Restaurant startup costs split into the space, the kitchen and opening cash. The space includes deposits, build-out and permits. The kitchen includes cooking line, refrigeration, dish area and smallwares. Opening cash covers inventory, payroll for training before you earn, marketing, and enough working capital to survive a slow start. A second-generation space can change the budget dramatically, so price both options.
Cost categories owners miss
- Pre-opening payroll for training days
- Smallwares: plates, pans, utensils, linens
- Point of sale hardware and monthly software
- Grease trap service and hood cleaning contracts
- Professional fees for plan drawings
Worked example: prime cost check
Prime cost is food plus labor. If projected monthly sales are $60,000, food cost $19,200 and labor $18,600, prime cost is $37,800, or 63% of sales. Many operators aim to keep prime cost in the low 60s or below, but targets vary by concept. Put your own projections in the worksheet.
Working capital: the line that saves restaurants
Many restaurants that close early were profitable on paper but ran out of cash during the first slow months. Add a working capital line equal to several months of rent, payroll and utilities. Track it separately from build-out money so construction overruns cannot quietly eat it. Revisit the line monthly once open and replenish it from good months.
Itemized budget lines
| Line | What it covers | Source for a real number |
|---|---|---|
| Security deposit and rent | Lease costs before opening | Lease terms |
| Build-out | Construction, finishes, plumbing, electrical | Contractor bids |
| Hood and suppression | Ventilation and fire system | Specialty contractor |
| Kitchen equipment | Cook line, refrigeration, dish | Dealer quotes |
| Smallwares | Pans, utensils, plates, glassware | Supply house list |
| Furniture and fixtures | Tables, chairs, bar, lighting | Vendor quotes |
| POS and technology | Terminals, software, network | Vendor proposals |
| Licenses and permits | Health, building, alcohol, signs | Office fee schedules |
| Pre-opening payroll | Training before revenue | Schedule × wages |
| Opening inventory | Food and beverage stock | Opening order guide |
| Marketing and website | Signage, website, opening events | Quotes; websites from $399 |
| Working capital | Several months of fixed costs | Accountant model |
One-time costs
| Item | Your quote |
|---|---|
| Lease deposit and build-out | $ ______ |
| Kitchen equipment | $ ______ |
| Furniture | $ ______ |
| Permits and inspections | $ ______ |
| Opening inventory | $ ______ |
| POS | $ ______ |
| Signage | $ ______ |
| Website build and domain | $ ______ |
Monthly costs
| Item | Your quote |
|---|---|
| Rent | $ ______ / month |
| Payroll | $ ______ / month |
| Food and beverage | $ ______ / month |
| Utilities | $ ______ / month |
| Insurance | $ ______ / month |
| POS and software | $ ______ / month |
| Marketing | $ ______ / month |
| Website care | $ ______ / month |
Free tools
Common questions
What is the cheapest way to open?
Usually a second-generation space with usable equipment, a short menu and a soft opening.
How much working capital do I need?
Enough to cover several months of fixed costs while sales build. Your accountant can model it.
Should I lease or buy kitchen equipment?
Compare total cost over the lease term; leasing preserves cash but can cost more overall.
Sources
Sources checked October 6, 2026. Rules, fees and forms change; confirm details with the agency or provider before you act. This guide is general information, not legal, tax or insurance advice.
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