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Cost & Equipment needed to Start Restaurant business

The cost of opening a new restaurant will be dependent on the kind of restaurant you want to run and your entry level into the business – small scale, medium scale or large scale. With less than a million naira (N1,000,000), you can start a restaurant but if you plan on running something bigger and costlier, you will need more than a million naira.

The estimated cost of materials and equipment needed for starting a new restaurant is below. You can choose to exclude any of the equipment or material. However, I believe that all these materials and equipment are important for smooth running the restaurant.

Cost & Equipment needed to Start Restaurant

Cooking utensils – the cooking utensils include pots, gas cooker, stove, Tripod stand spoons, forks, Plates, Knife. Cost of cooking Utensils (estimate) = N200000 (one hundred and fifty thousand naira).

Cost of Tables = N15000 (fifteen thousand naira)

tables and chairs for restaurant
tables and chairs for restaurant

Cost of washing materials – hand washer and plate washer = N25000

Cost of Desks and chairs = N30000

Cost of Inverter = N50000

inverter for restaurant
inverter

Cost of Air conditioner = 108000

Cost of Fans = N24000

Cost of medium size Generator plant = N48000

Generator power plant for Restaurant
Generator power plant

Cost of a TV set = N58000

Cost of Dstv / local antenna = N5000

Cost of Audio Music player etc for entertainment = N12000

Cost of renting space = N200000 (per annum)

So, the total estimated cost for starting a new restaurant business = N761500.

In conclusion, the above is an estimated cost for starting a standard medium scale restaurant business. It can be reduce or increase depending on your monetary capacity.

4 major challenges in running Restaurant Business in Nigeria

There is no business that you are about starting or running that you will not encounter one challenge or the other. Entrepreneur encounters stumbling blocks in the course of setting up and running their businesses daily. Challenges are inevitable and when they are properly addressed serve as stepping stones to growth, development and success of the business

Restaurant Business Challenges
Restaurant setting

Read also: Necessary Requirements for starting a restaurant business in Nigeria

Here are 4 major challenges you will encounter while running Restaurant Business in Nigeria;

  1. Paralytic electrical power supply: To stay profitable in restaurant business centre, you need electric power supply.

2. Multiple taxes: Starting a private business in Nigeria is more like opening office for local councils and state government. You just need to know what are the right taxes and the proper way to pay them so you will not be exploited by so called government officials

3. Stiff Competition: Because there is a need to satisfy hunger, the demand for food is unending. This is why you will find different kinds of restaurants on every corner of the Nigerian streets that may kick you out of business if you don’t maintain a certain level of standard.

4. Risk Management: Running a restaurant maybe hazardous, a little carelessness or negligence may result to a huge loss. You should safe guard your business by insuring it against all forms of potential hazards, damages and by practicing safety procedures.

In conclusion, the above are challenges you will likely encounter while running a restaurant business. If these challenges are properly address, you will definitely succeed in restaurant business venture. On the other hand, you failure starts when you fail to address to them.

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