How Much Does It Cost to Build a Restaurant? A Realistic Guide for Owners

Build a Restaurant: A Realistic Guide for Owners. Opening a restaurant is a dream for many entrepreneurs, but before you can start serving customers, there’s one major hurdle: building the space. Whether you’re launching a fast-casual concept, fine dining experience, or franchise location, understanding the true cost to build a restaurant is key to your success.

At APX Construction Group, we bring bold restaurant concepts to life on time and on budget. In this guide, we break down everything you need to know, from square footage pricing and kitchen equipment to permits and code requirements.

The Short Answer: What’s the Average Cost to Build a Restaurant?

While restaurant construction costs can vary greatly based on size, design, and location, here are some industry averages to help set expectations:

• New Restaurant Construction: $250–$500 per square foot
• Renovation of Existing Space: $150–$300 per square foot
• Total Build-Out Costs (turnkey): $300,000 to $2 million+, depending on scope and scale

The type of restaurant plays a huge role in the budget. A food truck or takeout-only location will look vastly different from a full-service restaurant with custom millwork, a commercial-grade kitchen, and a high-end bar.

Key Factors That Influence Restaurant Construction Pricing

1. Square Footage

Like most commercial projects, your restaurant construction budget will scale with the size of the building.

• Fast-casual restaurants typically range from 1,500–3,000 sq ft
• Full-service restaurants often require 3,000–6,000+ sq ft
• High-volume or franchise concepts may push beyond 7,000 sq ft

Smaller restaurants in urban areas might opt for efficient layouts, while suburban locations may include large kitchens, storage areas, and expansive dining rooms.

Pro tip: Always consider usable square footage, not just the footprint. Storage rooms, mechanical spaces, and restrooms count toward the overall cost.

2. Kitchen Build-Out

The kitchen is the heartbeat of your restaurant, and often the most expensive to build. Here’s why:

• Commercial-grade kitchen equipment: ovens, fryers, grills, refrigerators
• Specialized ventilation and hood systems to comply with fire and health codes
• Flooring and wall finishes that meet sanitation requirements
• Plumbing, gas lines, and grease traps
• Fire suppression systems

Average commercial kitchen build-out cost:

• $100,000–$400,000+, depending on equipment and layout

At APX, we work closely with clients and MEP engineers to streamline back-of-house functionality while staying compliant with local health department regulations.

3. Mechanical, Electrical, and Plumbing (MEP)

MEP systems are essential in restaurant construction and can significantly affect your budget:

• Electrical: Sufficient power for HVAC, lighting, and appliances
• Plumbing: Sinks, restrooms, dishwashers, and bar areas
• HVAC: Proper airflow is critical for customer comfort and kitchen safety

MEP installations for a restaurant typically cost 20%–30% of your total budget, depending on system complexity.

4. Interior Finishes and Dining Room Design

The front-of-house space creates your brand experience. Interior costs are driven by:

• Flooring: Polished concrete, tile, wood, or epoxy
• Lighting: Ambient, task, and accent lighting
• Ceilings and acoustics: Especially important in open kitchens or high-volume spaces
• Custom millwork: Bars, booths, feature walls
• Furniture and fixtures: Dining tables, chairs, POS stations

Budget ranges vary widely, but $75–$150 per square foot is common for front-of-house spaces.

At APX, we offer design-build services to ensure your interiors align with both vision and budget.

5. Code Compliance and Permits

Restaurants are among the most highly regulated commercial spaces. Don’t forget to budget for:

• ADA compliance (restroom design, counter heights, ramp access)
• Fire code requirements
• Food safety and sanitation standards
• Local permitting and inspections

Expect to invest $15,000–$50,000+ for architectural drawings, engineering reports, permitting, and approvals.

6. Site Work and Exterior Construction

If you’re building from the ground up, site development costs include:

• Demolition (if replacing an existing structure)
• Grading and drainage
• Utility connections
• Parking lots, sidewalks, and landscaping

Site work can cost $100,000–$500,000+, depending on land conditions and local requirements.

Cost Comparison: Renovation vs. New Construction

Scope	New Build	Renovation
Average Cost/Sq Ft	$300–$500	$150–$300
Timeframe	6–12 months	3–9 months
Customization	Full control	Limited by existing layout
Permit Complexity	Higher	Moderate

Renovations can save money, especially if the site was previously a restaurant, but older buildings may require major upgrades to meet modern code standards.

Hidden Costs to Watch Out For

Even the most well-planned restaurant build can uncover surprises. Common hidden costs include:

• Kitchen exhaust and grease management upgrades
• Soil remediation or underground utility issues
• Rising material costs (especially steel, concrete, or HVAC equipment)
• Delays due to permitting or inspections
• Change orders during construction

Working with an experienced general contractor like APX means fewer surprises and a clear line of communication throughout the project.

How to Budget Wisely for Your Restaurant Build

Here’s a breakdown of how your total restaurant construction budget might be allocated:

• Kitchen Equipment and Build-Out – 30–35%
• Interior Finishes (Front of House) – 20–25%
• MEP Systems (Electrical, HVAC, Plumbing) – 20%
• Architectural, Engineering, and Permits – 10%
• Exterior/Site Work – 10–15%

Always include a 10–15% contingency to account for unexpected costs or last-minute changes.

Financing Your Restaurant Construction

Most owners rely on a combination of:

• Bank loans or SBA financing
• Investor contributions
• Tenant improvement allowances (for leased spaces)
• Owner capital

Having a detailed construction budget, design plans, and timeline for your restaurant build will streamline the financing process and boost investor confidence.

Why Partner with APX Construction Group?

At APX, we understand that restaurant construction is more than just putting up walls—it’s about building a business. From the first concept sketch to final inspection, we offer:

✅ Transparent pricing
✅ Code-compliant construction
✅ Seamless communication
✅ Decades of commercial expertise
✅ Local insight for Southern Minnesota and beyond

Our team guides you through every phase of construction—from budgeting and scheduling to material selection and inspections. Your success is our success.

Start with the Right Information

If you’re ready to build your restaurant but unsure where to begin, start by reviewing our Understanding the Cost page for more insights into commercial construction pricing and the decisions that drive your budget.

Then, schedule a consultation with our team to explore how APX can bring your restaurant vision to life, on time and on budget.

Let’s build a restaurant that’s made to last.
Contact APX Construction Group to get started today.