{"id":6971,"date":"2026-02-18T16:18:21","date_gmt":"2026-02-18T05:48:21","guid":{"rendered":"https:\/\/www.orderoo.com.au\/blog\/?p=6971"},"modified":"2026-03-14T14:31:52","modified_gmt":"2026-03-14T04:01:52","slug":"cost-to-run-a-restaurant-australia","status":"publish","type":"post","link":"https:\/\/www.orderoo.com.au\/blog\/cost-to-run-a-restaurant-australia\/","title":{"rendered":"How Much It Really Costs to Run a Restaurant in Australia"},"content":{"rendered":"\n<p>Running a restaurant in Australia is often seen as a passion-driven venture \u2014 combining creativity, hospitality, and entrepreneurship. But behind every busy dining room and beautifully plated dish lies a complex financial structure that many first-time operators underestimate.<\/p>\n\n\n\n<p>The reality is simple: restaurants are expensive to open, expensive to operate, and often run on thin margins.<\/p>\n\n\n\n<p>If you\u2019re considering entering the hospitality industry \u2014 or simply want to understand the economics behind your favourite local caf\u00e9 \u2014 here\u2019s a detailed breakdown of what it really costs to run a restaurant in Australia.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h2 class=\"wp-block-heading\">1. The Initial Investment: Opening the Doors<\/h2>\n\n\n\n<p>The startup cost of a restaurant varies significantly depending on size, concept, and location.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/www.orderoo.com.au\/blog\/wp-content\/uploads\/2026\/02\/Costs-to-Run-a-Restaurant-1024x576.png\" alt=\"Group of customers enjoying brunch at a restaurant in Australia\" class=\"wp-image-6972\" srcset=\"https:\/\/www.orderoo.com.au\/blog\/wp-content\/uploads\/2026\/02\/Costs-to-Run-a-Restaurant-1024x576.png 1024w, https:\/\/www.orderoo.com.au\/blog\/wp-content\/uploads\/2026\/02\/Costs-to-Run-a-Restaurant-300x169.png 300w, https:\/\/www.orderoo.com.au\/blog\/wp-content\/uploads\/2026\/02\/Costs-to-Run-a-Restaurant-768x432.png 768w, https:\/\/www.orderoo.com.au\/blog\/wp-content\/uploads\/2026\/02\/Costs-to-Run-a-Restaurant-1536x864.png 1536w, https:\/\/www.orderoo.com.au\/blog\/wp-content\/uploads\/2026\/02\/Costs-to-Run-a-Restaurant-2048x1152.png 2048w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-element-caption\"><em>Behind every busy dining room is a complex financial structure most customers never see.<\/em><\/figcaption><\/figure>\n\n\n\n<p><strong>Typical startup cost ranges in Australia:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Small takeaway shop: $80,000 \u2013 $200,000<\/li>\n\n\n\n<li>Mid-sized caf\u00e9 or casual restaurant: $250,000 \u2013 $600,000<\/li>\n\n\n\n<li>Large or premium venue: $600,000 \u2013 $1 million+<\/li>\n<\/ul>\n\n\n\n<p>These costs generally include lease deposits, fit-outs, equipment, licensing, and initial working capital.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Lease and Bond<\/h3>\n\n\n\n<p>Commercial leases often require:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>3\u20136 months\u2019 bond<\/li>\n\n\n\n<li>Advance rent payment<\/li>\n\n\n\n<li>Legal and negotiation fees<\/li>\n<\/ul>\n\n\n\n<p>In prime metropolitan areas like Melbourne or Sydney, rents can exceed $1,500\u2013$5,000 per square metre annually. Even in regional locations, annual rent can range from $30,000 to over $100,000 depending on the site.<\/p>\n\n\n\n<p>Lease terms are one of the most critical financial decisions an operator will make, as rent is a fixed cost regardless of revenue performance.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h2 class=\"wp-block-heading\">2. Fit-Out Costs: The Biggest Upfront Expense<\/h2>\n\n\n\n<p>The fit-out is typically the largest single expense when opening a restaurant.<\/p>\n\n\n\n<p>This includes:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Commercial kitchen installation<\/li>\n\n\n\n<li>Ventilation and exhaust systems<\/li>\n\n\n\n<li>Plumbing and grease traps<\/li>\n\n\n\n<li>Electrical upgrades<\/li>\n\n\n\n<li>Flooring and compliance works<\/li>\n\n\n\n<li>Furniture and d\u00e9cor<\/li>\n\n\n\n<li>Signage<\/li>\n<\/ul>\n\n\n\n<p>In Australia, commercial fit-outs commonly cost between $2,000 and $4,000 per square metre. A 120 sqm venue could easily require $250,000\u2013$400,000 before opening day.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h2 class=\"wp-block-heading\">3. Equipment and Technology<\/h2>\n\n\n\n<p>Restaurants rely on commercial-grade equipment that complies with Australian health and safety standards.<\/p>\n\n\n\n<p>Common costs include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Commercial ovens: $8,000\u2013$20,000<\/li>\n\n\n\n<li>Cool rooms: $10,000\u2013$25,000<\/li>\n\n\n\n<li>Commercial dishwasher: $5,000\u2013$15,000<\/li>\n\n\n\n<li>Refrigeration units: $5,000\u2013$20,000<\/li>\n\n\n\n<li>POS system: $2,000\u2013$8,000<\/li>\n<\/ul>\n\n\n\n<p>Even when purchasing some second-hand equipment, total kitchen setup costs often exceed $100,000.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h2 class=\"wp-block-heading\">4. Licensing, Compliance, and Insurance<\/h2>\n\n\n\n<p>Operating legally requires strict compliance.<\/p>\n\n\n\n<p>Key requirements include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Food business registration with local council<\/li>\n\n\n\n<li>Food Safety Supervisor certification<\/li>\n\n\n\n<li>Liquor licence (if serving alcohol)<\/li>\n<\/ul>\n\n\n\n<p>Liquor licences vary by state but can cost anywhere from $3,000 to $20,000+, depending on the licence type and capacity.<\/p>\n\n\n\n<p>Insurance is mandatory and typically includes:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Public liability<\/li>\n\n\n\n<li>Product liability<\/li>\n\n\n\n<li>Workers compensation<\/li>\n\n\n\n<li>Property insurance<\/li>\n<\/ul>\n\n\n\n<p>Annual insurance costs often range between $5,000 and $15,000.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h2 class=\"wp-block-heading\">5. Staffing: The Largest Ongoing Expense<\/h2>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/www.orderoo.com.au\/blog\/wp-content\/uploads\/2026\/02\/Restaurant-Owner-Reviewing-Bills-or-Payroll-1024x576.png\" alt=\"Restaurant owner reviewing expenses and payroll costs in Australia\" class=\"wp-image-6975\" srcset=\"https:\/\/www.orderoo.com.au\/blog\/wp-content\/uploads\/2026\/02\/Restaurant-Owner-Reviewing-Bills-or-Payroll-1024x576.png 1024w, https:\/\/www.orderoo.com.au\/blog\/wp-content\/uploads\/2026\/02\/Restaurant-Owner-Reviewing-Bills-or-Payroll-300x169.png 300w, https:\/\/www.orderoo.com.au\/blog\/wp-content\/uploads\/2026\/02\/Restaurant-Owner-Reviewing-Bills-or-Payroll-768x432.png 768w, https:\/\/www.orderoo.com.au\/blog\/wp-content\/uploads\/2026\/02\/Restaurant-Owner-Reviewing-Bills-or-Payroll-1536x864.png 1536w, https:\/\/www.orderoo.com.au\/blog\/wp-content\/uploads\/2026\/02\/Restaurant-Owner-Reviewing-Bills-or-Payroll-2048x1152.png 2048w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-element-caption\"><em>Rising wages and fixed overheads are putting increasing pressure on restaurant profitability across Australia.<\/em><\/figcaption><\/figure>\n\n\n\n<p>Labour is usually the biggest recurring cost in Australian restaurants.<\/p>\n\n\n\n<p>Under Australia\u2019s Fair Work system, wages are regulated by awards and include penalty rates for weekends and public holidays. Casual staff also receive loading, further increasing payroll costs.<\/p>\n\n\n\n<p><strong>Typical wage ranges:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Casual kitchen staff: $25\u2013$35 per hour<\/li>\n\n\n\n<li>Casual waitstaff: $24\u2013$32 per hour<\/li>\n\n\n\n<li>Full-time qualified chef: $65,000\u2013$85,000 annually<\/li>\n\n\n\n<li>Public holiday rates: Often double time or more<\/li>\n<\/ul>\n\n\n\n<p>Restaurants generally aim to keep labour between 30% and 40% of revenue. However, rising national wages are adding increasing pressure.<\/p>\n\n\n\n<p>According to the <a href=\"https:\/\/www.abs.gov.au\/statistics\/labour\/earnings-and-working-conditions\/average-weekly-earnings-australia\" target=\"_blank\" rel=\"noreferrer noopener\">Australian Bureau of Statistics (ABS)<\/a>, average weekly earnings in Australia have continued to rise year-on-year, reinforcing structural upward pressure on wage costs across industries \u2014 including hospitality.<\/p>\n\n\n\n<p>As overall wages increase nationwide, restaurants must compete for staff in a tight labour market while maintaining compliance with award rates. Unlike other costs that can sometimes be negotiated, wages are largely regulated and non-negotiable.<\/p>\n\n\n\n<p>For example:<\/p>\n\n\n\n<p>If a restaurant generates $50,000 per week in revenue, labour costs may reach $15,000\u2013$20,000 per week.<\/p>\n\n\n\n<p>Managing rosters, improving efficiency, and optimising productivity are critical to protecting margins.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h2 class=\"wp-block-heading\">6. Food and Beverage Costs<\/h2>\n\n\n\n<p>Food cost \u2014 often referred to as Cost of Goods Sold (COGS) \u2014 typically ranges between 25% and 35% of revenue.<\/p>\n\n\n\n<p>If weekly revenue is $50,000:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Food costs may range between $12,500 and $17,500.<\/li>\n<\/ul>\n\n\n\n<p>Recent inflationary pressures have increased the cost of meat, dairy, fresh produce, and imported goods. Supply chain disruptions and seasonal variability also impact pricing.<\/p>\n\n\n\n<p>Menu engineering, portion control, supplier negotiation, and waste management are essential to maintain profitability.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h2 class=\"wp-block-heading\">7. Utilities and Operating Costs<\/h2>\n\n\n\n<p>Restaurants are energy-intensive businesses.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Electricity and Gas<\/h3>\n\n\n\n<p>Commercial kitchens consume significant electricity and gas. Monthly utility bills can range from $2,000 to $8,000 depending on venue size.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Water<\/h3>\n\n\n\n<p>High usage from dishwashing and food preparation increases water bills.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Waste Removal<\/h3>\n\n\n\n<p>Grease trap cleaning and food waste removal add recurring costs.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Cleaning Services<\/h3>\n\n\n\n<p>Professional cleaning may cost $1,000\u2013$3,000 per month.<\/p>\n\n\n\n<p>These operating costs are ongoing and often rise with inflation.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h2 class=\"wp-block-heading\">8. Delivery Platforms and Commission Fees<\/h2>\n\n\n\n<p>In today\u2019s market, many restaurants rely on food delivery platforms to expand reach. However, these platforms typically charge commissions between 20% and 35% per order.<\/p>\n\n\n\n<p>For example:<\/p>\n\n\n\n<p>If a $30 meal is sold with a 30% commission, the restaurant receives $21 before deducting food and labour costs.<\/p>\n\n\n\n<p>While delivery increases exposure, it significantly reduces margins. Many operators increase menu prices on delivery apps to offset commissions, but this can impact competitiveness.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h2 class=\"wp-block-heading\">9. Marketing and Customer Acquisition<\/h2>\n\n\n\n<p>Restaurants must consistently invest in marketing to maintain customer flow.<\/p>\n\n\n\n<p>Common expenses include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Google Ads<\/li>\n\n\n\n<li>Social media advertising<\/li>\n\n\n\n<li>Website development<\/li>\n\n\n\n<li>Branding and photography<\/li>\n\n\n\n<li>Promotions<\/li>\n<\/ul>\n\n\n\n<p>A modest marketing budget may range from $1,000 to $5,000 per month.<\/p>\n\n\n\n<p>Without marketing, even well-located venues can experience declining foot traffic.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h2 class=\"wp-block-heading\">10. Profit Margins: The Reality<\/h2>\n\n\n\n<p>Despite high turnover figures, restaurant net profit margins are generally slim.<\/p>\n\n\n\n<p>Typical net margins:<\/p>\n\n\n\n<p>3%\u201310% (if well managed)<\/p>\n\n\n\n<p>For example:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Annual revenue: $2 million<\/li>\n\n\n\n<li>Net margin: 5%<\/li>\n\n\n\n<li>Net profit: $100,000<\/li>\n<\/ul>\n\n\n\n<p>That figure is before tax and assumes disciplined cost control.<\/p>\n\n\n\n<p>Given rising wage pressures, increasing rent, and delivery commissions, profitability requires strong operational management and financial oversight.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h1 class=\"wp-block-heading\">Final Thoughts<\/h1>\n\n\n\n<p>Running a restaurant in Australia is rewarding but financially demanding.<\/p>\n\n\n\n<p>Between startup investment, rent, compliance, staffing, food costs, utilities, marketing, and delivery commissions, expenses accumulate quickly. Labour costs, in particular, continue to rise in line with national wage growth trends.<\/p>\n\n\n\n<p>Understanding these structural pressures also helps explain two common industry questions: why so many Australian caf\u00e9s and restaurants fail \u2014 even when they appear busy \u2014 and why food prices across the country continue to rise. If you\u2019d like to explore those topics further, read our related articles:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong><a href=\"https:\/\/www.orderoo.com.au\/blog\/why-australian-cafes-restaurants-fail\/\" target=\"_blank\" rel=\"noreferrer noopener\">Why So Many Australian Cafes and Restaurants Fail (Even When They\u2019re Busy)<\/a><\/strong><\/li>\n\n\n\n<li><strong><a href=\"https:\/\/www.orderoo.com.au\/blog\/why-food-is-so-expensive-in-australia\/\" target=\"_blank\" rel=\"noreferrer noopener\">Why Food Is So Expensive in Australia (And Where the Money Actually Goes)<\/a><\/strong><\/li>\n<\/ul>\n\n\n\n<p>Together, these insights provide a clearer picture of the financial realities behind Australia\u2019s hospitality industry.<\/p>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Running a restaurant in Australia is often seen as a passion-driven venture \u2014 combining creativity, hospitality, and entrepreneurship. But behind every busy dining room and beautifully plated dish lies a complex financial structure that many first-time operators underestimate. The reality is simple: restaurants are expensive to open, expensive to operate, and often run on thin [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":6973,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_themeisle_gutenberg_block_has_review":false,"footnotes":""},"categories":[491],"tags":[212],"class_list":["post-6971","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-food-business","tag-featured"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v24.0 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>How Much Does It Cost to Run a Restaurant in Australia? (2026)<\/title>\n<meta name=\"description\" content=\"Learn the real cost of running a restaurant in Australia \u2014 including startup, wages, rent and profit margins in 2026.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.orderoo.com.au\/blog\/cost-to-run-a-restaurant-australia\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"How Much Does It Cost to Run a Restaurant in Australia? 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