Coffee Shop Startup Cost Comparison
Chattanooga, TN vs Chicago, IL
Chattanooga, TN
$55,000 - $216,000
COL Index: 89.8
VS
Chicago, IL
$72,000 - $279,000
COL Index: 107.8
Detailed Cost Comparison
| Expense | Chattanooga, TN | Chicago, IL | Difference |
|---|---|---|---|
|
Business Registration & Licenses
|
$1,100 - $5,000 | $5,600 - $10,900 | -63% |
|
Commercial Lease (First + Last + Security)
|
$4,400 - $22,200 | $11,700 - $58,700 | -62% |
|
Espresso Machines & Equipment
|
$20,000 - $80,000 | $20,000 - $80,000 | Same |
|
Initial Coffee & Food Inventory
|
$3,000 - $8,000 | $3,000 - $8,000 | Same |
|
Interior Build-Out & Renovation
|
$13,500 - $54,000 | $17,300 - $69,000 | -22% |
|
Business Insurance (Annual)
|
$2,000 - $7,000 | $2,000 - $7,000 | Same |
|
Marketing & Grand Opening
|
$2,000 - $8,000 | $2,000 - $8,000 | Same |
|
Working Capital (3 Months)
|
$9,000 - $31,400 | $10,800 - $37,700 | -17% |
| Total Estimated Cost | $55,000 - $216,000 | $72,000 - $279,000 | -23% |
Local Market Factors
| Factor | Chattanooga | Chicago |
|---|---|---|
| Cost of Living Index | 89.8 | 107.8 |
| Commercial Rent ($/sqft/yr) | $10 - $24 | $25 - $65 |
| Labor Rate Index | 0.9 | 1.15 |
| Sales Tax | 9.25% | 10.25% |
| Minimum Wage | $7.25/hr | $15.80/hr |
| LLC Filing Fee | $300 | $150 |
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