Start a Restaurant: Costs & Steps (2026)
Startup cost estimates, LLC formation guide, licensing requirements, and recommended tools for starting a restaurant / food truck in 2026.
Starting a restaurant / food truck typically costs $280,200 in the first year ($128,100–$574,400 range), including $93,000 in one-time startup costs and $15,600/month in ongoing expenses. This guide covers legal setup, licensing, insurance, and where to get started.
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First-Year Budget
$280,200
Range: $128,100 – $574,400
One-Time Startup Costs
$93,000
Range: $34,500 – $200,000
Monthly Operating Costs
$15,600/mo
Range: $7,800 – $31,200
Step-by-Step: How to Start a Restaurant / Food Truck
Write a Business Plan
Define your target customer, pricing, competitive advantage, and financial projections. A business plan is required by most lenders and helps you clarify your path to profitability. Budget the first year at $280,200 and project revenue to confirm your break-even point.
Form an LLC (Recommended)
Most restaurant / food truck owners should form an LLC to protect personal assets. An LLC separates your business debts and liabilities from your personal finances. Formation costs $35–$500 in state filing fees, plus optional registered agent and operating agreement services.
Get an EIN from the IRS
An Employer Identification Number (EIN) is your business's tax ID — required for payroll, opening a business bank account, and filing business taxes. Apply free at IRS.gov. You'll receive it immediately online.
Open a Business Bank Account
Keep business finances separate from personal to protect your LLC status and simplify taxes. You'll need your EIN, LLC formation documents, and a government-issued ID. Many online banks offer free business checking with no minimum balance.
Obtain Licenses & Permits
Requirements vary by state and city. Common licenses for a restaurant / food truck include:
- •General business license (city/county level)
- •State business registration / DBA if operating under a trade name
- •Industry-specific licenses required by your state
- •Zoning / occupancy permit for your location
- •Seller's permit / sales tax license (if selling taxable goods)
Budget $500–$2,500 for licenses and permits in year one.
Get Business Insurance
At minimum, you'll need general liability insurance (covers customer injuries and property damage). If you have employees, workers' compensation is required in most states. Commercial property insurance covers your equipment and inventory.
- •General liability: $400–$1,500/year
- •Workers' comp: varies by state and payroll (see employee cost calculator)
- •Commercial property: $750–$2,500/year
Set Up Accounting & Payroll
Track income and expenses from day one. Accounting software simplifies tax filing and helps you spot profitability issues early. If you hire employees, payroll software handles tax withholding, deposits, and quarterly filings automatically.
Restaurant Licensing & Permit Requirements
Restaurants face the most complex licensing requirements of any small business. Budget $3,000–$15,000+ for permits in year one, and plan 3–6 months for approvals before opening day.
Food Service / Health Department Permit
Required in every state. Your local health department inspects the kitchen layout, equipment, and sanitation systems before issuing this permit. Inspections are unannounced after opening.
- •Cost: $100–$1,000/year depending on county and seating capacity
- •Timeline: 4–8 weeks; requires passing inspection before opening
- •Source: Your county or city health department (not state-level)
Food Handler & Food Manager Certifications
Most states require at least one certified Food Protection Manager (ServSafe or equivalent) on staff. All food handlers typically need a Food Handler Card (also called food worker card or food safety certificate).
- •Food Manager Cert: $100–$200 per person (ServSafe exam + certification)
- •Food Handler Card: $10–$30 per employee; valid 2–3 years in most states
- •Who issues: State health department or accredited certifying organization (ServSafe, NRFSP, Prometric)
Liquor License (ABC License)
If you plan to serve alcohol, an ABC (Alcoholic Beverage Control) license is required. This is often the most expensive and time-consuming permit for restaurants. License types vary by state (beer/wine only vs. full liquor).
- •Cost range: $300 (beer/wine, rural) to $15,000+ (full liquor, urban markets)
- •California: Type 47 full-service license averages $15,000–$20,000 in transfer market; state fee $15,000
- •New York: On-premises liquor license $4,352 state fee + local approval
- •Texas: Mixed beverage permit $1,500–$4,000 depending on gross receipts
- •Timeline: 60–180 days; some states have quota systems (no new licenses available in certain areas)
- •Who issues: State Alcoholic Beverage Control board (varies: ABC, DABC, LCB, TABC by state)
If an ABC license is unavailable (quota areas), you may need to purchase a transferable license from an existing license holder — prices range from $50,000–$500,000+ in high-demand markets.
Commercial Kitchen Requirements & Fire Safety
Commercial kitchens require specific equipment, ventilation, and fire suppression systems. These are inspected by both the health department and fire marshal before opening.
- •Hood & suppression system: $3,000–$15,000+ installed (required over open-flame cooking equipment)
- •3-compartment sink: Required by code for washing, rinsing, sanitizing dishes
- •Fire extinguishers: $50–$150 each; placement and type specified by fire marshal
- •Certificate of Occupancy: Required after buildout; issued by city building department after fire and building inspections
- •ADA compliance: Required for public-facing areas; restrooms, entrances, dining area must meet ADA standards
Restaurant Permit Budget (Estimate)
Form Your Restaurant / Food Truck LLC
These services handle filing, registered agent service, and compliance — so you can focus on launching.
LLC formation with registered agent, operating agreement, and annual report reminders. Plans from $0 + state fees.
Start your LLC →
Free LLC formation service — you pay state fees only. Includes first year of registered agent, EIN assistance, and banking setup help.
Form free LLC →
Some links may be affiliate links. CostCrunch may earn a commission at no extra cost to you.
Accounting & Business Tools
Track expenses, manage payroll, and handle taxes from day one.
Track startup expenses, invoices, and cash flow. Industry standard for small business accounting.
Full-service payroll with automatic tax filings. Handles federal, state, and local payroll taxes.
Simple invoicing and expense tracking. Built for small service businesses.
Some links may be affiliate links. CostCrunch may earn a commission at no extra cost to you.
Planning to Hire Employees?
Labor is often the largest ongoing cost for a restaurant / food truck. The true cost of an employee includes employer payroll taxes, workers' comp, and benefits — typically 18–35% above salary. See exact costs by state.
Other Business Type Guides
Get City-Adjusted Cost Estimates
Startup costs vary significantly by city. See cost estimates for a restaurant / food truck in your city.
See Startup Costs by City →Get the restaurant / food truck startup checklist
We'll send you a detailed cost breakdown, LLC formation guide, and licensing checklist for starting a restaurant / food truck.
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