Tips

Advice for HoReCa Industry

Q: How much does it cost to open a restaurant in the US?

Opening costs vary dramatically by concept and location. **Quick-service/fast-casual** (800-1,500 sq ft): $175K-$375K including equipment ($40K-$80K), initial inventory ($8K-$15K), furniture/décor ($15K-$30K), POS and tech ($8K-$20K), permits and licenses ($5K-$15K), deposits and pre-opening rent ($25K-$60K), working capital ($40K-$100K for 3-6 months operating expenses). **Casual dining** (2,500-4,000 sq ft): $350K-$750K with full kitchen ($120K-$200K equipment), bar setup if applicable ($30K-$80K), seating for 80-120 ($40K-$90K), more extensive décor, liquor license (varies $3K-$300K by state). **Fine dining** (3,000-5,000 sq ft): $750K-$2M+ with premium finishes, extensive wine inventory, specialized equipment (sous vide, blast chillers), designer furniture, and high-end POS. Major metropolitan areas (NYC, SF, LA, Chicago) cost 40-80% more than secondary markets. These figures exclude real estate purchase (if buying). Financing typically: 20-30% owner equity, 40-50% SBA loan or conventional loan, 20-30% equipment leasing/vendor credit. Budget an additional 25% contingency for unexpected costs.

Q: What's the ideal food cost percentage for a restaurant?

Target **food cost** depends on concept: **Fine dining**: 28-32% (expensive proteins, fresh specialty ingredients, higher menu prices allow lower percentage). **Casual dining**: 30-35% (balance of quality and value, moderate menu prices). **Fast-casual**: 28-32% (efficient prep, standardized recipes, lower waste). **Quick-service**: 25-30% (high volume, low-cost ingredients, minimal prep). **Pizza/Italian**: 22-28% (flour, cheese, sauce are low-cost, high margin). **Steakhouse**: 32-38% (expensive proteins but premium pricing offsets). Calculate: (Cost of Goods Sold ÷ Food Sales) × 100. Example: $12,000 COGS, $38,000 food revenue = 31.6% food cost. Include **all costs**: ingredients, spoilage (add 3-5%), portioning variances, staff meals. Track daily/weekly, not just monthly. Industry best practice: **prime cost** (food + labor) should be 60-65% of revenue. If food cost is 32%, labor should be 28-33%. Strategies to reduce food cost: menu engineering (remove high-cost/low-popularity items), accurate portioning (digital scales), FIFO inventory rotation, supplier negotiations, cross-utilization of ingredients (use chicken in 4+ dishes), waste tracking. A well-managed restaurant maintains food cost within 2% of target; poorly managed can drift 5-10% higher, costing $50K-$150K annually on $1M revenue.

Q: Paper napkins vs. linen napkins—which is more cost-effective?

Cost analysis reveals **paper napkins are 75-90% cheaper** operationally than linen service for most concepts. **Linen napkins**: Advantages—upscale perception, better guest experience in fine dining, soft and absorbent. Costs: commercial laundry service $0.75-$1.25 per use (pickup, wash, press, delivery), 2.5-3x inventory required for rotation (in-house, at laundry, reserve stock), loss/stain rates 8-15% annually requiring replacement, storage space needed, logistics of exchange. 80-seat restaurant, 2.5 turns daily, 200 covers × $0.95/linen napkin = $190/day = $5,700/month. **Paper napkins** 2-ply commercial (33-38 gsm): Advantages—low cost $0.03-0.07 per napkin, no logistics, complete hygiene (single-use), no loss/theft, multiple colors available, eco options (recycled, bamboo). Same 200 covers × 2 napkins × $0.05 = $20/day = $600/month (89% savings vs. linen). 3-ply premium paper (feels luxurious) costs $0.08-0.12 but still 85% cheaper than linen. **Recommendation**: Fine dining and upscale hotels → linen (guest expectations, brand positioning justify cost). Casual dining, cafés, quick-service → paper 2-3 ply (economics are compelling). Hybrid approach: linen for dinner service, paper for lunch (balances cost and perception). Calculate your breakeven: if linen service costs $5,500/month and paper costs $650/month, you save $4,850/month = $58,200/year. That funds new equipment, renovations, or marketing.

Q: How do I choose a foodservice supplier—broadline vs. specialty?

**Broadline distributors** (Sysco, US Foods, PFG, Shamrock) offer 40,000-60,000 SKUs including food, disposables, equipment, chemicals. Advantages: one-stop shopping (reduces ordering time 60-70%), weekly or bi-weekly delivery, volume pricing, established credit terms (net 14-30 days), sales rep support, online ordering platforms, market reports. Disadvantages: pricing 5-15% higher than specialty on specific categories (they're convenient, not always cheapest), less flexibility, some categories are proprietary brands (quality varies). Best for: restaurants needing operational efficiency, stable pricing, broad inventory. Minimum orders typically $250-$500. Negotiate: annual volume commitments (get 5-12% discount), quarterly reviews, fixed pricing on staples (protection against market volatility). **Specialty distributors** (meat from Master Purveyors, seafood from Nordic Seafood, produce from local farms/distributors, bakery from artisan suppliers): Advantages: superior quality in specific categories, expertise and product knowledge, typically 10-25% better pricing in their specialty, more flexible on customization (butcher breaking primals to spec), passion for product. Disadvantages: multiple vendors = multiple deliveries (receiving time), separate invoices (admin burden), minimums can be high ($500-$1,500), less consistent availability. Best for: upscale concepts prioritizing quality, volume users of specific categories (steakhouse using meat specialist). **Optimal strategy**: Broadline for 70-80% of needs (dry goods, disposables, frozen, dairy, baseline proteins) + specialty for differentiating ingredients (premium beef, fresh seafood, artisan bread). Track all invoices monthly to compare pricing—many operators overpay 8-15% by not monitoring. Use platforms like MarketMan or BlueCart to aggregate purchasing data and identify savings opportunities.

Q: What POS system should I choose for my restaurant?

Modern **POS systems** are cloud-based, iPad/tablet-driven, and offer integrated functionality. Top options 2025: **Toast POS** (market leader, purpose-built for restaurants, excellent support, $0-$165/month per terminal + 2.49% + $0.15 for integrated payments, one-time hardware $1,000-$1,500 per station). Best for full-service and quick-service. **Square for Restaurants** (affordable entry, $60/month per location, simple UI, good for cafés and casual, integrated payments 2.6% + $0.10, hardware $700-$1,200). Drawbacks: less robust for complex operations. **Clover** (flexible, retail + restaurant hybrid, good for counter-service, $14.95-$94.95/month + payment processing, hardware $1,400-$1,800). **Lightspeed Restaurant** ($69-$399/month, strong analytics, multi-location management, inventory robust, integrated accounting). **TouchBistro** (iPad-based, one-time license $399 per iPad + $69-$399/month subscription, works offline, local data). **Key features to prioritize**: menu management (modifiers, variants, 86'd items), table management and floor plan, kitchen display system (replaces paper tickets), employee management (scheduling, time clock, tip tracking), inventory tracking (integration with purchasing), reporting and analytics (sales by item/time/server, labor cost analysis), online ordering integration (native or third-party), loyalty program, gift cards, integrated payments (2.3-2.9% + $0.10-0.15 per transaction). **Total cost calculation**: For a 60-seat casual dining restaurant with 3 front-of-house terminals, 2 kitchen displays, 1 server station: Toast setup ~$6,000 hardware + $495/month software + 2.5% payment processing. Annual cost: $6,000 + $5,940 + ~$30,000 (on $1.2M@ revenue) = $41,940 year one, $35,940 subsequent years. ROI: proper POS reduces labor (automated reports save manager 10-15 hrs/week), reduces errors (wrong orders, wrong pricing), improves speed (table turns increase 8-12%), enables data-driven decisions. Payback typically 8-18 months.

Q: How many napkins per guest should I calculate?

Standard industry allocation: **Paper napkins**: Fine dining or multi-course meals: 3-4 napkins per guest (cocktail napkin for drinks, dinner napkin, dessert napkin, potential extra for spills). Casual dining: 2-3 napkins per guest (one at place setting, extras for messy items like ribs, wings, burgers). Quick-service and fast-casual: 1-2 napkins (one minimum, grab extras from dispenser). Cafés: 1 napkin per transaction (coffee/pastry). **Linen napkins**: 1 per guest per service + 2.5-3× that quantity in total inventory for rotation (example: 80 seats → 80 in use + 80 at laundry + 80 reserve = 240 total linen napkins needed). **Monthly usage calculation example**: Casual dining, 80 seats, 2.5 average daily turns = 200 covers/day. Use 2.5 paper napkins average per cover. Daily: 200 × 2.5 = 500 napkins. Monthly: 500 × 30 = 15,000 napkins. Add 10-15% buffer for restocking, spills, restrooms (guest use), staff training = 16,500-17,250 napkins/month. At $45 per 1,000 for 2-ply commercial grade = $742.50-$776.25/month. **Cost per cover**: $0.125-0.13 per guest. Factor this into your cost per cover analysis. Pro tip: track actual usage for 2-3 weeks (count sleeves used) to get precise numbers for your operation. High variance from these benchmarks indicates either over-generous dispensing (train staff, use controlled dispensers) or under-supply (guest complaints, poor experience). Optimal napkin budgeting is balancing cost efficiency with guest satisfaction—too few napkins generates complaints, too many wastes 15-25% unnecessarily.

Best gastronomy advice from experts. How to equip a restaurant, what's needed to open a venue, which napkins for restaurant, how many napkins per guest, gastronomy napkins grammage. Practical cost calculations and product recommendations.

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The **Advice** section is your comprehensive resource for hospitality industry best practices, operational efficiency, and cost optimization. Whether you're launching your first café, managing an established restaurant, or running a hotel F&B operation, you'll find actionable insights backed by industry data and real-world case studies from successful operators across the US, UK, and international markets. **Cost management** is the foundation of restaurant profitability. Our articles break down the essential metrics: **prime cost** (COGS + labor, target 60-65% of revenue), **food cost percentage** (target 28-35%), labor cost optimization (25-35% of revenue), and occupancy costs (rent should be <10% of gross sales). We provide detailed guides on calculating **cost per cover**, menu engineering to maximize contribution margin, and strategic pricing. For example, understanding that a 1% reduction in food cost on $500K annual revenue saves $5,000—enough to fund marketing campaigns or staff bonuses. **Choosing suppliers and negotiating contracts** can make or break your margins. We compare wholesale suppliers (Sysco, US Foods, Performance Food Group in the US; Brakes, Bidfood in the UK) analyzing pricing structures, minimum order requirements, delivery frequencies, and payment terms. You'll learn when to use **broadline distributors** vs. specialty suppliers, how to negotiate volume discounts (typically 5-12% on commitment contracts), and strategies for managing multiple vendor relationships to avoid dependency. Case studies show restaurants that reduced supply costs by 8-15% through strategic sourcing. **Disposable products and serviceware selection** impacts both operational costs and guest experience. We analyze **commercial-grade napkins**: 1-ply (quick-service only, 20-25 gsm), 2-ply (casual dining standard, 30-35 gsm, $0.03-0.06 per unit), 3-ply premium (fine dining, 40-50 gsm, $0.08-0.12 per unit), and linen alternatives. Formula: restaurant seating 80 with 2.5 turns daily = 200 covers × 2 napkins = 400/day × 30 = 12,000 monthly. Cost comparison: paper 2-ply at $45/1,000 = $540/month vs. linen service at $0.85/use = $5,100/month (89% savings with paper). **Equipment selection and kitchen layout** requires significant upfront investment ($150K-$500K for full-service restaurant). We guide you through essential equipment: commercial ranges, convection ovens, reach-in refrigerators/freezers, prep tables, dishwashers, and POS systems. Leasing vs. purchasing analysis, energy efficiency considerations (Energy Star equipment saves 10-30% on utilities), and workflow optimization for maximum kitchen efficiency. Learn the **kitchen triangle principle**, hot/cold zone separation, and health department layout requirements. **Opening checklist and licensing** varies by jurisdiction but typically includes: business entity formation (LLC, corporation), EIN registration, food service license, liquor license (costs $3K-$500K depending on state/type), health department permits, fire safety inspection, building permits, and insurance (general liability $2K-$8K/year, liquor liability additional $3K-$12K/year). We provide state-by-state guides and realistic timelines (6-18 months from concept to opening). **Operational systems implementation**: POS systems ($1,200-$15,000 + $50-$300/month), inventory management software, reservation platforms (OpenTable, Resy), staff scheduling, and accounting integration. ROI analysis shows proper systems reduce labor hours by 3-5 hours/week and food waste by 8-18%. Why follow our advice? Because hospitality is a low-margin, high-risk business (60% of restaurants fail within 3 years). Having accurate, current information on costs, suppliers, systems, and best practices gives you a competitive advantage. Our articles are written by industry veterans with combined 75+ years of experience managing successful operations.

Frequently Asked Questions About HoReCa

Answers to questions most frequently asked by restaurant, cafe and hotel owners

How much does it cost to open a restaurant in the US?

Opening costs vary dramatically by concept and location. **Quick-service/fast-casual** (800-1,500 sq ft): $175K-$375K including equipment ($40K-$80K), initial inventory ($8K-$15K), furniture/décor ($15K-$30K), POS and tech ($8K-$20K), permits and licenses ($5K-$15K), deposits and pre-opening rent ($25K-$60K), working capital ($40K-$100K for 3-6 months operating expenses). **Casual dining** (2,500-4,000 sq ft): $350K-$750K with full kitchen ($120K-$200K equipment), bar setup if applicable ($30K-$80K), seating for 80-120 ($40K-$90K), more extensive décor, liquor license (varies $3K-$300K by state). **Fine dining** (3,000-5,000 sq ft): $750K-$2M+ with premium finishes, extensive wine inventory, specialized equipment (sous vide, blast chillers), designer furniture, and high-end POS. Major metropolitan areas (NYC, SF, LA, Chicago) cost 40-80% more than secondary markets. These figures exclude real estate purchase (if buying). Financing typically: 20-30% owner equity, 40-50% SBA loan or conventional loan, 20-30% equipment leasing/vendor credit. Budget an additional 25% contingency for unexpected costs.

What's the ideal food cost percentage for a restaurant?

Target **food cost** depends on concept: **Fine dining**: 28-32% (expensive proteins, fresh specialty ingredients, higher menu prices allow lower percentage). **Casual dining**: 30-35% (balance of quality and value, moderate menu prices). **Fast-casual**: 28-32% (efficient prep, standardized recipes, lower waste). **Quick-service**: 25-30% (high volume, low-cost ingredients, minimal prep). **Pizza/Italian**: 22-28% (flour, cheese, sauce are low-cost, high margin). **Steakhouse**: 32-38% (expensive proteins but premium pricing offsets). Calculate: (Cost of Goods Sold ÷ Food Sales) × 100. Example: $12,000 COGS, $38,000 food revenue = 31.6% food cost. Include **all costs**: ingredients, spoilage (add 3-5%), portioning variances, staff meals. Track daily/weekly, not just monthly. Industry best practice: **prime cost** (food + labor) should be 60-65% of revenue. If food cost is 32%, labor should be 28-33%. Strategies to reduce food cost: menu engineering (remove high-cost/low-popularity items), accurate portioning (digital scales), FIFO inventory rotation, supplier negotiations, cross-utilization of ingredients (use chicken in 4+ dishes), waste tracking. A well-managed restaurant maintains food cost within 2% of target; poorly managed can drift 5-10% higher, costing $50K-$150K annually on $1M revenue.

Paper napkins vs. linen napkins—which is more cost-effective?

Cost analysis reveals **paper napkins are 75-90% cheaper** operationally than linen service for most concepts. **Linen napkins**: Advantages—upscale perception, better guest experience in fine dining, soft and absorbent. Costs: commercial laundry service $0.75-$1.25 per use (pickup, wash, press, delivery), 2.5-3x inventory required for rotation (in-house, at laundry, reserve stock), loss/stain rates 8-15% annually requiring replacement, storage space needed, logistics of exchange. 80-seat restaurant, 2.5 turns daily, 200 covers × $0.95/linen napkin = $190/day = $5,700/month. **Paper napkins** 2-ply commercial (33-38 gsm): Advantages—low cost $0.03-0.07 per napkin, no logistics, complete hygiene (single-use), no loss/theft, multiple colors available, eco options (recycled, bamboo). Same 200 covers × 2 napkins × $0.05 = $20/day = $600/month (89% savings vs. linen). 3-ply premium paper (feels luxurious) costs $0.08-0.12 but still 85% cheaper than linen. **Recommendation**: Fine dining and upscale hotels → linen (guest expectations, brand positioning justify cost). Casual dining, cafés, quick-service → paper 2-3 ply (economics are compelling). Hybrid approach: linen for dinner service, paper for lunch (balances cost and perception). Calculate your breakeven: if linen service costs $5,500/month and paper costs $650/month, you save $4,850/month = $58,200/year. That funds new equipment, renovations, or marketing.

How do I choose a foodservice supplier—broadline vs. specialty?

**Broadline distributors** (Sysco, US Foods, PFG, Shamrock) offer 40,000-60,000 SKUs including food, disposables, equipment, chemicals. Advantages: one-stop shopping (reduces ordering time 60-70%), weekly or bi-weekly delivery, volume pricing, established credit terms (net 14-30 days), sales rep support, online ordering platforms, market reports. Disadvantages: pricing 5-15% higher than specialty on specific categories (they're convenient, not always cheapest), less flexibility, some categories are proprietary brands (quality varies). Best for: restaurants needing operational efficiency, stable pricing, broad inventory. Minimum orders typically $250-$500. Negotiate: annual volume commitments (get 5-12% discount), quarterly reviews, fixed pricing on staples (protection against market volatility). **Specialty distributors** (meat from Master Purveyors, seafood from Nordic Seafood, produce from local farms/distributors, bakery from artisan suppliers): Advantages: superior quality in specific categories, expertise and product knowledge, typically 10-25% better pricing in their specialty, more flexible on customization (butcher breaking primals to spec), passion for product. Disadvantages: multiple vendors = multiple deliveries (receiving time), separate invoices (admin burden), minimums can be high ($500-$1,500), less consistent availability. Best for: upscale concepts prioritizing quality, volume users of specific categories (steakhouse using meat specialist). **Optimal strategy**: Broadline for 70-80% of needs (dry goods, disposables, frozen, dairy, baseline proteins) + specialty for differentiating ingredients (premium beef, fresh seafood, artisan bread). Track all invoices monthly to compare pricing—many operators overpay 8-15% by not monitoring. Use platforms like MarketMan or BlueCart to aggregate purchasing data and identify savings opportunities.

What POS system should I choose for my restaurant?

Modern **POS systems** are cloud-based, iPad/tablet-driven, and offer integrated functionality. Top options 2025: **Toast POS** (market leader, purpose-built for restaurants, excellent support, $0-$165/month per terminal + 2.49% + $0.15 for integrated payments, one-time hardware $1,000-$1,500 per station). Best for full-service and quick-service. **Square for Restaurants** (affordable entry, $60/month per location, simple UI, good for cafés and casual, integrated payments 2.6% + $0.10, hardware $700-$1,200). Drawbacks: less robust for complex operations. **Clover** (flexible, retail + restaurant hybrid, good for counter-service, $14.95-$94.95/month + payment processing, hardware $1,400-$1,800). **Lightspeed Restaurant** ($69-$399/month, strong analytics, multi-location management, inventory robust, integrated accounting). **TouchBistro** (iPad-based, one-time license $399 per iPad + $69-$399/month subscription, works offline, local data). **Key features to prioritize**: menu management (modifiers, variants, 86'd items), table management and floor plan, kitchen display system (replaces paper tickets), employee management (scheduling, time clock, tip tracking), inventory tracking (integration with purchasing), reporting and analytics (sales by item/time/server, labor cost analysis), online ordering integration (native or third-party), loyalty program, gift cards, integrated payments (2.3-2.9% + $0.10-0.15 per transaction). **Total cost calculation**: For a 60-seat casual dining restaurant with 3 front-of-house terminals, 2 kitchen displays, 1 server station: Toast setup ~$6,000 hardware + $495/month software + 2.5% payment processing. Annual cost: $6,000 + $5,940 + ~$30,000 (on $1.2M@ revenue) = $41,940 year one, $35,940 subsequent years. ROI: proper POS reduces labor (automated reports save manager 10-15 hrs/week), reduces errors (wrong orders, wrong pricing), improves speed (table turns increase 8-12%), enables data-driven decisions. Payback typically 8-18 months.

How many napkins per guest should I calculate?

Standard industry allocation: **Paper napkins**: Fine dining or multi-course meals: 3-4 napkins per guest (cocktail napkin for drinks, dinner napkin, dessert napkin, potential extra for spills). Casual dining: 2-3 napkins per guest (one at place setting, extras for messy items like ribs, wings, burgers). Quick-service and fast-casual: 1-2 napkins (one minimum, grab extras from dispenser). Cafés: 1 napkin per transaction (coffee/pastry). **Linen napkins**: 1 per guest per service + 2.5-3× that quantity in total inventory for rotation (example: 80 seats → 80 in use + 80 at laundry + 80 reserve = 240 total linen napkins needed). **Monthly usage calculation example**: Casual dining, 80 seats, 2.5 average daily turns = 200 covers/day. Use 2.5 paper napkins average per cover. Daily: 200 × 2.5 = 500 napkins. Monthly: 500 × 30 = 15,000 napkins. Add 10-15% buffer for restocking, spills, restrooms (guest use), staff training = 16,500-17,250 napkins/month. At $45 per 1,000 for 2-ply commercial grade = $742.50-$776.25/month. **Cost per cover**: $0.125-0.13 per guest. Factor this into your cost per cover analysis. Pro tip: track actual usage for 2-3 weeks (count sleeves used) to get precise numbers for your operation. High variance from these benchmarks indicates either over-generous dispensing (train staff, use controlled dispensers) or under-supply (guest complaints, poor experience). Optimal napkin budgeting is balancing cost efficiency with guest satisfaction—too few napkins generates complaints, too many wastes 15-25% unnecessarily.