Cheapest Cities to Open a Restaurant (2026)
Oklahoma City, Memphis, Cleveland top the list — first-year costs start at $232,566 and reach $523,974. All 50 cities ranked by total cost, adjusted for local cost of living.
The three cheapest cities to start a restaurant are Oklahoma City ($232,566/yr), Memphis ($240,972/yr), and Cleveland ($249,378/yr) — vs. $523,974 in New York, the most expensive city in our dataset. All estimates are 2026 figures adjusted for each city's cost of living.
Oklahoma City
OK
Cheapest City
$232,566
Oklahoma City
National Median
$280,200
Phoenix
National Average
$310,742
50-city average
Most Expensive
$523,974
New York
All Cities Ranked — Restaurant Startup Cost
Sorted cheapest to most expensive. Click column headers to re-sort.
| # | City | COL Index | Upfront | Year 1 Cost | |
|---|---|---|---|---|---|
| 1 | Oklahoma City OK 🥇 | 83.0 | $77,190 | $232,566 | Details → |
| 2 | Memphis TN 🥈 | 86.0 | $79,980 | $240,972 | Details → |
| 3 | Cleveland OH 🥉 | 89.0 | $82,770 | $249,378 | Details → |
| 4 | Detroit MI | 89.0 | $82,770 | $249,378 | Details → |
| 5 | St. Louis MO | 90.0 | $83,700 | $252,180 | Details → |
| 6 | Omaha NE | 91.0 | $84,630 | $254,982 | Details → |
| 7 | Louisville KY | 91.0 | $84,630 | $254,982 | Details → |
| 8 | San Antonio TX | 91.0 | $84,630 | $254,982 | Details → |
| 9 | Indianapolis IN | 92.0 | $85,560 | $257,784 | Details → |
| 10 | Tucson AZ | 93.0 | $86,490 | $260,586 | Details → |
| 11 | Cincinnati OH | 93.0 | $86,490 | $260,586 | Details → |
| 12 | Milwaukee WI | 93.0 | $86,490 | $260,586 | Details → |
| 13 | Houston TX | 93.0 | $86,490 | $260,586 | Details → |
| 14 | Kansas City MO | 94.0 | $87,420 | $263,388 | Details → |
| 15 | Minneapolis MN | 95.0 | $88,350 | $266,190 | Details → |
| 16 | Columbus OH | 95.0 | $88,350 | $266,190 | Details → |
| 17 | Jacksonville FL | 96.0 | $89,280 | $268,992 | Details → |
| 18 | Pittsburgh PA | 97.0 | $90,210 | $271,794 | Details → |
| 19 | Fort Worth TX | 97.0 | $90,210 | $271,794 | Details → |
| 20 | Mesa AZ | 98.0 | $91,140 | $274,596 | Details → |
| 21 | Charlotte NC | 98.0 | $91,140 | $274,596 | Details → |
| 22 | New Orleans LA | 99.0 | $92,070 | $277,398 | Details → |
| 23 | Orlando FL | 99.0 | $92,070 | $277,398 | Details → |
| 24 | Richmond VA | 99.0 | $92,070 | $277,398 | Details → |
| 25 | Raleigh NC | 100.0 | $93,000 | $280,200 | Details → |
| 26 | Phoenix AZ | 100.0 | $93,000 | $280,200 | Details → |
| 27 | Dallas TX | 101.0 | $93,930 | $283,002 | Details → |
| 28 | Tampa FL | 101.0 | $93,930 | $283,002 | Details → |
| 29 | Virginia Beach VA | 101.0 | $93,930 | $283,002 | Details → |
| 30 | Las Vegas NV | 103.0 | $95,790 | $288,606 | Details → |
| 31 | Nashville TN | 103.0 | $95,790 | $288,606 | Details → |
| 32 | Philadelphia PA | 103.0 | $95,790 | $288,606 | Details → |
| 33 | Austin TX | 103.0 | $95,790 | $288,606 | Details → |
| 34 | Atlanta GA | 105.0 | $97,650 | $294,210 | Details → |
| 35 | Chicago IL | 107.0 | $99,510 | $299,814 | Details → |
| 36 | Baltimore MD | 108.0 | $100,440 | $302,616 | Details → |
| 37 | Denver CO | 112.0 | $104,160 | $313,824 | Details → |
| 38 | Portland OR | 113.0 | $105,090 | $316,626 | Details → |
| 39 | Sacramento CA | 118.0 | $109,740 | $330,636 | Details → |
| 40 | Miami FL | 123.0 | $114,390 | $344,646 | Details → |
| 41 | San Diego CA | 146.0 | $135,780 | $409,092 | Details → |
| 42 | Seattle WA | 149.0 | $138,570 | $417,498 | Details → |
| 43 | Washington DC | 152.0 | $141,360 | $425,904 | Details → |
| 44 | Boston MA | 152.0 | $141,360 | $425,904 | Details → |
| 45 | Los Angeles CA | 152.0 | $141,360 | $425,904 | Details → |
| 46 | Long Beach CA | 155.0 | $144,150 | $434,310 | Details → |
| 47 | Oakland CA | 161.0 | $149,730 | $451,122 | Details → |
| 48 | San Jose CA | 170.0 | $158,100 | $476,340 | Details → |
| 49 | San Francisco CA | 179.0 | $166,470 | $501,558 | Details → |
| 50 | New York NY | 187.0 | $173,910 | $523,974 | Details → |
Frequently Asked Questions
What is the cheapest city to open a restaurant?
Oklahoma City, OK is the most affordable city in our dataset for starting a restaurant, with estimated first-year costs of $232,566 — $77,190 upfront and $12,948/month ongoing, based on 2026 data adjusted for local cost of living.
What drives cost differences between cities?
The main driver is each city's cost-of-living (COL) index, which reflects local rent, labor rates, and supply costs. High-COL cities like New York (COL index 187.0) cost significantly more than low-COL cities like Oklahoma City (COL index 83.0). A COL index of 100 means average US costs; 80 means 20% below average.
How much more does it cost in the most expensive city?
Starting a restaurant in New York ($523,974/yr) costs $291,408 more than in Oklahoma City ($232,566/yr) — a 125% difference.
Should I choose the cheapest city just to save on startup costs?
Not always. Lower-cost cities also tend to have lower average incomes, smaller customer bases, and fewer anchor employers. A restaurant in New York may cost twice as much to start but serve a market three times the size. Use this ranking as a starting point, then weigh local demand, competition, and your own personal network before choosing a location.
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