Bar Startup Cost Comparison

Los Angeles, CA vs Houston, TX

Los Angeles, CA

$117,000 - $487,000

COL Index: 166.5

VS

Houston, TX

$84,000 - $349,000

COL Index: 96.5

Detailed Cost Comparison

Expense Los Angeles, CA Houston, TX Difference
Business Registration & Liquor License
$4,000 - $15,000 $2,000 - $15,000 +12%
Commercial Lease (First + Last + Security)
$22,500 - $131,300 $12,300 - $71,900 +83%
Bar Equipment & Fixtures
$15,000 - $60,000 $15,000 - $60,000 Same
Initial Liquor & Beverage Inventory
$8,000 - $25,000 $8,000 - $25,000 Same
Interior Build-Out & Renovation
$33,800 - $135,000 $23,000 - $92,000 +47%
Sound System & Security
$5,000 - $25,000 $5,000 - $25,000 Same
Business Insurance (Annual)
$4,000 - $12,000 $4,000 - $12,000 Same
Working Capital (3 Months)
$25,000 - $83,300 $14,500 - $48,300 +72%
Total Estimated Cost $117,000 - $487,000 $84,000 - $349,000 +39%

Local Market Factors

Factor Los Angeles Houston
Cost of Living Index 166.5 96.5
Commercial Rent ($/sqft/yr) $30 - $85 $18 - $45
Labor Rate Index 1.35 0.92
Sales Tax 9.5% 8.25%
Minimum Wage $16.78/hr $7.25/hr
LLC Filing Fee $70 $300

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