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

New York, NY vs Los Angeles, CA

New York, NY

$129,000 - $518,000

COL Index: 187.2

Los Angeles, CA

$114,000 - $453,000

COL Index: 166.5

Detailed Cost Comparison

Expense	New York, NY	Los Angeles, CA	Difference
Business Registration & Licenses	$5,300 - $17,100	$4,000 - $14,400	+22%
Commercial Lease (First + Last + Security)	$31,300 - $156,500	$22,500 - $112,500	+39%
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	$29,000 - $116,000	$27,000 - $108,000	+7%
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)	$28,100 - $93,600	$25,000 - $83,300	+12%
Total Estimated Cost	$129,000 - $518,000	$114,000 - $453,000	+14%

Local Market Factors

Factor	New York	Los Angeles
Cost of Living Index	187.2	166.5
Commercial Rent ($/sqft/yr)	$40 - $120	$30 - $85
Labor Rate Index	1.45	1.35
Sales Tax	8.875%	9.5%
Minimum Wage	$16.00/hr	$16.78/hr
LLC Filing Fee	$200	$70

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