Opening a takeaway is one of the most popular small business routes in the UK, but the startup costs are frequently underestimated. Between securing premises, fitting out a commercial kitchen, buying equipment, obtaining licences and covering the first few months of trading expenses, the real bill adds up quickly.
This guide breaks down every major cost category with honest 2026 figures, so you can plan a realistic budget before you sign a lease or buy a single piece of kit.
Most takeaways in the UK cost between £15,000 and £100,000 to open, with the typical independent spending around £25,000 to £50,000. A small pizza or kebab shop at the budget end might open for £15,000 to £20,000 if the unit needs little work. A larger operation with a full commercial kitchen fit-out, signage, branding and three months of working capital can easily reach £80,000 to £100,000. Franchise takeaways sit higher still, often £100,000 to £250,000 including the franchise fee.
Premises Costs: Rent, Deposit and Business Rates
Your biggest ongoing cost starts before you trade a single portion of chips. Commercial rents for takeaway units vary enormously by location. A small unit of around 300 to 600 square feet in a market town or suburban high street typically costs £8,000 to £18,000 per year. In London or other major city centres, the same sized unit can run from £20,000 to £50,000 per year or more.
Most commercial landlords require a deposit of three to six months rent upfront, which means you could need £6,000 to £25,000 just to secure the keys. Legal fees for reviewing and signing a commercial lease add a further £1,000 to £2,500. Business rates depend on your rateable value, but a typical small takeaway unit pays £3,000 to £9,000 per year after any small business rates relief. If your rateable value is under £12,000 you may qualify for full relief, which is worth checking with your local council before you commit.
| Premises Cost | Typical Range |
|---|---|
| Annual rent (small unit, non-London) | £8,000 to £18,000 |
| Annual rent (London or city centre) | £20,000 to £50,000 |
| Deposit (3 to 6 months rent) | £4,000 to £25,000 |
| Solicitor fees for lease review | £1,000 to £2,500 |
| Annual business rates (typical small unit) | £3,000 to £9,000 |
Fit-Out and Refurbishment Costs
Unless you are taking over an existing, fully equipped takeaway, you will need to budget for fit-out work. This covers flooring, wall cladding, extraction systems, plumbing, electrical upgrades and potentially structural changes to accommodate a commercial kitchen.
A basic cosmetic refresh of an already fitted unit costs around £3,000 to £8,000. A full kitchen fit-out from a shell unit, including stainless steel surfaces, extraction canopy, grease trap, drainage and utility connections, costs £15,000 to £40,000 depending on the size of the kitchen and your local contractors. Extraction alone, including the canopy hood, ductwork and make-up air unit to meet building regulations, typically runs to £4,000 to £12,000.
- Basic cosmetic refresh: Painting, new flooring and a counter refurb, typically £3,000 to £8,000.
- Extraction canopy and ductwork: Required by law in any commercial cooking premises, budgeting £4,000 to £12,000.
- Plumbing and drainage: Commercial sinks, grease trap and drainage connections, typically £2,000 to £6,000.
- Electrical upgrades: A commercial kitchen draws significant power. Budget £1,500 to £5,000 for rewiring or additional circuits.
- Full shell fit-out: Everything above combined, from £15,000 to £40,000.
Commercial Kitchen Equipment Costs
Equipment is often the largest single line in a takeaway startup budget. What you need depends heavily on your cuisine, but most takeaways share a core set of items. Buying new commercial equipment from UK suppliers is the safest option for reliability and warranties. Buying quality used equipment from catering equipment auctions or dealers can cut this budget by 30 to 50 percent, though you should factor in the risk of breakdowns and the cost of any servicing.
| Equipment Item | New Price Range |
|---|---|
| Commercial fryer (twin basket) | £400 to £2,500 |
| Commercial griddle or flat top grill | £300 to £2,000 |
| Commercial oven or pizza oven | £800 to £8,000 |
| Refrigeration (under counter, upright or prep fridge) | £600 to £3,500 |
| Chest freezer or upright commercial freezer | £400 to £1,800 |
| Bain marie or hot holding unit | £300 to £1,500 |
| Commercial microwave | £200 to £700 |
| Stainless steel prep tables and shelving | £400 to £2,000 |
| Commercial dishwasher or glasswasher | £800 to £3,000 |
| POS system and card reader | £300 to £1,500 |
| Packaging, bags and containers (initial stock) | £200 to £600 |
A realistic total for new equipment for a small to medium takeaway sits between £6,000 and £25,000. A chip shop or fish and chip takeaway adds the cost of a range, which can be £8,000 to £25,000 on its own for a quality new model. A Chinese or Indian takeaway with wok burners, steamer units and large rice cookers might spend a similar amount.
Licences, Registrations and Compliance Costs
Operating a food business in the UK requires several registrations and in some cases paid licences. These are non-negotiable costs and skipping them can result in heavy fines or closure.
- Food business registration: Mandatory with your local authority. Free to register, but must be done at least 28 days before opening.
- Food hygiene training: At minimum, the person responsible for food safety needs a Level 2 Food Hygiene certificate. Cost is £10 to £30 online. A Level 3 Food Safety qualification for supervisors costs £80 to £200.
- Premises licence (for late night refreshment): If you trade between 11pm and 5am, you need a Late Night Refreshment licence from your local council. Application fees range from £100 to £350 depending on the authority.
- Gas safety and certification: If you use gas appliances, a Gas Safe registered engineer must commission them and issue certificates. Budget £150 to £400.
- Electrical installation certificate: Your fit-out electrician should provide this. If not, an independent inspection costs £150 to £300.
- Public liability insurance: Essential for any customer-facing business. Annual premiums for a small takeaway run from £300 to £800.
- Employers liability insurance: Required if you hire staff. Adds roughly £150 to £400 per year.
- Allergen compliance: Under Natasha's Law, written allergen information is required. Investing in allergen management training costs £20 to £100.
Signage, Branding and Marketing Costs
A professional shopfront makes a significant difference to footfall. A basic illuminated fascia sign costs £500 to £1,500 for a small unit. A larger LED illuminated built-up letter sign or a full printed wrap can cost £1,500 to £4,000 installed.
Logo design and branding from a freelance designer costs £200 to £800 for a straightforward brief. Printing menus, flyers and packaging with your branding typically adds £300 to £1,000 for an initial run. A simple website with an online menu costs £400 to £1,500 if built by a freelancer. Listing on delivery platforms such as Just Eat, Deliveroo or Uber Eats does not require an upfront fee, but commission rates of 25 to 35 percent per order are a significant ongoing cost to factor into your pricing.
Staffing and Working Capital
Many new takeaway owners underestimate the working capital needed to cover costs while the business builds its customer base. As a minimum, you should budget for three months of operating costs before you open.
For a small takeaway employing two full-time equivalent staff members alongside the owner, monthly wage costs including National Insurance contributions sit around £3,500 to £5,500 per month at 2026 National Living Wage rates. Food stock for the first month costs £2,000 to £6,000 depending on cuisine and volume. Utility bills for a commercial kitchen average £800 to £2,000 per month. Add rent, rates and insurance and your monthly overhead can easily reach £4,000 to £10,000 before you have sold a single item.
- Initial food stock purchase: £2,000 to £6,000 for opening week to month supply.
- Staff wages (monthly, two part-time staff): £2,000 to £4,000 including employer National Insurance.
- Gas and electricity (monthly): £800 to £2,000 for a commercial kitchen.
- Recommended working capital reserve: Three months of overheads, typically £12,000 to £30,000.
Total Startup Cost Summary and How to Fund It
Pulling all the above together, a realistic budget for opening an independent takeaway in the UK in 2026 looks like this. A minimal, low-cost setup in a ready-fitted unit in a lower-rent area might cost as little as £15,000 to £20,000 including equipment, working capital and compliance. A typical independent takeaway in a standard high street unit with moderate fit-out and three months of working capital costs £30,000 to £60,000. A larger or more complex operation, a full fish and chip shop with purpose-built range, or an Asian restaurant-takeaway hybrid, can reach £80,000 to £120,000.
Common funding routes include personal savings, a Start Up Loan from the British Business Bank (£500 to £25,000 at a fixed interest rate), a small business bank loan, or support from family. Some local councils and enterprise partnerships offer grants for new food businesses in certain areas. The Start Up Loan scheme also includes free mentoring, which is genuinely useful for first-time operators.
Your Startup Kit
The core equipment most people need to get started. These are live Amazon search links so the pricing stays current.
- Commercial twin basket fryer — check current prices on Amazon
- Commercial contact grill or griddle — check current prices on Amazon
- Under counter commercial refrigerator — check current prices on Amazon
- Bain marie hot holding unit — check current prices on Amazon
- Commercial microwave 1800W — check current prices on Amazon
- Touchscreen EPOS and card payment system — check current prices on Amazon
- Stainless steel prep table — check current prices on Amazon
As an Amazon Associate we earn from qualifying purchases. These are search links, not specific product endorsements.
Opening a takeaway in the UK in 2026 costs most independent operators between £25,000 and £60,000 once you account for premises, fit-out, equipment, licences, branding and working capital. Budget conservatively, keep at least three months of operating costs in reserve, and do not underestimate the extraction and compliance requirements that catch many first-timers out. A thorough business plan and a frank conversation with an accountant before you sign any lease will save you far more than it costs.