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How much does it cost to open a restaurant? Build the budget line by line

What it costs to open a restaurant, shown as a share of your budget: fit-out, kitchen equipment, deposits, licences, launch and the cash reserve most owners forget, with a checklist and common mistakes.

By the Hawks Dynamics team · Updated November 2026

In short

There is no single number: city, size and format change everything. What stays similar is how the budget splits. Fit-out and kitchen equipment usually take over half, and the line most owners forget is a cash reserve for the first months.

How an opening budget usually splits

Budget lineUsual shareExample
Fit-out and building work30 to 40%34%
Kitchen equipment15 to 25%20%
Furniture, lighting and décor8 to 12%10%
Rent deposit and rent before opening8 to 12%9%
Licences, permits and professional fees3 to 6%4%
POS, software and devices1 to 3%2%
Opening stock2 to 4%3%
Hiring and training before opening3 to 5%4%
Launch marketing2 to 4%3%
Cash reserve for the first months10 to 15%11%
Total100%

Rough guides only. Taking over a fitted restaurant can cut fit-out sharply; a new building with no kitchen can push it well above 40%.

The line most owners forget

Very few restaurants cover their costs from the first month. Keep enough cash to pay rent, salaries and suppliers for three to six months while sales build. Opening with an empty bank account forces bad decisions: cheaper ingredients, fewer staff, discounts that never end.

Build your budget in six steps

  1. Fix the format and seats first. Menu, seats and delivery share decide the kitchen and the space.
  2. Get three quotes for every big line. Fit-out, kitchen equipment and furniture.
  3. Ask about every licence and its timing. Delays here cost rent with no sales.
  4. Add a contingency of about 10% on building work. It is almost always used.
  5. Work out your break-even before you sign the lease. If the rent needs more guests a day than the street can bring, walk away.
  6. Keep the cash reserve separate. Do not spend it on the fit-out.

Five common mistakes

  • Signing a lease before the break-even is clear.
  • Spending the reserve on décor.
  • Buying every piece of kitchen equipment new.
  • Opening without recipes costed and prices checked.
  • Leaving software, stock and staff systems for "after the opening".

Try it on your own numbers: Break-even calculator, free and with no sign-up.

How Peasily does it

See it every day, not every month

Peasily sets up a new outlet with recipes, menu prices, stock and staff from the first day, and shows its net profit every morning, so you know when it has crossed break-even.

Franchise and outlet setup in Peasily

Screens from the Peasily demo brand.

Questions

How much does it cost to open a restaurant?

It depends on the city, the size, the format and whether the space already has a kitchen. Build the budget line by line with real quotes, and keep a cash reserve of three to six months of running costs.

What is the biggest cost when opening a restaurant?

Usually fit-out and building work, followed by kitchen equipment.

How long does it take to earn back the cost of opening?

It varies widely. Many owners plan for a few years. A clear daily break-even from the first week shows whether you are on track.

See your own numbers in Peasily

We'll walk you through it with your real menu and outlets.

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