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

Orem, UT vs Chicago, IL

Orem, UT

$80,000 - $313,000

COL Index: 104.8

Chicago, IL

$97,000 - $380,000

COL Index: 107.8

Detailed Cost Comparison

Expense	Orem, UT	Chicago, IL	Difference
Business Registration & Licenses	$1,300 - $6,000	$5,600 - $10,900	-56%
Commercial Lease (First + Last + Security)	$8,200 - $41,100	$17,600 - $88,000	-53%
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)	$15,700 - $52,400	$16,200 - $53,900	-3%
Total Estimated Cost	$80,000 - $313,000	$97,000 - $380,000	-18%

Local Market Factors

Factor	Orem	Chicago
Cost of Living Index	104.8	107.8
Commercial Rent ($/sqft/yr)	$14 - $28	$25 - $65
Labor Rate Index	0.98	1.15
Sales Tax	7.25%	10.25%
Minimum Wage	$7.25/hr	$15.80/hr
LLC Filing Fee	$54	$150

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