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Key Takeaways
- The core capital expenditure (CAPEX) required to launch the All-Day Restaurant, covering essential equipment and build-out, starts at a minimum of $71,000.
- Despite the high initial investment, the financial model forecasts a rapid path to profitability, achieving breakeven status in just three months of operation.
- Securing substantial working capital, peaking at $839,000 needed in initial reserves, is critical to bridge the gap until consistent positive cash flow is established.
- The largest initial expenditures are concentrated in specialized cooking equipment, such as the Shawarma Rotisserie, and physical stall improvements, which underpin the projected $101,000 EBITDA for the first year.
Startup Cost 1 : Stall Build-out
Build-out Budget
Your initial physical improvements require a firm $20,000 allocation. This covers necessary, non-removable assets like the main service counter, flooring, and essential fixed fixtures needed before you can serve the first customer. This is a critical, upfront capital expenditure.
Cost Inputs
Estimate this $20,000 based on firm vendor quotes for permanent installation work. You need finalized designs for the service counter layout and material choices for flooring. This figure represents hard costs for improvements that don't move when you eventually close shop.
- Counter installation costs
- Flooring material and labor
- Basic fixture mounting
Managing Fixed Costs
To control this spend, avoid custom finishes; stick to durable, standard commercial materials. If you lease, negotiate tenant improvement (TI) allowances with the landlord to shift some burden. Don't over-engineer the initial build, as upgrades can wait until you hit profitability.
- Seek TI allowances first
- Use standard commercial finishes
- Prioritize compliance over aesthetics
Budget Context
This $20,000 build-out cost sits alongside $25,000 for core cooking equipment and $8,000 for refrigeration units. These three buckets form the backbone of your physical asset investment defintely, before you even buy inventory or secure permits.
Startup Cost 2 : Core Cooking Equipment
Core Gear Budget
You must budget $25,000 for core cooking equipment before opening The Daily Table. This covers the specialized gear needed for your diverse menu and the general appliances that support daily volume. Skimping here means operational failure fast.
Cost Breakdown
This $25,000 covers two main buckets of capital expenditure (CapEx). The specialized Shawarma Rotisserie & Grill costs $15,000 alone because it’s defintely key to your menu offering. The remaining $10,000 covers general kitchen equipment like ranges, ovens, and prep stations required for all-day service.
- Specialized Grill: $15,000
- General Gear: $10,000
Optimization Tactics
Don't buy everything new, especially the general gear. Look for certified refurbished units for the $10,000 portion to potentially save money upfront. However, always confirm the warranty and serviceability for the specialized $15,000 grill, as downtime impacts revenue across all dayparts.
- Source used for general appliances.
- Verify warranties on refurbished items.
- Get three quotes for the specialized grill.
Capacity Check
Equipment choice dictates your maximum daily covers. If the $15,000 grill can only handle 150 shawarmas per day, that caps a significant revenue stream, regardless of how many people walk in the door. Ensure the installed capacity matches your early-stage revenue projections.
Startup Cost 3 : Refrigeration Units
Refrigeration Budget
You must budget $8,000 upfront for commercial refrigeration. This covers the necessary units to hold your perishable inventory safely and pass mandatory health inspections. Skimping here risks immediate operational shutdown. That's the bottom line.
Cost Breakdown
This $8,000 allocation is for buying the actual hardware—walk-ins or reach-ins needed for high-volume food service. It is separate from the $25,000 core cooking equipment budget. You need accurate quotes based on your planned daily volume projections to confirm this figure isn't too low.
- Units must meet NSF/ANSI standards.
- Covers cooling for all five menu categories.
- It's a fixed capital expenditure (CapEx).
Saving on Cooling
You can't cut corners on health compliance, but you can optimize the purchase. Look at used, certified commercial units if your initial volume projections are conservative. Avoid buying oversized units just for future growth; it ties up capital. Honestly, leasing might be an option, but defintely factor in the long-term cost.
- Get three quotes for similar capacity.
- Check warranty terms closely.
- Ensure electrical needs match existing build-out.
Inspection Risk
Health inspectors focus heavily on temperature logs and unit certification. If your $8,000 budget only buys used equipment that breaks down immediately, your opening date is toast. Plan for $500 in contingency for installation hiccups or required electrical upgrades. That's a smart buffer.
Startup Cost 4 : POS Setup
POS Upfront Cost
Budget $3,000 upfront for your Point of Sale (POS) hardware and setup, keeping it strictly separate from the $80 monthly software subscription fee. This initial investment covers the physical tech you need to start taking orders the minute you open The Daily Table.
What $3,000 Covers
This $3,000 estimate covers the physical hardware, like terminals and receipt printers, plus the initial installation labor for your All-Day Restaurant. This cost is separate from the $80/month software fee. If you plan for 3 stations at $700 each, that leaves $900 for setup and integration services.
- Hardware purchase (terminals, printers)
- Installation labor costs
- Initial configuration fees
Managing Setup Spend
You can defintely reduce this initial outlay by avoiding premium, all-inclusive bundles from vendors. Look for certified refurbished commercial-grade hardware or negotiate installation fees down by handling basic software setup yourself. Don't buy capacity you won't use for 18 months.
- Source certified refurbished hardware
- Negotiate installation labor rates
- Avoid unnecessary peripheral upgrades
Timing the Purchase
Order your POS hardware immediately after you sign the lease for your restaurant space. Lead times for specialized restaurant point-of-sale equipment can easily stretch past 6 weeks, which will directly delay your opening day timeline and burn working capital.
Startup Cost 5 : Licenses & Permits
Compliance Costs Due Now
You must secure all local and state operating permissions before opening day for your all-day restaurant. This includes health department approval and general business registration. Factor these upfront fees into your initial cash requirements now, as they halt opening if missing.
Quote Permit Components
Focus on quoting the three main regulatory buckets required before opening. You need estimates for health permits and business licenses. Use the $150/month estimate for Business Insurance as a baseline for your monthly operating expenses. Health permits often require site inspections first, so schedule those early.
- Get quotes for health permits
- Determine state/county license fees
- Use $150/month for insurance baseline
Manage Regulatory Spend
Shop insurance quotes aggressively; don't just take the first binder. Check if your county offers bundled licenses for food service operations to save on admin time and fees. A common mistake is underestimating the time lag; if onboarding takes 14+ days, your opening timeline defintely slips.
- Shop insurance rates widely
- Ask about bundled local licenses
- Factor in permit processing time
Action Item
Immediately contact your local city clerk and health department to get hard quotes for all required municipal paperwork and insurance coverage before finalizing the opening date.
Startup Cost 6 : Initial Inventory
Initial Stock Funding
You need $5,000 ready to buy the initial stock of ingredients and packaging materials before you open the doors. This covers your first week’s supply needs for the restaurant operation.
Stock Cost Inputs
This $5,000 covers all raw inputs—food, beverages, and necessary packaging—for the first seven days of service. This is separate from the $54,318 reserved for working capital. You estimate this based on projected first-week sales volume times ingredient cost percentages.
- Food and beverage inputs
- To-go packaging supplies
- Covers first 7 days of service
Managing First Orders
Don't overbuy to chase volume discounts early on. Your supplers need to be ready to deliver quickly. You must defintely validate lead times now before committing capital to larger purchase orders.
- Test supplier pricing now
- Avoid spoilage risk
- Order conservatively first week
Operational Risk Alert
Running out of key ingredients in week one kills momentum and damages early customer trust immediately. Ensure your supply chain is validated and ready to deliver within 48 hours of receiving your initial purchase order.
Startup Cost 7 : Working Capital
Cash Runway Need
You must secure $54,318 now to fund operations for three months until the restaurant hits positive cash flow. This reserve covers wages and fixed overhead until March 2026. That's your minimum operational safety net, period.
Funding the Gap
This Working Capital line item is your buffer against initial operating losses. It specifically funds three months of payroll obligations and fixed overhead costs like rent and insurance. You calculate this by summing monthly wages and fixed OPEX, then multiplying by three. It’s crucial, since startup costs like equipment don't generate revenue yet.
- Calculate fixed monthly OPEX.
- Determine total monthly payroll.
- Multiply sum by 3 months.
Tightening the Burn
Speeding up the March 2026 break-even date directly reduces how long you need this $54,318 reserve. Focus intensely on driving early weekend traffic, as weekend spending patterns likely yield higher average checks. Also, negotiate longer payment terms with non-perishable suppliers to keep cash in hand longer.
- Prioritize high-margin beverage sales early.
- Delay non-essential fixed hires.
- Secure vendor credit terms ASAP.
Cash Flow Cliff
If sales traction lags past January 2026, this $54,318 runway shortens fast, creating a cash flow cliff. You need contingency financing lined up before opening, defintely before the first quarter ends. Don't assume revenue ramps smoothly; plan for the worst-case scenario timeline.
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Frequently Asked Questions
Startup costs range from $71,000 to $130,000, covering $71,000 in CAPEX (equipment/build-out) and working capital;