Boston's Cocoanut Grove nightclub fire[1] claimed 492 lives in 1942, so I am not surprised that the city imposes many checks on new restaurants.
Neither the headline, the article, nor the linked Institute for Justice report[2] list the specific steps, forms, visits, or fees. It is hard to know which are superfluous, overpriced, or excessively burdonsome. The report defines "steps" on page 17 (PDF page 21):
> We calculated this metric by totaling the discrete tasks an entrepreneur must complete to start each of the business types. Tasks we counted as steps include but are not limited to: filing a form or application, submitting supporting documentation, scheduling and attending meetings and inspections, and completing ancillary requirements like training or zoning checks.
Of the five business types in 20 cities studied, the report lists fees only for starting a restaurant in Minneapolis. Totalling $13,972.68, the fees are LLC filing: $155, Trade name registration: $50, Building plan review: $1,399.13, Building permit: $2,242.50, Plumbing permit: $207, Mechanical permit: $250, Electrical permit: $251, Sign permit: $156, Sewer availability charge: $8,275.05, Background report: $8, Restaurant license: $535, Food plan review: $310, Certified Food Protection Manager (CFPM) training: $99, and CFPM certificate: $35.
We can compare the roughly $14,000 in startup fees (or just $5,554 in Boston) with the $375,500 median cost of starting a restaurant (according to a 2018 survey[3] by RestaurantOwner.com). I don't think those fees discourage entrepreneurs from opening restaurants.
I agree with the report's overall conclusion: cities should make it cheaper, make it faster, and make it simpler.
Neither the headline, the article, nor the linked Institute for Justice report[2] list the specific steps, forms, visits, or fees. It is hard to know which are superfluous, overpriced, or excessively burdonsome. The report defines "steps" on page 17 (PDF page 21):
> We calculated this metric by totaling the discrete tasks an entrepreneur must complete to start each of the business types. Tasks we counted as steps include but are not limited to: filing a form or application, submitting supporting documentation, scheduling and attending meetings and inspections, and completing ancillary requirements like training or zoning checks.
Of the five business types in 20 cities studied, the report lists fees only for starting a restaurant in Minneapolis. Totalling $13,972.68, the fees are LLC filing: $155, Trade name registration: $50, Building plan review: $1,399.13, Building permit: $2,242.50, Plumbing permit: $207, Mechanical permit: $250, Electrical permit: $251, Sign permit: $156, Sewer availability charge: $8,275.05, Background report: $8, Restaurant license: $535, Food plan review: $310, Certified Food Protection Manager (CFPM) training: $99, and CFPM certificate: $35.
We can compare the roughly $14,000 in startup fees (or just $5,554 in Boston) with the $375,500 median cost of starting a restaurant (according to a 2018 survey[3] by RestaurantOwner.com). I don't think those fees discourage entrepreneurs from opening restaurants.
I agree with the report's overall conclusion: cities should make it cheaper, make it faster, and make it simpler.
[1] https://en.wikipedia.org/wiki/Cocoanut_Grove_fire
[2] https://ij.org/wp-content/uploads/2021/12/Barriers-to-Busine...
[3] https://www.restaurantowner.com/public/Survey-How-Much-Does-...