How Much Does a Restaurant Buildout Cost in the Bay Area? (2026 Guide)
A restaurant buildout in the Bay Area costs between $250 and $750+ per square foot in 2026, depending on concept type, space condition, and finish level. Fast-casual restaurants average $250-$400/sqft, full-service dining runs $350-$550/sqft, and fine dining concepts can reach $550-$850+/sqft. San Francisco and Peninsula locations add 15-25% over South Bay averages. Custom Home's design-first process delivers full 3D visualization and itemized budgets before construction begins, so your buildout opens on time and on budget.
How much does a restaurant buildout cost in the Bay Area?
Bay Area restaurant buildout costs range from $250 to $750+ per square foot in 2026. A 2,000 sqft fast-casual space costs $500K-$800K, a full-service restaurant runs $700K-$1.1M, and fine dining concepts can exceed $1.1M-$1.7M+. Costs vary by location, with San Francisco and Peninsula cities running 15-25% above South Bay.
Bay Area Restaurant Buildout Costs in 2026: What to Expect
Opening a restaurant in the Bay Area is one of the most rewarding and most expensive ventures you can take on. Before you sign a lease or finalize your business plan, you need a clear understanding of what your buildout will actually cost. This guide breaks down current pricing by restaurant type, explains every major cost category, and shows you how to build a realistic budget that keeps your opening on track.
The Bay Area restaurant market remains strong in 2026. New concepts continue to open across San Francisco, the Peninsula, and South Bay, driven by a diverse population with high dining expectations and disposable income. Construction costs reflect this demand: skilled commercial trades are competitive, material costs have stabilized after years of volatility, and permitting timelines vary significantly by city.
Cost Per Square Foot by Restaurant Type
Restaurant buildout costs depend heavily on the concept you are building. A quick-service counter with limited cooking equipment is a fundamentally different construction project than a fine dining establishment with a full exhibition kitchen and custom millwork.
| Restaurant Type | Bay Area Cost/sqft | 2,000 sqft Total | 3,000 sqft Total |
|---|---|---|---|
| Fast Casual / QSR | $250-$400 | $500K-$800K | $750K-$1.2M |
| Coffee Shop / Cafe | $200-$350 | $400K-$700K | $600K-$1.05M |
| Full-Service Casual | $350-$550 | $700K-$1.1M | $1.05M-$1.65M |
| Full-Service Upscale | $450-$650 | $900K-$1.3M | $1.35M-$1.95M |
| Fine Dining | $550-$850+ | $1.1M-$1.7M+ | $1.65M-$2.55M+ |
| Bar / Lounge | $300-$500 | $600K-$1.0M | $900K-$1.5M |
These figures include construction, kitchen equipment, FF&E (furniture, fixtures, and equipment), permits, and design fees. They do not include rent, pre-opening operating expenses, or initial inventory.
Why the Range Is So Wide
The difference between $250/sqft and $850/sqft comes down to three factors: kitchen complexity, finish level, and space condition. A fast-casual concept in a second-generation restaurant space with existing exhaust hoods and grease traps is a vastly different project than a fine dining restaurant built from a raw commercial shell. Understanding where your concept falls on this spectrum is the first step toward a realistic budget.
Cost by Bay Area Location
Construction costs are not uniform across the Bay Area. Labor rates, permitting complexity, and local code requirements create significant variation by city and county.
| Location | Cost Premium vs. South Bay | Typical Range/sqft |
|---|---|---|
| San Francisco | +20-30% | $350-$850+ |
| Palo Alto / Menlo Park | +15-25% | $300-$750+ |
| Mountain View / Sunnyvale | +5-15% | $275-$650+ |
| San Jose (Downtown) | Baseline | $250-$600+ |
| Fremont / Milpitas | -5-10% | $225-$550+ |
| Walnut Creek / Pleasanton | +5-10% | $260-$600+ |
San Francisco commands the highest premiums due to stricter building codes, higher labor rates, more complex permitting, and the logistical challenges of working in dense urban environments. Peninsula cities like Palo Alto and Menlo Park are close behind, while South Bay and East Bay locations offer more competitive pricing.
Complete Cost Breakdown by Category
Understanding where your money goes helps you make informed trade-offs during the design phase. Here is a detailed breakdown of a typical Bay Area full-service restaurant buildout.
Kitchen Equipment and Infrastructure (25-35% of Total)
The kitchen is the engine of your restaurant, and it is the most expensive component of any buildout. Kitchen costs include:
| Item | Cost Range |
|---|---|
| Exhaust Hood System (install) | $15,000-$50,000+ |
| Makeup Air Unit | $3,500-$10,000 |
| Fire Suppression System | $5,000-$15,000 |
| Walk-In Cooler/Freezer | $8,000-$30,000 |
| Cooking Line (ranges, fryers, griddles) | $15,000-$60,000 |
| Commercial Dishwasher | $3,000-$20,000 |
| Prep Equipment (tables, sinks, smallwares) | $5,000-$15,000 |
| Reach-In Refrigeration | $4,000-$15,000 |
| Ice Machine | $2,000-$8,000 |
| POS System and Tech | $3,000-$10,000 |
Total kitchen equipment and infrastructure: $75,000-$250,000+
The exhaust hood system deserves special attention because it drives so much of the overall MEP (mechanical, electrical, plumbing) budget. Hood installation runs $950-$1,200 per linear foot for basic setups, while turnkey systems that include ductwork, rooftop fans, makeup air, and fire suppression average $4,000-$5,000 per linear foot. A standard 10-foot hood can cost $10,000-$50,000 fully installed.
Equipment lead times remain extended in 2026. Commercial refrigeration, custom ventilation systems, and specialty cooking equipment often require 12-16 week delivery windows. Order early or risk delaying your opening.
HVAC and Ventilation (10-15% of Total)
Restaurant HVAC is far more complex than standard commercial systems. Cooking generates enormous heat loads, and your ventilation system must handle grease-laden exhaust, makeup air, and customer comfort simultaneously.
| Item | Cost Range |
|---|---|
| Kitchen Exhaust and Makeup Air | $20,000-$60,000 |
| Dining Room HVAC | $15,000-$40,000 |
| Ductwork | $8,000-$25,000 |
| Controls and Thermostats | $2,000-$5,000 |
| Rooftop Units (if needed) | $5,000-$15,000 |
Total HVAC: $50,000-$145,000
Many landlords require rooftop exhaust, which adds structural engineering costs and potential roof modifications. If the space has never been a restaurant, the HVAC conversion alone can represent a significant portion of your budget.
Plumbing (8-12% of Total)
Restaurants require far more plumbing than typical commercial spaces. Health codes mandate specific sink configurations, grease interceptors, and drainage systems.
| Item | Cost Range |
|---|---|
| Grease Trap/Interceptor | $3,000-$15,000 |
| Three-Compartment Sink | $1,500-$4,000 |
| Hand Sinks (code-required locations) | $500-$1,500 each |
| Floor Drains | $1,000-$5,000 |
| Hot Water System (commercial) | $3,000-$10,000 |
| Gas Line Installation | $2,000-$8,000 |
| Bathroom Plumbing (ADA-compliant) | $5,000-$15,000 |
Total plumbing: $20,000-$65,000
Bay Area health departments are particularly strict about grease interceptor sizing. An undersized grease trap will fail inspection and cost you time and money to replace. Your contractor should verify requirements with the local jurisdiction before ordering.
Electrical (8-12% of Total)
Commercial kitchens demand significant electrical capacity. Many older Bay Area commercial spaces were not wired for the loads a modern restaurant requires.
| Item | Cost Range |
|---|---|
| Electrical Panel Upgrade | $5,000-$15,000 |
| Kitchen Circuits (high-amperage) | $8,000-$20,000 |
| Lighting (kitchen, dining, exterior) | $8,000-$30,000 |
| POS and Low-Voltage Wiring | $3,000-$8,000 |
| Emergency and Exit Lighting | $2,000-$5,000 |
Total electrical: $26,000-$78,000
If your space requires a transformer upgrade or new service from PG&E, expect an additional $10,000-$30,000 and a timeline of 4-8 weeks for utility coordination.
Interior Finishes and Design (15-25% of Total)
The dining room is where your brand comes to life. Finish costs vary more than any other category because they directly reflect your concept and target market.
| Item | Cost Range |
|---|---|
| Flooring (dining area) | $8-$25/sqft |
| Wall Finishes and Treatments | $5-$20/sqft |
| Ceiling (exposed, finished, or acoustic) | $5-$15/sqft |
| Custom Millwork (bars, host stands, banquettes) | $15,000-$80,000+ |
| Paint and Wallcovering | $3,000-$12,000 |
| Signage (interior and exterior) | $5,000-$25,000 |
Total interior finishes: $50,000-$200,000+
Custom banquettes run $200-$400 per linear foot. High-end custom tables range from $500-$2,000+ each. If your concept calls for a statement bar, expect $30,000-$80,000+ for a fully built-out bar with back bar, countertop, plumbing, and refrigeration.
Furniture, Fixtures, and Equipment: Front of House (5-10% of Total)
| Item | Cost Range |
|---|---|
| Dining Tables | $3,000-$15,000 |
| Chairs and Seating | $5,000-$25,000 |
| Bar Stools | $2,000-$10,000 |
| Tableware and Glassware | $3,000-$10,000 |
| Decorative Lighting | $5,000-$20,000 |
| Window Treatments | $2,000-$8,000 |
Total front-of-house FF&E: $20,000-$88,000
Permits, Fees, and Professional Services (5-8% of Total)
Bay Area permitting is complex for restaurants. You need approvals from multiple agencies, and timelines vary significantly by jurisdiction.
| Item | Cost Range |
|---|---|
| Building Permit | $5,000-$20,000 |
| Health Department Permit | $700-$2,000 |
| Fire Marshal Review | $1,000-$5,000 |
| ADA Compliance Review | $1,000-$3,000 |
| Architectural/Design Fees | $15,000-$50,000 |
| MEP Engineering | $8,000-$20,000 |
| Business License | $200-$1,000 |
| Liquor License (Type 47 or 41) | $5,000-$15,000+ |
| Certificate of Occupancy | $500-$2,000 |
Total permits and professional services: $36,400-$118,000
Health permit costs vary by county: San Francisco charges $900-$1,400, while Contra Costa County ranges from $700-$2,000 depending on operation type. Plan for the permitting process to add 8-16 weeks before construction can begin.
Second-Generation vs. Raw Shell: The Cost Difference
One of the most significant budget decisions you will make is choosing between a second-generation restaurant space (one that was previously a restaurant) and a raw commercial shell.
Second-Generation Space
A second-generation space with existing kitchen infrastructure can reduce your buildout cost by 30-50%. The key elements that save money include:
- Existing exhaust hood and ductwork. This alone can save $30,000-$80,000+ if the hood is the right size for your concept.
- Grease trap already installed. Saves $5,000-$15,000 and avoids potential sewer line work.
- Adequate electrical service. A space that already had a commercial kitchen likely has the panel capacity you need.
- Gas lines in place. Saves $3,000-$10,000 in new gas line installation.
- Floor drains and plumbing rough-ins. Kitchen plumbing in the right locations saves significant cost.
A second-generation fast-casual buildout in the Bay Area might cost $150-$300/sqft, while the same concept in a raw shell could run $250-$400/sqft.
Raw Shell
A raw commercial shell gives you maximum design flexibility but at a premium. You are building every system from scratch: HVAC, plumbing, electrical, gas, exhaust, and fire suppression. For a full-service restaurant, expect to spend $350-$550+/sqft to build out a raw shell in the Bay Area.
Evaluating a Space
Before signing a lease, have your contractor evaluate the existing conditions. Key questions to answer:
- What is the existing electrical capacity? Is there three-phase power?
- Is there an exhaust hood? What size and CFM rating?
- Is there a grease trap? What size?
- Are floor drains in usable locations?
- What is the HVAC capacity?
- Does the roof support rooftop equipment?
- Are there ADA-compliant restrooms?
- What does the landlord’s work letter include?
Custom Home’s design phase includes a thorough site assessment that answers all of these questions before you commit to construction.
Hidden Costs That Catch Restaurant Owners Off Guard
Even experienced restaurant operators are sometimes surprised by costs that did not appear in their initial budget. Here are the most common ones in the Bay Area.
Landlord Requirements
Your lease may require specific contractors, insurance levels, or construction standards. Some landlords require tenants to use union labor, which can increase labor costs by 20-40%. Read your lease carefully before budgeting.
ADA Compliance
If the space was not previously ADA-compliant, bringing restrooms, entrances, and dining areas up to current standards can cost $10,000-$50,000+. California has some of the strictest accessibility requirements in the country.
Utility Upgrades
Older Bay Area commercial spaces often lack adequate electrical service for a modern restaurant. A new transformer or panel upgrade can add $10,000-$30,000 and weeks to your timeline.
Seismic Retrofitting
Some older Bay Area buildings require seismic upgrades when the use changes to a restaurant (which increases occupancy loads). This can add $20,000-$100,000+ depending on the building.
Change Orders
The single biggest budget risk in any restaurant buildout is change orders during construction. These happen when decisions are made on the fly, when the design was not fully resolved before construction started, or when existing conditions reveal surprises. Plan a contingency of 10-15% of your construction budget.
Timeline: From Lease Signing to Opening Night
Understanding the full timeline helps you plan your lease start date and pre-opening expenses.
| Phase | Duration |
|---|---|
| Design and Space Planning | 4-8 weeks |
| Permitting and Plan Review | 8-16 weeks |
| Equipment Ordering (lead times) | 12-16 weeks |
| Construction: Fast Casual | 12-20 weeks |
| Construction: Full Service | 20-32 weeks |
| Construction: Fine Dining | 32-48 weeks |
| Final Inspections and CO | 2-4 weeks |
| Staff Training and Soft Opening | 2-4 weeks |
Many of these phases overlap. Equipment ordering should happen during permitting. Design should be finalized before permit submission. A well-managed project compresses these overlapping timelines, but you should plan for 6-9 months from lease signing to opening for a fast-casual concept and 10-16 months for a full-service restaurant.
Every month your space sits under construction, you are paying rent without generating revenue. This “dark rent” period is one of the most critical financial considerations in any restaurant buildout. A contractor who can deliver on time is not just saving you construction costs; they are protecting your cash flow.
How to Control Restaurant Buildout Costs
Start With the Right Space
Choosing a second-generation restaurant space is the single most effective way to control costs. The existing infrastructure savings of 30-50% far outweigh the design compromises you might make. Work with your contractor to evaluate spaces before you sign a lease.
Finalize the Design Before Construction
Change orders during construction are the number one cause of budget overruns. Every decision, from tile color to equipment placement, should be made before the first wall goes up. Custom Home’s 3D visualization process lets you walk through your restaurant virtually, making changes on screen rather than on the job site.
Order Equipment Early
With lead times of 12-16 weeks for major kitchen equipment, late orders directly delay your opening. Place equipment orders as soon as your design is finalized and permits are submitted.
Negotiate the Landlord Work Letter
Many commercial landlords provide a tenant improvement (TI) allowance that offsets your buildout cost. In the Bay Area, TI allowances for restaurant spaces range from $30-$80/sqft for standard retail leases, with some landlords offering more for desirable tenants. Negotiate this before signing your lease.
Build in Contingency
Plan for 10-15% contingency on top of your construction budget. In the Bay Area, unexpected conditions in older buildings, utility upgrade requirements, and permitting delays are common enough that skipping contingency is a serious risk.
How Custom Home Delivers Restaurant Buildouts
Custom Home brings the same design-first approach to commercial buildouts that we use for our residential projects. For restaurant owners, this process solves the two biggest problems in any buildout: budget surprises and timeline delays.
Design Phase: We create complete 3D visualizations of your restaurant space, including kitchen layout, dining flow, bar configuration, and finish selections. You see every detail before construction begins. We deliver an itemized budget that your business plan and investors can rely on.
Permitting: Commercial permitting is one of the most complex parts of any restaurant project. We manage the full process: building permits, health department approvals, fire marshal sign-off, ADA compliance reviews, and certificate of occupancy. Everything is coordinated in-house under CSLB License #986048.
Construction: With a fully-resolved design and approved permits, construction proceeds without the mid-build decisions that cause change orders. We coordinate with your equipment vendors, signage installers, and inspection schedules so your space is ready to open when your lease clock is ticking.
Frequently Asked Questions
What percentage of my total restaurant startup budget should go to buildout?
The buildout typically represents 40-60% of total startup costs. The remainder covers pre-opening rent, initial inventory, staff hiring and training, marketing, working capital, and operating reserves. For a Bay Area full-service restaurant with a $1.5M total startup budget, plan for $600K-$900K in buildout costs.
Is it cheaper to renovate an existing restaurant or build from scratch?
Renovating a second-generation restaurant space costs 30-50% less than building out a raw shell. The savings come from reusing existing exhaust hoods, grease traps, electrical service, plumbing rough-ins, and floor drains. However, a space with outdated or incompatible infrastructure may cost nearly as much as a new buildout once you factor in demolition and replacement.
Do I need an architect for a restaurant buildout?
In the Bay Area, most jurisdictions require stamped architectural drawings for restaurant buildout permits. Beyond code compliance, an architect or design-build firm ensures your layout maximizes seats, optimizes kitchen workflow, and meets ADA requirements. Design fees typically run 5-10% of construction cost. With a design-build firm like Custom Home, architecture, engineering, and construction are coordinated under one contract.
Next Steps
If you are planning a restaurant buildout in the Bay Area, the best first step is a consultation with a contractor who specializes in commercial spaces. We will review your concept, evaluate your space (or help you choose one), and provide a preliminary cost range so you can build a realistic business plan before committing to a lease.
Contact Custom Home for a free consultation to discuss your restaurant buildout project.
Frequently Asked Questions
How much does a restaurant buildout cost per square foot in the Bay Area?
Restaurant buildout costs in the Bay Area range from $250 to $750+ per square foot in 2026. Fast-casual concepts average $250-$400/sqft, full-service restaurants run $350-$550/sqft, and fine dining establishments reach $550-$850+/sqft. San Francisco locations typically cost 15-25% more than South Bay and East Bay.
How long does a restaurant buildout take in the Bay Area?
A fast-casual buildout takes 3-5 months for construction, while full-service restaurants require 5-8 months and fine dining concepts can take 8-12 months. Add 2-4 months for design, permitting, and health department approvals before construction begins. Equipment lead times of 12-16 weeks for commercial refrigeration and ventilation should be factored into your project timeline.
What permits are required for a restaurant buildout in the Bay Area?
Restaurant buildouts require building permits, health department approval, fire marshal sign-off, ADA compliance review, signage permits, and a certificate of occupancy. In the Bay Area, health permits cost $700-$2,000+ depending on the county. The permitting process typically adds 8-16 weeks before construction can begin.
What is the biggest cost in a restaurant buildout?
Kitchen equipment and infrastructure is the single largest expense, representing 25-35% of total buildout cost. A commercial kitchen ranges from $100,000 to $400,000+ including exhaust hoods, ventilation, cooking equipment, refrigeration, and fire suppression systems. The kitchen drives much of the plumbing, electrical, and HVAC costs as well.
Can I reduce restaurant buildout costs by taking over an existing restaurant space?
Yes. A second-generation restaurant space with existing kitchen infrastructure can reduce your buildout cost by 30-50% compared to building out a raw shell. Look for spaces with compatible exhaust hood sizes, adequate electrical capacity, and grease traps already in place. Custom Home's design phase evaluates existing infrastructure to maximize what you can reuse.