How Much Does It Cost to Open a Restaurant in Houston?
Opening a restaurant is a dream for many entrepreneurs, but turning that dream into reality requires careful financial planning. Houston, with its booming food scene and diverse culinary culture, is an exciting place to launch a restaurant—but how much does it really cost?
The answer depends on several factors, including location, size, cuisine type, and concept. Let’s break it down so you can get a realistic picture of what it takes to open a restaurant in Houston.
1. Location & Lease
Your biggest fixed cost will likely be rent. In Houston, commercial restaurant spaces can range widely:
Neighborhood casual spot: $20–$35 per square foot annually.
High-traffic areas (Downtown, Midtown, Galleria): $40–$60 per square foot annually.
Most restaurant spaces are between 2,000–4,000 square feet, so annual rent often lands between $60,000–$180,000. Remember to budget for security deposits, insurance, and common area maintenance (CAM) fees as well.
2. Build-Out & Renovations
Even if you find a second-generation restaurant space (previously a restaurant), you’ll likely need renovations.
Minor updates (paint, décor, signage): $50,000–$100,000
Full remodel with kitchen upgrades: $150,000–$500,000
New construction: $500,000–$1M+
Tip: Houston’s permitting process can be complex, so hiring an experienced project manager or consultant can save time and costly mistakes.
3. Equipment & Furnishings
A commercial kitchen isn’t cheap. Depending on your menu and service style, costs can include:
Kitchen equipment: $75,000–$200,000
Furniture & décor: $30,000–$100,000
Technology (POS, tablets, reservation systems): $10,000–$25,000
4. Licenses & Permits
You’ll need permits from the City of Houston and Harris County. Costs vary, but expect around:
Food permit: $600–$1,500 annually
Liquor license: $5,000–$15,000 depending on type
Health inspections, fire marshal, occupancy permits: $2,000–$5,000 total
5. Staffing & Payroll
Labor is your largest ongoing expense. In Houston:
Front-of-house (servers, bartenders, hosts): $2,000–$4,000 per employee per month
Back-of-house (chefs, cooks, dishwashers): $2,500–$5,000 per employee per month
A mid-size restaurant (40–50 employees) should budget $50,000–$100,000 per month in payroll.
6. Operating Costs & Marketing
Don’t forget working capital to keep the lights on after opening:
Utilities (gas, electricity, water, internet): $3,000–$7,000 monthly
Initial food & beverage inventory: $15,000–$40,000
Marketing & PR (branding, website, launch campaign): $5,000–$20,000 upfront
Total Estimated Cost to Open a Restaurant in Houston
When all is said and done, here’s a realistic range:
Small café or fast-casual spot: $250,000–$500,000
Full-service mid-size restaurant: $500,000–$1.2M
Large, upscale concept: $1.5M–$3M+
Final Thoughts
Opening a restaurant in Houston is both exciting and challenging. With the city’s vibrant dining culture and steady population growth, opportunities are strong—but so is competition. The key to success lies in realistic budgeting, detailed planning, and smart execution.
At Eatery Experts LLC, we specialize in helping aspiring restaurant owners turn ideas into profitable businesses. From budgeting and concept development to operations and staffing, our team is here to guide you every step of the way.
👉 Ready to bring your restaurant vision to life in Houston?
Contact Eatery Experts LLC today and let’s start building your success story.