Coffee Shop Startup Cost Comparison

Phoenix, AZ vs Houston, TX

Phoenix, AZ

$63,000 - $247,000

COL Index: 103.4

VS

Houston, TX

$61,000 - $239,000

COL Index: 96.5

Detailed Cost Comparison

Expense Phoenix, AZ Houston, TX Difference
Business Registration & Licenses
$2,000 - $6,400 $1,900 - $6,200 +4%
Commercial Lease (First + Last + Security)
$8,200 - $41,100 $8,200 - $41,100 Same
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
$15,000 - $60,000 $13,800 - $55,200 +9%
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)
$10,300 - $36,200 $9,700 - $33,800 +7%
Total Estimated Cost $63,000 - $247,000 $61,000 - $239,000 +3%

Local Market Factors

Factor Phoenix Houston
Cost of Living Index 103.4 96.5
Commercial Rent ($/sqft/yr) $18 - $45 $18 - $45
Labor Rate Index 1 0.92
Sales Tax 8.6% 8.25%
Minimum Wage $14.35/hr $7.25/hr
LLC Filing Fee $50 $300

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