One of the most difficult steps to opening a restaurant is calculating your overhead and then setting your prices. Knowing your overhead before you get started can help you to decide if you are opening in the right market, if your target consumer can afford the prices you will set, and if you are going to turn a profit.
Planning and preparing before jumping into an opening can set your foundation for serving happy costumers, while keeping you afloat.
Calculating Your Overhead
The term “overhead” is thrown around a lot in the business world. In short, it refers to the operational costs not related to your direct materials and labor. What are you spending apart from food expenses, waiting and dish staff, and your cooking staff? Some expenses you will want to consider include: