How much does it cost to open a small restaurant?

A small restaurant (under 2,000 sq ft) typically costs $75,000 to $150,000 to open, including lease deposits, equipment, permits, and initial inventory. Costs vary significantly by location.

What is the most expensive part of opening a restaurant?

Kitchen equipment and interior build-out are usually the largest expenses, often accounting for 40-60% of total startup costs.

Can I open a restaurant with $50,000?

It's possible with a very small space, used equipment, and a location with low commercial rents. Food trucks ($50K-$100K) are a more realistic option at this budget.

Restaurant Startup Cost Comparison

Anchorage, AK vs New York, NY

Anchorage, AK

$91,000 - $357,000

COL Index: 132.5

New York, NY

$129,000 - $518,000

COL Index: 187.2

Detailed Cost Comparison

Expense	Anchorage, AK	New York, NY	Difference
Business Registration & Licenses	$3,100 - $13,700	$5,300 - $17,100	-25%
Commercial Lease (First + Last + Security)	$8,800 - $44,000	$31,300 - $156,500	-72%
Kitchen Equipment & Fixtures	$25,000 - $100,000	$25,000 - $100,000	Same
Initial Food & Beverage Inventory	$5,000 - $15,000	$5,000 - $15,000	Same
Interior Build-Out & Renovation	$24,400 - $97,600	$29,000 - $116,000	-16%
Business Insurance (Annual)	$3,000 - $10,000	$3,000 - $10,000	Same
Marketing & Grand Opening	$2,000 - $10,000	$2,000 - $10,000	Same
Working Capital (3 Months)	$19,900 - $66,300	$28,100 - $93,600	-29%
Total Estimated Cost	$91,000 - $357,000	$129,000 - $518,000	-31%

Local Market Factors

Factor	Anchorage	New York
Cost of Living Index	132.5	187.2
Commercial Rent ($/sqft/yr)	$15 - $30	$40 - $120
Labor Rate Index	1.22	1.45
Sales Tax	0%	8.875%
Minimum Wage	$11.73/hr	$16.00/hr
LLC Filing Fee	$250	$200

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