One thing new restaurateurs should always expect is the unexpected – interminable waits for permits, scary surprises behind walls – and if you fail to budget for such expenses, you could go belly up.
There are many reasons restaurants fail, but about 80% of those that fail go under “because they underestimate the capital it takes to start their operations,” says David Kincheloe, president of National Restaurant Consultants.
Anahi Angelone owns Corner Social, a New York City restaurant, and is soon launching another eatery, Angel. “This will be restaurant No. 5 that I’m part of opening, and there’s absolutely always unexpected expenses,” Angelone says. “Always expect to spend a lot more than you thought you would.”