Planning & cost

How Much Does It Cost to Open a Restaurant?

By the FoodServiceNerd editorial team·Reviewed against primary sources·Updated August 2026·How we research & cite

What it costs to open a restaurant and what drives the number — build-out, equipment, permits, deposits and working capital — plus how operators finance it.

Educational, not legal advice. Codes vary by jurisdiction — always confirm with your local health department and building authority (AHJ).

FoodServiceNerd EditorialResearched from the FDA Food Code, manufacturer specs & industry sourcesUpdated Aug 2026

There's no single figure — a small quick-service spot in a second-generation space can open for well under $200,000, while a full build-out in a raw shell runs $500,000+. What matters is the drivers, because that's where you control the number.

How that range is built: a survey of 350+ independent operators found a median around $375,000 to open — with existing-restaurant (second-generation) remodels lowest (~$275,000 median) and ground-up builds highest (~$650,000 median). A tight quick-service concept reusing a well-equipped second-gen space can land under $200,000; a full build-out in a raw shell runs $500,000+.

Source RestaurantOwner.com — Survey: How Much Does It Cost to Open a Restaurant? (350+ independent operators) · view source →

Restaurant startup cost has no single official figure; the band above is an industry synthesis anchored to this operator survey. The U.S. SBA offers a neutral method to build your own estimate: sba.gov/business-guide/plan-your-business/calculate-your-startup-costs.

Last verified Aug 2026

Where the money goes

Build-out & construction

Usually the biggest and most variable line. A "second-generation" space that was already a kitchen slashes this.

Equipment

Cook line, refrigeration, warewashing, tables. Buying used in the right positions cuts this sharply.

Permits & licenses

Health permit, plan review, business license, fire. Varies by state.

Deposits & rent

Security deposit, first/last month, utility deposits — due before you earn a dollar.

Working capital

Payroll, inventory and marketing to survive the ramp-up. The line most first-timers underfund.

Financing & tax

Most operators don't pay cash. Equipment can qualify for the Section 179 deduction, and build-outs are a common SBA-loan use — see SBADecoded for the loan and tax side.

Frequently asked

How much does it cost to open a restaurant?

It ranges widely — roughly under $200,000 for a small quick-service concept in a former restaurant space, to $500,000 or more for a full build-out in a raw shell. Build-out, equipment and working capital are the biggest swing factors.

What is the biggest cost of opening a restaurant?

Usually the build-out/construction, followed by equipment and the rent deposits. Taking over a second-generation space that was already a kitchen is the single biggest way to cut the total.

What's the cheapest way to open a restaurant?

Start in a second-generation (former restaurant) space to reuse infrastructure, buy quality used equipment for low-duty positions, keep the menu tight to reduce required equipment, and finance rather than tie up cash.

Can you finance restaurant startup costs?

Yes — equipment loans and leases cover the equipment, and SBA loans are commonly used for build-outs and working capital. Equipment purchases may also qualify for the Section 179 tax deduction.