How Much Does It Cost to Start a Restaurant? (2026)
One-time startup cost
$235,000 – $1,210,000
Monthly burn
$5,900 – $23,500
Market size (national)
US establishments
257,282
People employed
5,208,895
Annual payroll
$140.1B
Avg payroll / location
$545K
The U.S. full-service restaurant industry (NAICS 722511) is mature and highly fragmented, with 257,282 establishments nationally employing over 5.2 million people. The average annual payroll per establishment at approximately $544,508 indicates a significant operational scale and labor dependency even for individual restaurants, suggesting a difficult environment for new entrants without substantial capital and expertise.
Source: U.S. Census County Business Patterns 2022 · Full-service restaurants (NAICS 722511)
Itemized cost breakdown
| Item | One-time | Monthly |
|---|---|---|
| Commercial Kitchen Equipment (Ovens, Refrigeration, Fryers, etc.) | $50,000 – $250,000 | — |
| Leasehold Improvements / Build-out (Kitchen & Dining Area) | $75,000 – $500,000 | — |
| Licensing and Permits (Health, Alcohol, Business Licenses) | $5,000 – $30,000 | — |
| Restaurant Specific Insurance (Liability, Property, Workers' Comp) | $2,000 – $5,000 | $500 – $1,500 |
| Initial Food & Beverage Inventory | $10,000 – $40,000 | $5,000 – $20,000 |
| POS System & Software Subscriptions | $3,000 – $15,000 | $100 – $500 |
| Marketing Launch (Website, Social Media Setup, Grand Opening Promo) | $5,000 – $20,000 | $300 – $1,500 |
| Working Capital / Cash Reserve (3-6 months operating expenses) | $50,000 – $200,000 | — |
| Furniture, Fixtures & Decor | $20,000 – $100,000 | — |
| Pre-opening Staff Training & Initial Payroll | $15,000 – $50,000 | — |
6-month runway
$270,400 – $1,351,000
Startup cost plus six months of burn — a rough floor for how much cash to have in hand before you open, since most businesses aren’t profitable from day one.
How to lower these costs
- Leasehold Improvements / Build-out (Kitchen & Dining Area) is one of the largest one-time costs ($75,000 – $500,000) — look for used or leased equipment, a smaller initial order, or a phased buildout to shrink the upfront check.
- Commercial Kitchen Equipment (Ovens, Refrigeration, Fryers, etc.) is one of the largest one-time costs ($50,000 – $250,000) — look for used or leased equipment, a smaller initial order, or a phased buildout to shrink the upfront check.
- Initial Food & Beverage Inventory runs $5,000 – $20,000/month — negotiate the rate up front, shop multiple vendors, or delay this line item until revenue can cover it.
- Restaurant Specific Insurance (Liability, Property, Workers' Comp) runs $500 – $1,500/month — negotiate the rate up front, shop multiple vendors, or delay this line item until revenue can cover it.
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Frequently asked questions
What is the typical total startup cost for a new restaurant in the US?
Total startup costs for a new restaurant can range widely from $250,000 for a small, leased space to over $1,000,000 for a larger, custom-built establishment, depending significantly on location, concept, and build-out requirements.
What is the cheapest way to get into the restaurant business?
The cheapest way to enter is often through a food truck, pop-up concept, or by leasing an existing restaurant space that requires minimal renovations and already has some equipment.
What are common financing options for restaurant startups?
Common financing options include SBA loans, conventional bank loans, lines of credit, crowdfunding, personal savings, and investor capital or partnerships. Equipment leasing is also popular.
What are the significant ongoing monthly costs for a restaurant?
Significant ongoing monthly costs include rent/mortgage, payroll (including taxes and benefits), food and beverage inventory, utilities, insurance, marketing, and POS system subscriptions.
Are there any hidden costs I should be aware of?
Hidden costs include unexpected repairs and maintenance for kitchen equipment, staff training for high turnover, increased marketing to combat competition, and legal fees for contract reviews or compliance issues.
National establishment, employment and payroll counts are real figures from the U.S. Census County Business Patterns dataset. Cost and margin figures are informed estimates drawn from public industry sources (trade associations, government labor/business statistics, industry reports) combined with real Google Ads search-demand data. They are directional, not audited — actual costs and margins vary by market and operator. Updated July 2026.
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