Story: Example of low budget client
In the early stage of freelance, estimation is always a headache. You got an inquiry through a website. You want to work or you need work, but the client does not have enough budget. Even if the budget does not meet your estimate, you may take it. Because you need work(and money). I understand that.
I use a restaurant(F&B) business client as just an example of a low-budget client. Because many graphic/web designers are maybe familiar with this situation.
I got a call from an investor who will open a restaurant in Richmond, BC in the fall of 2022. I met them(2 people) at the location. I sent an estimate and he mentioned his budget. Negotiation is okay, but the budget did not fit his vision, what kind of restaurant he is planning to open. I politely turned down with reason. They reduced my cost and responsibility for work. After all, I do work with them.
I don’t choose a project, but I need to choose a client/budget. You may take it even it is a low budget. That’s okay. I tried it before and it did not go well. Simply told, I could not keep appreciating the client through the project. The more taking time, the more I feel frustrated. I would like to dedicate myself to their business success as much as I can. Therefore, I don’t hesitate to turn down the offer and I hope they find a better designer. This is not rude. It’s better for all stakeholders.
To be honest, low price restaurant which has one or a few locations does not need a graphic/web design. Especially graphic design. It is hard to measure the impact of offline work. Truth be told, graphic design is a low priority to run a restaurant business (it depends on the concept of a restaurant). If the budget is tight, the owner can make a menu by Google Docs. They can use Facebook for a website. An employee takes care of IG. Customers come to the restaurant through Yelp. I recommend using the money for marketing rather than graphic design. Making a safe cash flow is the first priority for early-stage restaurants.
I have/had some clients who are running restaurants. I learned F&B business from them. In this blog, I learn about the costs of opening a restaurant.
Starting a restaurant in B.C. – Province of British Columbia
Major expense
– Renovation
– Equipment
– Rent
– Permit
– Employee
Before complaining about low budgets clients, you need to know a client’s circumstances, how much a client actually spends to open a restaurant. You don’t have to compromise your fee. Just understand what a client must do. Without renovation, equipment, and employee, they cannot run a business. If you know it, the conversation can be different.
How Much Does it Cost to Start a Restaurant (+5 Money-Saving Tips) | Restaurant Management Tips 2022
©Wilson K Lee – How To Open A Restaurant / F&B Shop
Low-end: $150,000
Middle-end: $200,000
High-end: $850,000
The video looks like WeWork at Marine Drive. I used there before, but I don’t know whether I saw him or not. I can imagine a low-end restaurant is possible to open the restaurant for less than $100K. The owner can compromise good location, huge floor, new equipment, or fancy renovation.
How Much Does it Cost to Open a Restaurant?
©Dave Allred TheRealBarman
One-time cost
– Business license
– Lease / Loan
– Renovation
– Equipment
– Furniture
– POS
– Professional(lawyer, accountant, etc)
Recurring cost
– Rent
– Labor
– Food/Liquor
– Utilities
– Marketing
– Insurance
– Contingency
Situation
– Buy business
– Takeover restaurant and renovation
– Takeover non-restaurant and renovation
– Scratch
What I Learned From Owning My Own Restaurant After 1 Year
©Anton Daniels
There is no easy job/business. Keeping running a business is tough, but some people can do it and some people don’t. You have to do what you like. This is fundamental to success. I sometimes get tired even I like my job. If I don’t like my job, I cannot keep working 7 days per week. So, I am lucky. I could find what I like.
Different Types of Restaurant Concepts
– Fast casual
– Family style
– Fine dining
– Café or bistro
– Fast food
– Food truck
– Restaurant buffet
– Pop up restaurant
Reference: The Balance Small Business – Different Types of Restaurant Concepts
General expenses (summary)
– Business registry, food safety, liquor licenses…
– Location
– Kitchen Equipment
– Renovation, exterior and interior
– Basic Opening Expenses, a dish to employee
– Technology, POS, inventory, scheduling,
– Marketing
– Professional Services, insurance, lawyer
– Contingency budget, cash on hand
Conclusion: Value of design for the food industry
During COVID-19, ghost kitchen has become popular. No physical restaurant, no customer experience, no server, just use commercial kitchen and provide meal by only food delivery. It sounds cost-efficient. I don’t know the long-term value, how long can people(employer and employee) operate it with passion. People may like food, but people don’t care who made it.
I watched an estimate/budget-related video on YouTube before. An expert said, if you cannot give real value (except visual design), don’t take a project. I think this is true. Please recommend Fiverr to a client if a client does not have enough budget to hire you.
