A new study has revealed Texas to be one of the cheapest places in the U.S. to open up a restaurant.
The report, conducted by Restaurant Furniture, examined each state to determine the numerous costs that an entrepreneur would need to spend in one year to run a restaurant. Among these monetary considerations mentioned included rent of commercial spaces, food and alcohol licenses, taxes and more. The accumulative data was ranked into scores out of 100 for each state, with higher numbers signifying a larger level of eatery-opening convenience.
The Lone Star State came in at second place in the rankings, boasting an impressive score of 80.57.
Despite Texas having the most costly food service permit ($515) and second-highest liquor licence charge ($1,325 per year), the state was named among the best places to start a restaurant because of its low state sales (2%) and corporate tax (0%) rates, as well as its cost-effective rent ($25.69 per square foot annually) on average.
Topping the list was Wyoming, which finished just ahead of Texas with a mark of 81.66 out of 100. Joining Wyoming and Texas among the cheapest states to erect a food establishment were Kentucky (80.11), Mississippi (79.62), Wisconsin (74.52), Ohio (74.33) and New Hampshire (73.53%).
“Opening a restaurant involves navigating various regulations and costs, and Wyoming, Texas, and Kentucky stand out as states with a particularly convenient combination of factors for aspiring restaurateurs,” said Restaurant Furniture Head of Ecommerce Nick Warren. “These states boast favorable conditions regarding food permits and commercial units rent, providing entrepreneurs a more affordable and streamlined process to kickstart their culinary ventures."