Opening a Restaurant • Cost Guide
How much does it cost to open a restaurant?
The honest answer: anywhere from the cost of a small café build-out to well past seven figures for a full-service concept in a raw space. What matters more than the total is knowing where the money actually goes — and which expenses first-time owners never see coming.
Typical Ranges
What owners commonly spend, by concept.
Every market is different, but these planning ranges reflect what independent owners typically invest before opening day. Use them as a starting frame — then build your own numbers from real quotes in your market.
Coffee shop / small café
Roughly $80K–$300K
Limited kitchen, smaller footprint, simpler permitting. Espresso and coffee programs are a meaningful equipment line on their own.
Fast-casual or counter service
Roughly $250K–$600K
Real kitchen equipment, a hood system, and a service area. Second-generation spaces can pull this toward the lower end.
Full-service restaurant or bar
Roughly $400K–$1M+
Full kitchen and bar build-out, liquor licensing, larger team, longer ramp-up. Raw-shell spaces in major markets can exceed this quickly.
These are broad industry planning ranges, not quotes. Your market, space condition, concept and licensing environment will move the real numbers — which is exactly why a concept-specific budget matters before you sign a lease.
Where the Money Goes
The six categories every opening budget must cover.
Space & build-out
Lease deposits, design, construction, plumbing, electrical, ventilation, and finishes. A second-generation restaurant space (one that already has a kitchen, hood and grease interceptor) can cost a fraction of a raw-shell build-out, which is often the single largest line item.
The biggest swing factor in any budget.
Kitchen & bar equipment
Cooking equipment, refrigeration, dishwashing, smallwares, bar hardware, espresso and coffee gear, and the POS system. Quality used equipment can cut this meaningfully — but verify condition, parts availability and warranty before buying.
Used equipment is where smart operators save.
Permits, licenses & professional fees
Business licenses, health permits, signage approvals, and — if you serve alcohol — a liquor license, which ranges from modest to very expensive depending on your state and license type. Add legal review of the lease, an accountant, and any design or engineering stamps.
Liquor licensing timelines can delay opening by months.
Initial inventory & supplies
Opening food and beverage orders, paper goods, cleaning supplies, uniforms, menus and the small items that add up faster than anyone expects.
Budget for the first two weeks, not the first day.
Hiring & training before opening
Recruiting, onboarding, training shifts and management time all happen before a single dollar of revenue. Owners routinely forget this payroll period exists.
Expect 2–4 weeks of pre-opening payroll.
Working capital (the one that saves you)
Cash reserved to cover payroll, rent and vendors while the business ramps up. Most new restaurants are not profitable in month one — or month three. Running out of working capital, not bad food, is what closes most new concepts.
Plan for 3–6 months of operating cushion.
From Operator Experience
The four mistakes that blow up opening budgets.
We've made real opening budgets for real hospitality businesses — including our own. These are the patterns that hurt owners most.
01
Budgeting to opening day, not to stability
A budget that ends when the doors open leaves nothing for the slow first months. Build the plan to reach break-even, not the ribbon-cutting.
02
Falling in love with the wrong space
A beautiful room with bad ventilation, weak foot traffic or a restrictive lease can double your build-out and cap your revenue before you start.
03
Underestimating the timeline
Permits, inspections and construction almost always run long. Every extra week of delay costs rent and payroll with no revenue against it.
04
Overspending on the concept, underspending on systems
Design matters, but food-cost controls, scheduling, inventory and training are what keep the business alive after the excitement fades.
Build Your Own Numbers
Turn these ranges into a budget for your concept.
The free 125-page Restaurant & Bar Startup Blueprint walks you through a line-by-line opening budget, the build-out sequence, and the first 90 days of operation — the same framework we use in our own businesses.
Keep Reading
- — Restaurant startup consulting for concept, budget and launch support
- — Menu engineering to price for profit from day one
- — All free tools and resources for hospitality owners