Food & Beverage Business Startup Costs
Food and beverage businesses range from a $5,000 coffee cart to a $750,000 full-service restaurant. They share one thing in common: razor-thin margins that punish sloppy financial planning. Food costs, labor costs, and permitting complexity make this the most demanding category for first-time entrepreneurs - and also one of the most rewarding when you get it right.
Every guide below includes a full cost breakdown, hidden expenses, realistic breakeven timelines, and the cost-reduction strategies that separate survivors from the 60% of food businesses that close within a year.
Cost Guides
Microgreens Business - $2,000-$20,000
A home-rack, garage farm, or wholesale-to-restaurant microgreens operation costs $2,000 to $20,000 to start, with high margins on a 7-to-21-day crop cycle offset by crop failure risk, electricity, and the work of selling every tray before it spoils.
Coffee Roastery - $40,000-$250,000
A micro-roaster, wholesale, or cafe-roaster operation costs $40,000 to $250,000 to start, with strong roasted-coffee margins offset by the afterburner permit, green coffee price swings, and the months it takes to build wholesale accounts.
Donut Shop - $30,000-$200,000
A counter, drive-thru, or cafe donut shop costs $30,000 to $200,000 to start, with low food cost and high coffee margin offset by early-morning labor and a tight morning daypart.
Coffee Truck - $30,000-$120,000
A mobile coffee truck runs $30,000-$120,000 to start, from a used trailer conversion up to a new turnkey step-van with a two-group espresso machine.
Bubble Tea Shop - $80,000-$300,000
A bubble tea shop costs $80,000-$300,000 to open, driven by lease buildout, brewing and sealing equipment, and inventory, with 75-80% per-cup margins setting the upside.
Sandwich Shop - $70,000-$300,000
A sandwich shop costs $70,000-$300,000 to open, driven by lease buildout, refrigeration, and slicers, with catering and the lunch rush setting the margin.
Meal Prep Business - $5,000-$50,000
A meal prep business costs $5,000 to $50,000 to start, with most subscription-delivery operations driven into a licensed commissary by cottage food limits.
Ghost Kitchen - $20,000-$150,000
A delivery-only kitchen runs $20,000-$150,000 to start, from a rented commissary stall up to a private multi-brand buildout.
Restaurant - $175,000-$750,000
The full breakdown: buildout, kitchen equipment, liquor licensing, pre-opening labor, and the three-month cash reserve most owners don't budget for.
Food Truck - $28,000-$114,000
Three paths to getting on the road - used truck DIY, pre-built conversion, and custom build. Plus the commissary kitchen requirement most first-timers miss.
Coffee Shop - $25,000-$300,000
From kiosk to full cafe. Espresso machine selection, buildout costs, and the afternoon revenue gap nobody warns you about.
Bakery - $20,000-$150,000
Home kitchen to commercial bakery. Equipment, permitting, and the wholesale vs. retail revenue model decision.
Bar
Liquor licensing, buildout, inventory, and the economics of a business that makes most of its money between 9 PM and 2 AM.
Catering Business
Lower overhead than a restaurant with higher per-event margins. Commissary kitchens, equipment, and the sales cycle.
Brewery - $100,000-$2,000,000
Brewing equipment, TTB licensing, taproom buildout, and distribution economics. From a $100,000 nanobrewery to a $2M+ production facility.
Brewpub - $150,000-$3,000,000
Hybrid food and beer economics. Add brewing to an existing restaurant, convert, or build ground-up. Dual licensing complexity but faster cash flow than a pure brewery.
Juice Bar
Commercial juicers, cold-press equipment, produce sourcing, and the perishability challenge that drives your margins.