Coffee Shop Startup Cost Comparison
Rochester, MN vs Los Angeles, CA
Rochester, MN
$59,000 - $231,000
COL Index: 101.5
VS
Los Angeles, CA
$83,000 - $332,000
COL Index: 166.5
Detailed Cost Comparison
| Expense | Rochester, MN | Los Angeles, CA | Difference |
|---|---|---|---|
|
Business Registration & Licenses
|
$800 - $4,000 | $4,000 - $14,400 | -74% |
|
Commercial Lease (First + Last + Security)
|
$5,700 - $28,700 | $15,000 - $75,000 | -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
|
$15,000 - $60,000 | $20,300 - $81,000 | -26% |
|
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)
|
$10,200 - $35,500 | $16,700 - $58,300 | -39% |
| Total Estimated Cost | $59,000 - $231,000 | $83,000 - $332,000 | -30% |
Local Market Factors
| Factor | Rochester | Los Angeles |
|---|---|---|
| Cost of Living Index | 101.5 | 166.5 |
| Commercial Rent ($/sqft/yr) | $14 - $30 | $30 - $85 |
| Labor Rate Index | 1 | 1.35 |
| Sales Tax | 7.375% | 9.5% |
| Minimum Wage | $10.85/hr | $16.78/hr |
| LLC Filing Fee | $155 | $70 |
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