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

Phoenix, AZ vs Chicago, IL

Phoenix, AZ

$85,000 - $335,000

COL Index: 103.4

Chicago, IL

$97,000 - $380,000

COL Index: 107.8

Detailed Cost Comparison

Expense	Phoenix, AZ	Chicago, IL	Difference
Business Registration & Licenses	$2,000 - $6,400	$5,600 - $10,900	-49%
Commercial Lease (First + Last + Security)	$12,300 - $61,600	$17,600 - $88,000	-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	$20,000 - $80,000	$23,000 - $92,000	-13%
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)	$15,500 - $51,700	$16,200 - $53,900	-4%
Total Estimated Cost	$85,000 - $335,000	$97,000 - $380,000	-12%

Local Market Factors

Factor	Phoenix	Chicago
Cost of Living Index	103.4	107.8
Commercial Rent ($/sqft/yr)	$18 - $45	$25 - $65
Labor Rate Index	1	1.15
Sales Tax	8.6%	10.25%
Minimum Wage	$14.35/hr	$15.80/hr
LLC Filing Fee	$50	$150

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