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

Madison, WI vs Chicago, IL

Madison, WI

$80,000 - $315,000

COL Index: 102.5

Chicago, IL

$97,000 - $380,000

COL Index: 107.8

Detailed Cost Comparison

Expense	Madison, WI	Chicago, IL	Difference
Business Registration & Licenses	$900 - $5,000	$5,600 - $10,900	-64%
Commercial Lease (First + Last + Security)	$9,000 - $45,000	$17,600 - $88,000	-49%
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	$19,600 - $78,400	$23,000 - $92,000	-15%
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)	$15,400 - $51,300	$16,200 - $53,900	-5%
Total Estimated Cost	$80,000 - $315,000	$97,000 - $380,000	-17%

Local Market Factors

Factor	Madison	Chicago
Cost of Living Index	102.5	107.8
Commercial Rent ($/sqft/yr)	$14 - $32	$25 - $65
Labor Rate Index	0.98	1.15
Sales Tax	5.5%	10.25%
Minimum Wage	$7.25/hr	$15.80/hr
LLC Filing Fee	$130	$150

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