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

Midland, TX vs Houston, TX

Midland, TX

$80,000 - $314,000

COL Index: 98.5

Houston, TX

$82,000 - $325,000

COL Index: 96.5

Detailed Cost Comparison

Expense	Midland, TX	Houston, TX	Difference
Business Registration & Licenses	$1,300 - $5,000	$1,900 - $6,200	-22%
Commercial Lease (First + Last + Security)	$8,600 - $43,000	$12,300 - $61,600	-30%
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	$20,400 - $81,600	$18,400 - $73,600	+11%
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)	$14,800 - $49,300	$14,500 - $48,300	+2%
Total Estimated Cost	$80,000 - $314,000	$82,000 - $325,000	-3%

Local Market Factors

Factor	Midland	Houston
Cost of Living Index	98.5	96.5
Commercial Rent ($/sqft/yr)	$14 - $30	$18 - $45
Labor Rate Index	1.02	0.92
Sales Tax	8.25%	8.25%
Minimum Wage	$7.25/hr	$7.25/hr
LLC Filing Fee	$300	$300

View Full Details

Ready to Start Your Restaurant?

Start your Restaurant LLC in — free registered agent for 1 year.

Form Your LLC for $0 + State Fee →

Trusted by 500,000+ businesses · Excellent rating on Trustpilot