Opening a new restaurant is an expensive project to undertake. In most instances, there is a complete refit, including installation of new dining furniture as well as the additional cost of all the catering equipment. Even with a modest restaurant, the fit-out cost can run into the hundreds of thousands of pounds.
Restaurant owners have many options when it comes to funding this cost. Many new start eatery owners will use personal funds or ask family and friends to make a financial investment. There are also bank loans; and, in some instances, the landlord may even help with funding some of the refurbishment costs. It is common for funding to come from many sources.
Leasing is a popular funding choice for restaurants. The rental repayments are fixed for periods up to five years. This makes budgeting easier as you can better match the cost to income from your customers.
To give you an example of a lease calculation, on a project we did for a new Indian restaurant in Edinburgh, our customer pays £350.00 + VAT per month for £10,000.00 + VAT of equipment over three years. This would reduce to £220.00 + VAT per month if they decide to change the term to five years.
We can fund many of the expenses you may incur. In this instance, we financed the air conditioning costs, comprising a gas interlock panel and a Toshiba Triple Split air conditioning system. They added to the same lease agreement a range of stainless steel tables used in the kitchen and a double sink.
Many of our other clients ask to include a CCTV system, the EPOS tills, chairs, tables, lighting, signage, and other equipment necessary for a commercial kitchen.
This particular client has a number of restaurants. Clearly, we were only involved in a small part of their overall project for this location.
Please call us on 01494 611 456 or email [email protected] if you are looking to fund your new project, we are always willing to quote and advise on what finance options are available to you.