Texas Restaurant Market Overview
$70 billion
Market Size
55,000+
Restaurants
4,800+
New/Year
$1.1 million/year
Avg Revenue
1.3 million
Employed
1 per 545 residents
Per Capita
Startup Costs in Texas
Estimated investment ranges based on restaurant size and concept (in USD)
$125,000 - $300,000
Small cafe or quick-service (under 30 seats)
$300,000 - $650,000
Casual dining restaurant (30-80 seats)
$650,000 - $1,800,000
Fine dining or large venue (80+ seats)
Required Licenses & Permits in Texas
Essential permits you'll need to legally operate a restaurant in Texas
Food Service Permit
Required from local health department
Authority: City/County Health Department
Sales Tax Permit
Required to collect Texas sales tax
Authority: TX Comptroller of Public Accounts
Food Handler Certification
Texas Food Handler program for all employees
Authority: DSHS Approved Providers
TABC License
Mixed Beverage or Wine & Beer Retailer permit
Authority: TX Alcoholic Beverage Commission
Certificate of Occupancy
Building safety and zoning approval
Authority: City Building Department
Typical Operating Costs
Tax Information
Sales Tax
6.25% state + up to 2% local (8.25% max)
State Income/Corporate Tax
No state income tax
Local Taxes
Franchise tax on businesses over $1.23M revenue
Tip Credit
$5.12/hour allowed (min cash wage $2.13)
Key Regulations in Texas
Important compliance requirements for restaurant operators
What Makes Texas Unique
Market Opportunities
- No state income tax
- Rapid population growth
- Lower operating costs
- Business-friendly regulations
- Strong BBQ culture
Key Challenges
- Summer heat management
- Competition in major metros
- Labor market tightness
- Property taxes
🍽️Popular Cuisines in Texas
Top Cities to Consider
Official Texas Resources
Government and industry resources to help you get started