Ten surprising pre-opening expenses for your new cafe or restaurant

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From crafting the perfect menu to creating an inviting ambiance, opening a café or restaurant is an exciting yet demanding journey. As you plan your launch, you’ll need to create a detailed budget to plan for the expenses involved, many of which must be dealt with long before you serve your first customer.

These early costs can easily catch new business owners off guard, making cash flow a challenge as you head towards your first weeks of operation. To help you out, we’ve put together this handy list of ten pre-opening expenses that can sneak up on you, and we’ve included details to help you budget for them.

1. Permits and licenses

Obtaining the necessary permits and licenses can be both time-consuming and costly. Delays or additional approvals can hit hard, so budget your time and funds accordingly. It can be worth seeking professional advice to ensure compliance with local regulations. Here are some of the types of permits, registrations, and certifications to consider:

Food business registration with local and state governments.

Food safety requirements, including a Food Safety Supervisor certification and food handling certificates.

Liquor and BYO licenses including Responsible Service of Alcohol (RSA) certificates for any staff serving alcohol.

Trade/commercial waste management approvals.

Outdoor dining and footpath permit if you’re considering alfresco table service.

Fire, health and safety compliance.

Employee insurance and compliance, including WorkCover and superannuation.

2. Consulting fees

Experts can help bring your vision to life, but their fees can add up quickly. Whether hiring a chef consultant to develop your menu, working with an interior designer, or seeking branding advice from a marketing consultant, professional services are an important and often underestimated expense. Here are some of the specialists you might want to hire. Don’t forget to include their fees in your budget!

Hospitality and business consultants

Restaurant consultant – provides expert advice on menu design, kitchen layout, operational efficiency, and overall restaurant strategy.

Business advisor – helps with business planning, budgeting, and financial forecasting.

Legal consultant – assists with business registration, contracts, lease agreements, employment laws, and compliance.

Financial and accounting services

Accountant and bookkeeper – manages financial records, tax compliance, payroll, and cash flow.

Finance broker – helps secure business loans, and other funding.

Food and beverage experts

Chef consultant – assists with menu development, recipe standardisation, kitchen workflow, and food sourcing.

Sommelier or beverage consultant – advises on wine lists, cocktail menus, and beverage pairings.

Nutritionist or dietitian – ensures the menu meets dietary and nutritional standards if required.

Design and branding specialists

Interior designer – creates a visually appealing and functional dining space.

Graphic designer – develops logos, branding, and marketing materials.

Web designer – builds a professional website for online bookings, menus, and marketing.

Marketing and public relations experts

Marketing consultant – develops branding, social media strategy, and advertising campaigns.

Public relations (PR) specialist – Helps generate media coverage and launch promotions.

SEO and digital marketing expert – optimises online presence, Google rankings, and paid advertising.

Licensing and compliance professionals

Food safety consultant – ensures compliance with health regulations, food safety training, and HACCP guidelines.

Liquor licensing consultant – assists with obtaining and managing liquor licenses.

Workplace health and safety (WHS) advisor – ensures compliance with workplace safety laws and staff training.

Construction and fit-out experts

Architect – designs the structural layout and submits plans for council approval.

Commercial kitchen designer – plans an efficient and compliant kitchen layout.

Project manager – oversees construction, renovations, and fit-out work.

Technology and IT specialists

POS system consultant – helps select and set up point-of-sale (POS) software and hardware.

IT and security consultant – selects and installs internet, security cameras, and cybersecurity measures.

3. Professional cleaning

Your newly renovated space may look pristine, but professional cleaning is essential to meet hygiene and safety standards for your grand opening (and beyond). From deep-cleaning kitchen equipment to sanitising dining areas, this important step ensures a spotless start to your business. Here are the main types of professional cleaning services you’ll need in your pre-launch budget:

Kitchen deep cleaning

Commercial kitchen equipment cleaning
All kitchen equipment, including ovens, grills, fryers, refrigerators, and dishwashers, must be degreased and sanitised to ensure proper hygiene and safe food preparation.

Exhaust hood and duct cleaning
Exhaust systems must be thoroughly cleaned to remove grease buildup, preventing fire hazards and ensuring proper ventilation within the kitchen.

Grease trap cleaning
Cleaning the grease trap is essential for compliance with local waste regulations, helping to avoid clogs and maintain hygiene standards.

Floor and wall degreasing
Floors and walls should be degreased to remove any grease or food residue, particularly in hard-to-reach areas, ensuring cleanliness throughout the kitchen.

Front-of-house and dining area cleaning

Carpet and upholstery cleaning
Deep cleaning of carpets, chairs, and booth seating is necessary to remove dust, stains, and odours, creating a comfortable and inviting atmosphere for guests.

Window and glass cleaning
Spotless windows and glass surfaces ensure a professional appearance and provide customers with an uninterrupted view, contributing to the overall dining experience.

Table, counter, and bar cleaning
All high-touch surfaces, including tables, counters, and bars, need to be disinfected regularly to ensure a hygienic environment for guests.

Toilet and staff area sanitation

Toilet and sink deep cleaning
Customer bathrooms must be deep cleaned to meet hygiene standards, ensuring cleanliness and preventing the spread of germs.

Tile and grout cleaning
Tiles and grout should be cleaned to remove dirt and bacteria buildup, which can affect the overall cleanliness of the customer toilets.

Breakroom and locker room cleaning
Staff areas, including breakrooms and locker rooms, should be sanitised to maintain a clean and safe environment for employees.

Outdoor and external cleaning

Pressure washing
Pressure washing sidewalks, entryways, parking areas, and patios helps maintain a clean, professional exterior and creates a welcoming atmosphere for customers.

Dumpster and waste area cleaning
Regular cleaning of dumpsters and waste areas helps reduce odours and prevent pest attraction, ensuring the restaurant’s exterior remains clean and hygienic.

Signage and awning cleaning
Cleaning signs and awnings ensures they remain visually appealing, contributing to a polished and professional look for the restaurant.

Pest control and sanitisation

Pest inspection and treatment
Before opening, a thorough pest inspection and treatment should be conducted to ensure the space is pest-free and compliant with local health regulations.

Food contact surface sanitisation
All food contact surfaces, including countertops, prep areas, and food storage zones, must be sanitised to prevent contamination and ensure safe food preparation.

4. Staff training

Your team needs time to learn the menu, master service procedures, and get comfortable in their new roles. Pre-opening training is crucial, but keep in mind that wages for these sessions can quickly add up.

The amount of pre-opening training time depends on factors like the complexity of your menu, service style, and the experience of your staff. Here’s a general guide to the types of training to consider and what should be included.

Orientation

Company values, policies, and procedures.

Health and safety training (fire safety, WHS compliance).

Food handling and hygiene regulations.

Menu training

Food and drink menu knowledge.

Allergens, dietary requirements, and pairings.

Tasting sessions.

Service and operational training

POS system and payment processing.

Table service, guest interactions, upselling techniques.

Bar and drink preparation (bartenders).

Handling complaints and conflict resolution.

Shadowing and mock service

Running practice shifts with real or test customers.

Kitchen workflow simulations (for BOH staff).

Soft opening or invite-only test night.

Plan for between four and seven days of structured training before opening, with additional ongoing training for improvements after launch.

5. Technology and software setup

A smooth tech setup is crucial for efficient operations. Point of sale (POS) systems, reservation software, and employee management tools are essential, but the installation and subscription costs can add up quickly. Here's a list of tech systems to include in your budget.

Point-of-sale (POS) system

A POS system includes software, terminals, receipt printers and payment processing. Examples include Square, Lightspeed, Revel or Toast.

Reservation and booking software

A reservation and booking system allows customers to book online, integrates with your POS, and manages table turnover. Examples include OpenTable, ResDiary, Now Book It.

Employee management and payroll software

You’ll need employee management and payroll software for scheduling shifts, running payroll and managing compliance. Examples of available software include Deputy, Tanda, and Xero Payroll.

Wi-Fi and internet setup

You’ll need fast and reliable internet for POS, reservations and customer Wi-Fi. Make sure you allow for hardware and set up costs, as well as ongoing service provider fees.

Website and ordering online

Having a website for your restaurant or café is fundamental to attracting customers. You’ll need to pay for your domain and hosting, and budget for the build and maintenance of your site. You could opt for a purpose-built website (if so, you’ll need to hire a web developer), or you can go for an off-the-shelf solution like Squarespace or Wix. If you want to offer online takeaway orders, you might also consider an ordering platform like me&u.

Security system

A security system protects your business from theft by monitoring front-of-house and back-of-house areas. You’ll need to budget for the upfront purchase and installation of the system, and then ongoing cloud storage and monitoring.

Kitchen display system (KDS) and digital menu boards

A kitchen display system reduces the need for paper tickets and improves efficiency. Examples include TouchBistro KDS and Lightspeed KDS. You’ll need to allow for upfront system installation and ongoing service fees in your budget.

6. Utilities and infrastructure upgrades

Electricity, gas, water and waste management can be more expensive than anticipated, especially if your space needs upgrades to accommodate commercial-grade equipment and comply with health and safety regulations. Here are a few infrastructure costs you should investigate.

Electrical system upgrades

Commercial kitchen equipment requires higher voltage and dedicated circuits to operate efficiently. In older buildings, wiring upgrades may be necessary to handle the increased power load of modern kitchen equipment. Additionally, extra power outlets might be needed to accommodate POS systems, lighting, and various kitchen appliances, ensuring smooth and uninterrupted operations.

Plumbing and water supply

Grease traps are mandatory in commercial kitchens to prevent blockages and ensure compliance with wastewater regulations. Additionally, you may need to upgrade water lines to support dishwashers, ice machines, and sinks. In some cases, installing backflow prevention devices is also necessary to protect the water supply and prevent contamination.

Gas line installation

Commercial stoves, ovens and grills need high-capacity gas lines, so if your venue hasn’t previously been used for food service, this is a potential expense to consider.

Ventilation and exhaust system

Range hoods and exhaust fans are essential for fire safety and air quality – you might have to upgrade to comply with the latest codes and regulations. You might also consider HVAC upgrades for better temperature control in dining areas.

Waste management and sewerage

Septic system upgrades or increased drainage capacity might be necessary for high water usage.

You might need to add dumpster enclosures and consider specialised waste disposal services.

Accessibility and compliance

Wheelchair-accessible restrooms and ramps are mandatory under Australian accessibility laws.

You’ll also need working, compliant fire safety systems including sprinklers, exit signs and interconnected photoelectric smoke alarms.

7. Marketing and pre-launch promotions

Of course, you want to make a splash with your pre-launch marketing to ensure a throng of eager customers when you open your doors. As a minimum, this will include investing in a brand identity including your name and logo, as well as a great website and social media presence.

Additional marketing activities could include reaching out to local media to generate a buzz about your arrival on the scene and reaching out to other local businesses to create joint offers or promotions. Whatever marketing approach you decide on, make sure your budget includes brand and marketing deliverables such as signage, website, and support with local promotional activity and social media campaigns.

8. Furniture and décor

The right ambiance keeps customers coming back. Comfortable seating, stylish tableware, good lighting, and even acoustic panels can enhance the dining experience. Investing in quality over cheap alternatives pays off in customer satisfaction and longer stays. Plus, the more ‘Instagrammable’ your space, the more “free marketing” you’ll get from customer posts. Here are some of the key furniture and décor elements to consider in the launch budget for your restaurant, bar or café.

Seating and dining furniture

Consider what kind of tables and chairs you’ll need to fit your concept and whether you want to include booths or banquettes. If you have a bar or counter service area, you’ll need bar stools and possibly high tables with seating too.

Bar and counter design

If you have a bar in your restaurant or café, you might consider custom woodwork, countertops and shelving. You’ll also need to factor in your bar equipment and glassware storage – both keeping in line with your style preference, and functional for an efficient workflow.

Lighting

Think about what kind of ambient lighting you want for your front of house areas, as well as task lighting that’s bright and functional for back of house. To add to your aesthetic, you might also include accent lighting such as neon or pendant lights.

Flooring and wall finishes

Your budget should include flooring and you’ll need to consider whether tiles, hardwood, polished concrete or even carpeting is right for you. Wall paint and finishes can include exposed brick, murals, or wallpaper. For customer comfort, acoustic panels might be necessary in larger spaces to reduce noise.

Tableware and dining essentials

This will include plates, bowls and serving dishes in high-quality, durable ceramics or stoneware; as well as cutlery and glassware including restaurant-grade knives, forks, spoons and a variety of glasses. Don’t forget table linens and napkins in your budget too.

Décor and branding elements

What kind of interior and exterior signage will you need? This could include neon signs, menu boards or branded artwork. You’ll want to include framed prints, plants and custom décor to match your concept. Another consideration is indoor and outdoor plants (don’t forget to factor in ongoing care and maintenance).

Customer toilet design and fixtures

Your budget should include fixtures for your customer bathrooms such as good lighting, modern sinks and mirrors, as well as hygiene stations like touchless soap dispensers, hand dryers and/or paper towel dispensers.

9. Equipment installation and repairs

Commercial kitchen equipment must be installed by a manufacturer-approved technician, otherwise the warranty may be void, leaving you without protection if your vital kitchen equipment is broken or damaged. Check the warranty when you purchase new commercial kitchen equipment and consider replacing it when the warranty expires.

One clever way to ensure your equipment is always in warranty is by leveraging the flexibility built into SilverChef’s Rent-Try-Buy. It gives you the option to return the equipment after 12 months or upgrade the equipment at any time.

Equipment such as refrigerators and ovens are also bulky and heavy, meaning that delivery can be expensive. Make sure your equipment dealer includes delivery and installation on your quote and be sure to factor these costs into your budget.

10. Insurance

Comprehensive business insurance is non-negotiable. Policies covering property damage, liability, equipment, and employee protection are essential but often overlooked in the excitement of opening. Here are the key policies to consider and factor into your budget before opening.

Public liability insurance

This is essential for any food business, as it covers claims for injury or property damage caused to customers, suppliers, or the general public. For example, if a customer slips and falls in your restaurant or suffers an allergic reaction due to incorrect food labelling, public liability insurance can help cover legal and compensation costs.

Product liability insurance

As part of public liability insurance, product liability specifically covers claims related to food or drink served at your establishment. If a customer gets food poisoning or has an allergic reaction due to contamination, this policy can help cover legal costs and damages.

Workers’ Compensation insurance

If you employ staff, workers’ compensation insurance is mandatory in Australia. It covers medical expenses, wages, and rehabilitation costs if an employee is injured or falls ill due to work-related activities. Each state and territory has its own workers’ compensation scheme, so you'll need to register with the relevant authority.

Business property and contents insurance

This protects your premises, kitchen equipment, furniture, and stock against fire, theft, vandalism, and natural disasters. If your kitchen equipment or premises are damaged, this policy can help cover repair or replacement costs.

Equipment breakdown insurance

If your refrigerators, ovens, or POS systems break down unexpectedly, this insurance helps cover repair or replacement costs, preventing disruptions to your business operations.

Business interruption insurance

If an unexpected event (such as fire, storm damage, or a major equipment failure) forces you to temporarily close or reduces your revenue, this insurance helps cover lost income and ongoing expenses, such as rent and wages.

Stock and food spoilage insurance

Covers the cost of food spoilage due to power outages, refrigeration breakdowns, or other unforeseen events. This is particularly important for restaurants, cafés, and catering businesses that store large quantities of perishable goods.

Cyber insurance

If your business uses online ordering, digital payment systems, or customer databases, cyber insurance helps protect against data breaches, hacking, and cyber fraud.

Feeling overwhelmed?

Launching your own restaurant, café or bar is no small feat, but don’t worry, help is at hand. You can free up funds by taking advantage of SilverChef’s flexible equipment finance options, designed specifically for hospitality businesses like yours. Instead of sinking your capital into expensive equipment, talk to your equipment dealer about financing through SilverChef, or contact us directly.

Rent-Try-Buy: keep your cash flowing with maximum flexibility

When you’re just starting out, every dollar counts. Rent-Try-Buy helps you manage cash flow by letting you rent commercial kitchen equipment with affordable weekly payments instead of paying upfront. This industry-leading finance solution gives you the flexibility to get the equipment you need to help your business thrive. After 12 months, you can choose to buy, upgrade, keep renting, or return the equipment, keeping your financial options open as your business grows.

Lease-to-Keep: space out the costs, own your equipment over time

Opening a restaurant comes with major expenses, but Lease-to-Keep helps you preserve cash by spreading equipment costs over time. With predictable low monthly payments and a fixed interest rate, you get the equipment you need without draining your capital. You’ll own the equipment outright at the end of the lease, making it a smart, cashflow-friendly way to invest in your business without the upfront financial strain.

SilverChef Certified Used Equipment

Why not bring down the overall cost of fitting out your kitchen by opting for warranty-backed refurbished equipment? SilverChef offers Australia’s largest selection of second-hand commercial kitchen equipment, helping you stretch your budget further. Commercial kitchen equipment has a long useful life, and SilverChef’s Certified Used Equipment range consists of pre-loved equipment that’s often only been used for 12 – 24 months. Every fully refurbished item comes with a three-month parts and labour warranty, giving you confidence in both quality and reliability. With access to top brands at reduced prices, you can equip your kitchen without overspending.

Get in touch

Get in touch with us today – call SilverChef on 1800 337 153 to find out more, or message us here