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How Much Does It Cost to Open a Kebab Shop?

You should have a budget of at least $250,000 to be able to set up your kebab business. Note that the amount quoted might be less, and can be more.

Before opening a kebab business, it is important to have at the back of your mind that you will be opening a unique food-related or restaurant business hence you should have a robust budget that will cater to all the things that are expected to be in a standard food business or shop.

Factors That Determine the Cost of Starting a Kebab Shop

  1. The Type of Kebab Shop

It is far cheaper to open a kebab shop with the option of take away or home delivery than it will cost you to open a standard restaurant facility.

The cost of renting, equipping, and operating a standard restaurant facility will be what will consume the bulk of your budget, and it does not come cheap.

  1. The Location Where You Want to Open the Kebab Shop

In the United States of America, some cities are pretty expensive to run a business, and also some locations are way cheaper to open a business.

If perchance you settle for a city that is expensive to run a business, then it will cost you more when compared to someone who chooses to open his or her kebab shop in a city that is way cheaper to open and run a business. For example, it will cost you more to open a kebab shop in Las Vegas, Nevada when compared to Little Warren, Vermont.

  1. The Cost of Equipping Your Kebab Shop

If you have plans to open a standard kebab shop, it means that you are required to rent or lease either a restaurant, or a shop facility, and then go on to equip the facility with the needed equipment, electronics, and furniture.

Aside from getting comfortable furniture such as stools, tables, shelves et al, you will also need to purchase grills, skewers, refrigerators, and food preparation stations.

You should also have a budget for electronics like cash registers, POS systems, and kitchen. Other necessities you need to operate a kebab shop are signage, lighting fixtures, and sanitation equipment.

  1. The Number of Staff You Want to Recruit

The only reason why this might not be an issue for you is if you choose to open your kebab shop as a one-man business where you and your family members can handle all aspects of the kebab shop.

But, if you choose to open a standard kebab shop, then you must make plans to recruit and train key employees who will occupy different roles in your organization.

You should make plans to recruit a manager, an accountant or cashier, cooks or chefs, servers, delivery guys, and kitchen staff.

  1. The Cost of Obtaining the Needed Licenses and Permits

The fact that different states require different types of licenses and permits means that your budget for permits and licenses will be determined by the state you want to open your kebab shop.

As expected, you should budget for a business license, food service permit, health and safety, permit, liquor license (optional), zonal permit, signage permit, operational state facility inspections, and a live entertainment license if you want to provide entertainment such as:

Live musicians or offer dancing or karaoke, a music license if you want to play live, recorded or streaming music, and a dumpster placement permit that specifies where you can put your trash, amongst others.

  1. Your Ongoing Expenses

Ongoing expenses are unique to the kebab shop owner and their preferences. But, for a kebab shop, you should budget for raw ingredients like meat, vegetables, and spices, as well as packaging materials such as containers and wraps.

Apart from that, you should also have a budget for regular maintenance and repair of equipment, such as blenders, refrigeration units, and food processors, and for utilities such as electricity, water, gas, and internet services, and delivery and logistics.

  1. Miscellaneous Expenses

When it comes to miscellaneous expenses for a kebab shop, you may decide to include the cost of hiring and paying tax consultants, attorney, the cost of branding, promotion and marketing of the kebab shop,

The cost for logistics and outreach, your insurance and premiums, the cost of the purchase and customizing of uniforms,  and the cost for the grand opening of the kebab shop as part of your miscellaneous expenses.