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 New York, NY

Madison, WI

$80,000 - $315,000

COL Index: 102.5

New York, NY

$129,000 - $518,000

COL Index: 187.2

Detailed Cost Comparison

Expense	Madison, WI	New York, NY	Difference
Business Registration & Licenses	$900 - $5,000	$5,300 - $17,100	-74%
Commercial Lease (First + Last + Security)	$9,000 - $45,000	$31,300 - $156,500	-71%
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	$29,000 - $116,000	-32%
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	$28,100 - $93,600	-45%
Total Estimated Cost	$80,000 - $315,000	$129,000 - $518,000	-39%

Local Market Factors

Factor	Madison	New York
Cost of Living Index	102.5	187.2
Commercial Rent ($/sqft/yr)	$14 - $32	$40 - $120
Labor Rate Index	0.98	1.45
Sales Tax	5.5%	8.875%
Minimum Wage	$7.25/hr	$16.00/hr
LLC Filing Fee	$130	$200

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