Arizona
Arizona one of the most expensive states to open a restaurant
It is possible to run a profitable restaurant — and some people can actually make a lot of money doing it — but it isn’t easy.
Restaurant profit margins are notoriously thin, and a recent report found that the cost of operating a restaurant in Arizona is one of the highest in the country. The new study by Restaurant Furniture, an Illinois-based restaurant equipment supplier and consultancy, revealed that Arizona is the fifth-most expensive state to open a restaurant in.
The study analyzed the cost of running a restaurant for one year, looking at everything from rent and labor to licenses, permits and tax rates. The cost of food service permits and liquor licenses in Arizona was higher than most of the states in the report’s top 10.
California took first place in the list with a high rental cost, as well as a significant corporate tax rate. New York, Colorado and Illinois were the next in the list ahead of Arizona.
This story is posted in partnership with Phoenix Business Journal. Click to read the full story.