Restaurant Budget Template

Instructor: Yuanxin (Amy) Yang Alcocer

Amy has a master's degree in secondary education and has taught math at a public charter high school.

In this lesson, you will learn how to set up a budget for starting and running a restaurant. We will cover topics from start up costs and food costs to licensing fees and employee costs.

A Restaurant Budget

This lesson is about creating a template for the budget of a restaurant. A budget is defined as a plan to spend a certain amount on various items. For example, you can have a personal clothing budget of $100 per month. This means that you plan to spend up to $100 each month on clothing. If you spend less than $100 you have stayed within your budget, but if you spend over $100 you have blown your budget. A budget can be used to help you plan ahead so you know how much money you will need in the coming months. It can also help you save money. For example, if you cut down on your clothing costs, let's say you decrease your budget to $75 per month, you may be able to put $25 each month into savings.

For our restaurant, the budget includes things like rent, kitchen appliances, employee wages, food costs, and license fees. Let's consider Sarah, who is in the process of opening her own bakery. She will make and sell all kinds of pastries and sweet desserts. She thinks she has enough money to start and run her restaurant, but she wants to make sure. So, she sets up a restaurant budget for her new bakery.

Let's see what items she includes in her budget and how she puts it together.

Startup Costs

The first group of items she puts in her budget are her startup costs. She needs to purchase things such as new kitchen appliances, kitchen tools, pots, pans, furniture, and display cases. This part of her budget also includes other items like renting and remodeling the commercial space to suit her needs.

Here is the beginning of her budget:

Startup Items Quantity Cost per Item Total Cost
Dishwasher 3 $400 $1,200
Oven 4 $200 $800
Display Case 3 $500 $1,500
Giant Mixer 2 $1,200 $2,400
Baking Utensils 1 $100 $100
Plates 100 $2 $200
To Go Boxes 500 $0.25 $125
Rent 1 $700 $700

Food Costs

The next group of items Sarah considers is her food costs. To get started and keep her restaurant running, she needs to order and keep ordering a certain amount of food or ingredients to make her pastries.

Here is her list for food costs:

Food Item Quantity Cost per Item Total Cost
Flour 50 LB 2 $40 $80
Sugar 50 LB 2 $60 $120
Eggs 10 dozen $2 $20
Baking Soda 5 LB 1 $3 $5
Baking Powder 5 LB 1 $8 $8
Cheese 1 LB 20 $5 $100
Fruits 50 pounds $2 per pound $100

Licensing Fees

After finishing her food costs, she moves on to any fees that she has to pay. Sarah is not going to serve alcohol at her bakery, so she won't need a liquor license. But, she still needs a business license, a food safety license, and a building license.

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