Arizona Restaurant Market Overview
$18 billion
Market Size
13,000+
Restaurants
1,400+
New/Year
$850,000/year
Avg Revenue
330,000
Employed
1 per 570 residents
Per Capita
Startup Costs in Arizona
Estimated investment ranges based on restaurant size and concept (in USD)
$120,000 - $280,000
Small cafe or quick-service (under 30 seats)
$280,000 - $600,000
Casual dining restaurant (30-80 seats)
$600,000 - $1,700,000
Fine dining or large venue (80+ seats)
Required Licenses & Permits in Arizona
Essential permits you'll need to legally operate a restaurant in Arizona
Food Establishment License
Required from county environmental services
Authority: County Environmental Services
Business License
City business license/privilege tax license
Authority: City Revenue/Licensing
Food Handler Card
Maricopa County requires food handler cards
Authority: County Health Dept
Liquor License
Series 12 (restaurant) liquor license
Authority: AZ Dept of Liquor Licenses & Control
Transaction Privilege Tax License
Required for collecting sales tax
Authority: AZ Dept of Revenue
Typical Operating Costs
Tax Information
Sales Tax
5.6% state + up to 5.3% local (10.9% max Phoenix)
State Income/Corporate Tax
2.5% flat corporate income tax
Local Taxes
City privilege tax varies
Tip Credit
$3.00/hour allowed (min cash wage $11.35)
Key Regulations in Arizona
Important compliance requirements for restaurant operators
What Makes Arizona Unique
Market Opportunities
- Rapid population growth
- Strong winter tourism
- Growing food scene
- Lower costs than California
- Outdoor dining year-round
Key Challenges
- Extreme summer heat
- High A/C costs
- Water concerns
- Seasonal tourism fluctuations
🍽️Popular Cuisines in Arizona
Top Cities to Consider
Official Arizona Resources
Government and industry resources to help you get started