How Much Does It Cost to Open a Restaurant in 2026?

Opening a restaurant costs a median of $375,500, and the middle half of owners spend between $175,500 and $750,500, according to a survey of more than 350 independent restaurant owners.

Where you land depends mostly on your concept and the space you choose: taking over a former restaurant costs far less than building from the ground up.

Below, you'll find startup costs by restaurant type and space type, a breakdown of every one-time cost from construction to pre-opening payroll, ways to lower the total, and how much working capital to keep after opening day.

What does it cost to open a restaurant?

The typical (median) independent restaurant costs $375,500 to open: $113 per square foot, or $3,586 per seat. A quarter of owners opened for less than $175,500, and a quarter spent more than $750,500. Construction alone accounts for more than half of the median owner's total.

For scale, the median restaurant in the survey had 3,070 sq ft and 120 seats, with the kitchen taking up 31% of the space.

The survey was published in 2018, and build-out prices have climbed since: nonresidential construction materials cost 43% more in June 2025 than in February 2020.

Treat these figures as a floor and replace them with local quotes once you have a space.

Startup costs by restaurant type

Service style sets the size of the space, the kitchen, and the team you train before opening.

Pricing a specific concept? The guides above cover pizza shops, ghost kitchens, food trucks, and commercial kitchen rentals.

Startup costs by type of space: take over, convert, or build

A former restaurant often still has the hood, grease trap, plumbing, and dining room you need. A retail unit or new building needs it all installed.

Quick estimate: multiply your planned square footage by the median for your type of space. A 2,500 sq ft former restaurant at $73 per sq ft comes to about $182,500 before working capital.

Restaurant startup costs breakdown

Startup costs are the one-time expenses you pay before opening day, listed here in the order you'll usually pay them.

Rent, payroll, and food after you open are operating costs, covered by your working capital below. For the full opening process, see the steps to open a restaurant.

Lease or purchase costs

Rent starts before revenue does. When you sign a lease, budget for the security deposit, the first month's rent, and rent for every month of build-out, inspections, and training.

Ask the landlord about a tenant improvement allowance (money toward your build-out) and about common area maintenance charges added to base rent.

If you buy the building, keep the purchase and closing costs on a separate line from renovation so you can compare loan offers clearly.

Construction and renovation

Construction is the largest startup cost. Surveyed owners spent a median $200,000 on construction, or $65 per square foot, and for the median owner it made up 57.9% of the total cost to open. The middle half spent $70,000–$472,500.

The kitchen drives that bill: ventilation hoods, fire suppression, grease traps, plumbing, and electrical capacity.

Older buildings may also need accessibility upgrades such as ramps and restrooms. Get itemized quotes from at least three contractors and check whether design fees, permits, and equipment installation are included.

Licenses, permits, and insurance

Fees vary by state and city, so confirm requirements with your city's licensing office and local health department before you sign a lease. Most restaurants need:

• A business license and an EIN
• A food service permit and food handler certifications
• Building permits for the build-out and a certificate of occupancy
• A sign permit
• A liquor license if you serve alcohol; in states that cap the number of licenses, you may have to buy one from an existing holder
• Music licenses from performing rights organizations such as ASCAP and SESAC if you play copyrighted music

Start applications as soon as the lease is signed: inspections and license approvals can delay your opening date even after construction is done. Insurance is due before opening, too: budget the first premium for general liability, property, and workers' compensation coverage.

Kitchen equipment and furniture

Kitchen and bar equipment cost surveyed owners a median of $95,000, or $100 per square foot, with the middle half spending $40,000–$196,250.

Your menu sets the list: every station needs cooking, refrigeration, prep, and dishwashing capacity sized for your busiest service. Build a complete restaurant equipment list first, and price delivery and installation with each item.

Quality used equipment and leases on big items like walk-in coolers and dish machines lower upfront costs; check service history and warranties before you buy. Also budget for dining furniture and smallwares: plates, glassware, cutlery, pots, and pans.

Restaurant technology

The technology you choose before opening sets your monthly fees. Price the full setup: POS hardware and software, payment processing, a kitchen display, online ordering, a website, and an ordering app. Our guide to POS system cost breaks down hardware, software, and processing fees.

On UpMenu's pricing, commission-free web ordering costs $49–$169 per location per month, depending on order volume, and a branded mobile app costs $49 per location per month.

The bigger decision is where your online orders come from. The Wind-Chill Factory, a single-location restaurant in Ticonderoga, NY, saved $77,200 in one year by taking orders through its own app and website instead of paying 20% marketplace commissions.

Pre-opening payroll, training, and inventory

Payroll and food costs start before opening day: staff is paid to train and run practice services, and the kitchen stocks its first inventory.

Surveyed owners spent a median $20,000 on pre-opening expenses, and a quarter spent more than $50,000. By service type, the median was $25,000 for full service, $20,000 for bars, and $12,000 for limited service.

Add payroll taxes and benefits to every wage estimate. Once you open, track wages against sales with your restaurant labor percentage.

Pre-opening marketing

Launch marketing is a one-time cost; ongoing campaigns belong in your monthly budget. Before opening day, have these ready:

• A website with your menu, hours, location, and online ordering
• A Google Business Profile with photos and correct hours
• Exterior signage, after your sign permit is approved
• A soft opening for friends and family, then a grand opening

Collect emails and phone numbers at the soft opening so you can announce the grand opening and your first promotions directly.

How to lower your restaurant startup costs

The biggest savings come from decisions you make before you sign anything:

• Take over a former restaurant. Second-generation spaces cost a median $73 per sq ft to open, versus $193 for new construction, because the hood, grease trap, and plumbing are often already in place.
• Start with a smaller format. Limited-service restaurants cost a median $225,500 to open, less than half the $475,500 median for full service.
• Negotiate the lease. Ask for free rent during the build-out, or tie the rent start date to opening day.
• Buy used or lease big equipment. Inspect used walk-ins, dish machines, and ranges, and ask for service records before you buy.
• Keep the opening menu short. Fewer dishes mean less equipment and a smaller opening inventory.
• Test the concept first. A food truck, ghost kitchen, or rented commercial kitchen lets you prove demand before a full build-out.

How much working capital do you need?

Working capital is the cash that keeps the restaurant running until sales cover costs. Keep it separate from your build-out budget: if a construction overrun eats it, you open with nothing in reserve.

Plan for two buffers:

• Construction contingency. Half of surveyed owners went over budget by 15% or more, and a quarter by 45% or more. Hold back at least 15% of your build-out budget.
• Operating cash. The median restaurant took 5 months to become profitable, and a quarter took 12 months or longer. Cover rent, payroll, food, and utilities from cash for that period.

To size the reserve, build a month-by-month cash flow forecast for your first year and add up the months where spending exceeds sales.

For example, a restaurant that spends $12,000 a month more than sales for its first 5 months needs $60,000 in operating cash, plus the construction contingency.

Our breakdown of restaurant operating costs shows what to include each month. If the total exceeds what you have, compare restaurant loans before you sign a lease.