How Much Does it Cost to Start a Chicken Restaurant?

Identifying how much money it costs to open a restaurant where only chicken is served is largely dependent on how the chicken will be prepared. Opening a restaurant that serves chicken prepared in a variety of ways will require the purchase of a variety of kitchen equipment.

Serving fried chicken in a restaurant means the owner will need to buy deep fryers and oil for frying. Disposing of the used frying oil will also represent an expense.

The Business Plan

Create a business plan that identifies the cost to start up a restaurant that serves chicken as the only meat. In addition to the costs of food, restaurant equipment, and monthly operating costs such as labour and utilities must be identified in the business plan. Deciding on how much it will cost and what methods will be implemented to promote the restaurant also is an important part of the business plan.

Restaurant Location

Finding an affordable location for a restaurant represents the greatest expense. The location and theme of the restaurant will determine the costs to lease or purchase the building. Serving gourmet chicken dishes in a working class neighbourhood will probably not bring in upscale diners. Planning to open a restaurant that serves chicken grilled over an open flame will require a location with proper ventilation and special fire brigade permits. If alterations in a chosen location must be made to accommodate flame grilling, the cost can be prohibitive.

Advertising and Marketing Costs

Promoting a restaurant is expensive. Print ads, radio and television are among the most popular ways to bring in hungry diners. Plan on having a website developed to promote your restaurant. A one-page website should cost less than £130. All costs, including adverting and marketing are expenses, that must be included in the budget section of the business plan.

Labor Costs

The number of employees required to operate the restaurant is contingent on the size of the restaurant and the hours of operation. A restaurant open for breakfast, lunch and dinner will need up to 10 full-time employees.

Food Cost

Each ingredient that makes up a recipe represents costs. If the costs of the ingredients go up or are expected to rise, this information should be identified in the business plan. Duplicating a recipe each time that particular dish is prepared, on a daily basis, means the dish will taste the same every time it is served. Imagine going to your favourite restaurant and ordering your favourite dish and discovering it has a different taste.

Other Expenses

Operating a restaurant that does not have sit-down service will not require furniture. If the restaurant caters to upscale dinner guests, the furnishings will be expensive. Creating a fashionable dining room can be expensive, requiring speciality lighting, table linens and fine tableware. As of August 2009, plan to spend no less than £16,250 for a restaurant that serves fried chicken and up to £65,000 to open a fine dining establishment.