How Much Does It Cost to Open a Restaurant?
A realistic breakdown of what it costs to open a restaurant in 2026 — by concept, line by line, plus the working capital and hidden costs first-timers miss.
Opening a restaurant typically costs between $175,000 and $750,000, and a full-service build-out in a major metro can pass $1 million. A small counter-service spot in a second-generation space (one that was already a restaurant) can open for under $150,000; a food truck for $50,000–$150,000. The range is wide because three decisions drive most of the number: whether you inherit a kitchen or build one, how many seats you're fitting out, and how much cash you keep in reserve. Here's where the money actually goes.
Startup cost by concept
| Concept | Typical all-in range | Biggest driver |
|---|---|---|
| Food truck / trailer | $50,000–$150,000 | Vehicle and build |
| Coffee shop / café, 20–30 seats | $120,000–$300,000 | Espresso equipment, build-out |
| Counter service / fast casual, 40 seats | $175,000–$450,000 | Kitchen and hood |
| Casual full service, 80–100 seats | $350,000–$800,000 | Build-out, furniture, opening labor |
| Bar / gastropub | $300,000–$750,000 | Liquor license, bar build |
| Fine dining | $750,000–$2M+ | Everything, done twice |
Those assume a leased space. Buying the building is a different conversation.
The line-by-line budget
| Category | Typical range | Notes |
|---|---|---|
| Lease deposit & first months | $10,000–$50,000 | First, last, security; landlords often want 2–3 months |
| Build-out & renovation | $50,000–$300,000+ | The single biggest variable — hood, grease trap, plumbing, electrical, ADA |
| Kitchen equipment | $40,000–$150,000 | Used gear cuts this 40–60% |
| Furniture, fixtures & décor | $20,000–$100,000 | Tables, chairs, lighting, signage |
| Smallwares & opening supplies | $8,000–$25,000 | Plates, glassware, pans, utensils — always more than you think |
| Licenses & permits | $5,000–$20,000 | Health, business, building, signage; liquor license is separate |
| Liquor license | $500–$400,000 | Depends entirely on your state and county |
| POS & technology | $2,000–$25,000 | Hardware, network, printers, kitchen screens |
| Initial inventory | $5,000–$25,000 | Opening food, beverage, and paper |
| Pre-opening labor & training | $15,000–$50,000 | Two to four weeks of payroll before the first sale |
| Pre-opening marketing | $5,000–$20,000 | Website, signage, soft opening, launch |
| Professional fees | $5,000–$25,000 | Architect, attorney, accountant, permits expediter |
| Insurance (first year) | $5,000–$15,000 | Liability, property, workers' comp, liquor |
| Working capital reserve | $50,000–$150,000 | Three to six months of operating expenses |
Add a 10–15% contingency to the total. Every build-out finds something behind a wall.
The three costs that decide your number
Build-out. A second-generation space with a working hood, grease interceptor, and walk-in can cost $50,000 to refresh. The same space as a raw shell costs $250,000+ because a commercial hood with fire suppression alone runs $20,000–$60,000 installed, and the plumbing and electrical to support a kitchen aren't far behind. Before signing anything, walk the space with a contractor and a health inspector's checklist. How to Negotiate a Commercial Lease covers tenant improvement allowances, which can shift a big part of this cost to the landlord.
Equipment. New, a full line for an 80-seat restaurant is $100,000+. Restaurant auctions and closures put nearly-new equipment on the market at 30–50 cents on the dollar every week. Buy used for anything mechanical that's easy to service (ranges, tables, shelving, sinks) and new for refrigeration and anything with a warranty you'll rely on. Restaurant Equipment Buying Guide has the list.
Working capital. The most common way first-time owners fail isn't a bad concept — it's running out of cash before the restaurant finds its feet. New restaurants rarely turn a profit in month one, and you still have to make payroll, rent, and vendor payments while you build a customer base. Budget three to six months of full operating expenses in reserve, and treat it as untouchable during the build.
Where technology fits in the budget
Ten years ago a POS line was $15,000–$30,000 in hardware plus $300–$500 a month in software and per-terminal fees. Today that's optional. All-in-one platforms run on standard tablets, and Cobblestone POS charges no monthly software fee — POS, online ordering, scheduling, and loyalty included — so the technology line becomes hardware, network, and printers: typically $2,000–$6,000 for a small restaurant. That's real money you can move to the working capital reserve. Compare: a legacy system at $470+/month is $5,600 a year before you've sold a plate.
Ways to lower your startup cost
- Take over an existing restaurant space. Inheriting a hood, grease trap, and walk-in saves the most expensive part of the build.
- Buy used equipment and lease only what you must. Leasing preserves cash but costs more over time.
- Start smaller. Fewer seats, a tighter menu, a counter-service model, or a ghost kitchen. You can always expand a concept that works.
- Negotiate tenant improvements. Landlords with a vacant restaurant space will often fund part of the build-out for a longer lease.
- Phase the décor. Open with the dining room 80% finished. Nobody has ever left a restaurant because the art wasn't up.
- Skip the software fees. See above.
Build a real budget before you sign anything
Every number here is a range for a reason — your figure depends on dozens of choices. Before you commit to a lease, build a line-by-line startup budget and a month-by-month cash-flow projection for your first year, using your own quotes, not internet averages. How to Create a Startup Budget is the template, and Building Your Restaurant's Financial Projections covers the first-year forecast. If the plan only works in a best-case scenario, it doesn't work.
Underestimating costs and skipping the cash reserve is the number-one financial mistake in new restaurants. Pad your estimate by 15%, then protect the reserve like it's rent.
Frequently asked questions
Can I open a restaurant for $100,000? Yes, if it's small, counter-service, in a second-generation space, with used equipment and no liquor license. It leaves little reserve, so the concept has to work quickly.
How much should I keep in reserve? Three months minimum, six if you're in a seasonal market or opening in your slow season.
Should I finance equipment? Financing spreads the cost but adds interest and a monthly payment during the months you're least able to make it. Finance refrigeration and cooking line if you must; pay cash for smallwares and furniture.
What do first-time owners most often forget? Pre-opening payroll, smallwares, the grease trap, permit delays (which mean paying rent for months with no sales), and the contingency.
Build your numbers with the free Startup Budget Worksheet (Excel).
