Catering Business Startup Cost Comparison
Ann Arbor, MI vs Chicago, IL
Ann Arbor, MI
$25,000 - $132,000
COL Index: 108
VS
Chicago, IL
$32,000 - $152,000
COL Index: 107.8
Detailed Cost Comparison
| Expense | Ann Arbor, MI | Chicago, IL | Difference |
|---|---|---|---|
|
Business Registration & Licenses
|
$900 - $4,600 | $5,600 - $10,900 | -67% |
|
Commercial Kitchen Access
|
$3,700 - $21,900 | $5,900 - $35,200 | -38% |
|
Catering Equipment & Supplies
|
$5,000 - $30,000 | $5,000 - $30,000 | Same |
|
Delivery Vehicle
|
$5,000 - $35,000 | $5,000 - $35,000 | Same |
|
Initial Food & Supply Inventory
|
$1,500 - $5,000 | $1,500 - $5,000 | Same |
|
Business Insurance (Annual)
|
$2,000 - $6,000 | $2,000 - $6,000 | Same |
|
Marketing & Branding
|
$1,500 - $8,000 | $1,500 - $8,000 | Same |
|
Working Capital (3 Months)
|
$5,400 - $21,600 | $5,400 - $21,600 | Same |
| Total Estimated Cost | $25,000 - $132,000 | $32,000 - $152,000 | -15% |
Local Market Factors
| Factor | Ann Arbor | Chicago |
|---|---|---|
| Cost of Living Index | 108 | 107.8 |
| Commercial Rent ($/sqft/yr) | $18 - $38 | $25 - $65 |
| Labor Rate Index | 1.05 | 1.15 |
| Sales Tax | 6% | 10.25% |
| Minimum Wage | $10.33/hr | $15.80/hr |
| LLC Filing Fee | $50 | $150 |
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