My plan

How to Open a Restaurant

Restaurants are among the most permit-heavy small businesses. Buying an existing restaurant with equipment and permits in place can cut cost and time — the opportunities section links to marketplaces that list them.

Reviewed November 3, 2026 · Sources linked inline

Startup costs

We haven't found a reliable published cost range for this business, so we don't show one. Costs vary widely by market, equipment and whether you buy new or used. Plug your own quotes into the worksheet:

Open a restaurant cost worksheet →

SBA 7(a) loans in this industry

Full-Service Restaurants (NAICS 722511): 8,053 loans approved in FY2024–FY2026. Median loan $260,000; middle half $85,100–$657,500.

Limited-Service Restaurants (NAICS 722513): 5,792 loans approved in FY2024–FY2026. Median loan $347,450; middle half $100,000–$620,000.

Loan size is not startup cost — these loans also fund acquisitions, real estate and working capital. Full breakdown and caveats →

How many full-service restaurants businesses are there?

Nationwide: 258,626 employer establishments and 69,716 without employees.

See counts for your county → Counts aren't a measure of saturation — see the caveats on the tool page.

Equipment and supplies

  • Commercial range, ovens, fryers
  • Ventilation hood and fire-suppression system
  • Walk-in and reach-in refrigeration
  • Dish machine
  • Prep tables, shelving
  • POS system

Licenses and registration

  • Register your business entity.
  • Health department food establishment permit and plan review.
  • Building, fire and hood/suppression inspections.
  • Liquor license if serving alcohol (state and local).
  • Local business license, sign permit, certificate of occupancy.
  • Sales tax registration and employer registrations.
  • Get a free Employer Identification Number (EIN) from the IRS if you will hire employees or form an LLC or corporation. Beware of sites that charge for this. [source]
  • Register an LLC or corporation with your state's business registration office (sole proprietors usually register a trade name/DBA instead). [source]

State-specific guide: Arizona. For other states, start with the state registration directory.

Insurance to consider

  • General liability
  • Liquor liability (if serving alcohol)
  • Property and equipment
  • Business interruption
  • Workers' compensation

Get quotes from several carriers or an independent agent; coverage needs depend on your contracts, state and staff.

Financing options

  • SBA 7(a) loans — the SBA's main guaranteed loan program, made through participating lenders. [source]
  • SBA Microloans — smaller loans delivered through nonprofit intermediary lenders. [source]
  • SBA Lender Match — a free tool that connects you with interested SBA lenders. [source]
  • Free counseling from your local SBDC or SCORE chapter can help you build the business plan lenders ask for. [source]

Estimate payments with the loan calculator, then check runway with the cash flow projection.

Ongoing operating expenses

  • Food and beverage cost
  • Labor
  • Rent
  • Utilities
  • Repairs
  • Card fees
  • Marketing

Use the break-even calculator to see how many jobs or sales cover them, and the employee cost calculator for staffing.

Common mistakes

  • Underestimating working capital
  • Signing a lease before confirming hood, grease trap and zoning
  • Menu too large for kitchen and staff
  • No system for tracking food cost weekly

Finding customers

  • Google Business Profile with menu and photos
  • Online ordering
  • Local events and partnerships
  • Review management

Startup checklist

Ticks are saved on this device and appear on My plan.

Compare with other businesses

Sources