As soon as you start a new food business, you have to deal with licencing paperwork and fees, hiring and training staff, setting up a commercial kitchen, booking systems, marketing expenses to actually get customers in the door, and a list of compliance items you probably did not consider.
What you should do is always budget for all the factors; they are standard. A commercial kitchen fitout in 2025 will demand a large investment. There is no single magic number that appears on a price metre. Instead, consider it a spectrum driven by your operational requirements and the limitations of your space. We shall provide a realistic picture in this blog based on current market trends in Australia.
The 2025 Commercial Kitchen Fitout Cost Range
- Basic Kitchen or Renovation: $1,500 to $3,000 per square metre
- Standard or Mid-Range Kitchen: $3,000 to $5,000 per square metre
- Large Production or Commissary Kitchen: $5,000 to $8,000+ per square metre
The typical cost of a small café kitchen, 20 to 40 sqm, ranges from $50,000 to $200,000+. The average cost of a kitchen for a restaurant fitouts that is between 60 and 100 square metres is between $200,000 and $500,000+. Large businesses, high-volume operations, or specialised kitchens (such as commissary kitchens) can easily cost more than $750,000.
The Factors that Affect Commercial Kitchen Fitout Cost
Proper budgeting requires an under
standing of the factors that influence the costs. Where your money is used is as follows:
Kitchen Size and Layout
- Kitchen Size: Larger spaces require more materials, equipment, and labour. However, cost per square metre is not always simple to calculate; small, complex spaces can be expensive to install.
- Type of Layout: A poorly planned commercial kitchen layout is a waste of time, money, and effort. Staff turnover is reduced by an effective “kitchen triangle” (receiving, storing, preparing, cooking, and cleaning). Complex layouts that require specific arrangements or major structural alterations (such as installing drainage points) quickly increase costs.
Equipment and Appliances
Kitchen appliances, such as refrigerators, dishwashers, and combi ovens, may make up 40–60% of the whole fitout budget. The kind of food you serve and the volume of production will determine the price.
The requirements of a large commissary kitchen or a restaurant with a high volume will be different from those of a small café. Below is a general breakdown of possible equipment costs:
- Cooking equipment (ovens, grills, fryers) costs between $15,000 and $80,000+.
- Refrigeration (fridges, freezers, cool rooms) costs between $10,000 and $60,000+.
- Dishwashing and warewashing prices range from $5,000 to $25,000+.
- Exhaust and ventilation systems range in price from $8,000 to more than $40,000.
- Stainless steel benches, shelving, and sinks cost $5,000 to $30,000 or more.
Materials and Finishes
- Stainless steel: This material is the industry standard for splashbacks, shelving, sinks, and benches. Price depends on thickness (gauge), finish (brushed, satin, mirror), and grade (304 vs. 316). Prefabricated modules are less expensive than custom manufacturing.
- Flooring: It must be long-lasting, non-slip, and resistant to chemicals. The pricing and lifespan of alternatives such as commercial vinyl, epoxy resin, and quarry tiles vary.
- Ceilings and walls: They ought to be non-porous, smooth, and cleanable. It might be necessary to have fire-rated systems close to cooking lines.
- Insulation: It is necessary for the conservation of energy for walk-in coolers/freezers.
Services and Infrastructure
- Plumbing and Gas Fitting: Think about installing separate lines for floor drains, grease traps, combi ovens, ice makers, and pre-rinse sprayers in along with sinks. The cost of moving current facilities is high. All gas appliances should have safe installation and sufficient supply lines. The rules for compliance are strict. The price might vary from $5,000 to $25,000 based on the setup and whether new grease traps and pipes are required.
- The Electrical System: Commercial kitchens require high-amperage circuits for kitchen appliances, refrigeration-specific circuits, plenty of GPOs, heat-resistant speciality lighting, and maybe three-phase electricity. You may need to upgrade the electrical switchboard and install many new circuits, which might cost from $7,000 to $30,000.
- Mechanical Ventilation (Ducting): This is a complicated and expensive process, particularly if large-scale routeing is required for the ducting.
Design, Approvals, and Professional Fees
A well-planned design is the first step in a successful commercial kitchen fitout. A specialised construction company like GTG Constructions or a professional designer can be hired to create a commercial kitchen that complies with all applicable building codes and food safety standards.
- Design and architectural fees are 5-15% of the total project cost.
- Council Approvals (DA/BA) cost money and effort to obtain Development Applications (DA) and Building Certifier approvals (BA). A lot of individuals underestimate the significant role of this phase.
- The Australia New Zealand Food Standards Code (FSANZ) and regional health codes must be complied with by your design in order for it to be approved for operation.
Labour and Project Management
- Due to the current demand, skilled trades such as builders, HVAC specialists, refrigeration mechanics, plumbers, gas fitters, electricians, and stainless steel fabricators take premium prices.
- Professional project management keeps timelines, budgets, and quality under control, reducing delays and overtime.
How to Set a Budget for Your Commercial Kitchen Fitout
- Define your concept and menu to determine the equipment required and workflow.
- Hire an expert commercial kitchen designer early on before lease signing or space commitment. They can determine feasibility and offer rough budgets.
- Distinguish between “must-haves” (ventilation, core cooking, compliance) and “nice-to-haves” (specialty equipment, premium finishes).
- Demand a breakdown for design, equipment (names/models), materials, labour, services, approvals, and project management costs.
- Add in all costs (at least 10–15%), such as design fees, council fees, permits, potential leasehold improvements, and an extra expense.
- Go for a proper partner with established trade connections, awareness of local rules (important throughout various Australian states), and open communication. Request case studies and referrals.
How a Quality Commercial Kitchen Fitout Pays Off
A well-planned kitchen commercial fitout is a major expense, and if you consider the following factors, a commercial kitchen with high-quality components will pay off:
- Productivity and Operating Costs: Quick service and happy workers are the results of efficient flow. Every day, waste reduction and energy-efficient equipment save money.
- Food Quality, Safety, and Cleanliness: If you adhere to the design, you get less problems. The reliability of the equipment is key.
- Durability and Expansion: High-quality equipment and materials save money on replacements and last longer. A modular design enables expansion in the future.
- The “Phased Approach”: A qualified fitout partner can draft a master plan and work it out in phases (like adding speciality lines after core equipment and structure), clearly stating the costs associated with each phase.
- The Cost of “Value Engineering”: If you compromise on quality and choose cheap equipment or use poor design, it leads to higher operational costs (maintenance, waste, low staff morale) and shorter service life.
- Service Kitchen Specifics: The requirements, such as extra cold storage or special distribution requirements, impact the budget differently than in a commercial restaurant.
- Energy-Efficient Appliances: Better insulation will lower your long-term operating expenses, while regulations and growing energy prices are driving investment in Energy Star-rated appliances. Although it may cost more up front, this saves money over time.
- Water-Saving Fixtures: Pre-rinse spray valves and low-flow taps are able to significantly decrease water usage.
- Smart Kitchen Technology: Integrated systems for automated cooking procedures, inventory control, temperature monitoring, and kitchen display systems (KDS) can increase productivity and reduce waste.
- Sustainable Materials: Whenever feasible, include recycled or eco-friendly materials in your fitout.
In Summary
A successful commercial kitchen fitout requires careful planning, accurate budgeting, and expert supervision during execution. Even though the process is expensive, keep in mind that your kitchen serves as the core of your food business, so making an investment in top-of-the-line appliances and design will pay off in the long run.
The costs and considerations discussed in this blog will help you in making smart choices that support your business goals while maintaining your financial stability, whether you are opening a café, renovating a restaurant, or constructing a service kitchen for food delivery.
Contact GTG Constructions today to arrange a free consultation and have a commercial kitchen that will be the foundation of the growth of your business in the competitive food service industry.
