Udhay Shankar N wrote:
Venkat Mangudi wrote [at 01:10 PM 10/11/2007] :

Sure. However, amortization schedules for setup costs in a restaurant would tend to be in the 5+ year range (I'm sure Madhu can add to that, I'm just making a WAG).

Well, I am still trying to make my setup costs, so... :)

(The perils of not starting a mass market restaurant.)

It varies a bit depending on the kind of place (obviously) and a small joint in a less than posh part of town might make its money back in just 12 months, but most mid-range restaurants are looking at around 2-3 years to do the same thing. More expensive or niche restaurants may be in the 4-5 year range.

Simple - the restaurant is charging for teh use of its premises and facilities, to the optimum extent that (they think) the market will bear.

Indeed. There is always the option of sitting at home and drinking cheaper booze and eating much cheaper food. ;)



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Madhu Menon
Shiok Far-eastern Cuisine
Indiranagar, Bangalore
Visit us @ http://www.shiokfood.com
Phone: (080) 4116 1800
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