Factors that Impact Your Restaurant Renovation Cost

One of the most important things you can do to continually attract customers to your restaurant is keeping your establishment up-to-date. For this reason, restaurant renovation should be considered just another cost of doing business. Every restaurant owner needs to budget for this expense.

Determining exactly how much to budget, however, can be tricky. While it’s always possible to get a quote for a specific plan, it can be hard to determine a rough estimate of the cost of a commercial construction renovation. It can be even more difficult to know how various changes to a plan will affect the overall cost.

If you’re thinking about remodeling your restaurant, consider how the following factors will affect your overall budget. If you need more details or have specific questions, don’t hesitate to contact us.

Landlord-Tenant Contracts

In many cases, agreements can be reached between a landlord and a tenant business so that the landlord shares some part of the remodeling costs. Typically, this cost-share is limited to overall structural improvements, such as expanding the restaurant space or improving the ventilation system. In some cases, owners can save up to 10 percent of their overall restaurant renovation costs by working with their landlord.

Equipment Costs

Commercial and industrial appliances tend to cost quite a bit. Expect to spend between $30,000 and $100,000 for new equipment. Keep in mind that this cost can be lowered in some cases by renting appliances or by using what you already have. remember, not everything in the kitchen has to be replaced at the same time.

Commercial and industrial appliances tend to cost quite a bit. Expect to spend between $30,000 and $100,000 for new equipment.


Many restaurant owners tend to underestimate the cost of a walk-in cooler. This appliance alone can run between $10,000 and $30,000. Consider lowering costs by using an 8-foot by 8-foot refrigerator. These appliances typically only cost about $5,000.

Utility Availability

If gas, water and power are already available, it’s possible to see some significant cost savings. Otherwise, expect to pay to have everything hooked up. In some places, running a gas line into a restaurant can cost more than $10,000. Even if utilities are available, the cost to move a water hook-up or electrical outlet can be between $1,000 and $5,000. Keep your costs down by planning a renovation that uses the utility outlets you already have in place.


After materials have been purchased, labor can add another 30 to 60 percent to the overall cost of a project.

Your restaurant renovation can be tricky to price. Make sure to call a general contractor who has experience in this type of construction work in order to get a good price quote. If you’re not sure where to start, Modern Construction Corporation can help. We have experience remodeling restaurants and performing contract work for a variety of other industries. Give us a call today.

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