Fast Food Franchise Startup Cost Comparison
Phoenix, AZ vs Houston, TX
Phoenix, AZ
$149,000 - $2,469,000
COL Index: 103.4
VS
Houston, TX
$147,000 - $2,455,000
COL Index: 96.5
Detailed Cost Comparison
| Expense | Phoenix, AZ | Houston, TX | Difference |
|---|---|---|---|
|
Franchise Fee
|
$10,000 - $50,000 | $10,000 - $50,000 | Same |
|
Restaurant Build-Out
|
$68,500 - $1,643,500 | $68,500 - $1,643,500 | Same |
|
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
|
$5,000 - $40,000 | $4,600 - $36,800 | +9% |
|
Grand Opening Campaign
|
$5,000 - $25,000 | $5,000 - $25,000 | Same |
|
Working Capital (3 Months)
|
$20,700 - $155,100 | $19,300 - $144,800 | +7% |
| Total Estimated Cost | $149,000 - $2,469,000 | $147,000 - $2,455,000 | +1% |
Local Market Factors
| Factor | Phoenix | Houston |
|---|---|---|
| Cost of Living Index | 103.4 | 96.5 |
| Commercial Rent ($/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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