How Much Does It Cost to Start a Restaurant in 2026?
Full-service or fast-casual restaurant with dine-in seating, commercial kitchen, and food service staff.
Budget Setup
$95,000
Mid-Range
$275,000
Premium Setup
$750,000
Cost Breakdown by Category
| Category | Low | Mid | High | Notes |
|---|---|---|---|---|
| LLC filing | $500 | $1,500 | $3,000 | LLC fee varies by state ($35-$500). EIN is free from IRS. Legal consultation for lease review and operating agreement adds $500-$2,000. |
| Food service license | $2,000 | $10,000 | $50,000 | Liquor license alone can range from $300 to $14,000+. Health department permits $100-$1,000. Fire inspection $100-$500. Building/occupancy permits $500-$5,000. Signage permits $50-$300. |
| Commercial kitchen equipment | $25,000 | $75,000 | $200,000 | Used equipment at low end can save 40-60%. Major items: commercial oven ($3,000-$20,000), walk-in cooler ($5,000-$15,000), fryers ($1,500-$5,000), dishwasher ($3,000-$10,000), POS system ($1,500-$5,000). |
| Food inventory | $5,000 | $15,000 | $35,000 | First food order typically 2-3x normal weekly order. Bar inventory adds $5,000-$15,000. Paper goods, cleaning supplies, and uniforms add $2,000-$5,000. |
| Leasehold improvements | $20,000 | $100,000 | $350,000 | Commercial kitchen ventilation hood alone costs $5,000-$20,000. Plumbing for grease trap $2,000-$5,000. Build-out costs $50-$200/sqft depending on condition of space. |
| Tables | $5,000 | $25,000 | $80,000 | Restaurant chairs $50-$300 each, tables $100-$500 each, booths $500-$2,000 each. |
| General liability | $3,000 | $8,000 | $15,000 | Annual cost. General liability $1,500-$5,000/yr, workers comp varies by state and payroll, property insurance $1,000-$3,000/yr, liquor liability $500-$2,000/yr. |
| Exterior signage | $2,000 | $8,000 | $25,000 | Exterior signage $2,000-$10,000. Website $500-$3,000. Menu design/printing $500-$2,000. Grand opening event $1,000-$5,000. |
| POS system | $2,000 | $5,000 | $15,000 | POS hardware $1,500-$5,000, monthly software $100-$300. Security system $1,000-$5,000. |
| 3 months operating expenses | $30,000 | $75,000 | $150,000 | Critical buffer. Monthly operating costs for a mid-sized restaurant: rent $3,000-$10,000, payroll $8,000-$25,000, food costs $5,000-$15,000, utilities $1,500-$3,000. |
Cost Comparison by State
| State | LLC Fee | Permits | Insurance/yr | Cost Index | |
|---|---|---|---|---|---|
| Alabama | $200 | $3,000 | $5,500 | 0.78x | Details → |
| Alaska | $250 | $5,000 | $8,500 | 1.25x | Details → |
| Arizona | $50 | $4,000 | $5,800 | 0.92x | Details → |
| Arkansas | $45 | $2,500 | $5,200 | 0.75x | Details → |
| California | $70 | $12,000 | $9,500 | 1.45x | Details → |
| Colorado | $50 | $5,000 | $6,500 | 1.05x | Details → |
| Connecticut | $120 | $5,500 | $7,500 | 1.12x | Details → |
| Delaware | $110 | $3,500 | $6,200 | 0.9x | Details → |
| District of Columbia | $99 | $8,000 | $8,500 | 1.4x | Details → |
| Florida | $125 | $5,000 | $6,800 | 1.02x | Details → |
| Georgia | $100 | $4,000 | $5,800 | 0.88x | Details → |
| Hawaii | $50 | $6,000 | $8,000 | 1.5x | Details → |
| Idaho | $100 | $3,000 | $5,300 | 0.85x | Details → |
| Illinois | $150 | $6,000 | $7,000 | 1x | Details → |
| Indiana | $95 | $3,000 | $5,200 | 0.82x | Details → |
| Iowa | $50 | $2,500 | $5,000 | 0.8x | Details → |
| Kansas | $160 | $3,000 | $5,200 | 0.8x | Details → |
| Kentucky | $40 | $3,000 | $5,300 | 0.78x | Details → |
| Louisiana | $100 | $4,000 | $6,200 | 0.85x | Details → |
| Maine | $175 | $3,500 | $6,000 | 0.95x | Details → |
| Maryland | $100 | $5,000 | $6,500 | 1.08x | Details → |
| Massachusetts | $500 | $8,000 | $8,000 | 1.3x | Details → |
| Michigan | $50 | $3,500 | $5,500 | 0.85x | Details → |
| Minnesota | $155 | $4,000 | $6,000 | 0.92x | Details → |
| Mississippi | $50 | $2,500 | $5,000 | 0.72x | Details → |
| Missouri | $50 | $3,000 | $5,200 | 0.8x | Details → |
| Montana | $35 | $3,000 | $5,800 | 0.88x | Details → |
| Nebraska | $100 | $3,000 | $5,200 | 0.82x | Details → |
| Nevada | $425 | $5,000 | $6,200 | 0.98x | Details → |
| New Hampshire | $100 | $3,500 | $6,000 | 0.95x | Details → |
| New Jersey | $125 | $6,000 | $7,800 | 1.18x | Details → |
| New Mexico | $50 | $3,000 | $5,300 | 0.82x | Details → |
| New York | $200 | $10,000 | $9,000 | 1.38x | Details → |
| North Carolina | $125 | $3,500 | $5,500 | 0.88x | Details → |
| North Dakota | $135 | $2,500 | $5,000 | 0.8x | Details → |
| Ohio | $99 | $3,500 | $5,500 | 0.82x | Details → |
| Oklahoma | $100 | $3,000 | $5,200 | 0.78x | Details → |
| Oregon | $100 | $5,000 | $6,500 | 1.05x | Details → |
| Pennsylvania | $125 | $4,500 | $6,500 | 0.95x | Details → |
| Rhode Island | $150 | $4,000 | $6,200 | 0.95x | Details → |
| South Carolina | $110 | $3,000 | $5,300 | 0.82x | Details → |
| South Dakota | $150 | $2,500 | $5,000 | 0.78x | Details → |
| Tennessee | $300 | $3,500 | $5,500 | 0.88x | Details → |
| Texas | $300 | $4,500 | $6,000 | 0.95x | Details → |
| Utah | $59 | $3,500 | $5,300 | 0.9x | Details → |
| Vermont | $155 | $3,500 | $6,000 | 0.95x | Details → |
| Virginia | $100 | $4,000 | $5,800 | 1x | Details → |
| Washington | $200 | $6,000 | $7,500 | 1.15x | Details → |
| West Virginia | $100 | $2,500 | $5,200 | 0.72x | Details → |
| Wisconsin | $130 | $3,500 | $5,500 | 0.85x | Details → |
| Wyoming | $100 | $2,500 | $5,200 | 0.82x | Details → |
Cheapest States
These states offer the lowest overall startup costs for a restaurant:
Most Expensive States
These states have the highest overall startup costs for a restaurant:
Browse Restaurant Costs by State
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Frequently Asked Questions
How much does it cost to start a restaurant in 2026?
The national average cost to start a restaurant ranges from $95,000 (budget setup) to $750,000 (premium). The mid-range estimate is $275,000, which covers standard equipment, permits, insurance, and 3 months of working capital.
What is the cheapest state to start a restaurant?
Based on our cost index analysis, Mississippi has the lowest overall startup costs for a restaurant, with a cost index of 0.72x the national average. Other affordable states include West Virginia, Arkansas, Alabama.
What is the most expensive state to start a restaurant?
Hawaii is the most expensive state for starting a restaurant, with a cost index of 1.5x the national average. High costs come from permits, insurance, and commercial rent. Other expensive states include California, District of Columbia, New York.
Do I need an LLC to start a restaurant?
An LLC is not legally required, but it is strongly recommended. An LLC protects your personal assets from business liabilities, provides tax flexibility, and adds credibility. LLC filing fees range from $35 (Montana) to $500 (Massachusetts), making it an affordable investment.
How long does it take to start a restaurant?
From paperwork to opening day, most restaurant businesses take 2 to 6 months to launch. LLC registration takes 1-2 weeks in most states. Permits can take 2-8 weeks. Equipment sourcing and buildout add another 2-12 weeks depending on scope.