Recent studies conducted by Restaurant Furniture, an online restaurant-furniture retailer, reveal California as the most financially demanding state for opening a new restaurant. An accurate image of the financial environment for individuals considering a career in restaurant management is provided and covers a wide range of expenses, including rent, permits, and tax rates.

California topped the list with a total score of 28.04 out of 100, indicating the substantial challenges that the state’s restaurateurs confront. Many issues, such as rising rent prices, the expense of food service permits, and high corporation tax rates, contribute to the difficulties. New York is not far behind in terms of challenges faced by entrepreneurs: the state has the second-highest annual liquor licensing fees in the US ($4,352.00), along with costly rent.

The study highlighted the challenges encountered by entrepreneurs in the states with the highest score, using a scoring scale ranging from one to 10.

California has several obstacles, such as an annual food service licensing fee of $809 and a high corporation tax rate of 9%. The state’s total score of 28.04 is influenced by the state’s minimum wage, which is $16 per hour. The study found that restaurant proprietors have another financial strain due to high rent charges, which total $45.74 per square foot annually.


New York has a score of 28.39 and takes second place, mostly due to the state having the second-highest annual liquor licensing fee in the US, at $4,352. The financial burden placed on restaurant owners is exacerbated by the state’s $15 minimum wage and skyrocketing rent of $69.60 per square foot annually.

An increasingly difficult journey awaits restauranteurs across the country. Alaska, Colorado, Illinois, Arizona, and California come next on the list, each with its own special set of financial obstacles. These difficulties include competitive marketplaces, high minimum salaries, and expensive liquor licensing fees.

Nick Warren, Head of E-Commerce at Restaurant Furniture, offers expert perspectives. He highlights the particular difficulties presented by California and New York. Possibly due to their high populations and economic activity, these states require restaurant sector newcomers to possess resilience and sound financial planning.

The study’s conclusion provides insights into the financial complexities of starting and running a restaurant business and is an essential resource for prospective restaurant owners. Given the complexity of the culinary sector, entrepreneurs must exercise keen decision-making and meticulous financial preparation, as seen by California’s top rating. Understanding the economic issues that each state faces is crucial for anybody hoping to succeed in the cutthroat restaurant world, as the restaurant industry continues to change. This research offers information to entrepreneurs attempting to successfully traverse the complex and demanding landscape of the restaurant industry in the various U.S. states.

The survey highlights the financial difficulties encountered by restaurant owners, citing California as the state with the highest demands. Strategic planning in the fast-paced restaurant industry might benefit from the insights gathered from this research as prospective business owners negotiate these challenges.