A commercial kitchen is where all the magic happens, and it's no wonder restaurant owners take out their time to create the perfect commercial kitchen space.

Designing a commercial kitchen goes beyond your normal home kitchen style, and without the proper experience, you might have a disaster on your end.

Many factors go into building commercial kitchens, from the size of your kitchen to health and safety requirements.

In this guide, we'll give you important tips on what's needed in crafting your "dream commercial kitchen" and of course, the cost estimate.

What is a Commercial Kitchen?

A commercial kitchen is a functional space, specifically designed to accommodate the demands of a restaurant business.

When you hear "commercial kitchen" what comes to mind? For most people, a commercial kitchen translates to heavy-duty kitchen equipment, and quite frankly, they are not wrong.

Commercial kitchens are kitchens with commercial-grade restaurant equipment, ranging from a commercial dishwasher to large programmable combi ovens. It's the powerhouse behind any successful large food business enterprise.

You may have probably watched cooking marathon competitions like the MasterChef and Culinary Olympics, where chefs from all over the world scurry to make meals in record time. There you have it; a commercial kitchen.

So, the real question is how much does it cost? Can I afford it? And is it a worthy investment? We'll discuss all of that soon.

How Much Does a Commercial Kitchen Cost?

First, note that we cannot give you an actual cost of a commercial kitchen because every kitchen comes with its different equipment and appliances, and your choice will depend on what your business needs.

As we said, the price will vary, but on average, building a commercial kitchen costs between $15,000 to $250,000.

However, if your restaurant business has a large volume of orders, you might spend significantly more. It's not rare to see commercial kitchens worth over $400,000, and that's because it's what their business needs.

But if you are going for a small commercial kitchen like that of a coffee shop, you can do that with an estimate of $15,000.

What Are The Factors That Affect The Cost of a Commercial Kitchen?

Many factors can impact the total cost of commercial kitchens, and working with a budget will help you identify what you need to keep your kitchen up and running.

Size of the Kitchen

It sounds unrealistic not putting your kitchen space into consideration when setting up a commercial kitchen.

The size of the kitchen is the major cost consideration because a big kitchen means more maintenance and more commercial kitchen equipment. However, too small a kitchen might be a bit tricky as well, because your staff might begin to fall over each other, and food output will be low as well.

So, it's best to strike a balance to ensure you take advantage of every square inch in your kitchen.

Kitchen Design and Layout

A poorly designed kitchen will run you out of business faster than you can say "Jack". We understand that as a restaurant owner, you might search for low-budget alternatives to help save money, but in reality, if your design process goes wrong, your commercial kitchen will barely survive the heat.

It's essential you get a professional consultant for this phase, as they'll have a better idea of the placement of equipment, and crafting of designs that are peculiar to your kitchen, plus following all local regulations, and ensuring that the commercial kitchen is in line with legal requirements of the city or county government.

Required Equipment

Kitchen equipment takes up the majority of restaurant startup costs because you'll have to invest in expensive and quality appliances, so you don't have to change them annually. They cost tens of thousands of dollars, hence you need to make the right choice.

But, your kitchen equipment will depend on your business setup. Small businesses have no reason to acquire large-commercial equipment because they'll be unable to utilize their functions.

So, the required equipment is dependent on the restaurant type. For all units that you might need check our restaurant kitchen equipment list.

Cooking Equipment

Your kitchen menu dictates what commercial cooking equipment you need. Some of the main cooking restaurant equipment you'll find in most commercial kitchens include;

Food Preparation Equipment

Food prep equipment like tables and counters have to be of the best quality because they'll be in use all the time by your chef.

You need to figure out the best brands, that way, you don't have to worry about durability. Plastic cutting boards cost $350, and high-end options will cost upwards of $1500.

Refrigeration and Storage Equipment

High-end commercial refrigeration is expensive, but worth it especially when you are operating a high-volume restaurant. Imagine not having a refrigerator that can house all your ingredients and keep them fresh pending when the chefs are ready to create magic?

However, you need to do your market research on the brands that offer warranties and read up on the reviews as well, before you commit. The average price of freezers and refrigerators is about $3,500, but you can opt for a cheaper option depending on your budget and restaurant needs.

Buying storage containers is a wise choice as well because ultimately, you'll need to quickly store items that are not in use.

Dishwashing and Sanitation Equipment

You'll need to invest in hand washing stations, both for your kitchen staff and customers because you don't want your kitchen's hood tagged as "unsanitary".

If you have a quick-service restaurant where you bake cookies and sell coffee, then it's a wise plan to consider washing stations. The truth is you don't need to have a full kitchen before setting this up.

Also, buying commercial dishwashers is a great way to save time, plus it doesn't cost much - $500 - $2,500

Food Holding and Warming Equipment

Many commercial kitchens use a commercial range as an oven and a space for keeping food warm and fresh. If you already have a commercial range in your kitchen, it's a great option for keeping meals until it's ready to be served.

Bakery Equipment

If your restaurant bakes as a side dish, then you can consider a small commercial oven that won't cost so much, and take up lesser space. But, if snacks, cookies, and cakes are the main offers of your kitchen, you'll need to invest in high-end ovens. You can get a quality oven for $2,000 to $15,000, depending on its features.

To save money, you can get a general-purpose commercial range, as that'll help with cooking and baking simultaneously.

Food Display and Serving Equipment

Where do you intend to serve the food on? Customers will always be impressed by attractive serving wares.

Restaurants need to invest in quality bowls, plates, silverware, and spoons; you can set aside $1,300 for this, depending on your specialization.

Commercial Mixers

What do you have on your menu? Desserts, bread? Then you'll need a mixer. Restaurants with this menu aren't the only businesses that require a commercial mixer.

If you intend on starting a cooking competition, or a cooking platform, all of these equipment will be highly necessary, as it helps save time and stress.

The price of a commercial mixer ranges from $400 - $2,500.

Specialty Cooking Equipment

Cooking equipment like portable induction cooktops will always be a better option than electric appliances, and that's because it doesn't generate direct heat and has zero impact on electricity bills. And you can get an induction cooktop with custom presets and Sous Vide capabilities for $1,500.

But, you still need to consider your kitchen plan, so you are aware of your equipment needs. In some instances, gas appliances like gas cooktops might be a better option, because you can cook in large quantities at the same time.

Remember, your kitchen gadgets are determined by your kitchen needs.

What are some Additional Factors That Drive Up Commercial Kitchen Costs?

When planning a commercial kitchen, the restaurant startup costs go way beyond equipment and design. Let's see some factors that affect the estimates.

Labor Costs

The installation process of your kitchen appliances and equipment comes at a price. You'll need to get local contractors that know their onions, and this falls under the construction costs. If you plan on setting up a new kitchen in a formerly owned space, you'll have to factor in the costs for remodeling and renovation as well.

Permits and Fees

After doing a location search, you'll need to ask around to determine the regulations attached to establishing and running a commercial kitchen there. Get insight from organizations that may have gone through the route before, like church halls or any business even similar to yours.

Plus, in some states, you'll need to pay for building permits, or you won't be allowed to set up your kitchen.

Energy Efficiency

No matter what you do, you need to consider electricity bills. For example, your electric appliances cost more money because they attract operational costs. So, the longer you use them, the higher your bill, and that's why most high-end busy restaurants opt for gas cooking appliances instead.

Legal and Health Requirements

Before you start building a commercial kitchen, be sure to inquire about the legal requirements, because they can be budget busters and rack up your bill higher than expected. Some states also have health and sanitation requirements that you need to adhere to, and the department in charge will come for inspection before giving you a license to operate. All of these rules are to prevent inefficiencies and mitigate long-term avoidable expenses.

Miscellaneous Expenses

Expenses like plumbing costs, paying a professional contractor to add customization finishes, buying materials, and installing secondary appliances like dishwashers will add up costs, but also help you save money in the long run.

What Is A Reasonable Budget For a Commercial Kitchen?

If you intend to build and launch a restaurant based from scratch, you'll have to budget about $400,000, and above, but if you want to rent the space, the figures can drop drastically to $250,000.

Are you certain of being able to cover the financing and all the miscellaneous that comes with owning a building? Think about that.

There is no set price for a commercial kitchen, as construction costs will vary, and the type of equipment will vary as well.

You'll also need to consider the size of the kitchen as well, as the price of a commercial kitchen is dependent on the square foot (when renting).

How to Estimate Your Cost for a Commercial Kitchen?

Like, we said earlier, the cost of your commercial kitchen is dependent on you and your specialty. However, it's crucial to know the category your restaurant falls under, so you calculate the expenditures accurately.

• To properly estimate the cost of your kitchen, write out a plan involving all the necessities from the beginning of the launch to when your business is at full capacity, don't skip any step.

• Set up a personal line for credit in case of any shortages and emergencies, that way you have a security deposit and your business won't crash at the first hurdle.

• Consider the costs of legal fees, permits, and insurance.

• Account for daily operational expenses, because if you don't you'll be caught off-guard.

• Factor in the salary for all kitchen staff and prepare an Excel sheet for it.

Can You Lower The Cost of a Commercial Kitchen?

Lowering the costs of setting up a commercial kitchen is possible with a few tweaks;

• Buying used equipment from reliable vendors will save you more money, but be sure they are in perfect condition and have zero electrical damages.

• Invest in technology that'll keep track of the kitchen's inventory, and help minimize waste.

• Buy your small kitchen equipment like pots, pans, and utensils in bulk, as this will help cut down costs significantly.

• Don't shy away from negotiating costs with vendors, so you can strike a better deal. It's always a good option to contact different vendors and check out all possibilities for cheaper alternatives.

• Only buy equipment that are ecessary for your business; you can always engage in upgrades later.

How Much Does It Cost To Rent A Commercial Kitchen?

Renting a commercial kitchen will cost you thousands of dollars depending on the features, size per square foot, and the type of kitchen equipment installed in the kitchen hood.

It can cost between $100 to $300 per hour; all you have to do is negotiate with the company in charge and make payment. But be sure to check out a handful of options, before paying in advance.

Conclusion

Typically, having an expensive commercial kitchen doesn't guarantee you pulling in clients. You need to consider the design process and how it resonates with your target audience. It'll suck to purchase a new build and transform it into a high-end restaurant without having a plan of how to attract people.

Pick a location in a buzzing environment, set up an attractive walk-up window, get financing from friends and family, cut down costs by going for used equipment (from reliable sources), and you are set to go.

FAQs

1. What Is The Standard Commercial Kitchen Size?

The average size of a commercial kitchen is 1051 square foot, while smaller commercial kitchens can be between 250 - 1000 square foot.

2. How Much Money Do I Need to Build a Restaurant?

To build a restaurant from the ground up level, budget $50,000 to $100,000 or even more.