Fast Food Franchise Startup Cost Comparison
Houston, TX vs New York, NY
Houston, TX
$147,000 - $2,455,000
COL Index: 96.5
VS
New York, NY
$274,000 - $5,143,000
COL Index: 187.2
Detailed Cost Comparison
| Expense | Houston, TX | New York, NY | Difference |
|---|---|---|---|
|
Franchise Fee
|
$10,000 - $50,000 | $10,000 - $50,000 | Same |
|
Restaurant Build-Out
|
$68,500 - $1,643,500 | $173,900 - $4,173,900 | -61% |
|
Kitchen Equipment & Technology
|
$30,000 - $500,000 | $30,000 - $500,000 | Same |
|
Insurance Package
|
$5,000 - $25,000 | $5,000 - $25,000 | Same |
|
Opening Inventory & Supplies
|
$5,000 - $30,000 | $5,000 - $30,000 | Same |
|
Hiring & Training
|
$4,600 - $36,800 | $7,300 - $58,000 | -37% |
|
Grand Opening Campaign
|
$5,000 - $25,000 | $5,000 - $25,000 | Same |
|
Working Capital (3 Months)
|
$19,300 - $144,800 | $37,400 - $280,800 | -48% |
| Total Estimated Cost | $147,000 - $2,455,000 | $274,000 - $5,143,000 | -52% |
Local Market Factors
| Factor | Houston | New York |
|---|---|---|
| Cost of Living Index | 96.5 | 187.2 |
| Commercial Rent ($/sqft/yr) | $18 - $45 | $40 - $120 |
| Labor Rate Index | 0.92 | 1.45 |
| Sales Tax | 8.25% | 8.875% |
| Minimum Wage | $7.25/hr | $16.00/hr |
| LLC Filing Fee | $300 | $200 |
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