Setting up a commercial kitchen is expensive. There's no way to dress that up. Even a modest cafe kitchen costs £20,000–£40,000 to equip, and a mid-sized restaurant kitchen can run £50,000–£80,000 before you've served a single plate.
But "expensive" and "unaffordable" aren't the same thing. The operators who get into trouble aren't usually the ones with small budgets - they're the ones who spend in the wrong places. They buy a premium combi oven but skip the extraction system. They fit out with all-new equipment but have nothing left for working capital. They cut corners on compliance and end up paying twice when the EHO visits.
This guide is for anyone fitting out a commercial kitchen with a limited budget. Not a limitless wish list - a realistic plan for spending what you have where it matters most.
What Does a Commercial Kitchen Actually Cost?
Let's start with honest numbers. UK commercial kitchen fit-out costs break down roughly like this:
Small Operations (Cafe, Takeaway, Small Pub Kitchen)
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Total budget: £20,000–£50,000
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Equipment: £10,000–£25,000
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Installation (electrical, gas, plumbing): £3,000–£8,000
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Extraction and ventilation: £2,000–£5,000
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Stainless steel furniture (tables, shelving, sinks): £2,000–£5,000
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Compliance (fire suppression, safety signage, HACCP setup): £1,000–£3,000
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Contingency (10%): £2,000–£5,000
Mid-Sized Restaurant Kitchen (40–80 Covers)
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Total budget: £50,000–£100,000
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Equipment: £25,000–£50,000
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Installation: £5,000–£15,000
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Extraction and ventilation: £5,000–£10,000
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Stainless steel furniture: £3,000–£8,000
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Compliance and safety systems: £2,000–£5,000
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Design and planning: £2,000–£5,000
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Contingency (10%): £5,000–£10,000
Large or High-End Kitchen (80+ Covers, Hotel, Banqueting)
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Total budget: £100,000–£250,000+
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Equipment: £50,000–£100,000+
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**Everything else scales accordingly
These figures assume you're fitting out an existing shell with basic services already in place. If you need structural work, major plumbing, or three-phase electrical installation, add accordingly.
The key number: equipment typically accounts for 40–60% of the total fit-out cost. That's where the biggest savings opportunities sit - and where the biggest mistakes happen.
Where to Spend and Where to Save
Not every piece of equipment deserves the same slice of your budget. Some items earn their cost back quickly. Others are nice-to-haves that can wait until cash flow allows.
Spend More On: The Non-Negotiables
Refrigeration. This is the one category where buying cheap genuinely costs you money. A fridge that can't hold temperature consistently wastes food, creates food safety risks, and fails sooner than a quality unit. Your fridge runs 24 hours a day, 365 days a year - energy efficiency matters here more than anywhere else. Budget commercial fridges can cost you more in wasted stock and energy bills within the first year than the premium for a better unit.
For guidance on choosing the right fridge, our commercial refrigeration guide covers types, sizing, and energy ratings in detail.
Extraction and ventilation. Your extraction system isn't optional and isn't the place to cut costs. An undersized or poorly installed extraction system creates immediate problems: smoke, grease, heat build-up, and fire risk. It also creates compliance problems - your EHO and fire safety inspector will both flag inadequate extraction. Get this right from the start. Retrofitting extraction is significantly more expensive than doing it properly during the initial fit-out.
Your primary cooking equipment. Whatever your menu revolves around - the oven, the fryer, the range - that's where reliability matters most. If your main cooking station goes down during a Friday evening service, you're turning customers away. Buy the best you can afford for the equipment your revenue depends on.
Save On: The Flexible Items
Stainless steel furniture. Prep tables, shelving, wall tables, and storage racks are structurally simple. A well-made budget table in Grade 304 stainless steel does exactly the same job as one costing three times more. As long as the welds are clean, the legs are braced, and the steel grade is appropriate, there's no practical benefit to paying premium prices for furniture. Our stainless steel tables and benches range is a good example - quality catering-grade tables at sensible prices.
Smallwares and utensils. Pots, pans, gastronorm containers, utensils, chopping boards. These are consumable items that wear out and get replaced regardless of how much you spend initially. Buy solid mid-range items and replace as needed. Don't blow £500 on a knife set when £150 gets you knives that perform well for the first two years.
Back-of-house storage. Wire shelving, dry storage racks, and pot racks don't need to be premium grade. They hold things. Functional beats fancy here.
Front-of-house display equipment. Unless your concept relies on visible cooking or an open kitchen, display fridges and heated showcases can be added later once you know what sells and what needs to be visible to customers.
New, Secondhand, or Lease?
This is the single biggest financial decision in your kitchen fit-out, and there's no universally right answer. Each option has trade-offs.
Buying New
Advantages: Full manufacturer warranty. Latest energy efficiency standards. No unknown history. You know it hasn't been abused by a previous owner.
Disadvantages: Highest upfront cost. Equipment depreciates significantly the moment it's installed - a £5,000 oven is worth perhaps £2,000–£3,000 if you need to sell it two years later.
Best for: Your primary revenue-generating equipment (main oven, main fridge), where reliability and warranty protection justify the premium.
Buying Secondhand
Advantages: Significant savings - typically 40–60% less than new for equipment that's 2–5 years old. Commercial catering equipment is built to last, so well-maintained secondhand kit often has years of service life remaining. Depreciation is much slower on secondhand equipment, so if you need to sell it later you'll recover a higher percentage of your purchase price.
Disadvantages: No manufacturer warranty (though some dealers offer their own). Unknown maintenance history. May need servicing sooner. Finding exactly the right model and size can take time.
Best for: Stainless steel furniture, prep equipment, secondary cooking equipment, dishwashers, and anything where you can inspect the item before buying. Avoid secondhand for gas equipment unless it comes with a current CP42 certificate or you're prepared to pay for a Gas Safe inspection.
Tips for buying secondhand:
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Buy from reputable dealers who refurbish and warranty their stock, not random online marketplace listings
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Check for signs of neglect: rust on non-stainless components, worn door seals, missing shelves, electrical damage
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Ask why it's being sold - a closing restaurant selling quality equipment is a different prospect from a kitchen dumping problem equipment
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Factor in delivery, installation, and any servicing costs on top of the purchase price
Leasing
Advantages: Preserves your cash for other startup costs (rent deposits, staff recruitment, marketing, stock). Predictable monthly payments make budgeting easier. Lease payments are typically 100% tax-deductible against profits. Some lease agreements include maintenance and breakdown cover.
Disadvantages: More expensive in total than buying outright. You don't own the equipment until the lease ends (if it's a finance lease) or at all (if it's an operating lease). Early termination usually involves penalties.
Best for: Expensive single items like combi ovens, dishwashers, or ice machines where the upfront cost would strain your cash flow. Particularly useful for startups where preserving working capital is critical.
We offer flexible payment options including Pay in 3 and leasing across our range, which can help spread the cost of higher-value items without tying up all your capital at once.
The Smart Approach: Mix and Match
Most successful budget fit-outs combine all three strategies:
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Buy new for primary cooking equipment and refrigeration (warranty and reliability matter)
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Buy secondhand for stainless steel furniture, shelving, and secondary equipment (savings are significant, risk is low)
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Lease one or two expensive items like a combi oven or pass-through dishwasher (preserves cash flow)
This blended approach typically saves 25–40% compared to buying everything new, while still giving you warranty protection where it counts.
Equipment Priority List: What to Buy First
If your budget won't stretch to everything at once, here's a practical priority order based on what you need to open and what can wait.
Must-Have on Day One
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Refrigeration - Fridge, freezer. You can't store food safely without them, and you can't pass an EHO inspection without temperature-controlled storage.
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Primary cooking equipment - Your main oven, range, or fryer. Whatever your menu depends on.
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Extraction system - Legally required for any commercial cooking operation.
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Prep tables - At least two: one for raw food, one for ready-to-eat. Food safety regulations require separation.
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Sinks - Minimum two: one for washing equipment, one for handwashing. Some operations need a third for food washing.
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Basic smallwares - Pots, pans, knives, chopping boards, gastronorms. The minimum to execute your opening menu.
Add Within the First Three Months
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Dishwasher - Hand-washing is legal but slow, expensive in labour, and inconsistent. A commercial dishwasher pays for itself quickly in labour savings.
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Additional refrigeration - A prep-top fridge, under-counter fridge near the cooking line, or additional freezer capacity as you learn your actual storage needs.
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Secondary cooking equipment - A griddle, a grill, or a microwave depending on your menu. Items you can manage without initially but that improve speed and range.
Add When Cash Flow Allows
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Vacuum packer - Extends shelf life, reduces waste, enables batch prep. Valuable but not essential on day one.
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Display equipment - Heated displays, cold display units, cake showcases. Only needed if your service model involves customer-facing product display.
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Combi oven upgrade - If you started with a convection oven, upgrading to a combi opens up your menu capabilities significantly.
For the complete list of equipment categories, our commercial kitchen equipment list covers everything from cooking and refrigeration to dishwashing and compliance items.
Hidden Costs That Blow Budgets
Almost every operator we speak to underestimates at least one of these. Build them into your budget from the start.
Electrical Upgrades
Commercial kitchens draw serious power. If your premises has a domestic electrical supply, you'll likely need an upgrade. A three-phase power installation costs £3,000–£5,000+, and that's before you wire in individual circuits for ovens, fryers, and dishwashers.
Get an electrician to survey the site before you commit to buying equipment. Discovering you need a £5,000 electrical upgrade after you've already spent your budget on kit is a common and avoidable problem.
Gas Installation
If you're running gas equipment, every appliance needs connecting by a Gas Safe registered engineer, and you'll need a CP42 gas safety certificate for each one. Factor in £200–£500 per appliance for connection and certification.
Water and Drainage
Dishwashers, combi ovens, ice machines, and sinks all need water supply and waste drainage. If your premises doesn't have adequate plumbing for a commercial kitchen, adding it can cost £2,000–£5,000+.
Fire Suppression
An automatic fire suppression system (Ansul or similar) is required above any commercial cooking equipment that produces grease-laden vapour - fryers, grills, ranges. Installation typically costs £2,000–£5,000 depending on the number of appliances covered.
Compliance Costs
Food hygiene registration is free, but achieving compliance isn't. Budget for: food safety management system (HACCP documentation), staff training (Level 2 Food Safety certificates), allergen management systems, first aid equipment, and fire safety signage and equipment.
The Contingency
Budget 10% of your total fit-out cost as contingency. Something will cost more than expected. Something will need replacing sooner than planned. Having a buffer means you can handle surprises without derailing the project.
Common Budget Mistakes
Buying equipment for a menu you haven't tested. Don't buy a £3,000 pizza deck oven before you know whether pizza will actually sell in your location. Start with the minimum equipment for your core menu. Expand once you know what your customers actually order.
Ignoring running costs. A cheap fridge with a poor energy rating costs more over three years than an efficient one that costs twice as much upfront. The same applies to gas vs electric decisions, extraction sizing, and maintenance schedules. Total cost of ownership matters more than purchase price.
Skipping professional kitchen design. A kitchen designer costs £1,000–£3,000 but can save you multiples of that by optimising layout, preventing compliance issues, and ensuring your equipment selections actually fit the space. The workflow improvement alone is worth the fee - a well-designed kitchen serves more covers per hour than a kitchen where the layout forces staff to cross each other's paths constantly.
Spending everything on equipment and nothing on working capital. Your kitchen needs to be equipped, but it also needs stock, staff wages for the first few months, marketing, insurance, and a cash buffer for slow early trading. Operators who spend 100% of their budget on fit-out and open with no working capital are in trouble from day one.
Assuming you need everything immediately. You don't. Open with what you need. Add what you want once revenue allows. This applies to equipment, menu complexity, and staffing levels. Starting lean and scaling up is far safer than starting maxed out and needing to cut back.
Making Your Budget Work Harder
A few practical strategies that stretch limited funds:
Get multiple quotes for everything. Equipment, installation, extraction, electrical work. Three quotes minimum. Prices vary more than you'd expect for identical work.
Buy equipment packages where possible. Some suppliers offer discounts when you buy multiple items together. Fitting out an entire kitchen line from one supplier can save 10–15% compared to buying piece by piece. We offer free delivery on all orders, which also removes a significant cost - commercial equipment delivery charges add up quickly when you're buying 15–20 items.
Time your purchase. January and summer tend to be quieter periods for equipment suppliers. You may find better deals, faster delivery, and more flexibility on payment terms outside peak season.
Negotiate installation costs. If you're buying equipment and having it installed by the same company, there's usually room to negotiate on the installation fee. The same applies to gas engineers and electricians - bundling multiple appliance connections into one visit is cheaper per unit than calling them back repeatedly.
Keep your menu simple at launch. Every dish on your menu requires equipment, prep space, and ingredients to support it. A focused menu of 15–20 items needs less equipment, less storage, less prep time, and less waste than a sprawling menu of 40+ items. Start tight, expand later.
For more tips on avoiding expensive equipment mistakes, our guide on common catering equipment mistakes covers the most frequent issues we see - and how to avoid them.
A Realistic Budget Template
Here's a working template for a small-to-medium restaurant kitchen (40–60 covers) on a tight commercial kitchen budget. Adjust the numbers for your operation, but the proportions are a useful starting point.
Equipment (50% of budget)
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Primary cooking (oven, range, fryer): 20%
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Refrigeration (fridge, freezer, prep-top): 15%
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Dishwasher: 8%
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Secondary cooking and prep (griddle, microwave, food processor): 7%
Infrastructure (25% of budget)
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Extraction and ventilation: 10%
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Electrical installation and upgrades: 8%
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Gas installation and certification: 4%
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Plumbing and drainage: 3%
Furniture and Smallwares (10% of budget)
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Stainless steel tables, shelving, sinks: 7%
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Pots, pans, utensils, gastronorms, chopping boards: 3%
Compliance and Professional Fees (5% of budget)
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Fire suppression, safety equipment, signage: 3%
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Kitchen design, HACCP documentation, staff training: 2%
Contingency (10% of budget)
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Kept in reserve for unexpected costs
On a £50,000 total budget, that gives you roughly £25,000 for equipment, £12,500 for infrastructure, £5,000 for furniture and smallwares, £2,500 for compliance, and £5,000 contingency. Not generous, but workable - particularly if you use the mix-and-match approach of new, secondhand, and leased equipment described above.
Frequently Asked Questions
What's the absolute minimum budget for a small commercial kitchen?
For a very small operation - a food trailer, a cloud kitchen, or a micro-cafe doing a limited menu - you could equip the kitchen for £10,000–£15,000 using a combination of new budget equipment and secondhand items. But this leaves almost nothing for installation, compliance, or contingency. A more realistic minimum that includes installation and compliance is £20,000–£30,000.
Should I buy or lease a commercial dishwasher?
For most startups, leasing a dishwasher makes sense. A quality pass-through machine costs £2,000–£4,000 to buy outright, which is a significant chunk of a tight budget. Leasing spreads this over monthly payments (typically £80–£150 per month), preserves cash for other needs, and often includes maintenance. Once your business is established and cash flow is reliable, you can buy your next one outright.
How much should I spend on a kitchen designer?
Design and planning typically costs 10–15% of your total project budget, or £1,000–£3,000 for a small to medium kitchen. For a tight budget, some equipment suppliers and extraction installers include basic kitchen layout planning as part of their service. Always get the layout reviewed by someone with commercial kitchen experience - even a few hours of professional input can prevent expensive layout mistakes.
Can I set up a commercial kitchen in a residential property?
Technically yes, but the planning permission, building regulations, insurance, and compliance requirements make it complex and expensive. You'll need change-of-use planning permission, commercial-grade extraction and fire safety systems, separate waste arrangements, and insurance that covers commercial food production. In most cases, renting a purpose-built commercial kitchen space or a shared kitchen is more practical and cost-effective for startups.
Is it worth buying scratch-and-dent equipment?
Often, yes. Scratch-and-dent items are brand new equipment with cosmetic damage - a dented side panel, a scratched door, or damaged packaging. Functionally they're identical to full-price items and usually come with the full manufacturer warranty. Savings of 15–30% are common. The cosmetic damage is typically on the back or sides of the equipment, which nobody sees once it's installed against a wall.
All costs mentioned are approximate UK ranges based on typical market pricing. Actual costs will vary depending on your location, kitchen size, menu complexity, and the condition of your premises. Always obtain detailed quotes from qualified tradespeople before committing to a fit-out budget.
