Catering Business Startup Cost Comparison

Los Angeles, CA vs Houston, TX

Los Angeles, CA

$35,000 - $177,000

COL Index: 166.5

VS

Houston, TX

$26,000 - $134,000

COL Index: 96.5

Detailed Cost Comparison

Expense Los Angeles, CA Houston, TX Difference
Business Registration & Licenses
$4,000 - $14,400 $1,900 - $6,200 +127%
Commercial Kitchen Access
$7,500 - $45,000 $4,100 - $24,700 +82%
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)
$8,300 - $33,300 $4,800 - $19,300 +73%
Total Estimated Cost $35,000 - $177,000 $26,000 - $134,000 +33%

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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