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

Nashville, TN vs Chicago, IL

Nashville, TN

$87,000 - $343,000

COL Index: 103.8

Chicago, IL

$97,000 - $380,000

COL Index: 107.8

Detailed Cost Comparison

Expense	Nashville, TN	Chicago, IL	Difference
Business Registration & Licenses	$1,900 - $6,400	$5,600 - $10,900	-50%
Commercial Lease (First + Last + Security)	$13,700 - $68,500	$17,600 - $88,000	-22%
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	$23,000 - $92,000	-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)	$15,600 - $51,900	$16,200 - $53,900	-4%
Total Estimated Cost	$87,000 - $343,000	$97,000 - $380,000	-10%

Local Market Factors

Factor	Nashville	Chicago
Cost of Living Index	103.8	107.8
Commercial Rent ($/sqft/yr)	$20 - $50	$25 - $65
Labor Rate Index	1.02	1.15
Sales Tax	9.25%	10.25%
Minimum Wage	$7.25/hr	$15.80/hr
LLC Filing Fee	$300	$150

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