How to Budget for a Restaurant
Introduction
Opening a restaurant is an exciting venture — but without a clear plan for construction or remodel costs, expenses can quickly spiral out of control. A well-prepared restaurant remodel budget ensures your project stays on track, complies with codes, and opens on time. Below are the essential costs every restaurant owner should account for.
Primary Cost Considerations for Restaurants
1. Design & Permits
• Architects & Designers: Typically 8–15% of construction costs.
• Permitting Fees: Building, health, fire, and liquor licenses can total $5,000–$20,000.
• Tip: Work with a designer who specializes in restaurants — they’ll know how to design efficient kitchens and seating areas while keeping you code-compliant.
2. Kitchen Equipment
• Essentials: Walk-in coolers, exhaust hoods, commercial ranges, dish machines.
• Cost Range: $100,000–$300,000 for a full commercial kitchen.
• Tip: Buy new for refrigeration and dishwashers, but consider quality refurbished ranges or prep tables to save.
3. Construction Costs
• Includes: Plumbing, HVAC upgrades, flooring, walls, grease traps, and electrical systems.
• Cost Range: $150–$400 per square foot, depending on location and complexity.
• Tip: Prioritize infrastructure (plumbing, electrical) before spending on decorative finishes.
4. Furniture & Fixtures
• Includes: Tables, chairs, booths, lighting, and host stands.
• Cost Range: $300–$500 per seat.
• Tip: Mix affordable restaurant-standard furniture with a few custom signature pieces to elevate the look.
5. Technology & Systems
• Includes: POS, kitchen display systems (KDS), sound, security.
• Cost Range: $10,000–$50,000.
• Tip: Choose a cloud-based POS that grows with your business.
6. Outdoor Signage
• Types: Channel letters, blade signs, awnings, illuminated signage.
• Cost Range: $5,000–$15,000 including permits.
• Tip: Confirm local signage restrictions. Use durable, weather-resistant materials and ensure visibility at night.
7. Interior Signage & Menu Boards
• Types: Illuminated menus, chalkboards, wall graphics, digital boards.
• Cost Range: $1,500–$10,000.
• Tip: Fast-casual restaurants benefit from digital menus ($2,500–$5,000 each), while full-service venues can elevate branding with custom-printed backlit boards.
8. Contingency Fund
• Tip: Reserve 10–15% of your total budget for surprises like utility hookups or code-mandated upgrades.
Final Thoughts
Your restaurant remodel budget is more than just numbers — it’s a plan for success. By prioritizing compliance, efficient kitchen flow, and guest experience, you’ll open with confidence and avoid unnecessary delays.
Need expert guidance on your restaurant project? Our team specializes in restaurant layout and design, budget-conscious planning, and quality furniture packages that align with your budget. Contact us today to get started.
