A fusion restaurant combines two distinct types of cuisines to create a new style. For example, a Korean-Mexican restaurant may serve barbeque tacos dressed up with kimchi and jalapenos. Fusion restaurants serve to expand the culinary tastes of those in a community and can inspire everyday cooks to take more creative license with their own culinary approach.

What will you name your business?

Choosing the right name is very important. Read our detailed guide on how to name your business. We recommend checking if the business name you choose is available as a web domain and securing it early so no one else can take it.

What are the costs involved in opening a fusion restaurant?

Costs can be extremely high to start a restaurant. The median price is about $275,000, which includes equipment, supplies, and rental costs, as well as licensing fees you’ll need for the building. However, what you pay is highly dependent on where you open and how big the place is. A hole in the wall with only space for a few seats may only cost $100,000, though you will limit your profit potential by limiting the seating.

Considering fusion restaurants do best in large cities, you’ll likely need to budget for closer to $500,000 if you’re planning to set up in a highly trafficked area. You may wish to consider starting a food truck before opening a restaurant if you want to keep your

How much can you charge customers?

Customers understand that they’re paying for innovation and expertise as much as they are what’s on the actual plate. Certain chefs can create flavors so complex that a home chef could never hope to compare. Once people are hooked, this type of one-of-a-kind taste can net up to 10 times the cost of ingredients. However, you should research other restaurants in the area before determining specific price points.

Who is the target market?

You want customers who are interested in trying new things when it comes to how they eat. You may have a difficult time finding a major market in smaller cities and towns in the US, so you should concentrate on the major tourist areas or large cities. You also want your clientele to be those who understand different types of cuisines separately. If they’ve never had Korean or Mexican food before, then their first experience likely shouldn’t be at a fusion restaurant because it may turn them off from both cuisines entirely.

How does a fusion restaurant make money?

Dishes are generally priced at a significant margin over the cost of what’s on the plate. Ultimately, an owner can charge whatever the market will allow, but most restaurants will triple the price of the ingredients on the plate to cover the labor costs, rents, etc. of the restaurant.

How much profit can a fusion restaurant make?

Fusion restaurants can become hugely profitable, especially if they choose to franchise. However, owners can expect relatively modest gains. Restaurants usually net a profit margin between 2 and 3% of each check. So if the restaurant does $400,000 of sales in a year, that’s between $8,000 and $12,000 in profits.

How can you make your business more profitable?

Owners can consider franchising their business, or opening up a smaller, less expensive sister restaurant (e.g., take-out only.) If a business has a signature dish with a special sauce, consider selling the sauce on the website or at the physical restaurant location.

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