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.