Boston Restaurant Market Overview
$9 billion
Market Size
3,500+
Restaurants
300+
New/Year
$1.6 million/year
Avg Revenue
675,000
Population
$76,000
Median Income
Boston Restaurant Startup Costs
Small Restaurant
Small cafe or quick-service (under 30 seats)
$200,000 - $450,000
Medium Restaurant
Casual dining restaurant (30-80 seats)
$450,000 - $950,000
Large Restaurant
Fine dining or large venue (80+ seats)
$950,000 - $2,500,000
* Costs vary by neighborhood, concept, and build-out requirements
Best Neighborhoods for Restaurants in Boston
Location is everything. Here are the top neighborhoods for different restaurant concepts.
Back Bay
Best For:
Upscale dining, wine bars
South End
Best For:
Brunch, creative cuisine
North End
Best For:
Italian, historic ambiance
Seaport
Best For:
Seafood, modern concepts
Cambridge/Harvard Sq
Best For:
Casual dining, cafes
Required Licenses and Permits in Boston
Food Establishment Permit
Boston Inspectional Services permit
Common Victualler License
Required to serve food
Alcohol License
Beer/wine or all-alcohol license
Entertainment License
For music, TV, or games
Outdoor Dining Permit
Patio or sidewalk seating
Fire Department Permit
Fire safety inspection
Monthly Operating Costs in Boston
Rent
$5,000 - $25,000/month
Labor Cost
30-37% of revenue
Minimum Wage
$15.00/hour (MA minimum)
Food Cost
28-35% of menu price
Utilities
$1,200 - $4,000/month
Insurance (Annual)
$12,000 - $35,000/year
Popular Cuisines in Boston
Opportunities in Boston
- University population (300K+ students)
- Medical/biotech workforce
- Strong seafood heritage
- Tourist destination
- Four-season menu potential
Challenges in Boston
- Quota liquor license system (very expensive)
- Harsh winters
- Limited parking
- High operating costs
- Neighborhood licensing politics
Insider Tips for Boston
- 1Quota liquor licenses can cost $300-400K
- 2Neighborhood associations have licensing power
- 3University calendar affects traffic
- 4Parking is scarce - consider delivery focus
- 5Seaport is booming but expensive