This is the guide we would give a client before they sign anything. Nothing in it is confidential — it is the same advice we give on paid engagements, and we would rather a new operator went in with their eyes open than discovered it after signing.
Setting up a food business from scratch is expensive. The fitout is only part of it — the exhaust, the grease trap, the services, the approvals and the equipment all land before the first customer walks in. Where the budget is limited, the site you choose matters more than the specification you choose.
The single highest-value question in this entire guide: has this tenancy traded as a food business before, and does the equipment and services package still exist?
1. Why a site that has already traded as food usually wins
A tenancy that has already operated as a cafe or restaurant usually already has the grease trap, the exhaust riser, the gas, the power capacity and the amenities. The project becomes a modification rather than a construction job — and that is a completely different budget.
| Advantage | What it means for you |
|---|---|
| Services already in place | Grease trap ($30,000–$40,000), exhaust riser, gas, power capacity, amenities all existing |
| Approval route is simpler | Often same-use, certifier-only. No DA, no community notification, no months of delay |
| Programme collapses | A refresh and refit can be 6–10 weeks instead of 16–24 weeks. Every week saved is a week of rent not burned |
| Equipment can be retained | Cooking line, refrigeration, dishwashing, shelving may be serviceable or reconditionable |
| Trading history exists | You can see what the site did before. Passing trade, peak hours, what the previous operator got wrong |
| Landlord expectations are realistic | They have leased to a food operator before. Less friction on consent, hours and works |
| Risk is quantifiable | You are pricing a known quantity, not guessing at what is under the floor |
2. What to check on the inspection — the services walk-through
Walk the tenancy in this order. Every item below either exists, or it is a number in your budget.
| Check | How to verify | If missing |
|---|---|---|
| Grease trap | Look for a ground-level access lid in the kitchen or rear yard. Ask for the last pump-out invoice | $30,000–$40,000 plus plumbing and approval |
| Kitchen exhaust | Trace the hood to the riser. Find where it discharges — roof or wall? Is there a fan and a filter? | From $15,000; $35,000–$85,000 typical; high-rise horizontal + electrostatic filter $25,000–$40,000 per unit |
| Gas | Find the meter and the supply size. Ask whether it is a commercial tariff | Electric kitchen, or a supply upgrade |
| Electrical capacity | Read the main switchboard. Look at the rating and spare ways | Supply upgrade, potentially a new connection |
| Amenities | Is there a compliant toilet? An accessible WC? Staff facilities? | Build new amenities — a construction item, not a fitout item |
| Accessible entry | Is there a step? A ramp? Is the door width compliant? | Shopfront rebuild and access works |
| Fire protection | Sprinklers, detection, extinguishers, exit signage, fire hose reel | Sprinkler relocation and fire upgrades |
| Ceiling height & structure | Clear height above the ceiling. Can ductwork run? Where do beams sit? | Rerouted services, lower ceilings, compromised layout |
| Floor | Level? Drainage falls? Existing floor wastes? | Screed, new drainage, floor build-up |
| Strata / centre rules | Hours of works, after-hours access, delivery windows, noise | Restricted programme — night work at premium rates |
| Previous use consent | Ask council what the site is currently approved for | Change of use application — see below |
The exhaust question decides everything. If the kitchen hood cannot reach the roof through a viable riser, and the building cannot accept a horizontal discharge with electrostatic filtration, the site may not support a commercial kitchen at all. Check this before anything else. Full exhaust guide here.
3. The change of use trap
A site being used as a cafe does not mean it is approved as a restaurant. And a site you convert back to its original use may still need a fresh approval. This catches experienced operators, not just first-timers.
| What people assume | What is actually true |
|---|---|
| “It was a restaurant before, so I can just reopen it” | If the consent lapsed or the use was never formalised, you may need a new application |
| "I’m only changing from Thai to Italian" | Cuisine change is usually fine — but trading hours, patron numbers, liquor and outdoor seating are not |
| “Putting it back how it was is not a change” | Reverting can still be assessed as a change of use. It needs approval |
| “The fitout is minor so no approval needed” | Approval is about use, not construction value. Minor works on a new use still need consent |
| "Council will tell me if there’s a problem" | Council will not volunteer it. You have to ask, in writing, before you sign |
4. Reading the lease before you commit money
Three clauses decide whether a food fitout is viable. Read them before you spend on design.
| Clause | What to look for | Why it matters |
|---|---|---|
| Commencement of rent | Does rent start on signing, on possession, or on approval? | If rent starts on signing and a DA takes six months, you pay $60,000+ for a site you cannot use |
| Consent to works | Landlord’s right to approve or withhold approval of your plans | A landlord can delay your whole project. Get a deemed-consent time limit |
| Make good | What you must remove at the end — and who pays | Removing a grease trap or reinstating a kitchen can be a five-figure exit cost |
| Permitted use | Is the use you need actually permitted under the lease? | The lease can be narrower than the council consent |
| Incentives & rent-free period | Is the rent-free period aligned to the build, not to signing? | Misaligned incentives mean you burn the free period waiting for approval |
We wrote a dedicated piece on the one clause that matters most when a fitout needs a DA: lease commencement should be tied to DA and CC approval.
5. Where to spend first on the build, in order of value
- Take a tenancy that already traded as food. Biggest single saving available.
- Keep and recondition the existing kitchen. A serviceable cooking line and refrigeration are worth more than a new one that has to be financed and installed from scratch.
- Facelift, not rebuild. Front of house, lighting, signage and finishes deliver most of the customer-visible impact for a fraction of a full strip-out.
- Change the offer, not the site. A different menu or format that fits the existing kitchen is often the cheapest route to a viable business.
- Negotiate the incentive. Rent-free periods and landlord contributions to works are normal. Ask.
We help new operators assess sites before they commit — and we have helped a lot of first-time business owners set up their first shop. Send us the address and we will tell you what it needs.
