Have you always dreamed of opening your own fast-food restaurant, but now you're wondering how much you can afford? Opening a fast-food restaurant involves a significant initial financial investment, as well as recurring costs that you need to take into account. Find out now about the different costs associated with launching a fast-food restaurant, and the options available to reduce these expenses and finance your next entrepreneurial adventure.Â
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Initial costs for opening a fast-food restaurant
Cost of leasing or buying commercial premises
The cost of renting or buying premises varies according to city, neighborhood and size. Rent is generally one of the biggest expenses for a restaurant. In high-traffic areas such as city centers, shopping malls or tourist resorts, rents can rise rapidly, sometimes reaching €10,000 a month or more in major conurbations.Â
Equipment and fittings
Fitting out the restaurant, any work required to bring it up to health and safety standards, the purchase of kitchen equipment and furniture, as well as decoration, represent a significant part of the start-up budget. For a well-equipped kitchen (ovens, fryers, refrigerators, etc.), the average cost is between €30,000 and €100,000, depending on the size of the establishment and the type of service offered. Then there are the costs of interior fittings, which can easily exceed €10,000, depending on the capacity of the room.
Faced with the sometimes high cost of equipment, it is possible :Â
- Buying second-hand equipment.Â
- Opt for leasing, or long-term rental, to spread out expenses over several years rather than paying for everything at once.Â
- A preference fordark kitchens"to drastically reduce the costs associated with the location and layout of a room.
Initial merchandise inventories
Initial stocks of merchandise are another key element in the launch budget, without which you won't be able to welcome your first customers. This includes the raw materials needed to prepare dishes, such as fresh ingredients, beverages and packaging materials. Remember to assess your needs carefully to limit losses and ensure optimum management of resources from the moment your fast-food restaurant opens.
👉 Further information: Opening a fast food franchise: the ultimate guide
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Administrative and legal costs
Cost of licenses, permits and administrative procedures
Licenses and permits vary according to local legislation, but in general you'll need a license to sell alcoholic beverages, a business permit and a health permit. Fees can vary from €500 to €2,000, depending on the region. You'll also need to add to your budget registration with the Registre du Commerce et des SociĂ©tĂ©s (RCS), a compulsory formality attesting to the existence of your fast-food restaurant.Â
If you're planning to set up as a franchisee, you'll need to take franchise law into account.Â
Insurance and legal fees
Another expense to factor into your initial budget is the purchase of insurance (professional liability, comprehensive, restaurant liability insurance, etc.). You may also need the services of a lawyer to draw up rental contracts or set up your business, an additional cost to bear in mind when making your calculations.
Management and safety tools
Accounting and human resources management software can cost between €50 and €200 per month, depending on functionality. These costs should be factored into your budget if you want to automate your business, increase efficiency and avoid any nasty surprises in the day-to-day running of your restaurant.
Have you also considered budgeting for food safety tools (HACCP systems) and safety equipment (fire extinguishers, alarms, etc.)? These costs can sometimes amount to several thousand euros.
👉 F urther information: Restaurant license: which one to choose, how to obtain it and at what price?Â
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Recurring costs for a fast-food restaurant
Rent and energy bills
In addition to rent, you'll need to factor in fixed monthly expenses such as internet bills, energy costs (electricity, water, heating, gas) and maintenance costs. These expenses can fluctuate depending on the size of the restaurant and its volume of business, and often represent between 5% and 10% of sales.
Wages and social security contributions
Salaries and social security contributions are a major expense for a fast-food restaurant. You'll need to pay a team of managers, cooks, dishwashers, waiters and possibly a cleaning and maintenance service - a list that can vary according to the specific needs of your establishment. As your business grows, you may also need to recruit a chartered accountant, a community manager or other specialists.
As the foodservice sector is known for its high turnover, it's crucial to factor in training and recruitment costs.Â
Cost of raw materials
The cost of raw materials represents a significant proportion of the budget, often between 30% and 35% of sales. Rigorous inventory management is therefore crucial to avoid wastage and optimize margins. Price fluctuations can have a direct impact on profitability, hence the importance of diversifying sources of supply to minimize risk and benefit from the best prices.Â
Marketing and advertising
The budget allocated to marketing and advertising is essential to ensure the visibility and appeal of your fast-food restaurant. In general, it's advisable to devote between 5% and 10% of your overall budget to an effective launch campaign. Online presence has become indispensable: creating a website costs between €1,000 and €5,000, while social network management can be outsourced for €200 to €500 a month. At the same time, it's a good idea to invest in communication tools such as printed flyers, a presentation video and professional photos for your social networks.Â
Paid advertising and SEO on the Internet, as well as collaborations with influencers , can also boost your visibility. Finally, don't forget to set aside a budget for unforeseen and exceptional expenses (fines, natural disasters, etc.).
New technologies and software
With the foodservice sector undergoing a technological transformation, it'sessential to adopt the latest innovations to stay competitive. Today's customers expect modern services such as click and collect, delivery, digital menus and ordering kiosks for a seamless experience. To meet these expectations, it's advisable to equip your restaurant with a state-of-the-art ecosystem, integrating all these functionalities.
You'll need to plan for the purchase of specific equipment (tablet, cash drawer, hand shower, printer, payment terminal). In addition to this equipment, the initial cost of installation and the monthly subscription to the management software must be included in your opening budget.
Innovorder's experts are here to help you prioritize these tools according to your specific needs.Â
Opening a fast-food restaurant requires a substantial budget, divided between initial expenses, administrative costs and recurring charges, both fixed and variable. However, by optimizing the costs associated with location, equipment and choosing the right financing options, you can make this project more accessible and profitable in the long term.Â
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Do you run a fast-food restaurant and are looking for a partner to help you digitalize your business? Innovorder is the only player in France to offer a complete ecosystem: order-taking, checkout, preparation, delivery and management!
