Fast Food Franchise Startup Cost Comparison
Los Angeles, CA vs Houston, TX
Los Angeles, CA
$220,000 - $3,934,000
COL Index: 166.5
VS
Houston, TX
$147,000 - $2,455,000
COL Index: 96.5
Detailed Cost Comparison
| Expense | Los Angeles, CA | Houston, TX | Difference |
|---|---|---|---|
|
Franchise Fee
|
$10,000 - $50,000 | $10,000 - $50,000 | Same |
|
Restaurant Build-Out
|
$125,000 - $3,000,000 | $68,500 - $1,643,500 | +83% |
|
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
|
$6,800 - $54,000 | $4,600 - $36,800 | +47% |
|
Grand Opening Campaign
|
$5,000 - $25,000 | $5,000 - $25,000 | Same |
|
Working Capital (3 Months)
|
$33,300 - $249,800 | $19,300 - $144,800 | +73% |
| Total Estimated Cost | $220,000 - $3,934,000 | $147,000 - $2,455,000 | +60% |
Local Market Factors
| Factor | Los Angeles | Houston |
|---|---|---|
| Cost of Living Index | 166.5 | 96.5 |
| Commercial Rent ($/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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