Austin Restaurant Market Overview
$6 billion
Market Size
5,000+
Restaurants
450+
New/Year
$1.0 million/year
Avg Revenue
1.0 million (city) / 2.3 million (metro)
Population
$75,000
Median Income
Austin Restaurant Startup Costs
Small Restaurant
Small cafe or quick-service (under 30 seats)
$120,000 - $280,000
Medium Restaurant
Casual dining restaurant (30-80 seats)
$280,000 - $620,000
Large Restaurant
Fine dining or large venue (80+ seats)
$620,000 - $1,500,000
* Costs vary by neighborhood, concept, and build-out requirements
Best Neighborhoods for Restaurants in Austin
Location is everything. Here are the top neighborhoods for different restaurant concepts.
South Congress (SoCo)
Best For:
Trendy dining, food trucks
East Austin
Best For:
BBQ, tacos, creative concepts
Downtown/6th Street
Best For:
Bars, late-night, tourists
Domain/North Austin
Best For:
Lunch spots, casual chains
South Lamar
Best For:
Neighborhood spots, brunch
Required Licenses and Permits in Austin
Food Establishment Permit
Travis County Health Dept permit
Business License
City of Austin operating license
TABC License
Texas beer/wine or mixed beverage
Food Manager Certification
ServSafe or equivalent
Food Truck Permit
Mobile food vendor license
Live Music Permit
Sound permit for live music
Monthly Operating Costs in Austin
Rent
$2,500 - $12,000/month
Labor Cost
26-33% of revenue
Minimum Wage
$7.25/hour (federal minimum)
Food Cost
28-34% of menu price
Utilities
$800 - $2,800/month
Insurance (Annual)
$8,000 - $22,000/year
Popular Cuisines in Austin
Opportunities in Austin
- Food truck-to-brick pathway proven
- SXSW and ACL exposure
- Tech industry expense accounts
- Keep Austin Weird culture
- No state income tax
Challenges in Austin
- Intense food truck competition
- Rising rents
- Traffic congestion
- Hot summers
- Labor competition from tech
Insider Tips for Austin
- 1Food trucks are a great low-cost entry
- 2Live music is expected
- 3East Austin is the emerging scene
- 4Breakfast tacos are a religion
- 5SXSW can make or break new concepts