Startup costs for a steakhouse

This article was written by our expert who is surveying the industry and constantly updating the business plan for a steakhouse.

Who wrote this content?

The Dojo Business Team

A team of financial experts, consultants, and writers

We're a team of finance experts, consultants, market analysts, and specialized writers dedicated to helping new entrepreneurs launch their businesses. We help you avoid costly mistakes by providing detailed business plans, accurate market studies, and reliable financial forecasts to maximize your chances of success from day one—especially in the steakhouse market.

What is the estimated cost of leasing or purchasing the restaurant space, including deposits, renovations, and permits?

Expect meaningful upfront cash for your steakhouse premises.

In most markets, lease deposits (first and last month’s rent plus security) range from $40,000 to $350,000+ depending on location and size; purchasing restaurant property averages around $178/sq ft where available. Renovations/buildout commonly run $100–$750 per sq ft, and basic permits and inspections add another $2,000–$10,000+.

Because steakhouses require strong ventilation, higher electrical loads, and robust plumbing for dishwashing and bars, the upper end of buildout ranges is common. A 3,000 sq ft space can therefore need $300,000–$1M in total when you combine deposits, buildout, and soft costs.

Secure at least one month of rent as a cash buffer for slippage in opening dates and contractor delays.

You’ll find detailed market insights in our steakhouse business plan, updated every quarter.

How much should be budgeted for kitchen equipment, such as grills, refrigeration, ovens, and dishwashing systems?

A steakhouse kitchen requires heavy-duty, high-heat equipment.

Plan $50,000–$150,000 for a complete back-of-house, including a broiler/char-grill suitable for high-temp searing, multiple refrigeration units, and a commercial dish system. Walk-in coolers/freezers and high-capacity ventilation/hoods are essential line items.

Add a 10% contingency for freight, install, and change orders; lead times can stretch during peak build seasons. Leasing select items (e.g., dishwasher) can smooth cash flow but may increase 36-month total cost.

Standardize SKUs (e.g., same brand for reach-ins) to simplify maintenance contracts and parts inventory.

This is one of the strategies explained in our steakhouse business plan.

What are the expected costs for dining room furniture, tableware, lighting, and overall interior design?

Dining room investments set your steakhouse’s perceived value.

Budget $20,000–$80,000 for tables, chairs, booths, banquettes, host stand, and bar seating; tableware and glassware typically add $5,000–$25,000. Signature lighting and décor run $5,000–$25,000 depending on custom fixtures and dimmable systems.

For a 90–120 seat steakhouse, expect the mid-to-upper range due to heavier furniture, leather/wood finishes, and two-top replacement stock. Design fees or a design-build contractor can be 8–12% of build scope but reduce change-order risk.

Opt for durable, easy-to-clean materials to keep replacement CAPEX low in years 2–3.

We cover this exact topic in the steakhouse business plan.

How much capital is needed for licenses and permits, including food service, liquor, health, and safety compliance?

Permit and license costs are a small but essential slice of your steakhouse budget.

Set aside $2,000–$10,000+ for business registration, health permits, fire/occupancy, signage, and music/waste permits. Liquor licensing varies widely by jurisdiction—some states charge a few hundred dollars annually while others require five-figure fees or secondary-market purchases.

Start applications early; liquor approvals can take months and can delay opening if your concept depends on bar revenue. Keep inspection calendars visible to hit critical path milestones.

Renewal cycles and ongoing fees should be calendared into your monthly burn projections.

Get expert guidance and actionable steps inside our steakhouse business plan.

What is the projected cost for initial inventory, including different cuts of steak, seafood, produce, beverages, and alcohol?

Opening inventory for a steakhouse is protein-heavy and cash-intensive.

Plan $10,000–$30,000 for food (steaks, seafood, produce, pantry) and $7,500–$20,000 for alcohol and beverages. Dry-aged steaks and premium wine lists push costs upward; negotiate allocations with purveyors early.

Target a 10–14 day on-hand supply to avoid spoilage risk and cash lockup. Use par levels and ABC classification to right-size high-value SKUs (prime ribeye, tenderloin) versus lower-velocity items.

Cycle-count daily in opening month to tighten COGS and reduce shrink.

This is one of the many elements we break down in the steakhouse business plan.

How much should be set aside for staff recruitment, training, and initial payroll before the restaurant becomes profitable?

Staffing spend peaks before and immediately after opening.

Allocate $30,000–$80,000 to cover two weeks of pre-opening training plus your first payroll cycles. Add $2,000–$10,000 for recruiting ads, referral bonuses, background checks, and uniforms.

In a 90–120 seat steakhouse, plan for ~25–40 team members across FOH, BOH, and management; your exact wage bill depends on market rates and tip models. Cross-training reduces overtime and protects service during turnover.

Build a training calendar with line checks, allergy protocol, and wine/steak knowledge to lift average check size from week one.

It’s a key part of what we outline in the steakhouse business plan.

What level of investment is required for technology, such as POS systems, reservation platforms, accounting software, and security systems?

Modern steakhouse operations rely on integrated tech from day one.

Expect $700–$2,000+ per POS terminal in hardware and $60–$250/month per register in software. Reservation platforms with guest CRM typically cost $249–$499/month, while accounting/ops software runs $50–$150/month; camera/alarms install is commonly $2,000–$10,000.

Bundle payment processing with POS for better rates, and confirm that your system handles coursing, wine inventory, and tip-pool rules. Reserve budget for network cabling, access points, and a failover LTE router.

Map your data flow (POS → inventory → accounting) to avoid manual re-entry and reconciliation errors.

This is one of the strategies explained in our steakhouse business plan.

What are the marketing and advertising costs to create brand awareness before and after opening?

• Pre-opening: budget $10,000–$30,000 for brand identity, website, photo/video, soft-opening events, and PR outreach.
• Months 1–6: allocate 3–6% of projected sales; monthly campaigns often land in the $1,500–$5,000 range.
• Digital benchmarks: average CPC often sits around $0.68–$0.85; typical lead/conversion costs $8.65–$20.92 depending on channel and creative.
• Prioritize early-week covers (Mon–Wed) with offers and wine features; track bookings and retention via your reservation CRM.
• Activate local partnerships (hotels, offices, theaters) and nurture VIP email lists for consistent traffic.

How much should be allocated for insurance policies, including general liability, workers’ compensation, and property insurance?

• General liability: typically $900–$2,500/year depending on size and coverage limits.
• Workers’ compensation: often $1,359–$1,572/year for small restaurants; premiums scale with payroll and claim history.
• Property/equipment: commonly $1,200–$3,000/year, higher with expensive kitchen equipment and wine inventory.
• Total annual budget: set $3,000–$6,000; many carriers allow monthly payments to ease cash flow.
• Review add-ons: business interruption, liquor liability, cyber, and employment practices liability (EPLI).

What are the projected utility expenses for electricity, gas, water, internet, and waste management during the startup phase?

• Startup deposits + first month typically total $2,000–$5,000 across providers.
• Electricity for broilers, HVAC, and refrigeration often dominates; restaurant utilities commonly run ~3–5% of operating costs.
• Rule-of-thumb intensity: about $2.90/sq ft for electricity and $0.85/sq ft for natural gas in many U.S. markets.
• Don’t forget grease trap service, oil recycling, and increased waste pickup frequency after launch week.
• Negotiate multi-year internet with SLA and cellular backup to protect POS and reservations.

How much working capital is necessary to cover at least the first six months of operating expenses before revenues stabilize?

Plan runway for six months of operations to de-risk your steakhouse launch.

Reserve $50,000–$150,000 (or 3–6 months of your projected monthly expenses) to cover payroll, rent, food & beverage, utilities, and marketing during ramp-up. If your average monthly burn is $40,000, target $120,000–$240,000 to be conservative.

Align this reserve with your realistic sales ramp (soft open → month 1 → month 3); adjust staffing and marketing cadence to protect cash. If you plan a high-end wine program, consider a separate revolving inventory facility with strict purchasing gates.

Track weekly cash, not just monthly P&L, to spot drift early and correct ordering and labor.

You’ll find detailed market insights in our steakhouse business plan, updated every quarter.

What contingency fund should be planned for unexpected expenses such as delays, equipment failure, or supplier issues?

A contingency cushion protects your steakhouse from common opening shocks.

Set aside 5–20% of total startup costs—often $25,000–$100,000+—to handle construction overruns, hood/ANSUL upgrades, delayed inspections, or vendor shortages. Release funds in tranches tied to milestones to prevent budget creep.

Keep a short list of alternate meat and seafood vendors with pre-approved specs to avoid menu outages. Pre-negotiate service SLAs for refrigeration and dish machines to cut downtime.

Replenish the contingency after any draw so you maintain a stable safety net through month six.

Get expert guidance and actionable steps inside our steakhouse business plan.

SPACE & BUILDOUT: Can you show a simple cost table for a typical 3,000 sq ft steakhouse?

Here is a practical breakdown using current 2025 ranges for a 3,000 sq ft steakhouse.

Adjust line items to your market and exact scope.

KITCHEN: What does a steakhouse equipment package look like in detail?

Use this reference kit when bidding suppliers and installers.

Choose heavy-duty gear rated for high-temperature, nightly service.

DINING ROOM: Can you outline seating and design costs across seat counts?

Seating count drives furniture, fixtures, and tableware totals.

Use this scale to align aesthetic choices with your budget.

LICENSES: What permits should a steakhouse plan for and how much do they cost?

Here is a permit checklist with typical ranges.

Confirm local requirements and timelines early.

OPENING INVENTORY: Can you break down steak & beverage startup stock?

Balance depth on core SKUs with cash protection.

Use this starting point and refine with your menu engineering.

TECHNOLOGY: What recurring software and system costs should I expect?

Plan both upfront and monthly tech costs.

These are common line items for a steakhouse.

Conclusion

This article is for informational purposes only and should not be considered financial advice. Readers are encouraged to consult with a qualified professional before making any investment decisions. We accept no liability for any actions taken based on the information provided.

Sources

1. DojoBusiness – Restaurant Startup Costs
2. Rezku – Cost to Open a Restaurant
3. EB3 Construction – Restaurant Build-Out Estimate
4. KitchenAll – Restaurant Permits & Licenses
5. Babak Food Equipment – 2025 Equipment Costs
6. Butter POS – Kitchen Equipment Checklist 2025
7. MarketMan – How Much Inventory Should a Restaurant Carry?
8. ASTRALCOM – Restaurant Digital Ad Benchmarks 2025
9. RMS – Restaurant Insurance Cost Guide
10. 7shifts – Restaurant Utility Costs