Opening, owning, and running a restaurant may well be one of the most demanding and difficult businesses out there.
In New York alone, the average restaurant business plan requires at least $281,000 in startup costs, along with an additional $1 million in expenses annually. These expenses include high rent, construction, as well as other, unexpected startup costs, such as food and alcohol permits, HVAC fixtures, and more.
Given the mix of tough legislation and high operating costs, it’s no wonder that 60% of restaurants fail within their first year, while 80% fail within five years. But with the right financing options, restaurants could be able to tackle tougher times, allowing them to keep their doors open after hitting a rough patch.