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Start a Business · Startup costs

How much does it cost to start a restaurant?

Estimate the all-in cost to open a restaurant, from a quick-service counter to a full-service dining room. The kitchen buildout and the cash you need before a steady dinner rush are the two lines that decide the number.

§ 01 Your numbers

The kitchen buildout (hood, fire suppression, plumbing, gas) and dining room drive most of the cost.
Ranges, hood, walk-in cooler, prep tables, dish machine, smallwares.
Deposit plus the first few months while you build out and hire.
Dining tables, chairs, bar, lighting, front-of-house finishes.
POS terminals, kitchen display, online ordering setup.
Opening stock of food, beverages, and supplies.
Business, health, and food licenses. A liquor license can be far higher on its own.
Signage, menus, and the push to fill tables from week one.
Restaurants burn cash before they fill up. Keep a serious cushion.
Rent, payroll, food cost, and utilities per month.
Default is the typical range midpoint. Adjust to your own plan.
Enter a number to check whether your plan fits.
Estimated cost
$557,000

Typical range $445,600 – $751,950

  • Format & buildout$275,000
  • Kitchen equipment$75,000
  • Lease deposit + first months$30,000
  • Furniture, fixtures & décor$40,000
  • POS, tech & online ordering$8,000
  • Initial food & bar inventory$12,000
  • Licenses & permits$15,000
  • Branding & pre-opening marketing$12,000
  • Working-capital buffer$90,000
  • Total$557,000
See next steps →

§ 02 The return

Typical monthly revenue$90,000 - $220,000
Est. monthly profit$7,750
Payback period6.3 yr
Based on revenue of$155,000/mo

Restaurant margins are thin and slow. Location, concept, and cost control decide whether the payback ever arrives.

§ 03 Effort & commitment

Intense
60-80 hrs/week (owner) ~24 weeks to launch

Nights, weekends, and holidays are the job. Few businesses ask more of an owner-operator than a restaurant.

Where the money goes

Format & buildout$275,000
Kitchen equipment$75,000
Lease deposit + first months$30,000
Furniture, fixtures & décor$40,000
POS, tech & online ordering$8,000
Initial food & bar inventory$12,000
Licenses & permits$15,000
Branding & pre-opening marketing$12,000
Working-capital buffer$90,000

When it pays back

Cumulative cash flow. The line crosses zero the month your cumulative profit has repaid the startup cost.

break-even 6.3 yr

Recommended next steps

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$250k to $600k is a full-service restaurant. Finance the buildout and set up real payroll.

By the numbers

  • Full-service restaurants typically run net profit margins of 3 to 6 percent, among the thinnest of any small business.
  • A healthy full-service room grosses roughly $1 million to $2.5 million a year once it is busy.
  • Recouping the buildout often takes several years, and a large share of restaurants close before they get there.

Sources: National Restaurant Association · IBISWorld: Restaurants industry

How this estimate is calculated

  • The kitchen buildout is the line that separates a $150k quick-service spot from a $500k full-service room. A vented hood, fire suppression, grease trap, and gas lines add up fast.
  • A liquor license is not in the base number because it varies wildly. In some states it costs a few thousand dollars; in others a transferable license trades for six figures. Add it as its own line if you plan to serve alcohol.
  • Restaurants run at a loss before the room fills up. The working-capital cushion, not the equipment, is what most closures run out of.
  • Taking over a former restaurant with a usable kitchen is the cheapest way in, because you inherit the most expensive buildout.

Frequently asked questions

How much does it cost to start a restaurant?
A quick-service or counter spot often opens for $150,000 to $300,000, a full-service restaurant for $275,000 to $600,000, and an upscale room for $500,000 and up. The kitchen buildout and lease drive the range. Price your own setup with the calculator above.
What is the biggest startup cost for a restaurant?
Usually the buildout: the commercial kitchen (hood, fire suppression, plumbing, gas) plus the dining-room fit-out. Taking over an existing restaurant space is the main way to cut it.
How much does a liquor license cost?
It depends entirely on your state and city. Some issue licenses for a few thousand dollars; others cap the number, so a transferable license can sell for well over $100,000. Check your local rules before you budget.
How much working capital does a restaurant need?
Plan for at least three to six months of operating costs. Most new restaurants lose money for the first few months, and running out of cash before the room fills up is the common failure, not the build itself.
How much does a restaurant make?
A healthy full-service restaurant grosses roughly $1 million to $2.5 million a year, but net margins are thin, often 3 to 6 percent, so the owner's take is a small slice of a big number. Many restaurants take several years to recoup their buildout, and a large share close before they do. Put your own revenue estimate into the return panel above to see a payback period.

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