What Are My Startup Costs?
Open an iconic American dining experience with a relatively low investment and potentially high return
Are you interested in bringing a vibrant iconic American dining brand to your city? After years of focusing on international expansion, Tony Roma’s has set the stage for aggressive domestic growth during the next 5 to 10 years. There has never been a better time to join the Tony Roma’s family of franchisees.
The total investment range for opening a Tony Roma’s location in your city is lower than many upscale casual dining concepts, averaging in the $1.5 million to $2 million range, depending on the size, type and location of the restaurant. Our efficient restaurant design features a smaller kitchen without sacrificing throughput and is more cost-effective to build. Our global brand affinity gives you more bang for your buck as you tap into an already-strong fan base and take advantage of existing brand recognition.
We evolved our preferred restaurant model from freestanding to non-freestanding end cap location. These are more flexible to locate and get owners closer to customers. This allows franchise owners to lease locations, eliminating the expenditure for purchasing land or property and the time-consuming steps and processes of obtaining permits or contracts. This restaurant model takes only half the time it takes to build a freestanding restaurant.
Most restaurant businesses are costly to open and offer low potential returns. A Tony Roma’s franchise, however, has lower initial investment costs from opening day. Restaurants featuring our new design are attracting new fans to Tony Roma’s, and average unit volume is exceeding expectations. Most of our new stores bask in overwhelmingly positive response from their customers and generate positive local press.
Breakdown of costs
Below are the costs from our 2017 FY Franchise Disclosure Document (FDD) Item 7 which details the difference in our two buildout types:
New Construction – Freestanding Location
| Type of Expenditure | Amount |
|---|---|
| Franchise Fee | $40,000 |
| Real Estate Services Fee | $6,000 |
| Architect/Engineering and Survey Costs | $55,000 - $80,000 |
| Permits/Impact Fees | $5,000 - $65,000 |
| Building; Landscape; Lighting; Millwork; and Floor Covering | $950,000-$1,350,000 |
| Signage and Awning Package | $30,000-$60,000 |
| Kitchen/Bar Equipment | $325,000 - $500,000 |
| Furniture (Tables, Chairs, Booths) | $100,000 - $200,000 |
| Decor | $5,000 - $25,000 |
| POS Equipment | $30,000 - $50,000 |
| Tech systems (Phones, Music, Video, POS Installations) | $25,000-$50,000 |
| Pre-Opening (Smallwares, training of staff, advertising costs) | $100,000 - $200,000 |
| Management Training Expense | $5,000-$8,000 |
| Insurance | $7,500 - $17,000 |
| Opening Team Expense Costs and Expenses | $40,000-$90,000 |
| Additional Funds (3 months) | $250,000 - $500,000 |
| TOTALS | $1,973,500 - $3,246,000 |
Conversion of Existing Restaurant or In-Line Location
| Type of Expenditure | Amount |
|---|---|
| Franchise Fee | $40,000 |
| Real Estate Fee | $6,000 |
| Architect/Engineering and Survey Costs | $55,000 - $80,000 |
| Permits/Impact Fees | $5,000 - $65,000 |
| Building; Landscape; Lighting; Millwork; and Floor Covering | $800,000-$1,100,00 |
| Signage and Awning Package | $25,000-$60,000 |
| Kitchen/Bar Equipment | $375,000-$500,000 |
| Furniture (Tables, Chairs, Booths) | $125,000-$300,000 |
| Decor | $5,000-$50,000 |
| POS Equipment | $30,000 - $50,000 |
| Tech systems (Phones, Music, Video, POS Installations) | $25,000-$55,000 |
| Pre-Opening (smallwares, training of staff, advertising costs) | $100,000 - $200,000 |
| Management Training Expense | $5,000-$8,000 |
| Insurance | $7,500 - $17,000 |
| New Restaurant Opening Team | $40,000-$90,000 |
| Additional Funds (3 months) | $250,000 - $500,000 |
| TOTALS | $1,893,500 - $3,121,000 |
Each new restaurant varies in costs. To learn more about the startup costs in your market, start a conversation with us by completing the request information form on this site.
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