3 Things New Restaurants Splurge On

2 September 2016

According to the ZOMATO Business Blog these are the three things restaurants “splurge” on.

By Pallavi Shastry.

Opening a restaurant, however big or small, is a daunting operation. A number of reports have said only 50% of the restaurants survive their first year and the number further plummets after the first year. Even before you open the doors of your restaurants to the general public, there are various expenses to be taken care of. From zeroing on the menu to finalizing suppliers, from interior designs to crockery–there’s a long list of things to get done before opening. Not to mention the money that goes into all of these things.

Successful business operations needs constant cash flow. Restaurants get a jump-start with a fair amount of capital. There are a few who don’t even have that. They rely on their savings from the past and money borrowed from friends and families. Either way, it’s important to not overspend and be efficient with purchases. But you will always find a few restaurants going overboard with a few things in their restaurants that one could easily do away with and save money.


The first thing that a diner sees is the restaurant’s interiors. It’s crucial to set the tone of the restaurant with the right decor. Hiring an interior designer who has worked with restaurants before is ideal. But if you don’t have the budget for a designer, doing it yourself will definitely cut costs. However, it’s easy to get who97508re.125619carried away and fill your restaurant with things that don’t add anything to its ambiance.

For instance, if yours is a bar, lighting is very important. Consult a few bar owners or even walk in as many bars and pubs to see if you like a certain kind of lighting or fixtures. Work around it and make your purchases accordingly. The current trend for cafes is to have quirky interiors. But that doesn’t mean your cafe has be filled with random things you find in the market.

Mirrors with colourful frames are a great addition to the decor, but don’t line your walls with a lot of them. Vintage looking decor pieces are also great, but not too many. Sometimes just one of these things add greater value than a whole bunch of them. And when you buy just one or two, you can get the good ones instead of ten cheap ones.
Remember not to clutter. And you know what’s not trendy? A big chandelier in the middle of your restaurant’s dining area. It’s tacky, gaudy, and it’ll only be a giant and expensive distraction. Keep it simple and easy on your pocket.


This won’t apply to all restaurants, of course. But the ones that it does, be sure of what you’re getting out of all the fancy and expensive kitchen equipment you buy. One of the best way to go about setting up your restaurant’s kitchen is to look at second-hand equipment.

20100325-restaurantkitchenNew ones will cost a fortune burning a big gaping hole in your wallet. Most restaurants opt for second-hand equipment to reduce initial costs. Once you get the motor running smoothly, you can slowly invest in buying newer ones for your kitchen. Having said that, don’t compromise on what you need. If you’re looking at buying commercial ovens, get it checked out thoroughly before buying a second-hand one.

Get references as well for second-hand sellers from other restaurants. These days pretty much everything is available either second-hand or even on rent.

Real estate

When you have a plump looking capital, you’re bound to spend it on important aspects. Location is one of those. Of course, location is one of the most important aspects of opening your restaurant.

MMCAThe right location can do wonders for business. Granted you want the best location in town to get those diners walking in and filling up seats. But a good location doesn’t need to be an expensive one. A prime location will also have other restaurants that are already successful, driving you to spend even more on bringing the same customers into yours.

Competition is a good thing, but if you don’t want to burn cash, steer clear of upmarket locations. You can do the clever thing instead. Look at by lanes in these prime locations where the rents might not dry out your capital and you can survive the neighbourhood competition comfortably.

When in doubt, leave it out. Don’t overdo anything in your new restaurant. Except your food, of course. With food, you need to go all out. Give diners your best because that’s what they’re going to come back more for. Let go of the frills and keep it classy!

Taken from: https://business-blog.zomato.com/sticky/3-things-new-restaurants-splurge/?utm_source=Facebook&utm_medium=B2b+Blog&utm_campaign=Restaurants+splurge 



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