Ep #39: The Top 5 Financial Mistakes of New Restaurant Owners
- ptotah
- 9 hours ago
- 2 min read
What are the biggest financial mistakes new restaurant owners make? We’ve seen them all, and we’ve made many of them ourselves. When you’re opening a restaurant, it’s easy to focus on the excitement and overlook the numbers. But running out of working capital, mispricing your menu, or overpaying for your lease can turn a dream into a financial strain faster than you think.
In this episode, we share the top five financial mistakes we made as former restaurant owners and that we continue to see with our clients today. From underestimating startup costs to ignoring daily cost control, we break down the real financial pitfalls that can sneak up on new operators. You’ll also hear stories from our own experiences, like Patrick’s percentage rent clause and Andy’s costly lease, and what those lessons taught us about sustainable ownership.
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We also discuss how to build good financial habits from the start, including monitoring controllable costs, keeping vendor pricing in check, and using professionals who understand the restaurant business. Whether you’re buying your first restaurant or growing your existing one, these lessons will help you avoid expensive missteps and keep your business on solid ground.
If you’re considering selling your business and would like a free consultation, reach out to patrickAndAndy@therestaurantsalesbroker.com or visit TheRestaurantSalesBroker.com to learn more.
What You’ll Learn from this Episode:
Why you need 3–6 months of working capital minimum (not just purchase price).
How vendors systematically overcharge if you’re not checking invoices regularly.
The hidden danger of POS lending that can destroy your cash flow.
Why 70–80% of restaurant owners don’t properly price their menus.
How third-party delivery commissions can exceed your rent costs.
The importance of using professionals for lease negotiations and financial planning.
What controllable costs to monitor daily versus monthly.
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Ep #29: Cook the Books Round Two with Restaurant Accountant Dan Engel
Ep #37: Quick Service Restaurant (QSR) Trends Operators Need to Know with Matthew Blair
Ep #38: Leave It to the Pros: Why Every Restaurant Needs a Specialized Attorney & CPA or Bookkeeper
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