Cüneyt OnurThe real cost of restaurant interior architecture, interior design, technical infrastructure and business investment When calculating the cost of opening a restaurant, the most common question is:
"How much will I spend per square metre?"
Yet in a restaurant investment, calculating cost on floor area alone is usually misleading. Two restaurants of the same size can differ significantly in investment cost because of kitchen capacity, menu structure, service model, the condition of the existing building, technical infrastructure, target audience and design decisions.
In short:
Restaurant cost ≠ floor area × unit price.
The real investment budget is the combined result of area, business model, capacity, menu, the existing building, restaurant interior design, technical infrastructure and construction decisions.
In this article we look at the items that make up the cost of opening a restaurant, how restaurant interior architecture and technical infrastructure change the budget, and which costs need to be assessed together before investing.
The Key Factors That Determine the Cost of Opening a Restaurant
To understand a restaurant's investment budget, you first need to separate the variables that make up the cost.
The main factors are:
- The total area of the premises
- The existing physical condition of the premises
- The capacity of the business
- Kitchen capacity
- Menu and production method
- Service model
- Target guest profile
- Business concept
- Restaurant interior architecture
- Restaurant kitchen design
- Ventilation and hood system
- Electrical infrastructure
- Water and wastewater installations
- Air conditioning
- Fire safety and related systems
- Fixed furniture
- Lighting
- Floor, wall and ceiling finishes
- Tables, chairs and other equipment
- Kitchen equipment
- Signage and façade works
- Design, construction and consultancy services
- Pre-opening operating costs
- Working capital
The cost of opening a restaurant is therefore not just spending to make the space look good,
because the real cost comes from setting up all the systems the business needs in order to operate.
Why Can't Restaurant Cost Be Calculated by Floor Area Alone?
Let's imagine two different restaurants of 500 m² each.
The first might have:
- a smaller kitchen,
- a limited menu,
- low production capacity,
- a simple service system,
- existing, adequate technical infrastructure
— a relatively modest set-up.
The second, on the other hand, needs:
- a high-capacity kitchen,
- intensive production,
- powerful ventilation,
- a greater electrical load,
- large storage areas,
- special refrigeration systems,
- heavy service traffic
— a far more demanding set-up.
So even though the area is the same, the investment budget won't be.
That is why a more accurate approach is this:
Floor area does not determine a restaurant's cost. The business that will be set up within that floor area does.
How to Build an Area-Based Scenario for the Cost of Opening a Restaurant
Floor area still matters, but it should be assessed together with other parameters, not as the only variable.
The effect of scale on unit cost should not be overlooked either. Items every restaurant needs, such as the kitchen, ventilation, electrical infrastructure and washrooms, are carried by fewer square metres in a small space, so as the area shrinks, the cost per square metre usually rises. As the area grows, the total budget increases, but the unit cost usually falls.
The areas below help in understanding different investment scenarios:
| Area | Example business | Main factors that change the cost |
|---|---|---|
| 250 m² | Café / small restaurant | Kitchen capacity, infrastructure, dining room layout |
| 350 m² | Café-restaurant | Kitchen, service area, fixed furniture |
| 500 m² | Mid-sized restaurant | Kitchen capacity, ventilation, electrical load |
| 700 m² | Large restaurant | Technical infrastructure, capacity, service and storage |
| 850 m² | Large-scale restaurant | Kitchen, HVAC, fire, electrical and operations |
| 1.000 m² | Large / multi-functional business | Multiple service areas, technical systems and operational capacity |
But this table is not a price list.
The real investment budget must be calculated separately, according to the condition of the building, the city, construction standards, material choices, labour, technical requirements and business model. For examples at different scales, see our restaurant and café projects as well.
How Does Restaurant Interior Architecture Affect Cost?
A restaurant's interior architecture is not just a choice of colours, materials or furniture.
Good restaurant interior architecture treats
- the guest entrance,
- the welcome area,
- the table layout,
- the service routes,
- the link to the kitchen,
- staff movement,
- storage,
- the toilets,
- the bar,
- waiting areas,
- lighting,
- acoustics,
- the use of materials
as a single whole.
That is why how early a restaurant interior architect is involved in the project directly affects the investment cost.
Changing a badly planned space later doesn't just create architectural construction costs; it also means redoing electrics, water, ventilation, fixed furniture and kitchen systems.
So designing a restaurant project early is not just an aesthetic choice.
It is also a tool for controlling costs.
The Visible Cost Items of Restaurant Interior Design
In restaurant interior design in particular, there are many physical works where cost becomes visible.
These include:
- Floor finishes
- Wall finishes
- Ceiling systems
- Paint
- Decorative surfaces
- Fixed furniture
- Counters and bars
- Table and chair sets
- Light fittings
- Façade works
- Doors
- Glass partitions
- Acoustic treatments
- Decorative elements
— a relatively modest set-up.
But none of these should be assessed on its own.
A ceiling design, for example, is not just the price of the ceiling material,
because inside the ceiling, other systems such as
- ventilation ducts,
- electrical wiring,
- lighting,
- fire systems,
- air-conditioning pipework
also need to work.
In short, restaurant interior design and technical infrastructure cannot be considered separately.
How Does a Restaurant's Concept Change the Cost?
A restaurant's concept also directly affects many items in the investment budget.
Because a concept is not just a visual identity.
A concept should be built on the relationship between
target guest + product + area + business model + style of service + space + atmosphere
— all considered together.
For example, a quick-service business and a restaurant designed for long stays will differ in their:;
- table layout,
- kitchen organisation,
- service area,
- seating density,
- lighting,
- acoustics,
- storage needs
— none of these will be the same.
A cost calculation without a clear concept is therefore incomplete.
Restaurant Kitchen Design Is One of the Most Critical Parts of the Cost
A restaurant kitchen is not just an area where kitchen equipment is placed.
On the contrary, restaurant kitchen design plans the production system itself.
For example, how the flows of
goods receiving → storage → preparation → cooking → service → dishwashing → waste
relate to one another needs to be defined.
When the menu changes, the kitchen's needs change too.
That is why kitchen design first needs to define:
- Menu
- Production method
- Daily capacity
- Service intensity
- Number of staff
- Storage needs
- Equipment list
and only then should the space be organised accordingly.
Otherwise, even a large kitchen will work inefficiently.
Why Is the Cost of Restaurant Technical Infrastructure Critical?
The visible face of a restaurant is the dining room.
But much of the system that keeps the business running is invisible.
These include technical infrastructure such as:
- Ventilation
- Hood and exhaust
- Fresh air / make-up air systems (fresh air supplied to replace the air extracted by the exhaust)
- Electrics
- Water
- Wastewater
- Hot water
- Air conditioning
- Fire systems
- Natural gas or other energy systems
- Refrigeration systems
— and more.
The larger the kitchen, the greater the impact of technical infrastructure on the business.
Choosing a hood alone, for example, is not enough;
the hood, exhaust, fresh air and HVAC (heating, ventilation and air conditioning) systems need to work together.
ASHRAE's approach to commercial kitchen ventilation also treats kitchen ventilation as an interconnected HVAC system rather than as independent devices.
In our experience with restaurant projects, technical infrastructure accounts for roughly 10% to 20% of a restaurant's total investment. Within this range, we see 10% as reasonable, 15% as optimal and 20% as the upper limit. These ratios are an average reference drawn from our own project experience; special cases such as kitchens with heavy hot production or buildings whose infrastructure must be renewed from scratch fall outside this range.
That is why technical infrastructure is one of the parts of the cost of opening a restaurant that must be calculated early. We cover these systems, from ventilation to wastewater, in detail in our article on restaurant technical infrastructure if you'd like to read further.
A Restaurant's Cost Begins on the Day You Choose the Space
One of the most common mistakes in restaurant investment is investigating technical suitability after the premises have been leased.
The better approach is:
To inspect the premises technically before leasing them.
For example, in the existing building:
- Is the electrical capacity sufficient?
- Is there a suitable route for the ventilation duct?
- Where will the kitchen exhaust exit?
- Is the clean water capacity sufficient?
- Is the wastewater system suitable?
- Is there a suitable place for the air-conditioning outdoor units?
- Is the infrastructure needed for fire systems in place?
- Is natural gas available?
- Can the structure take the load of the kitchen equipment?
The answers to questions like these must be known.
Because making unsuitable premises suitable later creates significant costs no one anticipated.
In a restaurant investment, the first cost calculation should begin before the lease is signed.
When Should a Restaurant Interior Architect Join the Project?
A restaurant interior architect should not be seen as someone who only chooses materials and furniture once construction has begun.
In a good project process, the restaurant interior architect comes in at an earlier stage,
because these decisions affect one another:
Location selection → concept → capacity → planning → kitchen → technical infrastructure → details and materials → construction
When the position of a kitchen changes, for example,
- the ventilation duct,
- electrical wiring,
- the water installations,
- wastewater,
- the service flow,
- the storage area
all change too.
So design work done early reduces the changes that would otherwise arise later.
The Invisible Costs of a Restaurant Investment
When preparing a budget, it is natural to think first of construction and decoration, because those are the visible items. This is where we differ: we resolve the visible surfaces in the same project as the plan, kitchen, technical infrastructure and budget that support them.
Because a restaurant, from kitchen to service and from menu to staff flow, is a business of system gastronomy, and the space is the physical expression of that system. That is why we approach every project in five stages — analysis, concept, design, construction and outcome. This way the design doesn't stay on paper; it is realised correctly on site and serves the business's goals.
Beyond the items visible at a restaurant opening, there are other costs too, for example:
- Key money (takeover fee for the premises)
- Licences and permits: the renovation project, the fire department compliance report and the documents required for the business opening and operating licence (işyeri açma ve çalışma ruhsatı)
- Design services
- Technical consultancy
- Kitchen equipment
- Small equipment
- Cash register / POS systems
- Automation, ordering systems and equipment
- Signage
- Pre-opening staff costs
- First stock purchases
- Marketing
- Deposit
- Initial rent costs
- Unexpected construction costs
- Working capital to be used after opening
A contingency should also be set aside in the budget for unexpected costs. Especially in periods when inflation and exchange-rate changes affect prices quickly, investors usually keep this at around 10–15% of the total budget. This is not a strict rule, but a common and healthy practice.
That is why the cost of opening a restaurant should be kept separate from the capital needed to keep it running.
The Investment Budget and Working Capital Are Not the Same Thing
Completing a restaurant physically doesn't mean the investment is complete,
because when a business opens, there is often no regular cash flow yet.
So alongside the investment budget, the business's needs in its first period also need to be considered.
Put simply, it can be thought of as:
Total financing need = set-up investment + opening costs + working capital
— roughly speaking.
Working capital is often calculated as several months' worth of fixed costs such as rent, staff, energy and supplies.
The aim here is not just to set aside more money,
but to see in advance what the business will need financially after opening.
After opening, how turnover is shared between rent, produce, labour and energy becomes decisive. We cover this distribution and the effect of inflation separately in our restaurant operating costs article.
How Can Restaurant Cost Be Calculated More Accurately?
For a sounder cost study, the process needs to be broken into stages.
1. Analyse the premises
First, determine the technical and physical condition of the existing building.
2. Define the business model
How many people will you serve?
How will you serve them?
How much will the kitchen produce?
3. Define the menu and production system
Because kitchen equipment and infrastructure needs are shaped by them.
4. Plan the restaurant interior architecture
Consider guest, staff and service flows together in particular.
5. Resolve the technical infrastructure
Then define the electrical, water, wastewater, ventilation, HVAC, fire and other systems.
6. Calculate the architectural and interior works
Floors, walls, ceilings, fixed furniture, lighting and other works are finalised at this stage.
7. Add the kitchen and business equipment
Assess kitchen equipment, refrigeration, storage and service equipment separately.
8. Calculate opening costs and working capital
Finally, see the business's financing needs for its first period alongside the physical investment.
This approach is therefore more valuable than simply producing a restaurant cost figure,
because it shows where the investment is made and which decisions change the budget.
How Does a Good Restaurant Project Allocate the Budget?
In a restaurant investment, a high budget alone doesn't mean a successful outcome.
What matters is using the budget in line with the business's goals.
In some projects, material quality is what defines the guest experience.
In others, kitchen capacity is more critical.
And in others, ventilation, electrical infrastructure, acoustics or service organisation directly affect the success of the investment.
That is why restaurant interior architecture should be approached not just as aesthetic work but as a project process that brings together the business's physical, technical and operational requirements.
The Cost of Opening a Restaurant Is Not Just a Design Decision, but a System Decision
In short, it is not possible to calculate the real cost of a restaurant on floor area alone.
The cost of opening a restaurant is the whole formed by the premises themselves, the business model, capacity, menu, restaurant interior architecture, kitchen, technical infrastructure, materials and construction decisions together.
So before investing, instead of only asking
"How much does it cost per square metre?"
you need to ask:
"Which systems do we need for the business we will set up in this space to work, and what is the investment cost of all of them?"
That is the real question.
A restaurant's cost begins long before decoration, on the day you choose the space.
When you approach well-planned restaurant interior architecture, the right restaurant kitchen design and the right technical infrastructure together, the investment budget becomes more predictable.
In the end, the aim is not just to build a restaurant that looks good.
The aim is to set up the space and the system correctly, so the investment becomes the business it was meant to be.
Let's Assess the Real Cost of Your Restaurant Project Together
The cost of opening a restaurant is not just a budget table.
The characteristics of the premises, the business model, capacity, kitchen, restaurant interior architecture and technical infrastructure all affect one another, which is why it matters to assess them together before making an investment decision.
At CO Mimarlık, for more than 30 years we have been designing architecture, interior architecture and restaurant projects, completing more than 400 projects to date. In our restaurant projects we treat location selection, restaurant interior architecture, restaurant kitchen design, technical infrastructure and construction not as separate matters but as parts of the same project.
In other words, our aim is not just to design a restaurant that looks good, but to set up the right space, the right system and the right project together, so the investment becomes the business it was meant to be.
If you'd like a realistic cost and project assessment for your investment, we can take your project from the investment decision through to construction together.
Let's discuss your restaurant project →
Frequently Asked Questions About the Cost of Opening a Restaurant
Budget and Calculation: The Cost of Opening a Restaurant
It is not possible to calculate this cost accurately by looking at floor area alone. You need to assess the existing condition of the premises, business capacity, menu, kitchen system, restaurant interior architecture, technical infrastructure and equipment together, and also take into account opening costs and post-opening working capital. In short, a sound calculation means seeing all these items together before the premises are leased.
It gives a rough idea but is misleading on its own, because the budgets of two restaurants of the same size vary significantly with kitchen capacity, menu, service model, ventilation and electrical needs. Scale affects unit cost too: as the area shrinks, the cost per square metre can rise; as it grows, the total budget increases but the unit cost usually falls. It is not the floor area but the business set up within it that determines a restaurant's cost.
Interior architecture includes decoration and furniture, but is not limited to them. Planning, guest and service flow, kitchen connections, fixed furniture, lighting and material choices directly affect the investment budget, and designing early reduces later changes and the extra costs they bring. That is why good design is also a tool for controlling costs.
In our experience with restaurant projects, technical infrastructure accounts for roughly 10% to 20% of the total investment. We see 10% as reasonable, 15% as optimal and 20% as the upper limit; in kitchens with heavy hot production or buildings whose infrastructure must be renewed from scratch, the ratio falls outside this range. For details, see our article on restaurant technical infrastructure as well.
Kitchen, Overlooked Costs and Capital
The kitchen is not just an area where equipment is placed. The menu, production capacity, service intensity, storage and staff movement define kitchen design, and the kitchen is also where the need for ventilation, electricity, water and wastewater is greatest. That is why kitchen design is one of the key decisions affecting both the investment budget and the way the business works.
When preparing a budget, investors naturally think of construction and decoration first. But key money (a takeover fee), the renovation project, the fire department compliance report, licensing, POS and ordering systems, pre-opening staff costs and first stock purchases must also be taken into account. Setting aside a contingency of around 10–15% of the total budget for unexpected costs is also a healthy practice.
Yes. Completing a restaurant physically doesn't mean the need for investment is over; when a business opens, there is often no regular cash flow yet. Working capital is usually calculated as several months' worth of fixed costs such as rent, staff, energy and supplies, and should be considered separately from the set-up investment.
Technical and Professional References
ASHRAE — American Society of Heating, Refrigerating and Air-Conditioning Engineers:
A professional body producing international technical standards and resources on heating, refrigeration, ventilation, energy and building systems; one of the key technical references on commercial kitchen ventilation, exhaust, fresh air and HVAC.
RICS — Royal Institution of Chartered Surveyors:
An organisation developing international professional standards in cost management, construction economics, real estate and project appraisal; a reference for defining scope early in cost planning and for assessing life-cycle costs.
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- Restaurant Operating Costs: Where Does the Turnover Go?
- Life Inside the Shell: Emotion and Belonging in Interior Architecture
- From Shelter to Home: Architectural Design Begins with a Question About Life
- Restaurant Technical Infrastructure: Ventilation, Electrical, Water and Kitchen Systems
- How to Choose a Restaurant Location: Analysing Location, Floor Area and Business Fit
- Designing a Restaurant: Designing an Experience, Not Just a Space
- Restaurant and Café Lighting: Designing Atmosphere with Light