Kitchen installation during a tenant build-out is one of the largest line-item expenses you'll face—often running $50,000 to $200,000+ depending on your footprint and finish level. Getting the costs right upfront means the difference between a successful lease negotiation and a project that derails your opening timeline and budget. Here's what you need to know to plan, price, and execute kitchen build-outs strategically.
What Actually Drives Kitchen Build-Out Costs
Kitchen costs break down into five major buckets: equipment, MEP rough-in (mechanical, electrical, plumbing), cabinetry and counters, flooring, and finishing work. A small café kitchen (400–600 sq ft) with basic equipment might land at $40,000–$80,000. A full-service restaurant kitchen (1,500+ sq ft) with hood systems, walk-ins, and commercial-grade equipment easily hits $150,000–$300,000. The size of your space and complexity of your service model drive everything else.
Equipment alone typically represents 30–40% of total kitchen costs. A full cooking line (range, fryer, griddle, oven) runs $15,000–$40,000. Add a refrigeration suite, prep tables, and a hood system with proper ventilation ducting, and you're at $30,000–$75,000 before cabinetry or counters.
MEP Infrastructure: The Hidden Cost Multiplier
Don't underestimate rough-in work. If your space wasn't previously a kitchen, you're running new gas, water, drain, and electrical from scratch. This includes hood ducting, makeup air systems, grease traps, and code-compliant electrical circuits rated for heavy equipment loads.
MEP rough-in typically costs $10,000–$50,000 depending on distance from existing risers and local code complexity. If the landlord hasn't upgraded building systems, you may negotiate a tenant improvement (TI) allowance to offset these costs—critical to verify before signing your lease.
Cabinetry, Countertops, and Finishes
Commercial cabinetry and countertops are different animals from residential. You need NSF-certified stainless steel, sealed concrete, or approved composite surfaces. Expect $8,000–$25,000 for cabinetry and counters in a small kitchen, $25,000–$60,000 for larger operations.
Flooring must handle moisture, grease, and regular deep cleaning. Sealed concrete, epoxy, or commercial tile runs $3,000–$10,000 depending on area and finish. Walls get sealed finishes or tile—another $2,000–$8,000.
Timeline and Permitting Delays
Kitchen build-outs require health department approval, building permits, and often separate food service facility permits. This alone adds 6–12 weeks to your schedule. Add 2–4 weeks for equipment delivery (some items have 8–week lead times), 3–4 weeks for construction, and 2 weeks for inspections and approvals.
Plan 16–24 weeks from design to opening, not the 8 weeks you might initially hope for. Any custom cabinetry, delayed equipment shipments, or rework from failed inspections stretches that further.
How to Control Costs During Tenant Build-Out
Look for existing infrastructure. Leasing a space that was previously a restaurant or food service operation saves tens of thousands because rough-in, venting, and drains are already there.
Negotiate the TI allowance carefully. Most commercial leases include a tenant improvement allowance—often $25–$50 per sq ft. Use this to cover MEP and structural work, then budget separately for finish-out.
Standardize equipment. Choosing modular, ready-built equipment instead of custom solutions cuts 4–6 weeks off timeline and saves 15–20% on cost. A standard 6-burner range with flat-top is cheaper and faster than custom configurations.
Get multiple quotes from specialized kitchen contractors. General contractors often underestimate kitchen complexity. You need someone who knows health codes, equipment ratings, and ventilation requirements intimately.
Bundle major trades. Coordinating MEP, cabinetry install, and equipment delivery in sequence prevents costly rework and gaps in the schedule.
If you're shopping for contractors to handle your kitchen build-out, platforms like Mercoly let you compare and connect with trusted tenant improvement specialists who have real kitchen experience in your area.
Frequently Asked Questions
Q: Can the landlord's TI allowance cover my entire kitchen build-out? Rarely in full—TI allowances typically cover shell, MEP rough-in, and basic finishes, but not specialized equipment or premium finishes. Plan to cover equipment and finishes with your own capital.
Q: What's the typical timeline from signed lease to operational kitchen? Plan 4–6 months minimum. This includes permit approval (6–8 weeks), construction and rough-in (4–6 weeks), equipment delivery and install (2–4 weeks), and final inspections (2 weeks).
Q: Should I buy used equipment to save money on kitchen build-outs? Used equipment can work for small items like prep tables, but avoid used cooking lines, walk-ins, or hood systems—health departments require commercial-grade certifications and warranty support that used gear often lacks.
Connect with experienced tenant improvement contractors in your area through Mercoly to get accurate kitchen build-out quotes and timelines for your specific project.