San Diego Restaurant Market Overview
$7 billion
Market Size
6,000+
Restaurants
450+
New/Year
$1.1 million/year
Avg Revenue
1.4 million
Population
$83,000
Median Income
San Diego Restaurant Startup Costs
Small Restaurant
Small cafe or quick-service (under 30 seats)
$175,000 - $375,000
Medium Restaurant
Casual dining restaurant (30-80 seats)
$375,000 - $800,000
Large Restaurant
Fine dining or large venue (80+ seats)
$800,000 - $2,200,000
* Costs vary by neighborhood, concept, and build-out requirements
Best Neighborhoods for Restaurants in San Diego
Location is everything. Here are the top neighborhoods for different restaurant concepts.
Gaslamp Quarter
Best For:
Nightlife, upscale casual
North Park
Best For:
Craft beer, creative cuisine
Little Italy
Best For:
Italian, seafood, brunch
La Jolla
Best For:
Upscale seafood, fine dining
Pacific Beach
Best For:
Casual beach dining, bars
Required Licenses and Permits in San Diego
Health Permit
San Diego County Environmental Health
Business Tax Certificate
City of San Diego business license
ABC Liquor License
CA ABC beer/wine or full liquor
Food Handler Card
CA food handler certification
Outdoor Dining Permit
Sidewalk or patio dining
Sign Permit
Exterior signage approval
Monthly Operating Costs in San Diego
Rent
$3,500 - $18,000/month
Labor Cost
32-38% of revenue
Minimum Wage
$16.85/hour (CA minimum)
Food Cost
28-35% of menu price
Utilities
$1,000 - $3,500/month
Insurance (Annual)
$10,000 - $28,000/year
Popular Cuisines in San Diego
Opportunities in San Diego
- Year-round perfect weather
- Craft beer capital
- Military base population
- Convention tourism
- Baja-inspired cuisine trending
Challenges in San Diego
- High CA labor costs
- Seasonal tourism
- Cross-border competition (Tijuana)
- Parking limitations
- Water restrictions
Insider Tips for San Diego
- 1Craft beer program is expected
- 2Tijuana inspiration is authentic
- 3Military bases provide steady traffic
- 4Beach communities are seasonal
- 5North Park is the emerging food scene