What is the budget required to open a restaurant in France?
From creation fees, commercial premises, equipment and stock costs, to training and restaurant licenses, and staff expenses… In short, what is the total budget required to open a restaurant?
Dreaming of opening your own restaurant but unsure if you have the necessary budget? Before diving in, ask yourself the right questions. Define your concept, study the market, and properly plan your project. Estimate the cost of opening the restaurant as accurately as possible and secure financing to make your dream a reality.
From creation fees, commercial premises, equipment and stock costs, to training and restaurant licenses, and staff expenses… In short, what is the total budget required to open a restaurant? This guide will reveal all the secrets to starting a business!
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Table of Contents
- Budget According to the Type of Restaurant
- Budget According to the Location
- The Impact of Franchising
- Costs of Opening a Restaurant
- Financing Your Restaurant Project
1. Budget According to the Type of Restaurant
You might already have a concept in mind: a mobile pizzeria, a cozy tea room, or a high-end traditional restaurant. In the food industry, the themes are varied. Focusing the project on an original idea or an atypical atmosphere can help you stand out from the competition and attract curious customers.
Opening a Fast Food Restaurant
The fast food sector, which accounts for more than 40% of the food industry, has a bright future. Its revenue is expected to grow by 5% annually and continue to create jobs nationwide. Although nearly 90% of French people regularly visit fast food restaurants, the primary target is young people aged 18-34, with 67% being regular consumers.
Note: Popular types of fast food include burgers, pizzas, sandwiches, kebabs, and street food snacks. Fast food requires a lower budget compared to more traditional restaurants, ranging from €10,000 to €100,000 depending on the size, with an average of €35,000 at opening.
Opening a Food Truck
Increasingly popular, food trucks are also less expensive than traditional restaurants. They avoid the cost of a professional space and a dining area. Food is prepared in a vehicle and sold directly to go. Think of pizza trucks and burger trucks, with prices around €10, which are very appealing to millennials.
Tip: The budget for opening a food truck ranges from €25,000 to €100,000 depending on the vehicle, with a median budget of €50,000.
Opening a Bar, Café, or Brasserie
Traditional bars and bistros are gradually being replaced by themed cafés. By 2022, there were 40,000 such establishments, down from over 200,000 a century ago. France loses about 7,000 bistros each year. However, opening a bar or café is not such a bad idea!
After the COVID-19 pandemic shock, the sector is reinventing itself to attract new customers. Two phenomena are emerging: the rise of themed bars and the digitalization of the customer experience. This can attract more people! Showcase your authenticity with a new restaurant concept, with a budget ranging from €50,000 to €250,000.
Opening a Traditional Restaurant
If your dream is to open a traditional restaurant, whether it’s a pizzeria, a crêperie, or a rotisserie, you should budget between €100,000 and €300,000, depending on the size, location, number of covers, type of cuisine, and other criteria. Currently, France offers around 175,000 restaurants with an annual turnover of €35 billion.
Opening a Fine Dining Restaurant
French cuisine captivates gourmets from all over the world. With 657 Michelin-starred restaurants in 2022, including a hundred in Paris, you’d be remiss not to try to join this esteemed family. However, aiming for excellence comes with a significant budget, starting at €400,000 for opening a fine dining restaurant. Costs can vary widely based on location, décor, number of covers, etc.
2. Budget According to the Location
After defining the concept and type of restaurant, the choice of location is crucial. The geographical location affects the restaurant’s opening budget as much as the size of the commercial space (or vehicle). Consider the city you will settle in, as well as the area’s attractiveness. Ask yourself if there is foot traffic and what type of clientele passes by: tourist areas, businesses, affluent neighborhoods, entertainment venues, shopping streets, etc. A busy place will naturally cost more.
Regarding the region, study the current year's prices per square meter, whether for sale or rent. For example, according to 2023 figures:
- Île-de-France: €321 per m² per year (rent) or €6,196 per m² (sale);
- Nouvelle-Aquitaine: €179 per m² per year (rent) or €2,706 per m² (sale);
- Hauts-de-France: €161 per m² per year (rent) or €1,885 per m² (sale).
3. The Impact of Franchising
Have you considered franchising your restaurant? You don’t have to manage business creation alone. By joining a franchise network, you benefit from many organizational and financial advantages.
A franchisee is an independent business that has signed a collaboration contract with a specialized brand. It relies on the reputation of a proven brand, providing some security. The franchisor grants exploitation rights to the franchisee, who sells its products and services. If a good restaurant franchise opportunity arises, you should give it a try!
Note: A traditional restaurant franchise requires personal investment between €40,000 and €80,000, with an average total investment of €250,000. A restaurant's turnover ranges from €250,000 to €1 million in just two years.
4. Costs of Opening a Restaurant
To validate your project and apply for a bank loan, your budget plan must be as comprehensive as possible. Don’t overlook any items in your plan! Here are the most important costs to know for opening your business:
- Creation fees: including registration during the choice of legal status and various insurances;
- Commercial premises: rent, renovations, decoration, utility bills, internet box, etc.;
- Equipment investments: kitchen equipment, ordering terminals, furniture, etc.;
- Raw material stock;
- Staff costs: employment contracts, social security contributions;
- Communication: marketing campaigns, website creation, etc.;
- Training costs: operating permits, restaurant licenses for serving alcohol, food hygiene training, etc.;
- Possible franchise fees.
5. Financing Your Restaurant Project
You likely won’t be able to produce €150,000 from your pocket to launch your restaurant project. Therefore, you will need to find financing solutions. For this, you can gather:
- Your personal contribution;
- Bank loan;
- Fundraising, such as crowdfunding;
- Grants.
It depends on your situation and the budget required to open the restaurant. To convince investors, you will need to create a business plan for the restaurant. This written document succinctly presents a business creation or takeover project, verifying the viability and solidity of a commercial and financial strategy. The restaurant’s business plan includes a market study, evaluating the competition and target clientele in a specific area, to determine prices. This document also establishes a financial forecast, estimating revenue and restaurant ratios.
Opening a restaurant is a complex but rewarding process. By following these clear steps, you can more effectively manage the process of opening a restaurant, thereby increasing your chances of success.
We hope this guide provides valuable information for your restaurant opening project.
As a financial services company, Micco provides comparable services and solutions tailored to the needs of modern businesses. With a user-friendly platform, competitive pricing, and a commitment to customer satisfaction, Micco is a viable option worth exploring.
Whether you're a freelancer, startup, or established enterprise, Micco offers the tools and support needed to streamline financial operations and drive business growth. Check out Micco today to discover how it can complement your business banking needs.
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