant’s business plan should include comprehensive details on everything from the concept to the financing. The purpose of the strategy is to help you elaborate on your business’s important features and communicate them succinctly to potential lenders. It is imperative to have a well-developed restaurant business plan when seeking funding.

#4. Get Some Funding for the Eatery.

The next stage in starting a restaurant is to secure funding. Most of us would need finance from other sources if we were to open a business. The capacity to obtain funding will determine whether or not your dream of operating a restaurant can become a reality.

Before doing anything else, you should figure out how much money you’ll need to launch and maintain your firm. Use this information to build a plan for the upcoming year, including a forecast of expected operating costs for the restaurant.

#5. Choose a Location and Subscribe to a Business Lease

When choosing a place, we recommend leasing rather than buying. Because of this, you have more flexibility to make strategic choices like whether or not to expand your business early on. also If you’re opening a new restaurant, here are a few things to think about before settling on a location: Considerations include ease of access, population, labor costs, and regional competition.

#6. Permits and Qualifications for Restaurants

The launching of a new restaurant typically necessitates a number of permits from various levels of government. It is highly recommended that you speak with an attorney before applying for any restaurant licenses or permits to ensure that no stages are missed. Among the most important credentials are those in the following categories: A valid Social Security Number, Business License, Food and Beverage Service Permit, and Alcohol Service Permit are required.

#7. Position Your Furniture Strategically

Your new restaurant’s layout should take into account both the front of the house (where the customers will be) and the back of the house (where the food will be prepared and served). Each room has its own unique requirements. If you need help coming up with a specific strategy to meet your needs, designer assistance is available. Consider the following factors when arranging your dining room: the number of guests you want to host, the size of your dining set, the ambiance you hope to achieve, and the convenience with which you can clean the space after each use.

#8. Find a Place Where You Can Get the Food and Supplies You Need.

Before you can start serving food at your new restaurant, you’ll need to equip your kitchen with the right equipment. Commercial kitchens use standard appliances like stoves and freezers. Depending on the dishes being served, more specialized tools may be needed, such as pizza deck ovens or pasta cookers. You should also select a trustworthy provider from whom you will regularly reorder consumables, paper products, and other similar supplies. However, working with a vendor who offers loyalty discounts and free shipping with membership can save you money.

#9. Cast Your Net Wide for Capable Workers.

You can start building a good culture at your new restaurant right away by employing the right people to work there. When planning the company’s perks, training program, and rewards, it is crucial to keep the employees’ work-life balance in mind. Make a complete inventory of all the available jobs at your restaurant that must be filled on a regular basis. The number of front-of-the-house and back-of-the-house shifts, as well as the number of days per week that your business will be open, are both important factors to consider.

#10. Publicize Your Restaurant

It is crucial to notify potential customers of your new restaurant. Promoting your restaurant’s location and menu items is vital if you want to bring in diners. Also, getting people to talk about your product is a key component of effective marketing.

#11. Create a Soft Opening Bash

The old saying that “practice makes perfect” is applicable here. Restaurant openings follow the same pattern. You can have a “soft opening” for your new restaurant before the “grand opening.” If you want your soft opening to feel personal, you should invite just very close friends and family of the team members. It’s also a great way to smooth out any wrinkles in your service.

Open a Fast Food Restaurant FAQs

Is Owning a Subway Profitable?

If a Subway franchise were to make a profit on its annual sales of $1,000,000, it would only net roughly $31,000.

Is opening a fast food restaurant profitable?

There is a resounding “yes” to that question. Depending on how the business is run, a single fast food shop can bring in annual revenues of $50k-$100k.

How Much Is It to Open a Subway?

Your final cost might be anywhere from $150,000 to $328,700.


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