Restaurant fit-out finance: from bare shell to opening night

A restaurant fit-out is where the dream meets the invoice. The concept, the mood board and the menu all have to become a real room with working drains, a kitchen that passes inspection, extraction that doesn’t smoke out the neighbours and a dining room that makes people want to come back. It’s usually the biggest single spend in a restaurant’s life, and it’s paid for before a single plate goes out.

What does a restaurant fit-out include?

It helps to think in layers, because each layer is usually quoted and paid for separately.

Layer	Examples	Often quoted by
Design and approvals	Architect or designer, drawings, council and building approvals	Designer, certifier
Base build and services	Demolition, plumbing, drainage, grease trap, power upgrade, gas, extraction, fire services	Builder and specialist trades
Kitchen	Cooking line, refrigeration, cool room, dishwashing, benches	Kitchen equipment supplier
Front of house	Bar and counter joinery, flooring, lighting, acoustic treatment, bathrooms	Builder or shopfitter
Furniture and finishes	Tables, chairs, banquettes, crockery, signage	Various suppliers
Lead-up	Rent during the build, bond, wages for training, opening stock	You

Our fit-out cost estimator walks through each layer and adds contingency, GST timing and a trading buffer, so you end up with a total cost to open rather than just a builder’s number.

Why fit-out budgets blow out

Most restaurant fit-out overruns come from the same few places:

• Services. An exhaust duct that can’t take the planned route, a switchboard that won’t handle the new load, a gas supply that needs upgrading, or a grease trap the council insists on.
• What’s behind the walls. Older buildings hide old drains, asbestos, uneven floors and past tenants’ shortcuts.
• Scope creep. Small changes during the build that add up.
• Exclusions. Items everyone assumed were in the quote that weren’t.
• Delays. Every extra week is another week of rent without takings.

A contingency allowance isn’t pessimism; it’s normal practice. The riskier the building, the bigger it should be.

How fit-outs are usually funded

Property-secured loans from $20,000 to $5,000,000, using residential or commercial property through a first mortgage, second mortgage or caveat, are the most common way to fund a full restaurant fit-out, particularly for a new venue without trading history.

Unsecured and cash-flow options, typically $5,000 to $500,000 and sized on turnover and bank statements, can suit established restaurants doing a partial refit or adding a terrace or private dining room.

Many owners combine funding sources: their own contribution, a secured loan for the build and a smaller facility for working capital in the first months. You can talk through the best mix for your fit-out with no credit check at the first step.

Progress payments and timing

Builders are paid in stages as work is completed, often with a deposit at the start. Equipment suppliers may want deposits when you order and the balance on delivery. That means your cash needs rise and fall through the build.

1. Before work starts: design fees, approvals, the lease bond, and deposits on long-lead equipment.
2. During the build: progress claims, trades and rent (unless you’ve negotiated a rent-free period).
3. Before opening: furniture, smallwares, stock and training wages.
4. First weeks of trade: working capital while the room fills up.

Match your funding to this sequence. Borrowing everything on day one isn’t always necessary, and running out halfway is worse.

Negotiate before you sign the lease

Some of the best fit-out savings happen at the lease table:

• Rent-free fit-out period: time to build without paying rent.
• Landlord contribution: some landlords contribute to base services or works.
• Make-good terms: what you’ll have to remove or restore when you leave.
• Lease term and options: long enough to justify the investment.

Our retail lease checklist covers these in more detail, and our page on lease bonds and bank guarantees explains the security the landlord will usually ask for.

Tax: GST and the instant asset write-off

If you’re registered for GST, you can generally claim GST credits on fit-out costs through your BAS. You still pay the GST to your builder and suppliers first, so it belongs in your cash plan. For equipment, the ATO says the $20,000 instant asset write-off is permanent from 1 July 2026 for businesses with aggregated turnover under $10 million, applied per asset. Building works are treated differently from equipment for tax purposes, so get your accountant’s advice on how your fit-out will be depreciated.

An illustrative example

Illustrative only. A chef-owner leases a former retail shell for a 60-seat restaurant. The builder’s quote covers base build and front-of-house joinery, but excludes extraction, the grease trap, kitchen equipment and furniture. Once every layer is priced, plus a contingency suited to an older building, a bond, rent during a ten-week build and training wages, the total cost to open is substantially more than the builder’s quote alone. The owners contribute savings and fund the balance with a second mortgage over their home.

Ready to fund your fit-out?

A well-funded fit-out is calmer, quicker and less likely to cut corners you’ll regret. Start with a short enquiry; it takes about 60 seconds and there’s no credit check when you first enquire. We don’t send your details out to a room full of lenders. A real person who understands venue builds reads your enquiry and calls you with options that fit your timeline. Please be accurate about your total cost, your contribution and any property you own so we can match you properly first time.

Check what your fit-out could qualify for →