Opening a coffee shop runs roughly $80,000 to $300,000 depending on your city, your square footage, and whether you inherit a working cafe or build a raw shell from scratch, according to Toast's restaurant cost data and Bellwether Coffee's 2026 breakdown. That is the whole envelope: equipment, buildout, licenses, and the cash you need to survive the first few months. Below is the order those costs actually hit you, plus the permits that gate opening day.
The steps below follow the SBA's launch sequence. None of this is health advice or legal advice. Every jurisdiction is different, so treat these numbers as planning ranges and confirm your local requirements before you sign anything.
The order the work actually happens
You do not buy an espresso machine first. You register a business, then you lock a space, then you get the space approved, then you equip it. Do it out of order and you buy gear that does not fit the room or fail an inspection you could have designed around.
1. Register the business and get an EIN. Pick a structure (most cafes are LLCs), register the name with your Secretary of State, then get a free federal Employer Identification Number from the IRS. The SBA calls the EIN "like a social security number for your business," and you need it to open a bank account, run payroll, and file taxes. Some states also require a state tax ID.
2. Get the local business license and food permits. Most cities require a general business license, which is often just a tax registration certificate. The one that gates opening day is the food service permit from your local health department. Per the FDA's Food Code framework, the permit is issued only after a plan review and a pre-opening inspection confirm the space is built to the adopted code (most states run on the 2022 FDA Food Code). Start this 30 to 45 days before you plan to open, because plan review is where timelines slip.
3. Lock the lease, then build out. A second-generation space that already has plumbing, electrical, HVAC, and a hood needs mostly cosmetic work. A raw shell does not, and that is where the budget balloons. Numbers are in the table below.
4. Buy equipment last. Once the room is approved and framed, you know your electrical and your footprint, and you can spec machines that actually fit.
What each piece costs
Ranges below are compiled from Toast, Bellwether Coffee, and live retailer listings on WebstaurantStore. Equipment is the line most owners underestimate.
| Line item | Typical range | Notes |
|---|---|---|
| Total to open | $80,000 - $300,000+ | Full envelope, all-in |
| Two-group espresso machine | $5,000 - $22,000 | WebstaurantStore lists a Unic Classic 2 two-group at $6,728 and a Unic Stella Epic at $16,345; La Marzocco and Synesso run $15,000 - $22,000 |
| Commercial grinder | $1,500 - $4,000 | Budget one per bean |
| Refrigeration | $3,000 - $8,000 | Under-counter plus reach-in |
| Total equipment | $20,000 - $80,000 | Machine, grinders, fridge, brewers, small wares |
| POS system | $2,500 - $5,000 | Two stations installed; software $50 - $150/month |
| Rent | $2,000 - $12,000/month | Location and size drive this hard |
| Buildout (second-gen) | $10,000 - $30,000 | Existing plumbing, hood, and HVAC |
| Buildout (raw shell) | $80 - $150 per sq ft | First-generation retail space |
| Working capital reserve | $20,000 - $100,000 | 3 to 6 months of operating costs before cash-flow positive |
On financing: the SBA 7(a) loan is the most common vehicle for food service, with 10-year terms. Whatever you borrow, keep the reserve separate. The number that sinks cafes is not the espresso machine, it is running out of cash in month three before regulars stick.
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Related reading
- How much do coffee shop owners make is the other side of this math, once the doors are open.
- Toast vs Square for a coffee shop walks through the POS decision in the table above.
- New to the counter yourself? Start with how to become a barista.
FAQ
How much does it cost to open a small coffee shop? A lean shop in a second-generation space can open near the bottom of the range, around $80,000, per Toast and Bellwether Coffee data. A full buildout in a raw shell pushes past $300,000. The two swing factors are your lease and whether the space already has commercial plumbing and a hood.
What permits do I need to open a coffee shop? At minimum: a registered business entity and EIN, a local general business license, and a food service permit from your health department. That last one requires a plan review and a pre-opening inspection under the FDA Food Code your state adopted. Check your city and county too, since requirements stack across federal, state, and local levels.
Do I need an espresso machine to start? No, but a two-group machine is the standard for a cafe doing volume, and WebstaurantStore lists them from about $6,700 to $16,000 and up. A batch brewer and a good grinder can carry a smaller drip-focused shop for less if espresso is not your core offer.