What Are Average Restaurant Startup Costs?

The initial expenditures of opening a restaurant might vary greatly, so having accurate figures is helpful when creating a plan. The median cost to operate an independent restaurant, according to recent industry surveys, is about $375,000, though the complete range varies greatly based on your idea, size, and city. As per the stats, depending on your setup, the wider range may be anywhere from about $175,000 to over $750,000.

A few things that you need to take care of. Construction and build-out is usually your highest and least flexible cost, often running $100 to $800 per square foot, with the kitchen itself taking most of it. If you find a restaurant space, then you just need minor updates, which cost a lot less than converting a space that's never had a commercial kitchen before.

Beyond build-out, you're making a budget for kitchen equipment, furniture, your POS and tech stack, licenses and permits (including your liquor license if you're serving alcohol), initial inventory, staff training before opening, and marketing to get everything on day one.

A lot of owners forget to budget cash, enough to cover a few months of expenses while the business finds its name, since very few restaurants become profitable in their first weeks.

A full-service restaurant typically costs more to open than a fast casual or counter-service concept, since you're dealing with more square footage, more equipment, and more upfront design work.