How much does it cost to open a restaurant? A line-by-line budget

You have found a space, the landlord wants a deposit, and a contractor has given you a number for the build-out. What you need to know is the total, and whether you will still have cash in month three.

By our estimate, a typical restaurant costs roughly $580,000 to $620,000 to open in 2026 prices, but no current national survey exists. That figure is the 2018 survey median of about $375,000, inflated by BLS construction and equipment price indices. SBA 7(a) loans to full-service restaurant start-ups in fiscal 2026 had a median of $400,000. Build your own budget from quotes, then add working capital and a 10% contingency. Last checked: 4 November 2026.

How much does it cost to open a restaurant?

The survey of RestaurantOwner.com members reported by Restaurant Dive on 16 November 2018 is the only named, public set of US restaurant startup medians we could verify. It shows how much the type of space matters. The right-hand column is our estimate of the same medians in 2026 prices, explained below.

The same survey put median pre-opening and training costs at $12,000 for limited-service restaurants, $20,000 for bars and taverns and $25,000 for full-service restaurants. It also found that a quarter of owners reached profitability within two months and another quarter needed a year, which is why the working capital line below matters. The article does not give the sample size.

How we brought the 2018 figures forward. There is no price index for restaurant build-outs, so we used the closest Bureau of Labor Statistics price indices, comparing the 2018 average with September 2026 (preliminary):

The estimate column multiplies each 2018 median by 1.55 and 1.65, the lowest and highest of the four construction and equipment indices. It is our arithmetic, not a survey. It assumes restaurants are built to the same size and standard as in 2018, and it applies construction prices to the whole budget, including lines such as deposits and training. If you inflate by consumer prices alone, the all-restaurant median is about $500,000, so treat that as a floor.

The cheapest route is usually taking over a space that was already a restaurant: the hood, grease trap, plumbing and electrical service may already be there. Check their condition before you count on them.

How much do new restaurants borrow?

SBA loan records give a second, current reference point. The Small Business Administration publishes every 7(a) loan it guarantees in its 7(a) and 504 FOIA data. We took the loans approved in fiscal year 2026 (October 2025 to September 2026) to businesses marked "Startup, Loan Funds will Open Business":

A loan is not the whole project. The owner adds equity, at least 10% for an SBA start-up, and may use other money too. Some loans also buy the building: 19% of the independent full-service loans run 20 years or more, a term SBA allows for real estate. Leave those out and the independent full-service median is $267,800. The data covers only owners who borrowed through the SBA, so treat it as a reference point, not an average for every opening.

What goes into a restaurant startup budget?

The U.S. Small Business Administration's startup cost guide says to separate one-time costs from monthly costs and to count at least one year of monthly expenses (five years is ideal). Its tips add "a little extra, say 10%" for expenses you can't predict.

We have not printed typical ranges for each line below, because we found no neutral, current source for them. Most figures online come from companies selling equipment or software. Fill in your own quotes instead.

For licenses, the SBA's licenses and permits guide explains which levels of government issue what. A typical restaurant needs a business license, a food service or health permit, building permits and a certificate of occupancy, a sales tax permit, and a liquor license if you serve alcohol.

In the two cities we checked, the health permit costs hundreds of dollars, not thousands. New York City's food service establishment permit costs $280 and lasts a year. Austin's fee schedule, in force from 1 November 2026, charges $309 to $927 a year depending on risk and food sales, plus $312 for new-construction plan review and $178 for a pre-opening inspection. Liquor licenses often cost far more and vary by state and license type; California's ABC, for example, publishes its fee schedules online. Ask each agency for current fees and how long approval takes. The real cost of a permit is often the wait: every month without sign-off is a month of rent with no sales.

How much working capital do you need to open a restaurant?

This is the number that sinks first-time owners. Build-out quotes get attention; the cash to survive the first months often gets whatever is left.

Working capital covers the gap between what you spend and what you take while sales ramp up, plus a cushion for surprises. You can size it with the National Restaurant Association's 2024 medians for full-service restaurants from its 2025 Restaurant Operations Data Abstract (more than 900 restaurants): food and beverage 32.0% of sales, payroll and benefits 36.5%, occupancy 5.7%, and pre-tax income 2.8%.

Worked example. A full-service restaurant plans $1.2 million of sales a year, or $100,000 a month. At the NRA medians, its costs split like this:

• Variable costs: food at 32% plus card fees at about 3% = 35% of sales.
• Fixed costs: payroll $36,500 + occupancy $5,700 + other operating costs $20,000 = $62,200 a month.

Now assume sales start below plan (the ramp is an assumption, so use your own):

The ramp alone eats $40,350. Add a cushion of one month of fixed costs ($62,200) for a broken walk-in, a slow January or a late permit, and the working capital line is about $102,550. That is before any loan payments.

Even at full volume, this restaurant only makes $2,800 a month at the median margin. It cannot rebuild a reserve quickly, which is why the reserve has to be funded on day one. Our US restaurant profit margin guide shows where that margin goes. The NRA reported on 12 February 2026 that 42% of operators said they were not profitable in 2025.

How much money do you need before you apply for a loan?

Add up the budget, then work out your share. For SBA 7(a) loans, the SBA's lending rulebook, SOP 50 10 8.1 (Section B, for loans numbered from 1 October 2026), requires a start-up to inject at least 10% of total project costs. Lenders can ask for more than the minimum, so confirm the figure with yours.

Continuing the example, with an illustrative $400,000 of quotes:

Every line you add raises the equity you need. The full lender view, including debt service coverage, is in our restaurant business plan guide.

Buy, rent or lease: how to treat equipment and technology

Each piece of equipment can be bought outright, rented monthly or leased on a fixed-term contract. They land in different places in your plan:

• Bought: a one-time startup cost. It raises the cash you need now but has no monthly payment.
• Rented monthly: an operating cost you can stop. It keeps startup cash lower and leaves you free to change.
• Leased on a multi-year contract: a monthly cost you are committed to, even if you close or switch. Read the term, the total of all payments, and the early termination clause before you sign.

Card processing is not a startup cost. It is a percentage of every card sale, so it belongs in your variable costs alongside food. For what to ask a POS vendor about devices, readers and offline mode, see our cloud-based restaurant POS guide.

Startup budget sheet you can copy

Paste this into a spreadsheet. Fill column B with your quotes, and keep the name and date of each quote in column C.

RESTAURANT STARTUP BUDGET           A: Line     B: Amount ($)   C: Source and date
ONE-TIME COSTS
  Lease deposit and pre-opening rent             [ ]            [ ]
  Architect, engineer, design                    [ ]            [ ]
  Construction and build-out                     [ ]            [ ]
  Kitchen equipment                              [ ]            [ ]
  Furniture, fixtures, decor                     [ ]            [ ]
  Smallwares                                     [ ]            [ ]
  Technology bought outright                     [ ]            [ ]
  Licenses and permits                           [ ]            [ ]
  Legal and accounting                           [ ]            [ ]
  Insurance deposit                              [ ]            [ ]
  Opening inventory                              [ ]            [ ]
  Pre-opening payroll and training               [ ]            [ ]
  Opening marketing                              [ ]            [ ]
  Subtotal one-time                              =SUM
WORKING CAPITAL
  Ramp-up cash gap (months 1 to 3)               [ ]
  Cushion: one month of fixed costs              [ ]
  Subtotal working capital                       =SUM
CONTINGENCY (10% of the two subtotals)           =10%
TOTAL PROJECT COST                               =SUM
  Your equity (at least 10% for SBA start-ups)   [ ]
  Loan requested                                 [ ]

MONTHLY COSTS (for the cash flow, not the startup total)
  Rent and occupancy                             [ ]
  Payroll, taxes, benefits                       [ ]
  Insurance                                      [ ]
  Utilities                                      [ ]
  Software and equipment rentals                 [ ]
  Loan payments                                  [ ]

Once you have a total, check your menu prices cover the costs with the menu price calculator and the food cost calculator. Opening a coffee shop instead? See the coffee shop business plan.

Can TablePort handle this for you?

TablePort goes in the monthly costs, not the startup total.

1. Software as a monthly line. US list prices per location, before sales tax: POS Starter $59 a month, with Reservations and Staff at $59 each if you need them. Plans are month to month; cancellation takes effect at the end of the paid month, with no cancellation fee.
2. Card reader rental, not a lease. The card reader is a $12 monthly rental, not a multi-year lease.
3. Fast setup. A typical restaurant is set up in about 15 minutes, and you can import your menu from a photo, PDF or pasted text, then review it. It runs on supported iPads, Android tablets and phones, after a compatibility check.

The honest limit: TablePort cannot price your build-out, equipment or permits. Card processing and metered usage are extra. See pricing.