Answered Essay: What are several expenses that may be encountered when starting a restaurant business within

What are several expenses that may be encountered when starting a restaurant business within the first year?

Expert Answer

Before starting a restaurant business you need to be aware about the various costs and account those costs in your business plan so that you don’t get any nasty surprises later on. If you would not plan your business according to the hidden costs related to the business you will definitely suffer later on. The expenses related to the restaurant business starting includes the fixed cost and some variable costs. The several expenses that may be encountered when starting a restaurant business within the first year are:-

  1. Fixed Expenses:- Fixed expenses are those costs which will be fixed throughout the business and will not change. Fixed expenses includes:-
  • Staffing and employment
  • Sales and marketing
  • Premises costs
  • Insurance
  • Professional fees
  • Finance, stock and loans

2. Variable Expenses:- Variable expenses will increase when you sell more than one unit. These are:

  • Shipping of product
  • Packaging of product
  • Direct wages
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