What could go wrong?
Here is an example of an issue and additional cost that crops up in the planning of a restaurant.
- Sign rental agreement on a shop unit that can be used as a restaurant
- Confirm all types of cooking and equipment are allowed
- Order kitchen equipment
- Time passes
- Learn that no town gas is provided (i.e. what you would find at home – a connection supplied by the government gas company)
- Fine – we can use LPG (gas cylinder)
- Diagram and approval from some government agency needs to be submitted if we want to use gas cylinder
- Oh wait, contractor says we can’t put a gas cylinder in the shopfront – instead we’d have to put it on the roof and run a pipe from the roof into the shop… which is in the basement!
- Go back to kitchen equipment providers and ask to switch all equipment to electric
- Electric version of equipment is more than 4,000 SGD the cost of the original gas equipment
- Cry a little bit and move on to next problem
More costs – prior to the start of renovation I need to submit officially endorsed diagrams to OUB Centre. The cost of these endorsements / stamps? Currently running over 13,000 SGD. There’s no escaping this cost. Fire and safety, mechanical, electrical, etc. – all these sub-categories need to be reviewed by an ‘expert’ and stamped.
Cost of restaurant license: 120 SGD (so cheap! Everyone should own a restaurant!)
Cost of official approvals: > 13,000 SGD (and this doesn’t even come with french fries?)
Cost of interior design: growing
Cost of kitchen equipment: This is not your mommy’s microwave
Cost of insurance: Cheaper than you would expect. Good medical benefits for all my full-time employees!!!
Once the restaurant is up and operational I’ll go more in-depth about the various costs and money it took to start this.
Entry filed under: Starting-up. Tags: .