Commercial Kitchen Setup Cost Australia (2026): The Complete Breakdown
The honest answer to "how much does a commercial kitchen cost to set up in Australia?" is: between $30,000 for a small café and $300,000+ for a hotel kitchen, with most restaurant owners and operators landing inside the $80,000 – $150,000 mid-tier band. Equipment is the headline number; council fees, three-phase power, fire suppression, grease traps and ventilation are where the surprises sit. Commercial kitchen setup cost australia is a category that punishes guesswork — restaurant startup costs in Australia routinely blow out 15–25% over the initial quote, so a contingency on day one is the difference between trading on opening night and explaining to your bank why the doors are still shut.
This complete guide gives realistic 2026 average cost ranges per kitchen tier, broken down by kitchen size profile (small café, medium restaurant, large hotel/catering), then by equipment category (refrigeration, cooking, dishwashing, preparation tables), then by the often-overlooked costs to consider: kitchen fit-out (or fitout, depending on your contractor's spelling), council approvals, hospitality licences, hidden costs, financing your restaurant, and the real-world cost-reduction tactics that work without compromising food safety standards or health and safety. Written from the Australian foodservice business owner's seat — applicable whether you are setting up a commercial kitchen for a new restaurant in Melbourne, a multi-outlet catering kitchen in Sydney, or running a restaurant concept in regional Queensland.
Cost Overview by Kitchen Size
The single most useful framing for a new operator is kitchen size profile — the cost stack scales non-linearly with covers, menu complexity and back-of-house volume.
| Kitchen size | Typical covers / output | Equipment cost (AUD) | Fit-out cost (AUD) | Total all-in (AUD) |
|---|---|---|---|---|
| Small cafe | 30–60 covers, drinks + light food | $30,000 – $50,000 | $40,000 – $80,000 | $70,000 – $130,000 |
| Medium restaurant | 60–150 covers, full menu | $80,000 – $150,000 | $80,000 – $200,000 | $160,000 – $350,000 |
| Large hotel / catering kitchen | 200+ covers, multi-zone, banquets | $200,000 – $400,000+ | $200,000 – $600,000+ | $400,000 – $1,000,000+ |
These ranges assume a leased shell with basic plumbing and three-phase power available. A greenfield build, a heritage-listed shopfront or a council that requires a full grease-arrestor install will push every line up.
The cost reduction strategies later in this guide — buying refurbished, leasing the heavy items and staging the fit-out — can cut the small-cafe number by 25–35% without breaching any Standard. The medium / large profiles benefit less from refurbished equipment (warranty risk on a $40K combi oven is real) and more from staged commissioning.
Small Cafe Setup: $30,000 – $50,000 Equipment
A small Australian cafe doing 30–60 covers, espresso-led, with a compact food menu (toasted sandwiches, salads, cakes, all-day breakfast in a small kitchen) needs the following equipment list:
| Equipment | Typical cost (AUD) |
|---|---|
| Espresso machine (2-group) + grinder | $8,000 – $14,000 |
| Commercial under bench fridge (2-door) | $1,800 – $3,500 |
| Commercial freezer (under bench) | $1,500 – $3,000 |
| Display fridge (cake / drinks) | $1,500 – $4,000 |
| Stainless steel prep benches (3 m total) | $1,200 – $2,500 |
| Small commercial oven / convection oven | $900 – $2,500 |
| Conveyor / pop-up toaster | $400 – $1,200 |
| Sandwich press / panini grill | $300 – $800 |
| Microwave oven | $400 – $1,200 |
| Soft-serve / smoothie blender | $1,500 – $3,500 |
| Underbench dishwasher | $2,800 – $4,500 |
| Three-compartment sink + handwash basin | $1,200 – $2,200 |
| Smallwares (knives, GN pans, hand tools) | $1,500 – $3,000 |
| Coffee accessories + barware | $1,000 – $2,000 |
The $30K–$50K equipment cost assumes a sensible mix of new commercial-grade and refurbished pieces from a reputable supplier. The biggest swing factor is the espresso machine — a two-group La Marzocco Linea Mini and a Mahlkönig grinder will land you near the upper bound; a Sanremo Verona or a refurbished Wega will hold you near the lower.
For broader cafe-design considerations beyond equipment, see our cafe kitchen design and layout guide.
Medium Restaurant Setup: $80,000 – $150,000 Equipment
A medium Australian restaurant doing 60–150 covers, with a full kitchen line (cooktop, oven, fryers, grill, full prep), looks like:
| Equipment | Typical cost (AUD) |
|---|---|
| 6-burner gas cooktop with under-oven | $4,500 – $9,000 |
| Combi steam oven (10-tray) | $14,000 – $28,000 |
| Twin-tank deep fryer | $3,500 – $7,000 |
| Chargrill (gas) | $3,000 – $6,500 |
| Salamander / overhead grill | $1,500 – $3,500 |
| Commercial fridges (2-3 cabinets, walk-in or upright) | $9,000 – $25,000 |
| Commercial freezer (upright + chest) | $4,000 – $10,000 |
| Blast chiller (5-tray) | $8,000 – $15,000 |
| Stainless prep benches + pot wash sink + handwash | $4,000 – $9,000 |
| Pass-through dishwasher | $7,000 – $14,000 |
| Pizza oven / specialty (if applicable) | $4,000 – $25,000 |
| Bain marie + heat lamps (pass) | $2,000 – $4,500 |
| Smallwares + chef knives + GN pans | $3,500 – $7,000 |
| Hood + extraction (Type 1, mid-size) | $8,000 – $18,000 |
| Wet chemical fire suppression system | $5,000 – $10,000 |
Equipment cost lands $80K – $150K depending on cuisine (a wood-fired pizzeria adds $15K+ in oven, a smokehouse adds $8K in pellet smoker, an Asian wok line adds $4K in wok burner + tilting cradle).
The combi oven is the biggest single line — a 10-tray Rational iCombi, Unox ChefTop or Convotherm maxx is the kitchen's anchor and worth buying new with full warranty. The dishwasher is the second-most-likely place to overspend; a $14K pass-through is the right call for 100+ covers, but $8K underbench machines do the job for many 60-cover venues.
Large Hotel / Catering Setup: $200,000 – $400,000+ Equipment
A large Australian production kitchen — banquets, hotel restaurants, multi-outlet catering centres, dark kitchens producing 500+ covers per service — runs an equipment stack that looks fundamentally different from the medium tier:
| Equipment | Typical cost (AUD) |
|---|---|
| Multi-zone gas cooktop and bratt pan | $18,000 – $40,000 |
| Twin combi ovens (20-tray each) | $50,000 – $100,000 |
| Walk-in cool room + walk-in freezer | $25,000 – $70,000 |
| Multiple blast chillers + IQF freezer | $20,000 – $50,000 |
| Conveyor / flight-type dishwasher | $30,000 – $80,000 |
| Hood + multi-zone extraction + make-up air | $25,000 – $60,000 |
| Engineered fire suppression | $10,000 – $25,000 |
| Smallwares, full chef tool set, GN pans (commercial scale) | $8,000 – $18,000 |
| Specialty equipment (rotisserie, smoker, sous vide circulators) | $10,000 – $40,000 |
Total equipment outlay sits at the $200K – $400K floor; specialty venues (Michelin-aspirant fine-dining, multi-cuisine hotel kitchens, central production catering) push past $500K with no difficulty.
Equipment Costs by Category
For operators who already know their tier, here is the cost-band breakdown by category:
Refrigeration
- Under bench fridge (2-door, 200–400 L): $1,800 – $3,500
- Upright commercial fridge (1-door, 600–800 L): $2,500 – $5,500
- Upright commercial fridge (2-door, 1,200 – 1,500 L): $4,500 – $9,000
- Walk-in cool room (5–8 m²): $12,000 – $30,000
- Walk-in freezer (3–5 m²): $14,000 – $35,000
- Blast chiller (5-tray): $8,000 – $15,000
Cooking
- 4-burner gas cooktop with oven: $3,000 – $6,500
- 6-burner gas cooktop with oven: $4,500 – $9,000
- Combi oven 6-tray: $9,000 – $18,000
- Combi oven 10-tray: $14,000 – $28,000
- Combi oven 20-tray: $25,000 – $50,000
- Twin-tank deep fryer: $3,500 – $7,000
- Chargrill (gas, 600 mm): $3,000 – $6,500
Dishwashing
- Underbench dishwasher: $2,800 – $4,500
- Pass-through dishwasher: $7,000 – $14,000
- Conveyor / flight-type dishwasher: $30,000 – $80,000
- Glasswasher (bar): $2,200 – $4,200
Preparation tables and sinks
- Stainless prep bench (1.8 m): $400 – $900
- Stainless prep bench with under-shelf and over-shelf (2 m): $900 – $1,800
- Three-compartment sink: $700 – $1,400
- Handwash basin (foot-pedal mixer): $400 – $900
For deeper specs on any of these, browse commercial fridges, commercial ovens, commercial dishwashers and stainless steel benches.
Fit-Out (Fitout) Costs
Equipment is the headline; fit-out is the fine print. A successful commercial kitchen fitout takes the same careful planning as buying equipment — fitout design, size and location, type of food, and design complexity all push the cost-per-square-metre figure up or down. Restaurant fitouts in Australia typically run $1,200 – $3,500 per square metre depending on shell condition, finishes and back-of-house complexity (roughly $112 – $325 per square foot for operators used to imperial units). The commercial kitchen fitout cost in Australia is the second-largest line after equipment in any meaningful build. Typical fitout cost in australia lines for a commercial kitchen build:
- Builder / shopfitter — $40,000 – $200,000 depending on shell condition and finishes.
- Plumbing (rough-in + final) — $8,000 – $35,000 (the big driver: how many sinks, grease trap location, hot-water supply).
- Three-phase power upgrade — $5,000 – $25,000 if the meter board needs an upgrade or a sub-board.
- Electrical fit-out + appliance circuits — $10,000 – $30,000.
- Gas (LPG or natural gas) installation — $4,000 – $18,000.
- Hood and extraction install (mechanical contractor) — included in equipment or $8,000 – $30,000 separate.
- Fire suppression commissioning — $1,500 – $4,500 on top of the system cost.
- Floor finishing (commercial-grade slip-resistant) — $4,000 – $20,000.
- Wall cladding (stainless or compliant alt) — $3,000 – $15,000.
- Ceiling tiles + hood penetration sealing — $2,000 – $8,000.
A typical mid-restaurant fit-out lands $80K – $200K. Heritage shopfronts, multi-storey buildings or shells with no existing grease arrestor push past $300K fast. Plan for utility costs (gas, electricity, water, waste) of an additional $1,500 – $6,000 per month once trading — a hidden line in many fitout-cost-in-australia conversations.
Licences, Permits and Compliance
Council and state authority paperwork and fees are small per-line but add up — and the certificates are the gating items between fit-out completion and trading day. Every line below ladders into the broader Food Standards Code and your state's health and safety standards for commercial food businesses, with both NSW and VIC tightening enforcement on commercial kitchen appliances compliance over the past two years.
- Food business registration (council) — $80 – $400/year.
- Annual Fire Safety Statement / Essential Safety Measures Report — $1,500 – $4,500 (issued by an independent AS 1851 certifier).
- Food Safety Supervisor certification — $150 – $300 per supervisor, valid 5 years.
- Liquor licence (if applicable) — $750 – $4,500 per year depending on state and class.
- Outdoor seating permit (if applicable) — $400 – $2,500 per year.
- Music licence (APRA AMCOS / PPCA) — $400 – $1,500 per year.
- Public liability insurance ($20M minimum) — $1,500 – $4,500 per year.
- Product liability and contents insurance — $800 – $2,500 per year.
- Gas certificate (AS/NZS 5601.1) at fit-out — $400 – $1,200.
- Electrical Compliance Certificate at fit-out — $400 – $1,200.
Pair this section with our commercial kitchen health inspection guide for the practical day-of-inspection checklist that brings these certificates to life.
Hidden Costs That Catch First-Timers
Ten lines that typically don't appear in the equipment quote but always appear in the final invoice:
- Council DA / planning fees — $1,500 – $8,000 if the change of use needs council planning approval.
- Three-phase power upgrade — every operator underestimates this; $5K – $25K is realistic.
- Grease trap or arrestor — council-mandated for almost every commercial kitchen; $3,000 – $12,000 install plus quarterly pump-out.
- Fire suppression system — $5,000 – $12,000 install plus six-monthly servicing.
- Smallwares creep — the "bits and pieces" line always blows out 30–50% over the first quote.
- Initial stocking inventory — $5,000 – $25,000 in food, dry goods, beverages on day 1.
- Staff training and induction — $2,000 – $8,000 in the first month (Food Safety Supervisor course, fire safety training, manual handling).
- POS system + integrations — $3,000 – $12,000 hardware plus $80 – $400/month software.
- Branding, signage, menu print — $4,000 – $20,000.
- Working capital contingency — at least 3 months of operating expenses ($30,000 – $120,000) before the first profitable month.
A 15% blanket contingency on equipment + fit-out is the bare minimum; 20–25% is the safer plan.
How to Reduce Setup Costs Without Cutting Corners
Smart cost reduction never compromises compliance — every saving below is one experienced operators apply at fit-out time.
- Buy refurbished for cooking and refrigeration, where the warranty cost is acceptable. Look for ex-demo, ex-display or one-cycle stock; 30–50% off new pricing for equipment with usable life left.
- Lease the big-ticket items (combi ovens, dishwashers, walk-in freezers) through a chattel mortgage or finance lease. Frees working capital and the lease payment is fully deductible.
- Stage the fit-out — open with a tighter menu and smaller equipment list, then add specialty equipment in months 6 – 12 once revenue is proven.
- Bulk-buy smallwares through a single supplier — discounts of 10 – 20% on $5K + orders are routine.
- Negotiate the gas / electrical install as one combined contract — single-contractor savings of 10 – 15%.
- Take over an existing fitted shopfront (closing cafe, restaurant) — typical equipment-included sale prices are 30 – 50% of new build cost. Walk away if the equipment is more than 7 years old or unbranded.
- Negotiate the building lease incentive — 6 – 12 months free rent or a $20K – $80K landlord contribution is normal in current commercial markets, especially in the medium-shopping-strip tier.
For the lease-vs-buy decision specifically, see our lease vs buy commercial kitchen equipment guide.
Financing Options
Australian commercial-equipment financing is a competitive market — at minimum, get three quotes before signing.
- Chattel mortgage — bank lends against the equipment, you own it from day one, full GST claim, depreciation deductible. Most common option.
- Finance lease — lender owns the equipment, you pay monthly, equipment off your balance sheet, full lease deductibility.
- Operating lease (rental) — short-term, equipment returned at end, popular for dishwashers and coffee machines specifically.
- Equipment loan — simple secured loan, fixed term 3–7 years.
- Vendor finance — many kitchen appliances suppliers offer 12 – 36 month terms direct, sometimes with introductory zero-interest periods.
- SME / small business loan — for the broader fit-out, NAB, Westpac, ANZ, Judo and several non-bank lenders all offer commercial fit-out finance up to $500K+ unsecured. Important if you're opening a restaurant or planning to open a restaurant in Australia for the first time and want to preserve working capital across the restaurant industry's notoriously variable first 12 months.
A typical finance package for a medium restaurant: 30% deposit, 5-year term, equipment chattel mortgage at 8 – 12% effective rate. Re-finance after year 2 once the venue is profitable and rates drop further.
FAQ — Commercial Kitchen Setup Cost Australia
How much does it really cost to set up a commercial kitchen in Australia?
A small cafe lands $70,000 – $130,000 all-in (equipment + fit-out). A medium restaurant lands $160,000 – $350,000. A large hotel or catering kitchen runs $400,000 – $1,000,000+. These figures assume a leased shell with basic services in place; greenfield builds and heritage shopfronts push the upper end higher.
What is the most expensive single piece of equipment in a commercial kitchen?
The combi steam oven, in nearly every kitchen tier. A 10-tray combi oven from Rational, Unox or Convotherm runs $14,000 – $28,000; a 20-tray unit runs $25,000 – $50,000. Walk-in cool rooms and conveyor dishwashers are the next-largest single lines.
How much should I budget for hidden costs in a commercial kitchen setup?
At least 15% of the equipment + fit-out budget as a blanket contingency, more like 20 – 25% if the build involves a three-phase power upgrade, a grease arrestor install or any council planning work. The most-missed lines are staff training, opening inventory, working capital, and POS / integrations.
Can I save money by buying refurbished commercial kitchen equipment?
Yes — 30 – 50% off new pricing on refurbished cooking and refrigeration is realistic for ex-demo, ex-display or one-cycle stock from reputable suppliers with a written warranty. Avoid refurbished pieces older than 5 – 7 years (parts availability) and never compromise on warranty for the headline items (combi oven, walk-in cool room, fire suppression).
Should I lease or buy commercial kitchen equipment in Australia?
Mixed approach: own the items with the longest useful life (stainless benches, knives, smallwares); lease or finance the high-cost items with rapid technology change (combi oven, dishwasher, espresso machine). A chattel mortgage gives you ownership from day one with full deductibility; a finance lease frees working capital. Get three quotes before signing.
Final Word
Commercial kitchen setup cost in Australia is a two-number conversation: equipment outlay (which our supplier team can quote inside a week against your cuisine and tier), and the much larger fit-out + compliance + working-capital number (which only becomes real when the lease is signed and the council is on the ground). Operators who survive past year two budget honestly on day one, build a 15 – 25% contingency, and stage the fit-out so revenue is funding the next phase rather than the bank. Whether you're starting a restaurant in inner-Sydney or planning a regional bakery, that discipline is the constant.
Browse our complete range or contact our team for a custom quote tailored to your kitchen tier, cuisine and council requirements — we can spec a complete cooking line, dishwashing line and refrigeration block that hits your covers target without overshooting your budget.
