The key to creating a successful budget is to speak to your projected clientele and understand what they want from their dining experience. Additionally, it’s worth visiting other local restaurants to take note of what works for them and what doesn’t.
When setting your budget, make sure it’s comfortable and includes a sufficient amount of contingency to accommodate for any unforeseen expenses. It’s important to understand the factors that drive your budgets. On average, the cost of building a restaurant is between £1,500 and £4,000 per square meter. However, this can vary depending on the size and level of specification.
The general cost to area can also be affected by fixed costs such as your kitchen, bar, toilets, and other necessary areas. Typically, you should expect to allocate 60% of your budget towards the front of house and 40% towards the back house.
The scale of repeat fit-out work will also affect your costs per square meter. For example, creating a new restaurant will cost more than fitting out your 5th or 6th restaurant. The cost of fitting out a branded coffee shop might be £1,000 per square meter, but you’re unlikely to provide that same level of fit-out on your initial concept for the same price.
When it comes to the front of house, it’s important to create the right ambiance and consider the number of covers that you can comfortably fit in. Furniture typically makes up between 20% and 35% of your budget, including fixed furniture and commercial chairs. Service installations, such as extraction and fresh air supply, are also important considerations that add to the ambiance and comfort of your customers.
The kitchen is a significant proportion of your restaurant fit-out costs, accounting for up to 50-70% of your entire budget. Consider the electrical and gas connections, plumbing, and commercial catering equipment. An average 60-square meter kitchen can cost between £180,000 and £360,000, depending on the type of cooking and its purpose.
Working within an existing kitchen space can reduce construction costs, but you’ll still need to refurbish, upgrade, and maintain the equipment on a day-to-day basis. Other cost-saving options include leasing equipment or buying second-hand equipment, although this comes with risks such as no warranties and compliance with regulations.
Other fixed costs to consider include toilet areas, with the number of cubicles determined by building regulations, which can vary by council. Toilet cubicle costs can be increased with higher levels of specification and additional features. Consider all of these factors when setting your budgets and you’ll be well on your way to a successful fit-out.
If you would like to speak to Julian and gain some advice on Cost Planning for your new bar or restaurant please submit your enquiry via our contact page
