Most first-time operators arrive with a number in their head that came from a friend, a franchise brochure, or a listing photo. It is almost always low. Not because anyone lied, but because the number they heard covered finishes and equipment and skipped the mechanical, electrical, and code work that consumes the middle of the budget.
Here is what the market actually looks like.
Want a number for your own project? The cost calculator gives you a planning range in about thirty seconds — project type, space condition, market and size. No email required.
The per-square-foot ranges
Market-observed ranges for Ontario restaurant buildouts through 2025 and into 2026:
| Market | Typical range |
|---|---|
| Greater Toronto Area | $150 – $350 per sq ft |
| Secondary Ontario markets | $130 – $300 per sq ft |
| Cold shell / new build (any market) | $250 – $500 per sq ft |
| Second-generation restaurant space | $150 – $300 per sq ft |
Treat these as observed bands, not quotes. A 1,600 sq ft quick-service unit in a second-generation space with a working hood sits near the bottom. A full-service kitchen in a cold shell with a new gas service and a new grease interceptor sits near the top, and can pass it.
The spread inside each band is wider than most people expect. Two identical square footages in the same city can differ by a factor of two based on what the landlord delivered and what the previous tenant left behind.
What actually drives the number
Four things move an Ontario buildout budget more than anything else.
Ventilation. A Type 1 hood over open-flame or grease-producing equipment is the single largest mechanical item in most restaurant projects. It is not just the hood — it is the exhaust fan, the roof curb and penetration, the fire suppression system, and the make-up air unit that has to replace what you are pulling out of the building. Make-up air is the line item people forget, and it is rarely cheap. A menu that avoids grease-producing cooking may qualify for a Type 2 hood instead, which changes the mechanical budget materially. Decide the menu before you design the kitchen.
Electrical service. Retail and office units are rarely sized for a commercial kitchen. If the existing service cannot carry your equipment load, you are looking at a service upgrade, possibly a new panel and feeders, and coordination with the local distribution utility. This is both a cost item and a schedule item, because utility work runs on the utility’s calendar.
Plumbing and grease. Handwash sinks, prep sinks, mop sink, floor drains, and a grease interceptor sized to your fixture load under the municipal sewer-use by-law. If the interceptor has to go in the floor slab, you are cutting concrete. Some municipalities are considerably more prescriptive than others about sizing and location, which is why the review happens before construction, not during.
Base building condition. Structural work, roof reinforcement for rooftop units, fire separations, and accessibility upgrades to washrooms and entrances under barrier-free requirements. A change of use from retail to restaurant frequently triggers an accessibility review that would not have applied otherwise.
The line items owners underestimate
- Make-up air. Covered above. It surprises people every time.
- Permit and review fees. Building permit, plan review through your local public health unit, and the associated engineering fees. Small individually, meaningful in aggregate.
- Millwork and stainless fabrication. Custom counters, pass-throughs, and shelving are priced per project, not per catalogue.
- Small wares and opening inventory. Not construction, but it comes out of the same account.
- Contingency. Ten to fifteen percent on a renovation is prudent. Existing buildings hide things behind walls.
- Rent during construction. Free-rent periods rarely cover a full design-permit-build cycle. Model the carry.
Cold shell versus second generation
The two ranges in the table tell most of the story. A cold shell gives you a clean layout and zero compromise, and you pay for every system from scratch. A second-generation space gives you existing infrastructure and forces you to design around someone else’s decisions.
Second generation is usually cheaper. It is not automatically better. An inherited hood that was sized for a different menu, or an interceptor that is undersized for your fixture count, can erase the savings quickly. The value of an existing kitchen depends entirely on how closely the previous operation resembles yours.
How the schedule interacts with the budget
Design and permitting typically run four to eight weeks. Construction and equipment setup typically run eight to sixteen weeks. That is three to six months of rent, financing costs, and no revenue.
Schedule is a cost. Every week of delay carries rent and interest, and the most common causes of delay are avoidable: incomplete permit submissions, late menu changes that force redesign, and equipment ordered too late against its lead time. Locking the menu and the equipment schedule early is a budget decision, not just a planning one.
Getting to a real number
A per-square-foot range is useful for testing whether a deal is plausible. It is not useful for financing, and it is not useful for signing a lease. For that you need someone to walk the specific unit, check the electrical service, look at where the exhaust can discharge, confirm the zoning permits your use, and price the actual gap between what is there and what your menu requires.
That walkthrough is what our first consultation is for, and it costs nothing. You leave with a timeline and a preliminary cost breakdown broken into design, construction, and equipment — the kind of document a lender or a landlord will actually read. Call (226) 336-9954 or email info@nhfc.ca if you want the number before you commit to the space rather than after.
