How Much Does a Commercial Kitchen Fitout Cost in 2024?

Starting a food-related business is an exciting venture, but ensuring your kitchen is up to the mark while staying within budget is crucial. A successful commercial kitchen fitout goes beyond installing equipment; it’s about creating a functional and efficient space that meets health regulations, optimises workflow, and supports your culinary vision.

In today’s competitive food industry, a well-executed kitchen fitout can be the difference between a business that thrives and one that struggles. From the layout and design to the appliances and finishes, every detail matters. Your commercial kitchen needs to be efficient for your staff and compliant with regulations, ensuring smooth operations and a safe environment.

If you’re in the process of setting up a new commercial kitchen or looking to upgrade an existing one, this guide is for you. We’ll delve into the essential costs of a commercial kitchen fitout, highlight common challenges, and provide tips to ensure your fitout process is smooth and successful. Get ready to create a space that inspires your chefs to plate up the finest dishes for your customers.

So how much do commercial kitchen fitouts cost on average? 

Between $1500 - 3000 per sqm

Of course, when laying out a range like this there are a variety of factors that could put a fitout on the higher or lower ends of this range. Commercial kitchens are as unique as the cuisines on offer in the city of Melbourne, so no one fitout is the same as another. 

In saying this, some basic features differentiate commercial kitchen fitouts from other industries. More specialised equipment is required. This specialisation may change depending on the type of food being prepared on the premises. 

Ventilation, refrigeration, and antimicrobial surfaces are crucial to meet health and safety standards. Additional time may also be spent designing efficient, regulatory-compliant workflows that optimise food production. An exceptional fitout expert understands this and will balance all of these requirements within a reasonable budget.

Specific Costs For Commercial Kitchen Fitouts

Below are some of the more specific costs associated with commercial kitchen fitouts. This breakdown does not include cooking equipment as costs can vary depending on kitchen size, brand, and individual requirements.

• Flooring: Kitchens often require features such as stainless steel substrate and safety vinyl (compliant flooring). While substrate costs can vary by project, compliant flooring costs start at around $200 per sqm. 
• Cool Room & Refrigeration:  Walk-in coolers and freezers, under-counter fridges, and display cases are necessary for food safety. Cost can vary depending on the size of the kitchen.
• Ventilation, Rangehoods & Grease Traps: Proper exhaust hoods and ventilation systems are crucial for safety and regulatory compliance. If you opt to replace your current rangehood and/or grease traps, this could cost an additional $30K at the higher end.
• Wall Coverings: Stainless steel or ceramic tile backsplashes ensure hygiene and fitout longevity, costing around $30 to $100 per sqm.
• Toilets: Assurance that you have the correct number of standard, DDA, and ambulant-compliant toilets installed. Cost is dependent on the number of toilets required.
• Sinks: Hand basin sinks are usually a required installation to pass health department checks. Mop sink installation (if desired) starts around $1000.
• Storage Solutions: Shelving and racks are essential for organising goods and ingredients. Individual shelving unit costs can vary from $300 up to $1000.

We know what you’re thinking, that’s a lot of costs to take in! Keep in mind that although most commercial kitchen fitouts will house similar equipment, not all kitchens are the same. Every fitout has a unique set of requirements and workflow optimisations. We want to give you a clear picture of what you should consider.

Some commercial kitchens are standalone food businesses. But most often they are part of a wider project, such as a restaurant or bar fitout. If you are planning to upgrade these areas as well, refer to our restaurant costs blog for more specific information about hospitality fitouts. 

Recommended Reading: Restaurant Fitout Costs in Melbourne

Now you know what to be on the lookout for, but what about those things a builder might not tell you about? Let’s explore them below.

Space Optimisation

Workflow is extremely important when it comes to kitchen fitout design. The more efficient a chef can work, the faster they can cook, directly contributing to a food business’ bottom line.

Maximising a limited space while ensuring efficient workflow requires careful planning and understanding of how your team works daily. This is why our professional designers work closely with our clients in the planning phase to create a layout that blends form with highly optimised function; further increasing team productivity.

Grease Traps

Grease traps are a requirement in all commercial kitchen fitouts. If they are too small, your kitchen system will be prone to frequent clogs and blockages. If the traps are in the wrong spot, they won’t drain effectively. Any issues with your traps could easily warrant a health code violation. 

To ensure your kitchen is up to code long after your fitout is complete, we’ll help you find the proper grease trap for your cooking volume. We’ll also make sure they are properly plumbed into your system for efficient drainage.

Gas Connections

Kitchens use more gas than standard builds, so additional safety precautions must be taken to ensure everything works properly. For this reason, complex gas installations and upsizes require a separate application process as well as inspection after works have been completed. Only after the work has been approved, we can go about connecting the gas. On average, the entire process21 could take between 8-12 weeks. 

Power

Outside of gas, kitchens use a lot of energy. When upgrading a kitchen, additional time and consideration must be spent assessing potential wattage use and determining if the current connections can handle all of the incoming power. Electrical tests are necessary throughout the build to ensure no outages occur after your fitout is complete.

With previous experience in this space, we’ll be upfront when assessing timeframes for power installation. Additional work is usually required to effectively distribute all the power coming into the building. Safety comes first before everything else. 

Bathrooms

All bathrooms must meet code requirements for patron use. 

There are various factors to consider to ensure your inspection passes with flying colours. We work with building surveyors throughout the fitout process, who actively inspect and assess our work at every step. This attention to detail ensures that your final inspection will go off without a hitch.

Material Lead Time

Lead time for certain materials can vary. While materials can be sourced locally, some items may need to be imported. At Canopy Fitouts we take a comprehensive approach to quoting and building your fitout. We forecast lead times wherever possible, and will suggest alternatives if you desire a speedier completion. 

Regulatory Bodies

With any construction project, approval from regulatory bodies will be required. Rather than taking on council fees, permit plans, and the potential red tape involved, our team will assist you and ensure the process is seamless. Don’t let neglected paperwork hold up your fitout.

Asbestos

Asbestos is the most hidden issue on this list. While uncommon in commercial kitchen fitout projects, we’ll never really know until we get started on the project. At Canopy, we’ll do all early leg work to catch signs of potential asbestos and will help you get a professional to decontaminate the premises quickly.

Hidden Costs

We recommend allocating at least 30% of your budget to cover hidden services like the ones above. We will be as upfront as possible in the early stages of your build to help you avoid these costs later on.

At Canopy Fitouts we believe in transparency at every stage of the fitout process, which is why we have no qualms with sharing the latest data we have around kitchen fitouts. Every kitchen is as unique as the cuisines available around Melbourne, which is why tailor our advice and design ideas to your exact needs. If you have any specific questions or are ready to get started on your fitout, speak with our knowledgeable team today.