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Should I Start a Coffee Shop in Los Angeles? (2026 Viability Score)

Coffee Shop viability in Los Angeles, CA — 63/100 (Good Fit). Scores four factors: startup cost, market size, business climate, and labor taxes.

No signup No tracking Last updated March 2026
Data current as of March 2026 Sources: SBA, BLS, Secretary of State filings, COLI data
63 / 100
Good Fit

Los Angeles is a good fit for a coffee shop in 2026. The city scores well on multiple factors. First-year costs run approximately $234,992 — $83,600 upfront plus $12,616/month — adjusted for Los Angeles's cost-of-living index of 152.0 (52% above the US average).

Score Breakdown

9/25
Entry Cost
First-year startup cost adjusted for COL
$234,992 year one
15/25
Market Size
Population × spending power
0 residents
14/25
Business Climate
LLC fees + state income tax
$70 LLC filing fee
25/25
Labor Costs
SUTA + workers' comp rates
SUTA 0.034% · WC 0.0154%

Cost Snapshot for Los Angeles

Item Amount
One-time startup costs $83,600
Monthly operating costs $12,616/mo
First-year total $234,992
LLC filing fee (CA) $70
Employer SUTA rate (CA) 0.034%
Workers' comp rate (CA) 0.0154%
Cost-of-living index 152.0 (US avg = 100)

All costs adjusted for Los Angeles's cost-of-living index. National averages used for worker cost rates.

How Los Angeles Compares

City Score
Los Angeles, CA (this city) 63
Seattle, WA 65
Miami, FL 66
Chicago, IL 67

Go Deeper

Can I Afford It?
Enter your savings and financing to see your funding gap for a coffee shop in Los Angeles.
Full Cost Breakdown
Line-by-line startup cost breakdown for a coffee shop in Los Angeles.
Form an LLC in CA
Step-by-step guide to registering your coffee shop as an LLC in CA.

How the Viability Score Works

The score combines four data-driven dimensions, each worth up to 25 points. It measures conditions in Los Angeles, not your personal finances — a low score means the environment is harder, not that the business can't succeed.

1
Entry Cost (0–25)
First-year startup cost adjusted for Los Angeles's cost-of-living index. Lower cost markets score higher.
2
Market Size (0–25)
City population scaled by cost-of-living index (a proxy for consumer spending power). Larger, wealthier markets score higher.
3
Business Climate (0–25)
LLC filing fee, annual report fees, and whether the state has a personal income tax. Lower fees and no income tax score higher.
4
Labor Costs (0–25)
State SUTA (unemployment tax) rate and workers' compensation rate. Lower payroll tax burden scores higher.

Data sources: SBA.gov (LLC fees), BLS QCEW (SUTA rates), NCCI (workers' comp), COLI (cost-of-living). Updated 2026.

Estimates only. These results are based on publicly available data and standard formulas. Actual costs may vary based on your specific circumstances. This calculator does not constitute financial, tax, or legal advice. Consult a qualified professional for advice on your situation.

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