Most expensive states to open restaurants tend to have high minimum wages

When it comes to opening a restaurant, the states where it’s most expensive also have the highest minimum wages in the nation.

A study from Restaurant Furniture ranked the 10 most expensive states for restaurants to open in by analyzing food permit costs, liquor licensing costs, sales tax, corporate tax, rent, and minimum wages. The top 10 were, in order, California, New York, Colorado, Illinois, Arizona, Alaska, New Jersey, New Mexico, Hawaii, and Washington. Every state included has a minimum wage between $12 and $15.74.

DC SNAP INCREASE: CITY WILL IMPLEMENT INCREASED PAYMENTS AFTER BOWSER’S SECOND-GUESSING

However, one standout was Washington, D.C., which did not make the list despite its small territory and highest minimum wage in the nation at $16.28 per hour.

Additionally, the top three states with the highest state sales tax, according to the Tax Foundation, did not make Restaurant Furniture’s list, despite Tennessee taxing at 9.548%, Louisiana at 9.547%, and Arkansas at 9.44%. Meanwhile, Washington, California, and New York are included in the top 10 for sales tax rates, but Alaska has the very lowest and Hawaii is the 45th lowest.

Corporate tax rates, on the other hand, were included in this ranking. New Jersey taxes the most at 11.5%, Illinois taxes the third-most at 9.5%, followed by Alaska at 9.4%. California has the seventh-highest tax rate at 8.84%.

“Generally, the states listed in this top 10 present a mix of high living costs, competitive markets, and unique challenges that contribute to the overall expense of establishing and maintaining a restaurant business,” Restaurant Furniture head of e-commerce Nick Warren said in a statement. “Prospective restaurant owners should carefully consider these factors and conduct thorough market research before venturing into the culinary landscape of these states.”

CLICK HERE TO READ MORE FROM THE WASHINGTON EXAMINER

Among the top 10, Hawaii and New York had the most expensive rent per square foot per year, at over $66 and $69, respectively.

In an effort to lower financial obligations of prospective restaurant owners, Washington does not charge corporations taxes, New Mexico does not charge to renew an annual food permit, and California doesn’t charge to renew an annual liquor license.