What is the biggest cost when opening a restaurant?

Build out and renovation, usually 30% to 40% of the budget. Kitchen equipment is next at 15% to 25%, and working capital to survive the first months is 15% to 20%. Kitchen systems and mechanical, electrical and plumbing are 45% to 55% of construction cost, which is why an existing restaurant space is so much cheaper than a conversion.

Free calculator, no email

How much does it really cost to open a restaurant?

Build out, equipment, permits, rent before you open, deposits, a contingency, and the part every other calculator skips: the months of cash you need to survive the ramp. Your number, compared with the largest survey of independent owners.

Your restaurant

Concept

Floor area, sq ft

SeatsSurvey median is one seat per 30 sq ft, kitchen included.

The space you are taking Existing restaurant space means the kitchen, hoods and plumbing are already in, the single biggest money saver, since those are about half of construction cost. Buying land or constructing the building itself is not in this number.

Market

Monthly rent

Prefilled from your area and market. Type your real quote.

Kitchen equipment

Liquor licence

Licence cost in your state

Varies from a few hundred dollars to six figures by state and county. Check yours and type it in.

Cash cushion, monthsWorking capital: months of rent, payroll and overheads held in cash. Three is the minimum most advisers accept, six is safer.

Contingency, %Build outs run over. 10% to 20% is standard.

Cash you already have, optional

Shows your funding gap.

The next 60 months

The opening number is the easy part. Now see whether it works.

This page tells you what it costs to open. The Restaurant Financial Model takes the same restaurant and runs it month by month for five years: when you break even, where the cash dips lowest, whether the loan can be carried, and what happens if covers come in 15% under plan.

Fifteen linked worksheets, Excel and Google Sheets, no macros
Covers, average check, takeaway, catering and retail on one Inputs tab
P&L, cash flow and balance sheet, monthly for 60 months
Break even month, cash low point, base, best and worst scenarios
Loan schedule, prime cost tracking, industry benchmarks beside your numbers
A Checks tab that proves it balances every month

$36

Instant download. Also on Gumroad.

Get the Restaurant Financial Model

Pricing your menu next? The Recipe Cost and Menu Pricing Calculator is $12.

Dashboard of the Restaurant Financial Model: capital required, revenue, margins, break even month and cash low point

How this calculator works

Every line is a rate times something you typed, so you can argue with any of them. The rates are calibrated against the RestaurantOwner.com survey of more than 350 independent owners and the 2026 construction and equipment guides listed below.

Line	Rate	Where it comes from
Build out	$50, $100 or $170 per sq ft for an existing restaurant, a conversion, or a new shell with no kitchen. Times 0.8, 1.0 or 1.35 by market, in line with regional construction cost indexes.	Survey medians by project type ($275,500, $425,500, $650,000 in 2018) and 2026 tenant improvement guides. Constructing the building itself is excluded.
Equipment	$45,000 to $110,000 by concept, scaled by the square root of floor area so a bigger room does not double the line. Used at 60%.	Survey median $95,000. Dealer guides $40,000 to $200,000. Used saves 30% to 50%.
Furniture and fixtures	$300 to $450 per seat by concept.	Dealer price lists.
Technology, signage, inventory	$6,000 plus $20 per seat; $5,000 by market; $8,000 to $22,000 by concept.	POS vendor pricing and opening guides.
Before you open	Permits, plans and legal at $3,000 plus 6% of the build out, your licence figure, marketing $5,000, two weeks of training payroll, insurance deposit $3,000.	Design and permit fees run 5% to 10% of construction on restaurant projects. Opening checklists from Toast and Square.
Rent before opening	One, three or five months of rent for an existing space, a conversion or a new shell, after the free rent landlords usually give during construction.	Build out timelines of 5 to 9 months, ground up 12 to 18, less typical rent abatement.
Deposits	Two months of rent plus $2,000 utilities.	Standard commercial lease terms.
Monthly fixed cost	Rent, plus payroll and overheads as shares of the sales a place this size typically does. Expected sales: $26 to $32 per sq ft a month by concept. Labour 28% to 32% of sales, overheads 12%.	Owner survey median sales of $325 per sq ft a year for full service, trade benchmarks for cafes and counter service, restaurant P&L benchmarks for labour and other operating costs.
Working capital	Months you choose times monthly fixed cost. The safe line uses six.	Advisers' consensus of three to six months.
Sales to cover costs	Monthly fixed cost divided by one minus food cost, 27% to 32% by concept.	Prime cost benchmarks. Loan payments are not included here; the model handles them.
Survey medians	Shown in 2026 dollars: the 2018 figures times 1.32.	RestaurantOwner.com survey of 350+ owners ($375,000 total, $3,586 per seat, $113 per sq ft) and the BLS consumer price index, 2018 to 2026.

Rates last reviewed September 2026. This is an estimate to plan with, not a quote. Get real bids for the build out and your own licence figure.

Questions people ask

How much does it cost to open a small restaurant?

A small independent restaurant typically needs $175,000 to $350,000. In the largest owner survey the cheapest project type, remodelling an existing restaurant space, had a median cost of $275,500 in 2018, about $365,000 today. A cafe or coffee shop with seating runs $80,000 to $300,000.

How much does it cost to open a coffee shop?

A coffee shop with seating costs $80,000 to $300,000. A coffee cart costs $25,000 to $75,000 and a kiosk $50,000 to $150,000. The biggest swing is the space: an existing cafe with plumbing and ventilation in place costs a fraction of converting a retail unit. There is a separate coffee shop startup cost calculator with kiosk, espresso bar, cafe and drive thru formats.

What is the biggest cost?

Build out and renovation, usually 30% to 40% of the budget. Kitchen equipment is next at 15% to 25%, and working capital is 15% to 20%. Kitchen systems and mechanical, electrical and plumbing are 45% to 55% of construction cost, which is why an existing restaurant space is so much cheaper than a conversion.

How much working capital does a new restaurant need?

Three to six months of full operating expenses, and six is the safer target. Sales ramp slower than the plan for the first 60 to 90 days while rent, payroll and loan payments start at full price on day one. Undercapitalisation is a leading cause of failure.

Can I open a restaurant with $100,000?

A cafe or counter service concept in an existing restaurant space, with used equipment, in a lower cost market, yes, with thin working capital. Try it above. A full service restaurant, no. The owner survey median is $375,000 in 2018 dollars, about $495,000 today, and even the cheapest project type was $275,500.

How long until a new restaurant is profitable?

The owner survey median is five months. A quarter of restaurants were profitable within two months and a quarter took twelve. Plan the cash for six to eighteen months.