How much does it cost to open a restaurant in New York City?

Key points

• Construction and rent drive the budget. Government fees are a small share, but they are fixed and easy to look up.

• The condition of the space (a former restaurant with a working kitchen and exhaust, or a raw retail box) changes the build-out cost more than any other factor.

• The NYC Health Department permit fee for most food service establishments is $280, according to NYC Business.

• An on-premises liquor license in Manhattan, Brooklyn, the Bronx or Queens carries a basic license fee of $4,352 for a two-year term on the State Liquor Authority fee chart.

• Working capital is the line most first-time operators underestimate. Budget for slow months, not only for opening day.

The order of magnitude

There is no single number, because a 600-square-foot counter concept in a second-generation space and a full-service dining room built from a raw shell are very different projects. For the largest item, the build-out, published 2026 guides put a second-generation space, where kitchen exhaust and utilities are already in place, at about $180 to $250 per square foot for quick service and $220 to $300 for full service, with $50 to $100 more for a raw shell and 15 to 25% more in high-cost coastal markets. In our experience, a New York restaurant space that already has the exhaust lands around $250 to $300 per square foot. For 2,000 square feet that is $500,000 to $600,000 of build-out, before deposits, licenses and working capital. Use these figures to size the project, then replace them with quotes for your specific site. The Readiness Check applies the same assumptions to your own numbers.

Where the money goes

1. Build-out and equipment

This covers architecture and engineering, Department of Buildings filings, general construction, mechanical, electrical and plumbing work, kitchen ventilation and fire suppression, finishes, furniture and kitchen equipment. The NYC Department of Buildings code notes for eating and drinking establishments list the filings typically involved, including alteration filings, energy code analysis, sprinkler and fire suppression requirements reviewed by the FDNY, and DEP requirements for grease traps and backflow preventers. Each of these is a design and construction cost, not only a form.

If the space will hold 75 or more people indoors, you will also need a Place of Assembly Certificate of Operation, which adds drawings, inspections and egress requirements.

2. Lease deposits and early rent

Landlords usually ask for a security deposit and the first month of rent at signing, and may ask for a personal or “good guy” guarantee. Free rent and a tenant improvement allowance can offset part of the build-out, so compare offers on an effective rent basis, not on asking rent. In Manhattan south of 96th Street, larger leases may also trigger the Commercial Rent Tax.

3. Permits, licenses and registrations

• Food service establishment permit (NYC Health): $280 for most establishments, with an additional $25 for frozen desserts.

• State Liquor Authority license: for example, $4,352 per two-year term for an on-premises liquor license in New York, Kings, Bronx and Queens counties, or $960 for a restaurant wine license, per the SLA fee chart. Legal and filing support is a separate cost.

• Sales tax Certificate of Authority from New York State, which must be in place before you make taxable sales.

• Workers’ compensation and disability insurance, which NYC Health requires as proof when you apply for the permit.

4. Pre-opening costs

Hiring and training before revenue starts, opening inventory, smallwares, point of sale and technology setup, signage, branding and launch marketing. These are often spread across many invoices and are easy to undercount.

5. Working capital

Cash to cover payroll, rent and suppliers while sales ramp up. A useful discipline is to model a conservative revenue scenario and fund the business to survive it, including the full lease obligation.

How to build a realistic estimate

1. Start from revenue. Estimate what the site can realistically generate and work back to how much rent and investment it can support.

2. Get a test fit and a preliminary scope from an architect before signing a letter of intent.

3. Ask two or three contractors for budget pricing on that scope, with exhaust, gas and electrical capacity checked on site.

4. Price permits, licenses and insurance from the official fee schedules.

5. Add a contingency line and a working capital reserve, then test the plan against a weaker sales scenario.

How Devolus can help

Devolus founder Emanuele Votano led the US expansion of All’Antico Vinaio, with openings in New York, California, Nevada and Florida, and ran operations for Gelateria Gentile’s five New York stores. If you are sizing a first US location, the Readiness Check is a good starting point, or you can write to us.