Nashville Restaurant Market Overview
$5 billion
Market Size
3,500+
Restaurants
350+
New/Year
$1.1 million/year
Avg Revenue
690,000 (city) / 2 million (metro)
Population
$65,000
Median Income
Nashville 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 Nashville
Location is everything. Here are the top neighborhoods for different restaurant concepts.
Broadway/Downtown
Best For:
Honky tonks, tourist dining
The Gulch
Best For:
Upscale casual, trendy concepts
East Nashville
Best For:
Creative concepts, brunch
12 South
Best For:
Boutique dining, cafes
Germantown
Best For:
Fine dining, neighborhood spots
Required Licenses and Permits in Nashville
Food Service Permit
Metro Public Health Dept permit
Business License
Metro Nashville business license
Beer Permit
Metro beer permit
Liquor-by-the-Drink
Tennessee ABC liquor license
Food Handler Certification
ServSafe or equivalent
Live Music Permit
For entertainment venues
Monthly Operating Costs in Nashville
Rent
$2,500 - $14,000/month
Labor Cost
25-32% of revenue
Minimum Wage
$7.25/hour (federal minimum)
Food Cost
28-34% of menu price
Utilities
$700 - $2,500/month
Insurance (Annual)
$7,000 - $20,000/year
Popular Cuisines in Nashville
Opportunities in Nashville
- Explosive tourism growth
- Hot chicken global fame
- Lower costs than coastal
- Music venue synergy
- No state income tax
Challenges in Nashville
- Rapid rent increases
- Labor shortage
- Tourist-heavy downtown
- Bachelorette party crowds
- Parking challenges
Insider Tips for Nashville
- 1Hot chicken is still hot
- 2East Nashville is local favorite
- 3Broadway is for tourists only
- 4Live music adds value
- 5Bachelorette crowds are a market segment