Startup cost breakdown · 2026
How much does it cost to open a restaurant?
Opening a full-service restaurant is one of the most capital-heavy small businesses because the space, the kitchen and the dining room all need work before the first guest sits down. Build-out and kitchen equipment are the biggest costs, and a liquor license can add a long, expensive process depending on your city. Owners who take over a second-generation restaurant space with a hood and walk-in already installed save the most.
Itemized startup costs
| Item | Low | High | Share of max |
|---|---|---|---|
| Leasehold improvements and kitchen modifications | $40,000 | $280,000 | |
| Kitchen equipment (oven, ranges, refrigeration, smallwares) | $35,000 | $130,000 | |
| Furniture, bar, lighting and decor | $18,000 | $85,000 | |
| Lease deposit and prepaid rent | $10,000 | $45,000 | |
| Pre-opening payroll and training | $12,000 | $45,000 | |
| Working capital reserveoptional | $28,000 | $35,000 | |
| Liquor license and permits | $6,000 | $30,000 | |
| Initial food, beverage and supplies inventory | $8,000 | $28,000 | |
| Legal, accounting and design fees | $5,000 | $25,000 | |
| Marketing and grand opening | $4,000 | $18,000 | |
| POS, reservation, security and audio systems | $5,000 | $15,000 | |
| Signage, website and branding | $4,000 | $14,000 | |
| Total (lean → fully equipped) | $147,000 | $750,000 |
What drives the cost
- Build-out and kitchen modifications
- The plan budgets $40,000 to $280,000 for leasehold improvements. Installing a hood, fire suppression, grease trap and gas lines from scratch drives the high end, which is why second-generation spaces are popular.
- Kitchen equipment
- An oven, ranges, refrigeration and smallwares cost $35,000 to $130,000. A wood-fired oven like the one in the sample plan is a centerpiece expense.
- Dining room and bar
- Furniture, bar, lighting and decor run $18,000 to $85,000 for a 70-seat room.
- Liquor license
- In some cities licenses are capped and must be bought from an existing holder; in others they are issued directly. The process and cost vary widely, so check with your state and city alcohol authority early.
- Pre-opening payroll
- Training cooks and servers before opening costs $12,000 to $45,000. Mock services catch problems before paying guests arrive.
The cheapest way to open a restaurant
Lease a restaurant space with a working hood, walk-in and dining room, buy used kitchen equipment from auctions or dealers, and launch with a limited menu and beer and wine before pursuing a full liquor license. Opening for dinner only at first keeps labor lower.
- Negotiate tenant improvement money and free rent during construction.
- Buy used equipment from closed restaurants.
- Lease the dish machine and ice machine instead of buying.
- Start with a shorter menu to cut inventory and equipment.
- Hold soft openings to train staff and build early buzz.
Costs owners forget
- Hood cleaning, grease trap pumping and fire suppression inspections.
- Menu testing and food waste before and after opening.
- Linen service, cleaning and maintenance, about $1,800 a month in the plan.
- Credit card processing and reservation platform fees.
- Architect and design fees needed for permit drawings.
Monthly operating costs
- Rent and common area charges$11,500
- Salaried staff (chef and general manager)$11,000
- Utilities$3,200
- Insurance and licenses$1,400
- Loan payments$4,800
- Marketing, software and POS fees$2,600
- Maintenance, linens and cleaning$1,800
- Total per month$36,300
How owners pay for it
Restaurants are usually funded with owner equity, SBA-backed loans, equipment financing and sometimes investors. The plan carries loan payments of about $4,800 a month, so lenders will want a detailed plan and personal investment.
Build your own budget
Toggle optional items, slide between a frugal and a comfortable launch, and change price and demand to see your own break-even month.
Startup costs
$345,800- $124,000
- $68,250
- $41,450
- $22,250
- $14,400
- $12,000
- $15,000
- $8,500
- $7,500
- $23,550
- $8,900
- $30,450
Monthly fixed costs after launch: $36,300
Year-one projection
Monthly revenue · bars turn orange once cumulative cash is positive
- Month 12 revenue
- $87,400
- Month 12 profit
- $7,400
- Break-even
- After yr 1
Illustrative estimate based on the sample plan’s assumptions — not financial advice. Your costs and results will differ.
Frequently asked questions
How much does it cost to open a restaurant?
A lean launch costs about $147,000 (required items at the low end); a fully equipped launch with every optional upgrade runs about $750,000. The single biggest line item is leasehold improvements and kitchen modifications at $40,000–$280,000.
What are the monthly costs of running a restaurant?
Fixed costs after launch come to roughly $36,300 a month in this budget: rent and common area charges ($11,500), salaried staff (chef and general manager) ($11,000), utilities ($3,200), insurance and licenses ($1,400) and more.
What is the most expensive part of opening a restaurant?
Build-out is usually the biggest cost, at $40,000 to $280,000 in the plan. Kitchen equipment follows at $35,000 to $130,000.
Can you open a restaurant with $100,000?
It is possible for a small counter-service or second-generation space with existing equipment. A 70-seat full-service restaurant like the sample plan usually needs more.
How much does a restaurant make a month?
The plan projects about 1,900 checks at a $46 average by month twelve, roughly $87,400 in monthly revenue. After 50% variable costs and about $36,300 in fixed costs, the margin is slim.
How long does it take for a restaurant to be profitable?
Many restaurants take a year or more to turn a steady profit. The sample plan grows from 900 to 1,900 checks a month over year one.