250 STATE PROFILES · Official benchmarks + planning scenariosCoverage and limitations →
Food & drink / Business opening guide

How to start a restaurant.

Start with a service format, a short menu and an address that can support the kitchen. The first decision is whether the expected covers can pay for the entire paid team and premises, including quiet shifts. Seats alone do not establish sales.

What the customer buys and what makes the business repeatable.

Guests buy a prepared meal and a dining occasion. Count paid covers, distinguish lunch from dinner and measure the net check after discounts. A full room during one peak period does not fill the rest of the trading week.

Repeat visits depend on consistent food, service and a reason to return. Track repeat covers separately from first-time promotions; a discounted opening weekend is a weak basis for a normal month.

The format on this site: 48-seat counter-service restaurant. Alcohol, delivery platforms, catering, a drive-through and a second location are outside this format.

Choose the format before choosing a budget.

Different formats need different operating plans
FormatWhat changesHow to use it
48-seat counter-service restaurantCounter ordering, a dining room and a paid kitchen and service teamThe reference used here; guest turns and kitchen output both constrain covers.
Full-service diningTable service and a different staffing and guest experienceRequires its own ticket, paid roster, service cycle and collection assumptions.
Pop-up or shared kitchenLimited sessions or a booked production spaceUseful for testing a menu; do not carry its rent or capacity into a permanent restaurant.

A founder who wants to manage a team and a service operation, can work around trading peaks, and is prepared to resolve premises and food-production dependencies before opening.

Understand the reference operating plan.

The figures below are a national wage reference scenario. The paid roster uses May 2025 BLS national occupational medians. Prices, customer volume, rent, equipment and other commercial inputs are authored assumptions. This is not a researched average startup cost, owner-income promise or a funding recommendation.

One defined format · monthly amounts before financing and income taxes
Input or resultReferenceWhat to verify
Completed sales units2,600 guests / month100 guests per trading day; demand requires evidence.
Net selling price$26.00Build and test a relevant local menu, package or contract scope.
Revenue$67,600Calculated volume × price, not observed sales.
Paid payroll$27,119 / monthNational wage medians × the stated hours × the 18% employer allowance.
Opening payments$200,364Authored equipment and setup allowances, deposit and paid training.
Funding including reserve$315,213Opening payments + deepest modeled operating deficit + retained buffer.
Mature operating profit (EBIT)$3,812 / monthAfter the full paid roster and depreciation; before financing and income taxes.
EBIT break-even91.2 guests per trading dayA sales threshold to compare with capacity and tested demand.

48 seats × 3 guest turns = 144 guests per day. This is a simplified service ceiling; kitchen throughput and table timing can reduce it.

32% ingredients and food waste plus 4% payment processing and packaging. Utilities $1,600; insurance $650; marketing $650; software, waste collection and other operating costs $600 per month.

Counter-service workers provide a broad service proxy. The roster uses no tipped-server credit. Hours are aggregate team coverage, not the schedule of one employee.

A positive reference EBIT depends on the assumed paid sales volume and costs. It does not establish local demand or cash available for owner withdrawals.

BLS May 2025 national wage workbook · Calculation definitions · How owner income differs from EBIT

What to scope and quote before opening.

Build a usable equipment and premises brief
WorkstreamWhat the brief needsDecision before spending
Kitchen and fit-outMenu, extraction, power, drainage, refrigeration and installation responsibilitiesConfirm the proposed use and equipment layout before committing to a space.
Dining and serviceSeats, tables, tableware, POS and a workable service routeCheck the slowest station at the busiest service period.
Opening stockA recipe-based ingredient list, shelf life and reorder quantitiesDo not buy a large range before the opening menu is fixed.

Compare installed scope, exclusions and payment dates. Do not treat an unquoted item as zero or count a bundled installation twice. Turn equipment quotes into an opening budget explains a reusable quote ledger.

A practical launch sequence.

  1. Prove one service period

    Run a legal, appropriately permitted test of the menu and service flow. Record paid covers, preparation minutes, waste and realized ticket. Capture the conditions that made the test possible.

  2. Resolve the address

    Take the actual menu and equipment schedule to the relevant planning, food and building authorities. Obtain written answers on permitted activity and work required; a previous food tenant is not approval for your plan.

  3. Reconcile the operating week

    Build opening, preparation, service and closing rosters. Price the ingredients by recipe and calculate whether each trading period contributes enough to carry its paid labor.

  4. Open with a narrow scope

    Practice a complete shift, count inventory and test supplier ordering, payment settlement and closing controls. Expand hours or menu items only when the team can deliver them consistently.

Your first evidence task: Select one menu and one meal period. Build a dated log of paid covers, orders by item, preparation bottlenecks, waste and all paid work. Compare that service with the assumptions in the permanent format; do not extrapolate a one-off event without explaining the difference.

What to measure in the first operating weeks.

A small operating dashboard
MeasureWhy it changes a decision
Paid covers by serviceSeparates an unfilled lunch period from a capacity problem at dinner.
Net check and recipe contributionShows whether menu mix, discounts or ingredient changes erased the apparent margin.
Paid labor hours per coverIncludes preparation, closing and management, not only the visible dining shift.
Waste and stock movementConnects buying decisions to cash tied up and food that cannot be sold.

Review actuals against the scope you priced. If an extra service, new trading hour or more distant client changes the work, update the roster and contribution calculation before expanding.

Prepare the right approval brief.

Bring the menu, preparation methods, floor plan, proposed equipment, seating and any alcohol service to the address-level review. Ask which food, building, fire and other approvals apply and what must happen before construction and trading.

Each state profile links to official registration, tax and employer routes, together with the questions still requiring an address-specific answer. Find the responsible approval route for your activity provides the record to keep.

When to revise the plan before committing.

A lease that depends on unconfirmed kitchen work, a menu with too many preparation paths, or a forecast that needs every seat occupied throughout service is a reason to redesign before spending more.

Write a response that changes the actual cause: narrower scope, a different site, revised paid staffing, a tested price or a delayed opening. A larger cash buffer only addresses a temporary timing gap.

Build your opening file.

Compare the work, customers and constraints.

Business comparison

Restaurant vs Coffee Shop

Choose between a meal-led service operation and a habit-led counter operation. The counter-service restaurant reference must coordinate menu production, guest ordering and dining space; a coffee shop must win repeat transactions and deliver them quickly in its buying windows.

Compare the operating choices →
Business comparison

Restaurant vs Cleaning Business

This is a choice between serving customers at a fitted destination and delivering a recurring service across client sites. The restaurant depends on its address and meal-period trade; cleaning depends on measured contracts, route density and consistent delivery.

Compare the operating choices →
Business comparison

Restaurant vs Hair Salon

A restaurant coordinates a team around meal periods; a hair salon schedules skilled service time around appointments. Both use fitted premises, but the salon’s service duration and kept bookings play the role that menu production and paid covers play in a restaurant.

Compare the operating choices →
Business comparison

Restaurant vs Auto Detailing Business

Restaurant trade is organized around meal periods and a food-service team. A detailing studio is organized around vehicle packages, technician-hours and available bays. The second format’s smaller number of daily jobs makes job scope and duration especially consequential.

Compare the operating choices →

Questions to settle before choosing a state.

Is a smaller restaurant automatically cheaper to run?

A smaller dining room can reduce some setup needs, but the kitchen, preparation work and minimum staffing may not shrink in proportion. Test the full operating week at the proposed capacity.

Can the owner work for free in the budget?

An owner may defer a withdrawal, but their operating work still needs a replacement cost in a comparable business plan. This reference pays every role and separates owner withdrawals from EBIT.

Does the state funding range tell me what my lease will cost?

No. The range on this site mainly changes with wage benchmarks. Obtain premises, construction and equipment scopes for the actual address before estimating a local funding requirement.

Restaurant in every state.

Compare the reference scenarios.

Sorting compares one defined format. It does not rank states for attractiveness or prove demand. Funding includes a 60-month cash reserve under each scenario.

Restaurant · same commercial assumptions, state occupational wage medians
StateFunding scenarioLoaded payroll / monthEBIT break-even guests per trading day
Alabama$291,120$22,79981.2
Alaska$329,765$29,39396.4
Arizona$322,236$28,25293.8
Arkansas$286,900$21,98779.3
California$355,052$32,739104.2
Colorado$339,151$30,69799.5
Connecticut$330,760$29,53196.8
Delaware$319,787$27,85692.9
Florida$311,040$26,44589.6
Georgia$301,311$24,76085.7
Hawaii$350,035$32,127102.8
Idaho$307,394$25,85788.3
Illinois$317,112$27,42591.9
Indiana$305,777$25,59687.7
Iowa$303,270$25,13786.6
Kansas$302,695$25,02686.4
Kentucky$302,177$24,92686.1
Louisiana$283,821$21,39578
Maine$334,293$30,02297.9
Maryland$320,996$28,05293.3
Massachusetts$354,589$32,682104
Michigan$303,746$25,22886.8
Minnesota$323,022$28,37894.1
Mississippi$283,157$21,26777.7
Missouri$309,068$26,12788.9
Montana$311,349$26,49589.7
Nebraska$302,761$25,03986.4
Nevada$315,680$27,19491.4
New Hampshire$324,875$28,67794.8
New Jersey$327,259$29,04595.6
New Mexico$302,836$25,05386.4
New York$341,984$31,091100.4
North Carolina$308,069$25,96688.5
North Dakota$310,396$26,34189.4
Ohio$301,392$24,77585.8
Oklahoma$289,708$22,52880.6
Oregon$325,654$28,80395.1
Pennsylvania$304,018$25,28186.9
Rhode Island$321,924$28,20193.7
South Carolina$301,919$24,87786
South Dakota$301,530$24,80285.8
Tennessee$302,649$25,01786.3
Texas$298,494$24,21884.5
Utah$308,069$25,96688.5
Vermont$342,220$31,123100.4
Virginia$312,599$26,69790.2
Washington$407,338$34,035107.2
West Virginia$285,158$21,65278.6
Wisconsin$301,958$24,88486
Wyoming$302,145$24,92086.1
Financial information disclaimer

Published research and calculations support business planning and education. They are not personalized financial, investment, tax or legal advice, and they do not guarantee costs, revenue, profit or financing. Estimates depend on the stated format, location, source periods and assumptions. Check the requirements and commitments that apply to your circumstances.