Top 10 Cities for Hospitality Entrepreneurs in 2026

The best cities for hospitality entrepreneurs are those where a small business can find guests, get licensed, afford its space and staff, and survive a slow quarter, whatever the fame of the local restaurants. This list ranks ten, across five regions, by those tests. The order is editorial judgement, with no measured index behind it, and the weakest points are flagged as they come.

One reason to be careful this year: demand is not a rising tide. UN Tourism reported that international arrivals grew 0.4% in the first half of 2026, after a 2% rise in the first quarter. Growth is thin, so the cities that win will be the ones with their own reasons to be busy.

How was this ranking made?

Each city was scored by hand against five criteria, and the order was then argued over. No spreadsheet produced it, and a spreadsheet that claimed to would deserve suspicion.

The five criteria:

1. Demand. Do enough people with money pass through or live there, all year? The Oxford Economics Global Cities Index serves as a rough guide. It ranks the world's 1,000 largest cities across economics, human capital, quality of life, environment and governance.
2. Ease of setup. How simple is it to register a company and get licensed? The World Bank's B-READY project measures ten areas of the business environment, including business entry, labour and location. It is a useful lens, but it reports on economies rather than cities, so its scores are not applied city by city here.
3. Cost of space and labour. What do rent and wages do to a realistic break-even? No consistent, current cross-city source was used, so this criterion is not scored. Each entry flags it as a question to answer with live quotes.
4. Food culture. Do guests eat out with curiosity, and do suppliers and producers sit nearby? The World's 50 Best Restaurants 2025 serves as a signal. It rewards fine dining, so it says little about cafés and neighbourhood bars.
5. Professionals. Can you hire trained cooks, managers and service staff without a bidding war?

Three limits to keep in mind. A city's rank on a restaurant list says little about how easy it is to run a small business there. Cost data changes quickly. And the list has no African or Oceanian city, which reflects the sources used and says nothing against those places.

1. Singapore: simple setup, high running costs

Singapore ranks first because company registration is simple and well documented. Registration runs online through the regulator's portal for a fee of S$300, and most applications are approved soon after payment, though complex ones can take up to 15 working days.

The 50 Best list for 2025 has one Singapore restaurant (Odette, at 25). That points to a serious dining market without a large fine-dining scene, which may suit founders aiming at a good everyday restaurant.

The catch: the company needs at least one director who meets local residency rules, and a registered office open to the public. A foreign founder therefore has to appoint a resident director before anything else. Space and wages are likely to be high, so price them with live quotes and make sure the model earns from every seat. Our introduction to starting a hospitality business in Singapore goes through the practical steps.

2. London: deep demand, heavy fixed costs

London is second because it combines a huge, varied customer base with a simple company set-up. London is ranked second in the 2025 Oxford Economics index, behind New York, and two London restaurants (Ikoyi and Kol) sit in the 2025 World's 50 Best.

Forming a company needs a name, at least one director, a shareholder, and the standard founding documents. The paperwork is the easy part.

The catch: rent, business rates and wages take a large share of sales, and the margin for error is thin. A site that looks affordable per square foot can still fail on its lease terms. Read our guide to lease red flags before you sign anything.

3. Bangkok: the deepest bench of listed restaurants

Bangkok comes third because its food culture is exceptional. Six Bangkok restaurants appear in the 2025 World's 50 Best: Gaggan, Potong, Sorn, Sühring, Le Du and Nusara. That is more than any other city in this ranking.

The street-food tradition also matters for founders. Guests already expect good food at every price, so a small, focused concept can read as a choice rather than a compromise.

The catch: foreign ownership rules and work permits can be real hurdles, so take local legal advice before assuming you can hold a business outright. Street-food prices also cap what a casual concept can charge.

4. Dubai: strong demand, a crowded market

Dubai is fourth because it brings together international visitors and residents who dine out often, and because it has built a serious restaurant scene quickly. Two Dubai restaurants, Trèsind Studio and Orfali Bros, are in the 2025 World's 50 Best.

The catch: a crowded market and expensive prime space mean that a weak concept is found out quickly. Licensing differs by zone and activity, so the route depends on where you open. We cover the detail in our guide to opening a restaurant in Dubai. Regional tension can also shift visitor numbers: UN Tourism's mid-2026 update names Middle East insecurity as a drag on global travel.

5. Mexico City: a city of eaters, with a premium on local knowledge

Mexico City ranks fifth because the dining culture runs from street stalls to the world's top tables, and the supplier base is rich. Quintonil is third in the 2025 World's 50 Best, and Rosetta is at 46.

For a founder, a guest base that eats out across price points gives a new place several ways to compete.

The catch: this is a relationship city. Landlords, suppliers and neighbourhoods reward people who are known, and an outsider without a local partner pays for it in time. Check the current company registration rules with a local adviser.

6. Lima: a producer-rich city with a recognised cooking identity

Lima is sixth because it shows how a city can turn a distinct food identity into a hospitality economy. Four Lima restaurants are in the 2025 World's 50 Best, with Maido ranked first and Kjolle ninth.

That concentration means cooks train there, suppliers know the standard, and guests travel for the food.

The catch: a list of top restaurants tells you about the top. It tells you little about the economics of a 40-seat neighbourhood place. Treat Lima as a strong food-culture signal and test the cost side yourself.

7. Tokyo: a mature market that rewards craft

Tokyo is seventh because craft and guest expectations run very deep, but entry is demanding. Three Tokyo restaurants appear in the 2025 list: Sézanne, Narisawa and Florilège.

If your concept is built on skill and consistency, the guests will notice and come back.

The catch: language, visa and sourcing barriers are high for outsiders, and local competition is intense. This city suits a founder with a partner on the ground and patience. Tokyo is also a better place to learn than to start fast, a point we make in food cities every chef should work in.

8. Copenhagen: a small market with a large influence

Copenhagen ranks eighth because its restaurant culture has an influence out of proportion to its size. Two Copenhagen restaurants, Alchemist at five and Kadeau at 41, are on the 2025 list.

A focused founder can build a reputation here that travels, and the city has a strong tradition of design and sourcing.

The catch: the home market is small and costs are high, so the concept either has to draw visitors or run very lean. Do not read the global attention as local volume.

9. Madrid: a city where eating out is part of the day

Madrid is ninth because eating out is a daily habit and the supply chain is close. Diverxo ranks fourth in 2025, and Spain adds Asador Etxebarri (second) and Elkano (24th) elsewhere in the country.

For a founder, a café, bar or casual restaurant has a built-in routine of customers.

The catch: a crowded casual market makes it hard to stand out on price, and licensing rules are set at several levels of government, so check them with a local adviser before you commit.

10. New York: scale, with a high cost of failure

New York closes the list because the market is ranked first in the 2025 Oxford Economics index and has depth in every format, but the cost of failing is high. Atomix, at 12 in the 2025 World's 50 Best, is the city's only entry.

The catch: high rents and wages, and a market in which a good concept can still lose to a better-funded neighbour. Entrepreneurs here are likely to need more capital and a tighter plan than in most cities on this list.

At a glance: how the ten compare

How should you choose between them?

Choose the city where you already understand the guest and can name the people who will help you in the first six months. A lower rank on this list, in a place you know, usually beats a higher rank in a place you do not.

A rough decision rule:

• If you need low setup friction and a reliable guest base, start with Singapore or London.
• If you want to test a concept at small scale, look at Bangkok or Mexico City, with a local partner and live cost quotes.
• If your concept is built on craft, look at Tokyo or Copenhagen, and plan for a small, focused room.
• If you have capital and a proven concept, New York and Dubai reward scale.

Picking a city for its reputation is the usual trap. Write down the five criteria instead, score your own shortlist by hand, then price three real sites with a broker. Our guide on how to choose a restaurant location picks up where this list stops.

Ask what a city costs to open in before you ask who eats there.

Key takeaways

• No city wins on all five criteria: demand, ease of setup, cost of space and labour, food culture and professionals.
• Singapore and London document company set-up clearly. Both are likely to carry high fixed costs.
• Bangkok, Mexico City and Lima offer rich food cultures, but check ownership rules and costs locally.
• A place on the World's 50 Best list signals food culture at the top end. It says little about the economics of a casual venue.
• This is an editorial ranking, not a measured index. Test any city with two weeks on the ground and three real site quotes.