How Much Does It Cost to Start a Restaurant? (2026 Complete Guide)
Restaurant startup costs run $50,000 (food truck) to $750,000+ (full-service) depending on type and location. Every cost broken down: buildout, equipment, permits, staffing, and working capital.
Starting a restaurant costs $150,000--$750,000 for a traditional sit-down location. A food truck runs $50,000--$175,000. A ghost kitchen or delivery-only concept: $25,000--$100,000. The biggest variables are whether you build out a raw space or take over an existing restaurant location, and whether you serve alcohol.
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First-Year Budget
$150K--$750K
Full-service restaurant
Food Truck
$50K--$175K
Truck + equipment + permits
Monthly Operating Costs
$20K--$80K/mo
Rent, labor, food cost, utilities
Cost by Restaurant Type
| Type | Startup Cost | Key Advantage |
|---|---|---|
| Ghost kitchen (delivery only) | $25,000--$100,000 | No build-out, low rent |
| Food truck | $50,000--$175,000 | Mobile, no lease |
| Food stall / market booth | $10,000--$50,000 | Lowest entry cost |
| Fast casual (counter service) | $150,000--$400,000 | Lower labor ratio |
| Full-service restaurant | $250,000--$750,000 | Higher check average |
| Bar + restaurant (full liquor) | $350,000--$1,000,000+ | Alcohol margin lifts profits |
One-Time Startup Costs (Full-Service Restaurant)
| Item | Low | High |
|---|---|---|
| Lease deposit (2--3 months) | $8,000 | $50,000 |
| Kitchen buildout (hood, gas lines, grease trap) | $30,000 | $200,000 |
| Dining room buildout (flooring, paint, lighting) | $10,000 | $80,000 |
| Commercial kitchen equipment | $25,000 | $100,000 |
| Furniture (tables, chairs, bar seating) | $5,000 | $40,000 |
| POS system + software | $1,000 | $5,000 |
| Permits (health, fire, business license) | $2,000 | $10,000 |
| Opening inventory (food + supplies) | $5,000 | $20,000 |
| LLC formation + legal | $200 | $3,000 |
| Working capital (3 months) | $30,000 | $100,000 |
| Total One-Time | $116,200 | $608,000 |
Monthly Operating Costs
| Item | Low | High |
|---|---|---|
| Rent | $4,000 | $20,000 |
| Labor (kitchen + front of house) | $10,000 | $40,000 |
| Food cost (COGS, 28--35% of sales) | $7,000 | $30,000 |
| Utilities (gas, electric, water) | $1,500 | $5,000 |
| Insurance (liability + commercial property) | $300 | $1,000 |
| Payment processing + POS fees | $500 | $2,500 |
| Total Monthly | $23,300 | $98,500 |
The Buildout Problem
The single biggest cost variable in a restaurant is whether you are taking over a turnkey restaurant space or building a kitchen from scratch. The difference can be $200,000+.
Existing Restaurant Space (Turnkey)
- Hood/ventilation: already installed
- Gas lines: already run
- Grease trap: already compliant
- 3-compartment sink: already there
- Buildout savings: $80,000--$200,000
Raw Retail Space (New Build)
- Commercial hood: $15,000--$35,000
- Gas line installation: $5,000--$20,000
- Grease trap installation: $3,000--$8,000
- Fire suppression system: $5,000--$15,000
- Health inspection buffer: $5,000--$15,000
Look for spaces listed as "former restaurant" or "hood in place." These save 6--12 months of buildout time and $100,000--$200,000 in construction.
Step-by-Step: How to Open a Restaurant
Run the unit economics before anything else
Average check times seats times turns per day times days open equals potential revenue. Food cost (32%) + labor (30%) + rent (8%) + everything else (15%) = 85% of revenue. If your numbers do not work at realistic occupancy, the concept does not work.
Form an LLC before signing a lease
Restaurant liability is high -- food poisoning claims, slip-and-falls, employee injuries. Your LLC protects personal assets. Cost: $35--$500 in state fees.
Find a former restaurant space to save $100,000+
Brokers list these as "hood in place," "former restaurant," or "built out kitchen." The mechanical infrastructure (gas, ventilation, plumbing, grease trap) cuts your buildout cost in half. Start here before considering raw space.
Get health department pre-approval before you build
Submit your floor plan to the health department before construction starts. Building first and asking for forgiveness costs $20,000--$50,000 in rework. This is the most skipped step and the most expensive mistake new restaurant owners make.
Budget 6 months of operating costs before opening
Restaurants do not hit full revenue until month 4--6. You need rent, payroll, and food cost covered for 6 months before your first customer. $30,000--$80,000 in operating reserves is the difference between closing at month 3 and making it.
Know your labor costs precisely
Labor in a restaurant is 25--35% of revenue. A cook at $18/hr working 40 hrs/week costs $2,880/month in wages plus roughly $400 in payroll taxes and workers compensation.
What Revenue Do You Need to Break Even?
A restaurant with $25,000/month in fixed costs and a 65% gross margin needs $38,500/month in revenue to break even. At an $18 average check, that is 2,139 covers per month -- about 71 covers per day. A 50-seat restaurant needs 71/50 = 1.4 turns per day to break even.
Calculate Your Break-Even PointRestaurant Startup Costs by City
Rent and labor vary 2--3x across markets. A restaurant in Austin costs very differently than one in New York.
Form Your Restaurant LLC
Food liability, slip-and-falls, and employee claims make an LLC essential. Form before signing a lease.
LLC formation with registered agent and operating agreement. Plans from $0 + state fees.
Start your LLC
Free LLC formation (state fees only). First year of registered agent included.
Form free LLC
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