This Is How to Keep Costs Low When You’re Starting a Restaurant

Opening a restaurant is a dream for many, but the costs can be daunting. From equipment to staffing to location, expenses can spiral quickly if you’re not strategic. For first-time owners or operators pivoting from catering or food trucks, keeping your startup budget in check is essential.

Below are practical, field-tested ways to start smart and spend wisely.

Start With a Lean Concept

The fastest way to overspend is trying to launch with a fully-loaded menu, full-service staff, and a prime downtown lease. Instead, think lean:

• Limit your initial menu: Focus on 5–7 core items that you can perfect and scale.
   

• Choose counter service over full service: This reduces staffing costs dramatically.
   

• Opt for off-hours or soft-launch pop-ups to validate demand before going all in.

Buy Used Equipment (But Inspect It Thoroughly)

New equipment is tempting, but secondhand gear can slash your upfront investment by 40–70%. Look for equipment through:

• Local restaurant closures or auctions
   

• Online marketplaces like WebstaurantStore's used section
   

• Local restaurant supply shops

Just be sure to test every unit before buying. Factor in potential repairs and confirm compliance with your local health department.

Structure Your Business Wisely

Before you sign a lease or hire your first employee, you’ll need to choose the right legal structure for your business. Many small restaurant owners opt for an LLC because it offers liability protection and operational flexibility. It also often provides tax advantages.

Instead of hiring an expensive attorney, you can use a formation service like ZenBusiness to register your LLC—quickly and affordably.

Rent, Don’t Buy (When You Can)

Leasing gives you flexibility, particularly if you’re testing a new concept. Here are a few things to consider:

Go Minimal on Décor (At First)

Instead of sinking $20,000+ into an interior designer, aim for what restaurant strategist Shawn Walchef calls “vibe over velvet.” Some low-cost décor ideas:

• Industrial or reclaimed furnishings
   

• Local art or mural swaps
   

• Minimalist color palette with accent lighting

Use visual storytelling via Instagram to create a branded aesthetic without the price tag. You can find tips on staging low-cost food photos on this blog.

Tips for Controlling Startup Restaurant Costs

• ?? Start with a soft launch: Friends/family nights or pop-ups can help refine your operation.
   

• ?? Avoid full dining setups early: Start with counter-only or shared seating formats.
   

• ??? Pre-negotiate with vendors: Bulk discounts or trial agreements can reduce costs.
   

• ??? Use free or low-cost reservation platforms instead of building your own system.
   

• ??? Learn basic maintenance to avoid costly technician calls for minor fixes.

FAQ: Cost-Saving Strategies for New Restaurant Owners

Is it worth it to buy secondhand equipment?
Yes—if you inspect it carefully. Focus on major appliances like ovens, fryers, and refrigerators. Consider warranties if available.

How much should I budget for my first restaurant lease?
Try to keep lease expenses under 10% of your projected monthly revenue. Negotiate for tenant improvement allowances if possible.

Can I delay hiring a full staff?
Absolutely. Many founders handle front-of-house duties themselves at first. You can also hire part-time or seasonal staff to stay flexible.

What’s a low-cost way to handle branding?
Hire a freelance designer to build a simple logo and menu template. Platforms like Fiverr can be useful for this.

Are food trucks or ghost kitchens better for starting out?
They can be. Both let you validate your concept without committing to a traditional lease. Learn how virtual kitchens are disrupting food startups.

A Tool to Consider

If you’re handling bookings, walk-ins, and deliveries all on your own, OpenTable (or similar platforms) can serve as a cost-efficient solution. It bundles online reservations with basic customer tracking, and often includes free trials.

Final Thoughts

Starting a restaurant doesn't have to mean draining your savings or taking out risky loans. By launching lean, renting smart, and using the right tools and services, you can validate your concept and scale responsibly. Remember: strong food and solid systems beat flashy finishes in the early days.