How much working capital does a new restaurant need?
Working capital is the cash that keeps the restaurant alive after opening, while sales are still becoming stable.
Many owners calculate the cost of opening but forget the cost of surviving the first few months. Interiors, equipment and deposits are only one part of the investment. After launch, the restaurant still needs money for rent, salaries, raw materials, packaging, utilities, delivery charges and marketing.
Working capital gives the business breathing space. It protects the owner from panic decisions when sales are uneven, vendors need payment or staff salaries are due before enough cash has come in.
A practical way to plan is to estimate at least a few months of operating expenses and keep that amount separate from the setup budget. The exact number depends on rent, staff size, menu, delivery model and expected sales ramp-up.