Fast Food Franchise Startup Cost Comparison
Scottsdale, AZ vs Los Angeles, CA
Scottsdale, AZ
$172,000 - $2,926,000
COL Index: 125.5
VS
Los Angeles, CA
$220,000 - $3,934,000
COL Index: 166.5
Detailed Cost Comparison
| Expense | Scottsdale, AZ | Los Angeles, CA | Difference |
|---|---|---|---|
|
Franchise Fee
|
$10,000 - $50,000 | $10,000 - $50,000 | Same |
|
Restaurant Build-Out
|
$85,900 - $2,060,900 | $125,000 - $3,000,000 | -31% |
|
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
|
$5,900 - $47,200 | $6,800 - $54,000 | -13% |
|
Grand Opening Campaign
|
$5,000 - $25,000 | $5,000 - $25,000 | Same |
|
Working Capital (3 Months)
|
$25,100 - $188,300 | $33,300 - $249,800 | -25% |
| Total Estimated Cost | $172,000 - $2,926,000 | $220,000 - $3,934,000 | -25% |
Local Market Factors
| Factor | Scottsdale | Los Angeles |
|---|---|---|
| Cost of Living Index | 125.5 | 166.5 |
| Commercial Rent ($/sqft/yr) | $24 - $55 | $30 - $85 |
| Labor Rate Index | 1.18 | 1.35 |
| Sales Tax | 8.05% | 9.5% |
| Minimum Wage | $14.35/hr | $16.78/hr |
| LLC Filing Fee | $50 | $70 |
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