Restaurant Startup Costs: Complete 2025 Breakdown by Type

Understanding restaurant startup costs is crucial for planning your venture. The total investment varies dramatically based on your concept, location, and whether you are building from scratch or taking over an existing space.

Average Restaurant Startup Costs by Type

Different restaurant concepts require vastly different investments. Here's what to expect:

Food Truck

Total Investment: $50,000 - $200,000

| Cost Category | Range |

|--------------|-------|

| Vehicle | $20,000 - $100,000 |

| Equipment | $15,000 - $50,000 |

| Permits and licenses | $2,000 - $10,000 |

| Initial inventory | $3,000 - $10,000 |

| Branding and wrap | $5,000 - $15,000 |

| Working capital | $5,000 - $15,000 |

Small Fast-Casual (1,000-1,500 sq ft)

Total Investment: $175,000 - $375,000

| Cost Category | Range |

|--------------|-------|

| Lease deposits | $10,000 - $30,000 |

| Build-out | $50,000 - $150,000 |

| Equipment | $40,000 - $80,000 |

| Furniture | $15,000 - $40,000 |

| Technology | $5,000 - $15,000 |

| Initial inventory | $10,000 - $20,000 |

| Marketing | $5,000 - $15,000 |

| Working capital | $40,000 - $75,000 |

Casual Dining (2,500-4,000 sq ft)

Total Investment: $350,000 - $750,000

| Cost Category | Range |

|--------------|-------|

| Lease deposits | $20,000 - $60,000 |

| Build-out | $150,000 - $350,000 |

| Equipment | $75,000 - $150,000 |

| Furniture | $40,000 - $80,000 |

| Bar setup | $20,000 - $50,000 |

| Technology | $10,000 - $25,000 |

| Initial inventory | $25,000 - $50,000 |

| Marketing | $10,000 - $25,000 |

| Working capital | $100,000 - $200,000 |

Fine Dining (3,000-6,000 sq ft)

Total Investment: $750,000 - $2,000,000+

| Cost Category | Range |

|--------------|-------|

| Lease deposits | $50,000 - $150,000 |

| Build-out | $400,000 - $1,000,000 |

| Equipment | $150,000 - $300,000 |

| Furniture and decor | $100,000 - $250,000 |

| Bar and wine storage | $50,000 - $150,000 |

| Technology | $20,000 - $50,000 |

| Initial inventory | $50,000 - $100,000 |

| Pre-opening staff training | $25,000 - $50,000 |

| Marketing | $25,000 - $75,000 |

| Working capital | $150,000 - $400,000 |

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Detailed Cost Breakdown by Category

1. Lease and Real Estate Costs

Typically 8-12% of your total budget

Real estate is one of your most important decisions. Here's what to budget:

• Security deposit: Usually 2-3 months rent
• First and last month rent: Required upfront
• Broker fees: 4-6% of total lease value
• Attorney fees: $2,000 - $5,000 for lease review

Money-Saving Tip: Look for second-generation restaurant spaces to save $100,000+ on build-out costs.

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2. Build-Out and Renovation

Typically 25-35% of your total budget

Construction costs vary significantly by market and complexity.

Costs Per Square Foot

| Build-Out Level | Cost/Sq Ft |

|-----------------|------------|

| Basic renovation | $100 - $200 |

| Mid-range build-out | $200 - $400 |

| High-end construction | $400 - $800 |

Major Construction Items

• HVAC modifications
• Plumbing and gas lines
• Electrical upgrades
• Hood and ventilation system
• Flooring and walls
• Restroom construction
• ADA compliance modifications

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3. Kitchen Equipment

Typically 15-20% of your total budget

Kitchen equipment is where many owners overspend. Be strategic.

Essential Equipment Pricing

| Equipment | Price Range |

|-----------|-------------|

| Commercial range | $3,000 - $20,000 |

| Convection oven | $5,000 - $15,000 |

| Walk-in cooler | $5,000 - $15,000 |

| Walk-in freezer | $7,000 - $20,000 |

| Prep tables | $1,000 - $5,000 each |

| Dishwasher | $3,000 - $15,000 |

| Smallwares package | $5,000 - $15,000 |

Money-Saving Tip: Buy quality used equipment from restaurant auctions. Save 40-60% on major items without sacrificing quality.

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4. Furniture, Fixtures, and Equipment (FF&E)

Typically 10-15% of your total budget

Front-of-House Pricing

| Item | Price Range |

|------|-------------|

| Dining tables | $200 - $800 each |

| Chairs | $50 - $300 each |

| Booths | $1,000 - $3,000 per unit |

| Bar stools | $100 - $500 each |

| Host stand | $500 - $2,000 |

| Tabletop items | $20 - $50 per cover |

| Decor and artwork | Variable |

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5. Technology and Systems

Typically 3-5% of your total budget

Technology Investments

| System | Cost |

|--------|------|

| POS system | $3,000 - $20,000 |

| Kitchen display system | $1,000 - $5,000 |

| Reservation system | $200 - $500/month |

| Security cameras | $2,000 - $5,000 |

| Music system | $1,000 - $5,000 |

| WiFi infrastructure | $500 - $2,000 |

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6. Licenses and Permits

Typically 2-4% of your total budget

Common Permit Costs

| Permit | Cost Range |

|--------|------------|

| Business license | $50 - $400 |

| Food service license | $100 - $1,000 |

| Liquor license | $3,000 - $400,000 (varies by state) |

| Health permit | $100 - $1,000 |

| Sign permit | $100 - $500 |

| Fire inspection | $100 - $500 |

| Building permits | 2-5% of construction costs |

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7. Initial Inventory

Typically 3-5% of your total budget

• Food inventory: 1-2 weeks worth
• Beverage inventory: $5,000 - $30,000
• Cleaning supplies: $500 - $2,000
• Paper goods: $500 - $2,000
• Uniforms: $100 - $300 per employee

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8. Pre-Opening Costs

Often overlooked but absolutely critical to budget.

• Staff training (2-4 weeks): $10,000 - $50,000
• Soft opening food cost: $2,000 - $10,000
• Marketing and PR: $5,000 - $25,000
• Professional services: $5,000 - $15,000

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9. Working Capital

Typically 15-25% of your total budget

You should have 3-6 months of operating expenses in reserve:

• Rent
• Payroll
• Utilities
• Food costs
• Insurance
• Loan payments

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Hidden Costs to Watch For

These costs catch many first-time owners by surprise:

Utility deposits: $2,000 - $10,000

Insurance deposits: First quarter often due upfront

Menu development and testing: $2,000 - $10,000

Professional photos: $1,000 - $5,000

Website development: $2,000 - $10,000

Unexpected construction issues: Budget 10-15% contingency

Delays: Every month of delay costs rent + lost revenue

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How to Reduce Startup Costs

Strategy 1: Take Over an Existing Restaurant

Save $100,000 - $300,000 on build-out by finding a turnkey space with existing kitchen infrastructure.

Strategy 2: Buy Used Equipment

Save 40-60% on kitchen equipment from restaurant auctions and used equipment dealers.

Strategy 3: Negotiate Your Lease

Get free rent during build-out (2-3 months) and negotiate a tenant improvement allowance from the landlord.

Strategy 4: Start Small

Open a smaller location and expand once profitable. Many successful restaurants started with under 50 seats.

Strategy 5: Phase Your Build-Out

Start with essential features and add premium elements later as cash flow allows.

Strategy 6: Do Some Work Yourself

Painting, cleaning, and simple installations can save thousands if you have the time.

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Financing Your Restaurant

Recommended Funding Mix

| Source | Percentage |

|--------|------------|

| Personal savings | 20-30% |

| SBA loan | 40-50% |

| Equipment financing | 15-20% |

| Investors | 10-20% |

SBA Loan Requirements

• Minimum 2 years industry experience
• Credit score 680+
• 20% down payment
• Detailed business plan
• Collateral

Ready to calculate your specific startup costs? Use our free Startup Cost Calculator for a personalized estimate based on your concept and location.