How Much Does It Cost to Open a Restaurant in the UK?

Food and Drink Updated September 2026 12 min read

Opening a restaurant in the UK is one of the most capital-intensive businesses you can start. Before a single customer sits down, you will have spent money on premises, kitchen equipment, fit-out, licences, staff wages, food stock and a dozen other things that add up faster than most first-time operators expect.

This guide breaks down every major cost category using realistic 2026 UK figures, whether you are opening a 30-cover neighbourhood bistro or a 120-cover city centre restaurant. The numbers are drawn from industry data, equipment suppliers and operator experience across England, Scotland and Wales.

Quick Answer

Most UK restaurants cost between £80,000 and £350,000 to open, depending on size, location and how much work the premises need. A small 30-cover site in a regional town might get off the ground for £40,000 to £80,000 if the kitchen is already fitted. A 60 to 80 cover restaurant in a major city, built from scratch, typically costs £150,000 to £300,000. A large flagship venue in London can exceed £500,000 before the doors open. Working capital to cover the first three months of trading adds another £20,000 to £60,000 on top.

Premises Costs: Rent, Deposits and Rates

Premises are usually the single biggest cost and the one with the widest range. Commercial rents vary enormously by location, but as a rough rule you should budget for six weeks to three months of rent upfront as a deposit, plus the first quarter in advance. Most landlords also require a personal guarantee.

Business rates are calculated on rateable value and will depend on the size and location of your unit. From April 2026 the small business rates relief threshold remains at £12,000 rateable value, but most restaurant premises exceed this. Budget for business rates of £8,000 to £35,000 per year depending on region and size.

Location Type	Annual Rent (typical 50 to 80 cover unit)	Upfront Deposit
Small town or suburban high street	£18,000 to £40,000	£4,500 to £20,000
Regional city centre (Birmingham, Leeds, Manchester)	£35,000 to £90,000	£9,000 to £45,000
London Zone 2 to 3	£60,000 to £150,000	£15,000 to £75,000
London Zone 1 / prime pitch	£120,000 to £300,000	£30,000 to £150,000

Some operators take on an existing restaurant that already has a fit-out and pass on the lease through a premium, known as a leasehold premium or key money. In London these premiums can range from £20,000 to £200,000 on top of rent. Outside London, £5,000 to £50,000 is more typical. Always have a solicitor review the lease before signing.

Fit-Out and Refurbishment Costs

Unless you are taking on a fully fitted unit in turnkey condition, you will need to spend money making the space work as a restaurant. Fit-out costs depend on the condition of the shell, your design ambitions and the quality of finishes you want. Budget for structural works, flooring, lighting, furniture, front-of-house decor and back-of-house ventilation and drainage.

Ventilation is often underestimated. A commercial kitchen extraction system can cost £8,000 to £25,000 fitted, depending on complexity, flue routing and local authority requirements. This is not optional: you cannot trade without adequate extraction.

Fit-Out Scope	Estimated Cost
Cosmetic refresh of existing fitted restaurant	£5,000 to £20,000
Partial fit-out (new front of house, existing kitchen)	£20,000 to £60,000
Full fit-out of shell unit, 40 to 60 covers	£80,000 to £180,000
Full fit-out of shell unit, 80 to 120 covers	£150,000 to £350,000
High-spec or branded restaurant fit-out	£250,000 to £600,000

As a rule of thumb, fit-out contractors quote between £800 and £2,500 per square metre for restaurant conversions in the UK. London prices sit at the upper end of that range. Always get three quotes and include a contingency of at least 15 percent for overruns.

Kitchen Equipment Costs

Commercial kitchen equipment is expensive when new and requires careful specification for your menu. You can reduce costs significantly by buying refurbished or ex-demonstration equipment, which many operators do for their first site. Good quality refurbished equipment from a reputable dealer typically costs 40 to 60 percent less than new.

Commercial range or oven: A six-burner commercial range costs £1,500 to £6,000 new, or £600 to £2,500 refurbished. A combi oven (Rational or similar) costs £4,000 to £12,000 new.
Refrigeration: Upright commercial fridges cost £400 to £1,200 each. A prep fridge or pass-through unit adds another £600 to £2,500. A walk-in cold room costs £3,000 to £12,000 installed.
Dishwasher: A commercial glasswasher costs £800 to £2,500. A full rack conveyor dishwasher for a busy kitchen is £3,000 to £9,000.
Fryers, grills and prep equipment: Budget £200 to £800 per item. A full prep kitchen will need several.
Extraction canopy: £2,000 to £8,000 for the canopy itself, separate from ducting and fan costs.
Smallwares and utensils: Knives, pots, pans, gastronorm trays, chopping boards and kitchen tools typically cost £2,000 to £6,000 to kit out a new kitchen properly.

A realistic total kitchen equipment budget for a 50 to 80 cover restaurant is £25,000 to £70,000 for new equipment or £12,000 to £35,000 for refurbished. Many operators lease heavy equipment to preserve cash, typically at £300 to £900 per month for a full kitchen package.

Licences, Registrations and Legal Costs

You will need several licences and registrations before you can open. The costs themselves are relatively modest compared to fit-out, but the process takes time and you must allow for it in your planning timeline.

Premises licence (Licensing Act 2003): Required if you intend to sell alcohol or provide regulated entertainment. The application fee ranges from £100 to £1,905 depending on the rateable value of your premises. Most restaurants pay £315 to £635 for the initial application. Annual renewal fees apply.
Food business registration: Free, but mandatory. Register with your local authority at least 28 days before opening. The environmental health team will then inspect you.
Personal Licence (DPS): If you plan to sell alcohol, at least one person in the business needs a personal licence. The award-winning APLH qualification costs around £150 to £300 in course and exam fees. The licence application is £37.
Music licence (PPL PRS): If you play background music, you need a TheMusicLicence. Costs from £250 to £1,000 per year depending on venue size and usage.
Solicitor fees for lease review: £800 to £2,500 for a commercial lease review. Do not skip this.
Accountant and company formation: Setting up a limited company costs £50 via Companies House. An accountant will typically charge £500 to £1,500 to set up your bookkeeping and advise on VAT registration.

Staffing Costs Before and After Opening

Staffing is the largest ongoing cost and also a significant upfront cost. You will need to pay staff during training, kitchen trials and soft launch periods. Recruitment costs also add up, particularly if you use hospitality recruitment agencies.

From April 2026, the National Living Wage for workers aged 21 and over is £12.21 per hour. Many experienced chefs command considerably more. A head chef in London can cost £35,000 to £55,000 per year. A sous chef is typically £28,000 to £38,000. Front-of-house managers earn £25,000 to £40,000 depending on experience and location.

Pre-opening training and trials: Budget for one to two weeks of paid staff time before opening, typically £3,000 to £12,000 depending on team size.
Recruitment fees: Agency fees for chefs are typically 10 to 15 percent of first-year salary. For a head chef at £40,000, expect to pay £4,000 to £6,000 to an agency if you cannot recruit directly.
Employer National Insurance: From April 2025, the employer NI rate is 15 percent on earnings above £5,000 per year. This adds materially to your payroll cost. Budget for employer NI of around 13 to 15 percent on top of gross salaries.
Pension contributions: Auto-enrolment requires a minimum employer contribution of 3 percent of qualifying earnings.

Food and Beverage Stock for Opening

You will need to purchase initial food and beverage stock before your first service. The amount depends on your menu complexity and covers, but most restaurants budget for one to two weeks of projected food cost as an opening stock figure.

A food cost percentage of 28 to 35 percent of revenue is typical for a UK restaurant. If you expect to turn over £8,000 per week at steady state, your weekly food cost is roughly £2,400 to £2,800. Initial stock plus the first supplier payments before cash starts flowing regularly means budgeting £5,000 to £20,000 for opening stock depending on size and menu.

Wine and spirits for a fully licensed restaurant add another £3,000 to £10,000 upfront, as most suppliers will want payment on first delivery until you establish credit terms. Cash and carry memberships (Booker, Bestway, Costco) are free but useful for topping up at short notice.

Technology, POS and Marketing Costs

A modern restaurant cannot operate without a point-of-sale system, booking software and at least a basic online presence. These costs are sometimes treated as optional by first-time operators and then regretted.

POS system: Cloud-based systems such as Square, Lightspeed or Tevalis cost £0 to £150 per month in software fees. Hardware including terminals, card readers and receipt printers costs £500 to £2,500 upfront per terminal.
Reservation software: ResDiary costs from around £99 per month. OpenTable charges per-cover fees of around £1 to £1.50 per diner. Collins (formerly Collins) starts at roughly £150 per month.
Website: A professionally designed restaurant website costs £800 to £3,000. A basic DIY site on Squarespace or Wix costs £15 to £25 per month.
Launch marketing: Budget £1,000 to £5,000 for launch marketing including social media content, PR outreach, local advertising and a soft launch event.
Uniforms and menus: Staff uniforms cost £500 to £2,000 depending on numbers and specification. Printed menus cost £200 to £800 for an initial run.

Working Capital and Contingency

Working capital is the money you need to keep trading while the restaurant builds its customer base. Most new restaurants do not reach breakeven for three to six months. You need enough cash in reserve to cover rent, payroll, supplier invoices and utilities during that period without relying on revenue you have not yet earned.

A sensible working capital buffer for a new restaurant is three months of fixed costs. For a 60-cover restaurant with a full team, that might mean £30,000 to £80,000 sitting in the bank on day one. This is separate from your fit-out and equipment budget. Running out of working capital in month two is one of the most common reasons new restaurants fail.

Add a contingency of at least 10 to 15 percent of your total project budget for delays, overruns and unexpected costs. In practice, first-time restaurateurs almost always spend more than they plan. A £150,000 project should have £15,000 to £22,500 in contingency set aside before you start.

Your Startup Kit

The core equipment most people need to get started. These are live Amazon search links so the pricing stays current.

Commercial six-burner range — check current prices on Amazon
Combi steam oven — check current prices on Amazon
Upright commercial fridge — check current prices on Amazon
Commercial dishwasher — check current prices on Amazon
POS terminal and card reader — check current prices on Amazon
Chef knife set professional — check current prices on Amazon
Gastronorm containers set — check current prices on Amazon

As an Amazon Associate we earn from qualifying purchases. These are search links, not specific product endorsements.

Bottom Line

Opening a restaurant in the UK in 2026 costs between £40,000 and £500,000 or more depending on location, size and fit-out ambition. A realistic budget for a 50 to 70 cover regional restaurant built from scratch is £120,000 to £250,000 including fit-out, equipment, licences, opening stock and three months of working capital. London adds 30 to 100 percent to almost every line item. The operators who succeed are those who budget honestly, include contingency, secure enough working capital and do not open until the numbers stack up.

Frequently Asked Questions

How much does it cost to open a small restaurant in the UK?

A small 20 to 30 cover restaurant in a regional town, taking on an existing fitted unit, can open for £30,000 to £70,000. This assumes limited fit-out work, second-hand equipment and a modest team. In London the same exercise would cost £60,000 to £150,000 at minimum.

Do I need a licence to open a restaurant in the UK?

You must register as a food business with your local authority for free, at least 28 days before opening. If you want to sell alcohol, you need a premises licence (cost £100 to £1,905 depending on rateable value) and a designated premises supervisor with a personal licence. If you do not serve alcohol, a food business registration is sufficient.

How much profit does a restaurant make in the UK?

Net profit margins for UK restaurants typically sit between 3 and 9 percent of revenue when trading well. A restaurant turning over £600,000 per year might make £18,000 to £54,000 net profit. Many restaurants in their first year make no profit at all as they build trade. Labour and rent are the biggest margin pressures.

Can I open a restaurant with £50,000?

Yes, but with significant constraints. At £50,000 you are looking at a very small site, an existing fitted kitchen, minimal refurbishment and a tight team. It is achievable for a cafe-style or simple counter-service concept in a low-rent location. A full-service restaurant with a new kitchen in a city centre is not realistic at this budget.

How long does it take to open a restaurant in the UK?

From signing a lease to opening day, most restaurants take four to nine months. Fit-out alone typically takes eight to sixteen weeks. Licences can take up to three months to process. Rushing this timeline is a common and expensive mistake.

What is the biggest cost when opening a restaurant?

For most operators, the fit-out and kitchen equipment combined represent 50 to 65 percent of the total opening budget. Premises deposits and advance rent are usually the second largest upfront cost. Working capital is often underestimated and is what catches operators out in the early months of trading.

Do I need to register for VAT when opening a restaurant?

You must register for VAT once your taxable turnover exceeds £90,000 in a 12-month rolling period (the 2026 threshold). Many restaurants exceed this quickly. Food sold for consumption on the premises is subject to standard-rate VAT at 20 percent. Some cold takeaway food is zero-rated, but the rules are complex and you should take accountancy advice early.

How much should I budget for kitchen equipment for a new restaurant?

For a 50 to 80 cover restaurant with a full cooking kitchen, budget £25,000 to £70,000 for new equipment or £12,000 to £35,000 for quality refurbished equipment. A very simple menu with minimal cooking kit (sandwiches, salads, light grills) could be equipped for £8,000 to £18,000. Do not buy cheap domestic appliances as they will fail quickly under commercial use.