Short answer: opening an independent restaurant in the US costs roughly $500,000 to $540,000 at the median in 2026 dollars, with most owners spending somewhere between about $235,000 and $1 million. Those figures restate the most-cited benchmark, RestaurantOwner.com’s survey of more than 350 owners, which found a median of $375,500 in 2018. Your number depends most on the space: taking over a former restaurant costs about $370,000 to $396,000 at the median today, while a ground-up build runs $870,000 to $930,000 before land.
Almost every article on this topic still quotes $375,500 as if it were current. It isn’t. Construction costs alone are up about 44% since 2018, according to the Turner Building Cost Index. This guide restates the survey in 2026 dollars, breaks the budget down line by line, and gives you a calculator to build your own estimate.
Restaurant startup cost calculator
Pick your concept, size and space to get a line-by-line opening budget in 2026 dollars. Runs in your browser; nothing is saved or sent anywhere.
In this guide
- What it costs to open a restaurant in 2026
- Restaurant startup costs by concept
- Why the type of space matters most
- Restaurant startup costs breakdown, line by line
- Licenses, permits and the liquor license problem
- How much working capital do you need?
- How to pay for it
- How to lower restaurant startup costs
- FAQ
- Sources
What it costs to open a restaurant in 2026
The average cost to open a restaurant is a misleading number, because a few very expensive openings pull it up. The median is more useful. In RestaurantOwner.com’s survey, published in November 2018, the median independent restaurant cost $375,500 to open, or $3,586 per seat and $113 per square foot. A quarter of owners spent less than $175,500 and a quarter spent more than $750,500.
To restate those figures for 2026, we used two indexes:
- Consumer Price Index (CPI-U): up about 34% from the 2018 average to September 2026, according to the Bureau of Labor Statistics. This tracks general prices.
- Turner Building Cost Index: up about 44% from its 2018 average of 1,096 to 1,575 in the third quarter of 2026. This tracks nonresidential construction, which drives build-out costs.
The true change for a restaurant opening sits somewhere between the two, because build-out and equipment have risen faster than items like opening inventory and marketing.
| Benchmark | 2018 survey | 2026 dollars (CPI) | 2026 dollars (construction index) |
|---|---|---|---|
| Lowest quarter of owners spent less than | $175,500 | $235,000 | $252,000 |
| Median cost to open | $375,500 | $504,000 | $540,000 |
| Top quarter of owners spent more than | $750,500 | $1,007,000 | $1,079,000 |
| Median cost per seat | $3,586 | $4,800 | $5,150 |
| Median cost per square foot | $113 | $152 | $162 |
Two caveats before you plug these into a plan. The survey’s median restaurant had 120 seats in 3,070 square feet, so smaller rooms usually cost more per seat. And these figures exclude buying land or a building.
Restaurant startup costs by concept
Full-service restaurants cost the most to open and catering or takeout businesses the least. The survey report broke out medians by service type, and here they are restated in 2026 dollars.
| Concept | 2018 median | 2026 dollars | Median size in survey |
|---|---|---|---|
| Full service | $475,500 | $638,000 to $683,000 | 3,850 sq ft |
| Bar or tavern | $425,500 | $571,000 to $611,000 | 4,250 sq ft |
| Limited service (counter, fast food) | $225,500 | $303,000 to $324,000 | 2,300 sq ft |
| Catering, takeout and delivery | $150,500 | $202,000 to $216,000 | 1,200 sq ft |
A few rough scenarios from the calculator above, all in second-generation space in an average US market with three months of working capital:
- 30-seat coffee shop or cafe: about $204,000 (range $173,000 to $244,000)
- 40-seat counter-service restaurant: about $296,000 (range $252,000 to $356,000)
- 64-seat full-service restaurant: about $497,000 (range $422,000 to $596,000)
- 100-seat full-service restaurant in a converted retail space: about $1 million
If you’re comparing an independent opening with a franchise, franchisors publish their estimated initial investment in Item 7 of the Franchise Disclosure Document. Our guide to restaurant franchise profit margins covers what you keep after royalties.
Why the type of space matters most
The single biggest decision in your restaurant startup costs is the space. Taking over a former restaurant costs roughly half as much per square foot as converting a retail unit and well under half the cost of building new.
| Type of space | 2018 median cost | 2026 dollars | Cost per sq ft (2026) | Sales-to-investment ratio |
|---|---|---|---|---|
| Former restaurant (second-generation) | $275,500 | $370,000 to $396,000 | about $98 to $105 | 4.2 : 1 |
| Converted non-restaurant space | $425,500 | $571,000 to $611,000 | about $196 to $210 | 2.1 : 1 |
| Ground-up build (excluding land) | $650,000 | $872,000 to $934,000 | about $259 to $277 | 2.0 : 1 |
The last column is the one most guides leave out. In the survey, restaurants that took over an existing restaurant space did a median $4.20 in annual sales for every dollar invested. Converted spaces and new builds did about $2. A second-generation space costs less to open and earns back the investment about twice as fast.
Second-generation space has its own risks. Before you sign:
- Have the hood, grease trap, walk-in, HVAC and gas lines inspected. “Turnkey” often means “needs $40,000 of repairs”.
- Ask why the last restaurant closed. If it was the location, the cheap build-out won’t save you.
- Check the equipment against your menu. A pizza concept needs different ventilation and gas capacity from a sushi bar.
- Negotiate a tenant improvement allowance and free rent during construction. Landlords with a vacant restaurant space are often motivated.
Restaurant startup costs breakdown, line by line
Here is a full restaurant startup costs breakdown for a 64-seat full-service restaurant in a second-generation space, from our sample restaurant business plan. It totals $470,000, or about $7,300 per seat.
| Startup cost | Sample amount | Share | What it covers | Where owners overspend or underspend |
|---|---|---|---|---|
| Build-out and remodel | $145,000 | 31% | Construction, plumbing, electrical, hood, finishes | Change orders after work starts |
| Kitchen and bar equipment | $95,000 | 20% | Range, ovens, fryers, refrigeration, dish machine, bar | Buying new when good used gear is available |
| Working capital reserve | $64,000 | 14% | Cash to cover losses while sales ramp up | Leaving it out entirely |
| Furniture, fixtures and decor | $38,000 | 8% | Tables, chairs, booths, lighting, signage | Custom pieces that could be stock |
| Pre-opening payroll and training | $28,000 | 6% | Managers hired early, staff training weeks | Hiring the whole team too early |
| Architect, permits, licenses and legal | $22,000 | 5% | Drawings, permits, health and business licenses, lease review | Skipping the lawyer on the lease |
| Lease deposit and first month’s rent | $21,000 | 4% | Security deposit plus first month | Not negotiating free rent during build-out |
| Smallwares, china, glassware and linens | $18,000 | 4% | Pans, utensils, plates, glasses, linens | Under-ordering, then rush orders |
| Opening inventory | $16,000 | 3% | First food, beverage and supply orders | Stocking the full menu before testing |
| POS, Wi-Fi, music and security | $14,000 | 3% | POS hardware, network, cameras, sound | Long contracts with hidden fees |
| Pre-opening marketing | $9,000 | 2% | Signage, social, soft opening, PR | Spending it all before opening week |
In the survey, median construction spending was $200,000 and median kitchen and bar equipment spending was $95,000 in 2018 dollars, which is roughly $268,000 to $287,000 and $127,000 to $137,000 today. Our sample comes in lower on both because it reuses an existing kitchen.
Add a contingency of 10% of the build-out, equipment and furniture. Almost every opening runs over somewhere. The calculator above includes one automatically.
Licenses, permits and the liquor license problem
Most restaurant licenses and permits cost hundreds to a few thousand dollars each. In our sample budget, architect drawings, permits, licenses and legal fees came to $22,000 together. The exception is a full liquor license in a quota state, which can cost more than the rest of the opening.
The usual list:
- Business license and state tax registration (including a sales tax permit; see our guide to restaurant sales tax)
- Building permits and certificate of occupancy
- Food service establishment permit from the health department
- Food handler and food manager certifications
- Fire department inspection and permits for the hood suppression system
- Sign permit
- Music licensing if you play recorded or live music
- Liquor license, if you serve alcohol
Liquor licenses in quota states. Some states cap the number of full liquor licenses by population. Florida issues quota licenses for spirits by county; once they’re gone, you buy one from an existing holder or enter a state drawing, and Florida’s regulator says the market, not the state, sets the price. New Jersey has not issued new consumption licenses in most towns for decades, and licenses in busy markets resell for hundreds of thousands of dollars. In open states, the same license may cost a few hundred to a few thousand dollars a year. Check your state’s rules before you choose a concept that depends on cocktails, and look at beer-and-wine licenses, which are usually far cheaper.
How much working capital do you need?
Plan for at least three months of fixed costs in cash on opening day, and six months if you can. Fixed costs are rent, management salaries, insurance, utilities, loan payments and software, which are the bills that arrive whether you sell anything or not.
The survey gives a sense of why. The median restaurant took five months to become profitable. A quarter were profitable within two months, and another quarter took a full year.
For the 64-seat sample, three months of fixed costs came to $64,000, and it was the only thing that covered the first year’s cash shortfall. Restaurants rarely close because the food is bad in month two. They close because the cash ran out before the regulars arrived.
How to pay for it
Most independent restaurants are funded with a mix of the owner’s cash, an SBA 7(a) loan, equipment financing and, sometimes, investors or a landlord’s tenant improvement allowance.
- Owner equity. Under SBA SOP 50 10 8, effective June 1, 2025, 7(a) loans to startups require at least a 10% equity injection. Many lenders ask for more on a restaurant, and a bigger stake makes the request stronger.
- SBA 7(a) loans. The SBA caps the variable interest rate on loans over $350,000 at the prime rate plus 3 percentage points. With prime at 7% in October 2026, that cap was 10%.
- Equipment financing or leasing. Spreads the cost of the kitchen over three to five years, at a higher rate than an SBA loan.
- Landlord tenant improvement allowance. The landlord pays part of the build-out in exchange for a longer lease or higher rent.
- Friends, family and investors. Put the terms in writing and decide upfront whether it’s a loan or ownership.
Lenders want to see the startup budget, a sales forecast and a three-year P&L. Our restaurant business plan guide walks through each one with a full worked example and a free template.
How to lower restaurant startup costs
- Take over a former restaurant. This is the biggest saving available, often hundreds of thousands of dollars.
- Buy used equipment for anything without moving parts. Stainless tables, shelving, sinks and hoods are close to indestructible. Buy refrigeration and dish machines new or with a warranty.
- Lease the dish machine and ice machine. Many suppliers lease them with service included.
- Open with a smaller menu. Fewer items mean less equipment, less opening inventory and an easier first month for the kitchen.
- Hire in stages. Bring on managers early and the full crew in the last two weeks.
- Negotiate free rent during construction. Landlords with a vacant restaurant space will often give a few months of free rent while you build.
- Get three quotes on every line over $5,000. Contractor and equipment prices vary widely.
- Price the menu before you build. Plate costs and menu prices decide whether your sales forecast works. Our menu pricing guide has a calculator for it, and the food cost calculator handles recipe costing.
When you’re ready to plan the work itself, our restaurant opening checklist lays out every task from 90 days out to opening day. For the bigger picture, see our guide to starting a restaurant business.
FAQ
How much does it cost to open a small restaurant?
A small restaurant of 30 to 50 seats in a former restaurant space typically costs about $200,000 to $350,000 to open in 2026, including working capital. Counter-service and cafe concepts sit at the lower end. Full service with a bar sits at the upper end.
What is the average cost to open a restaurant?
The median independent restaurant cost $375,500 to open in RestaurantOwner.com’s 2018 survey, which is about $504,000 to $540,000 in 2026 dollars. The middle half of owners spent between roughly $235,000 and $1 million in today’s dollars.
How much money do you need to open a restaurant?
You need the full startup budget plus at least three months of fixed costs in reserve. For a typical 64-seat full-service restaurant in a second-generation space, that’s about $470,000 to $500,000. With an SBA loan, expect to put in at least 10% of the total yourself, and often more.
What is the most expensive part of opening a restaurant?
Construction and build-out is the biggest cost, usually a third to half of the total, followed by kitchen and bar equipment. In quota states, a full liquor license can cost more than either.
What is the cheapest type of restaurant to open?
Catering, takeout and delivery businesses are the cheapest to open, with a 2018 median of $150,500, or about $200,000 to $216,000 in 2026 dollars. Limited-service counter restaurants are next.
How long does it take a new restaurant to become profitable?
The median restaurant in RestaurantOwner.com’s survey became profitable in five months. A quarter were profitable within two months, and another quarter took 12 months.
Is $100,000 enough to open a restaurant?
$100,000 is usually only enough for a very small takeout, cafe or kiosk concept in a former food space with used equipment, or as the owner’s equity on a larger SBA-financed project. A full-service restaurant needs several times that.
Sources
- RestaurantOwner.com, 2018 Cost to Open a Restaurant Survey release, via PR Newswire, November 15, 2018
- Restaurant Dive, Survey: Restaurant remodels still cost less than building from the ground up
- UpMenu, How much does it cost to open a restaurant (survey medians by service type, quartiles and cost categories)
- US Bureau of Labor Statistics, Consumer Price Index, September 2026, released October 14, 2026
- Turner Construction, Building Cost Index, third quarter 2025 (annual averages), and Construction Owners, Turner reports 5.49% annual increase in US building costs (Q3 2026 index of 1,575)
- LiquorLicenseCost.com, Quota states vs. open states
- Florida Department of Business and Professional Regulation, Alcoholic Beverages FAQs
- NerdWallet, SBA loan rates, October 2026
- Phillips Lytle, The SBA reverts back to stricter lending standards (SOP 50 10 8), July 18, 2025