Thanks for the Question. Just to preface this; we’re from the US. So though we don’t have an intimate knowledge of the Sydney market, we’ll give it our best shot. Many things will be similar. However, when it comes to cost and legalities, it's going to be different.
Start-up costs are brutal and can kill a restaurant even before it serves its first customer. Be sure you have a VERY detailed business plan and cost projection.
The construction phase is very critical in the entire process. The costs can (and usually do) come out of nowhere. You didn't specify in your question, but we're adding the information if it turns out you are considering a new construction project. We’ve seen many establishments that fail to even make it to the grand opening because they failed to successfully estimate their expenses.
Things to consider
A customized restaurant build-out can cost as much as $500,000 USD. So its probably best to go with an existing establishment. There are plenty of good fryers out there that can make fries for less than retail. Even if you had the money, we wouldn't recommend buying new. So many restaurants go out of business due to the added cost of new construction. That used equipment eventually has to find a home. We advise watching out for local and regional auctions to get great equipment for pennies on the dollar.
Administrative Charges
If you decide to build rather than rent, governmental involvement is a possibility. This could result in substantial costs that you may not have planned on in your original estimate. Be sure to talk to local officials before you start this process. Here in the US, it is free to schedule an appointment with your local city planner. They can be very helpful if you go to them ahead of time during the planning stage. Additionally, your local city council meetings are a great place to drop in as well. They normally start out with a question and answer period for any new business on the docket.
Rent and Operating Costs: (Depends on Location)
Security deposit (typically one month of rent at $5,000 to $12,000)
First month of rent ($5,000 to $12,000)
First month of utilities - including internet and phone service ($1200 to 2,500)
Equipment and Supply Costs
(IF NEW) Construction of customized build-out, including kitchen ($150,000 to $250,000 )
Restaurant tables and furniture ($20,000 - $40,000)
Tableware, utensils, dishes, kitchen, and bar equipment ($40,000 - $80,000)
Initial supply of food and beverages ($5,000- $8,000)
Measured liquor pourers ($500-$1000) You just have to have these if you have a restaurateur or bar
This estimate for initial food and beverage costs depends on what you serve and what style of establishment you are. Keep things as small as possible until you are cash-flow positive.
General liability insurance
This protects against everyday accidents and contact with the general public. Insurance will vary based on size, function, and location. However, most restaurant start-ups can expect costs between $4000-6000 USD a year.
Permits and Licenses (Not sure on the Aussie way)
Food service license: This is required for any business that serves food. This license requires an application and a visit from the state health department. Costs can range anywhere from $100 to $1,000 based on location, size, and scale of your operation.
Liquor license: This is required for any business planning to serve alcohol. The application process for this license varies from one state to another. Costs can be very high for liquor licenses. Full-service licenses can start around $12,000. Beer and wine licenses may only end up costing around $3,000.
Food handler’s permit: An employee health permit that signifies you meet regulations for handling food. These licenses can cost around $100 to $500.
Accounting and Payroll
Good bookkeeping is a must for any company. You have to keep meticulous records. Plan on getting some accounting software. This doesn't have to break your budget though. QuickBooks Online can integrate seamlessly with your POS system and will help increase efficiency while minimizing accounting errors. *Accounting costs can vary.
Miscellaneous Opening Expenses:
Uniforms / Aprons / Clothing ($1000-2000)
Cash on hand ($2000)
Ordering and payment technology including Point of Sale Equipment ($5,000 - $20,000)
You can save a ton of money going used here. It’s not necessary in the beginning just have a good system for POS even if manual.
Marketing:
Signage ($3,000 - $15,000)
Menus ($500 - $1,500)
brochures/ads/coupons ($5,000 to $10,000)
Bushiness cards ($100 for four people, if you design it your self)
Advertising:
Public relations services ($4,500)
Restaurant grand opening event ($12,000)
Roughly $150,000 - $350,000. Grand Aussie Total: $210,000 - $492,000 AUD.
This is based on the median price for a new restaurant in the US. If you can get by with purchasing an existing location, you can expect to spend about 30-40% less. Time to get those creative juices flowing!
Cheers,
AmeriPour.