Catering Business Startup Cost Comparison
Detroit, MI vs Chicago, IL
Detroit, MI
$23,000 - $121,000
COL Index: 89.5
VS
Chicago, IL
$32,000 - $152,000
COL Index: 107.8
Detailed Cost Comparison
| Expense | Detroit, MI | Chicago, IL | Difference |
|---|---|---|---|
|
Business Registration & Licenses
|
$800 - $3,900 | $5,600 - $10,900 | -72% |
|
Commercial Kitchen Access
|
$2,500 - $14,900 | $5,900 - $35,200 | -58% |
|
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)
|
$4,500 - $17,900 | $5,400 - $21,600 | -17% |
| Total Estimated Cost | $23,000 - $121,000 | $32,000 - $152,000 | -22% |
Local Market Factors
| Factor | Detroit | Chicago |
|---|---|---|
| Cost of Living Index | 89.5 | 107.8 |
| Commercial Rent ($/sqft/yr) | $10 - $28 | $25 - $65 |
| Labor Rate Index | 0.85 | 1.15 |
| Sales Tax | 6% | 10.25% |
| Minimum Wage | $10.33/hr | $15.80/hr |
| LLC Filing Fee | $50 | $150 |
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