What could go wrong?

July 15, 2009 at 6:03 pm Leave a comment

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

Fire sprinkler

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.

What I learned about Food Hygiene Sushi in Straits Times

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