Many people asked me how much money is needed to open a restaurant in Malaysia.  Is RM50,000 enough? Do I need RM1,000,000?

I can never answer those questions because the amount of money needed to open a restaurant depends on many issues, such as:

Location

To operate a successful restaurant, we need to choose the right location. However a good location usually comes with an expensive rental.  The start-up cost will have to include the payment we need to pay for the rental deposit and advance rental. 

Renovation budget. 

How much money do we need for renovation? The amount can be as little as RM5,000 and can be as much as to RM2,000,000. Renovation cost depends on the condition of the premise and the concept of the restaurant.  Renovation cost can be one of the major expenditures during the start up. 

Equipment & Furniture.

We need to list down all the required equipment and furniture for the restaurant and get quotations from several suppliers.  The amount we need depends largely on the menu and restaurant layout.  It also depends on whether we buy new or used equipment and furniture.

Supplies and Inventory. 

Before a restaurant starts, we need to spend money for the purchases of food and beverages inventory, tissues, printing materials, cleaning supplies, etc.  How much we need to reserve also depends on the concept and the menu of the restaurant.

Licenses.

We need to include how much money we need to pay for business licenses, company incorporation, foreign workers levies, etc.  The amount of money needed is determined on whether or not we want to serve alcohol and employ foreign workers.

Human Resources. 

You need to know how many staff you want to hire and how much salary you need to pay for each position.  Reserve at least 3 months of staff salary in the budget.