How much does it cost to build a restaurant?
How much does it cost to build a restaurant?
$200 – $850 average cost per square foot
Cost to build a restaurant
The average cost to build a restaurant ranges from $200 to $850 per square foot, though costs vary significantly based on location, restaurant type and size, and whether it's new construction or building out an existing space. This price typically includes design and construction but not the land or operational expenses.
| Restaurant type | Average cost per square foot* |
|---|---|
| Fast food / small space | $100 – $650 |
| Casual dining | $200 – $850 |
| Fine dining | $300 – $1,000 |
*Design and construction cost only; does not include the cost of land or initial startup costs
Quick-service restaurants average 1,500 to 2,500 square feet, while casual and fine dining establishments range from 3,000 to 5,000 square feet.
Restaurant construction cost estimator
Every new restaurant comes with a unique set of circumstances that will influence the total project cost. For new construction restaurant buildings, the table below details the average cost for each component.
| Factor | Average cost per square foot |
|---|---|
| Foundation cost | $6 – $50 |
| Framing cost | $11 – $30 |
| Drywall cost | $2 – $4 |
| Flooring cost | $4 – $15 |
| Plumbing cost | $4 – $5 |
| Interior trim cost | $4 – $10 |
| Siding cost | $4 – $13 |
| Roof cost | $3 – $6 |
| Insulation cost | $1 – $5 |
| Electrical wiring cost | $4 – $9 |
| HVAC system cost | $3 – $6+ |
| Interior painting cost | $1 – $3 |
| Countertops cost | $50 – $150 |
| Lighting cost | $2 – $4 |
| Landscaping cost | $4 – $12 |
| Doors cost | $225 – $1,900 each |
| Windows cost | $450 – $1,500 each |
| Toilets cost | $350 – $800 each |
| Bathroom sinks cost | $330 – $1,300 each |
| Cabinets cost | $150 – $500 per linear foot |
Like all commercial construction costs, the costs to build a restaurant vary significantly based on the many factors, including:
Complexity: Building out an existing space costs 30% to 50% less than new construction. Existing structures often have necessary utility connections and basic infrastructure already in place. However, bringing an older building up to code may require costly upgrades.
Restaurant type & size: The category, concept, and cuisine of your restaurant play a significant role in determining construction costs. For instance, a fine dining establishment may require more elaborate finishes and equipment compared to a casual eatery.
Location: Commercial construction projects tend to cost more on the East and West coasts than in the Midwest and the South. Prime real estate in urban areas will naturally be more expensive than suburban or rural locations.
Land: The cost of the land itself can be a substantial portion of your budget and varies dramatically by location. Securing a loan for vacant land often requires a 20% to 30%+ down payment.
Furniture, fixtures, & equipment: Often referred to as FF&E, these costs make up 30% to 40% of a restaurant's construction budget, though some projects spend up to 75% of the total budget on FF&E. Dining chairs alone range anywhere from $20 to $300+ each.
Technology: Modern restaurants rely heavily on technology. A point of sale (POS) system costs anywhere from $0 to $2,000+ per terminal for the initial hardware and setup. Other restaurant software systems often include:
Kitchen display
Inventory management
Employee management
Music / audio
For the best chance of success, identify the local market and choose an area where your new restaurant fills a segment of the market that is untapped.
Professional labor
Professional services represent a significant portion of restaurant construction costs. Here are the typical hourly rates for several professionals you'll likely need to help design and build your restaurant:
| Type of professional | Average cost per hour |
|---|---|
| Restaurant designer / architect cost | $100 – $250 |
| Interior designer cost | $50 – $200 |
| Structural engineer cost | $100 – $220 |
| General contractor cost | $50 – $150 |
| Electrician cost | $50 – $130 |
| Plumber cost | $45 – $150 |
| Graphic designer cost | $20 – $60+ |
Regulations, licenses, & permits
Restaurants must comply with various regulations including health department requirements, building codes, ADA compliance, fire safety systems, and specific ventilation requirements, all impacting construction costs.
Permit and license requirements vary by restaurant type and location, but most restaurants need several, with costs ranging from $50 to $1,000+ per license. Building permit costs vary by city. Most general contractors include permit prices in their estimate.
Utilities & lighting
If you're building a restaurant on vacant land, the cost to get utilities to the property—electricity, water, gas, and septic—averages $9,000 to $34,500 depending on the location and proximity to the nearest connections.
The cost to run power to the new building is $5 to $25 per foot.
Wiring the new building's electricity costs $4 to $9 per square foot.
New construction plumbing costs $4 to $5 per square foot.
Once the building is constructed, lighting costs $2 to $4+ per square foot on average.
Kitchen equipment
The heart of any restaurant is its kitchen. Commercial kitchen costs range from $15,000 to $250,000 or more depending on the establishment's size and concept. Factors like brand, quality, and whether you buy new or used equipment also impact the cost.
The table below breaks down typical costs for essential equipment:
| Equipment type | Average price* |
|---|---|
| Commercial sink | $500 – $5,000+ |
| Commercial refrigerator | $2,000 – $10,000 |
| Commercial freezer | $1,000 – $10,000 |
| Walk-in cooler / walk-in freezer | $4,000 – $30,000 |
| Ice machine | $500 – $7,000 |
| Soda dispenser | $3,500 – $15,000+ |
| Range + ventilation | $1,500 – $15,000+ |
| Grill / griddle | $1,000 – $10,000 |
| Fryer | $500 – $5,000 |
| Steamers & broilers | $1,000 – $10,000+ |
| Bakery equipment / commercial oven | $2,000 – $15,000+ |
| Food holding & warming | $1,000 – $10,000+ |
| Commercial dishwasher | $3,000 – $20,000+ |
| Dish tables & racks | $500 – $4,000 |
| Shelving units / kitchen storage | $100 – $500+ each |
*Average price per unit; not including installation
In addition to equipment, remember to budget for all the supplies required to store, prepare, and serve the food, such as cutting boards, kitchen utensils, food processors, mixers, slicers, storage containers, and tableware.
Branding & signage
Expect to pay $5,000 to $20,000 or more for professional signage and branding of a completely new restaurant business. A business sign costs $2,000 to $5,000 installed on average, but prices go as low as $100 to as high as $200,000, depending on the size, type, and placement.
Parking lot construction
The cost to build a parking lot for a restaurant ranges from $25,000 to $100,000 or more, depending on the size and the existing site conditions. Once it's paved, parking lot striping costs $500 to $1,200 on average for a medium sized lot with 30 to 50 stalls.
Startup / opening costs
Post construction, there are still several things to purchase and do for a successful restaurant opening, such as buying an initial food inventory, tableware, décor, marketing and advertising, as well as hiring and training staff. Total startup cost varies significantly depending on the size and type of restaurant.
FAQs about building a restaurant
How long does it take to build a restaurant?
The timeline for building a restaurant varies significantly depending on the size, complexity, and local regulations. On average, it can take anywhere from 6 months to 2 years from initial planning to opening day.
Is a restaurant a commercial building?
Yes, restaurants are classified as commercial buildings. This classification affects various aspects of construction, including zoning requirements, building codes, and permit processes.
Getting estimates from restaurant builders
To get accurate estimates when consulting restaurant construction companies near you:
Provide detailed plans and specifications.
Ask about their experience with similar projects and request a portfolio or pictures of past projects.
Request itemized quotes from at least three reputable contractors.
Check out previous client feedback on trusted sites like HomeGuide and Google.
Ensure they include all potential costs in the quote.
Hire only licensed, bonded, and insured companies.
Have a written estimate and contract in hand before any work begins.
Questions to ask restaurant building contractor
A qualified restaurant construction contractor should be able to confidently answer these questions:
How long have you been in the business of designing/building restaurants?
Can you provide references from recent clients?
Do you hire all the necessary subcontractors, plumbers, and electricians?
How much input will I have during the building process?
How long will the project take?
Do you handle the permitting and inspection process?
What delays and extra fees should I prepare for?
Can you provide a written quote and contract?
Using our proprietary cost database, in-depth research, and collaboration with industry experts, we deliver accurate, up-to-date pricing and insights you can trust, every time.