The number that sinks new restaurants is usually not the one they planned for — it is the cost they forgot. Real-world openings range widely: roughly $175,000 for a modest quick-serve to $750,000 or more for a full-service build, with a median near $375,000, or about $100–$450 per square foot depending on how much work the space needs. Use this checklist to make sure every category has a line, then price your own market. Our cost-to-open guide and calculator turn these categories into a real number.
| Category | Typical line items | Rough range |
|---|---|---|
| Build-out & construction | Contractor, plumbing, electrical, HVAC, hood & fire suppression, flooring, restrooms | $50–$300 / sq ft |
| Kitchen equipment | Ranges, refrigeration, prep tables, dishwasher, walk-in, smallwares | $50k–$150k |
| Furniture & front-of-house | Tables, chairs, bar, dcor, signage, lighting | $20k–$100k |
| Technology | POS, kitchen display, network, cameras, online ordering, accounting | $5k–$30k |
| Permits & licenses | Building, health, business, food handler, sign; liquor license separate | $5k–$20k+ (liquor far higher) |
| Professional fees | Architect, kitchen designer, permit expediter, attorney, accountant | $10k–$50k |
| Pre-opening | Deposits, opening inventory, hiring & training, soft open, launch marketing | $20k–$60k |
| Working-capital reserve | 3–6 months of rent, payroll & bills before you turn a profit | $50k–$150k |
Most new restaurants lose money for the first few months, and many take a year or more to break even. Set aside three to six months of fixed costs — rent, payroll, utilities, insurance and loan payments — as working capital. Underfunding this reserve is the single most common reason well-built restaurants close before they ever find their footing.
These items rarely make the first draft of a budget:
You do not have to buy everything on day one. A smart budget separates must-have-to-open costs from can-wait upgrades. Core kitchen equipment, code-required build-out, permits and your opening inventory are non-negotiable. A second walk-in, a full patio build, premium dcor or a large sign package can often come in phase two, once revenue is flowing. Buying quality used equipment and taking a second-generation space are the two biggest levers for cutting the number without cutting quality. Whatever you trim, never raid the working-capital reserve to afford a nicer build — that trade almost always backfires within the first year.
Tip: Get real quotes for the big three — construction, equipment and any liquor license — before you finalize your loan amount, because guessing on these three is what blows budgets. Plan the kitchen with the equipment configurator, and check local permits and licenses plus your state's requirements by ZIP so nothing is a surprise.