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What a restaurant build-out costs in New Jersey

Our published average for a new restaurant of about 1,000 sq ft is $400,000 and up. That covers the building work, electrical, plumbing, fire protection, the hood, vent and suppression system, and the architectural drawings.

Below: what goes into that number, two contractors' published costs line by line (North Carolina and Pennsylvania), what the price comes to at five sizes, and the New Jersey approvals in the order the job meets them. If you are planning a restaurant in Essex County, these are our commercial build-outs.

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Published October 15, 2026 by AB Contracting & Design LLC, Belleville, NJ. N.J. HIC Reg. #13VH11431800. The $400K+ figure is our published price; other contractors' figures and New Jersey rules come from the sources linked below.

A street-level restaurant space stripped for a build-out, with bundles of steel studs stacked at the open storefront and workers inside
A restaurant space stripped to its walls for a build-out, steel studs stacked for the new partitions (Ebisu, Tokyo). Photo: Syced, Wikimedia Commons, public domain (CC0).

Three honest answers to “what does it cost?”

Our published price
$400K+On average, for a new restaurant of about 1,000 sq ft. That works out to about $400 a square foot and up, drawings and hood included.
Published contractor hard cost (North Carolina), 2026
$200–$450+ per sq ftQuick-service $200–$350, full-service $250–$400, specialty $300–$450+, before equipment, furniture and fees (Timeless Construction, from its North Carolina jobs).
What owners say they spent
$140,000 medianOn construction alone, or $50 a sq ft. The middle half spent $49,500 to $350,750 (RestaurantOwner.com survey, 547 answers).

The three don't contradict each other. They measure different things: a contractor's price for a new restaurant with its hood and drawings, a builder's hard cost before the owner's equipment and fees, and what owners reported for remodels and new builds together. The section on why prices disagree, further down, lines them all up.

What our $400K+ covers, and what moves it

AB Contracting & Design restaurant build-out price
JobPrice
New restaurant, about 1,000 sq ftBuilding, electrical, plumbing, fire protection, hood / vent / suppression and architectural drawings$400K+ on average

The four things that move a restaurant price most

  • The kitchen. How many burners and fryers the hood has to cover.
  • The service to the building. Whether the gas and electrical service has to be upgraded.
  • What can stay. How much of the existing space can be kept.
  • The town. What it asks for once the plans are submitted.

Not on the list, so ask

Cooking equipment, dining room furniture and smallwares aren't among the six items our published figure names. In Timeless Construction's experience, kitchen equipment is usually bought by the owner and installed by the contractor. Your proposal says how yours is handled.

We price the job from the drawings, line by line, so you can compare it with any other bid.

Line by line: what each part costs, from two published contractors

Two contractors publish line-item ranges: D56 Construction, for restaurant renovations in central Pennsylvania (August 2025), and Timeless Construction, for restaurants it priced and built in Wilmington, North Carolina (August 2026). Each row also shows whether our published figure names the item.

Restaurant build-out line items, ranges published by two contractors and whether AB's published figure names them
Part of the jobPublished range
Kitchen hood and ventilationD56. In our $400K+: yes, hood and vent$15,000–$30,000
Fire suppression over the cook lineD56. In our $400K+: yes, suppression$3,000–$8,000
Electrical upgradesD56. In our $400K+: yes, electrical$15,000–$40,000
Plumbing changesD56. In our $400K+: yes, plumbing$10,000–$30,000
Architect and engineer design feesTimeless. In our $400K+: drawings yes, engineering not named6–8% of construction
Heating and air conditioningD56. In our $400K+: not named$20,000–$50,000
Flooring, installedD56. In our $400K+: not named$8–$25 per sq ft
Permits and inspectionsD56. In our $400K+: not named5–10% of the budget
Kitchen equipmentTimeless. In our $400K+: not named$75,000–$500,000+
Furniture, fixtures and equipment for the dining roomTimeless. In our $400K+: not named$40–$120 per sq ft
  • Timeless puts all soft costs (design, permits, health department review, fire marshal review, utility fees and insurance) at 12–20% on top of hard construction.
  • D56 puts the kitchen at 25–35% of a renovation budget and the front of house at 40–50%.
  • “Not named” doesn’t mean left out. It means our published figure doesn’t list it, so your written proposal will.

What it comes to at five restaurant sizes

People ask what a 5,000 or 10,000 sq ft restaurant costs, so here are two published measures applied to five sizes. The multiplication is ours; the per-square-foot figures are theirs.

Restaurant construction cost at five sizes, from two published per-square-foot measures
RestaurantHard cost at $200–$450+ per sq ft
1,000 sq ft$200,000–$450,000+Owner-reported at $50 per sq ft: $50,000 (middle half $19,000–$91,000)
2,000 sq ft$400,000–$900,000+Owner-reported at $50 per sq ft: $100,000 (middle half $38,000–$182,000)
3,000 sq ft$600,000–$1,350,000+Owner-reported at $50 per sq ft: $150,000 (middle half $57,000–$273,000)
5,000 sq ft$1,000,000–$2,250,000+Owner-reported at $50 per sq ft: $250,000 (middle half $95,000–$455,000)
10,000 sq ft$2,000,000–$4,500,000+Owner-reported at $50 per sq ft: $500,000 (middle half $190,000–$910,000)

What New Jersey requires before a restaurant opens

These are the construction approvals, in the order a build-out meets them, each with the state rule behind it. Your town's construction office and health department run them.

  1. Prior approvals, such as zoning. New Jersey defines prior approvals as the approvals that have to come before a construction permit, and zoning is the first example (N.J.A.C. 5:23-1.4). The permit application includes a statement that they have all been given (N.J.A.C. 5:23-2.15).
  2. Health department plan review. Before a retail food establishment is built, converted or, when the health authority asks, remodeled, the plans go to the local health department. They can include the menu, the expected food volume, the layout and the equipment. The department answers within 30 days, and nothing is built except to approved plans (N.J.A.C. 8:24-9.1).
  3. The construction permit. The construction official approves or denies a permit application within 20 business days. Revised plans get an answer within seven business days (N.J.A.C. 5:23-2.16(a)).
  4. The hood and suppression system. Any commercial cooking that produces grease-laden vapors needs a ventilating hood, duct and automatic fire suppression system, designed and installed under the Uniform Construction Code. Completely enclosed ovens and steam tables are excepted (N.J.A.C. 5:70-4.7(g)).
  5. Inspections. The person in charge of the work asks at least 24 hours ahead, and the town inspects within three business days of the requested time, or a later date within 30 days that both agree on (N.J.A.C. 5:23-2.18).
  6. The certificate of occupancy. If the build-out changes the use of the space, a certificate of occupancy has to be issued before the new use starts (5:23-2.6(b)). Once the building qualifies, the construction official issues it within 10 business days of a written application (5:23-2.23(j)).
  7. The health department's inspection. Where plans were required, the health department inspects the restaurant before it starts operating (N.J.A.C. 8:24-9.2).

Liquor licensing and business registration are separate from construction and aren't covered here. We file the construction permits and meet the inspectors.

February 16, 2027: the last day to file under the 2021 codes

New Jersey's 2024 building codes took effect on August 17, 2026 (R.2026 d.086). For six months after a code change, a complete permit application, with all prior approvals, can still be reviewed under the code that came before (N.J.A.C. 5:23-1.6).

When the 2021 codes were adopted on September 6, 2022, the state's code agency put the last filing day at March 5, 2023 (Construction Code Communicator, Fall 2022). Counted the same way, the last day under the 2021 codes is February 16, 2027.

A complete application includes zoning and the other prior approvals, so a restaurant drawn to the 2021 codes needs those approvals moving this fall. Confirm the date with your town's construction office before you count on it.

What changed in New Jersey's 2024 code

How long a restaurant build-out takes

Your written proposal sets the schedule for your job. Two published timelines and the state's own clocks give you a sense of the pieces:

  • Timeless Construction publishes 60 to 90 days of construction plus 30 to 60 days of permitting for a quick-service build-out in an existing shell, and 8 to 16 weeks of lead time for kitchen equipment. It calls late equipment orders the most common schedule failure.
  • D56 Construction publishes 8 to 16 weeks to complete a restaurant renovation.
  • In New Jersey, the town has 20 business days to act on a permit application, the health department 30 days to answer on plans, and inspections come within three business days of a request.

A build-out we did: Abuelo's Steakhouse, Bloomfield Avenue

Abuelo's Steakhouse is on Bloomfield Avenue in Bloomfield. The renovation touched almost every part of the building:

  • The old stone and brick facade came off, and the storefront wall was opened on a new header beam set with a material lift.
  • The dining room and back of house came down to the studs and joists.
  • A small existing kitchen became a commercial cook line under a stainless exhaust hood, with six-burner ranges and a fryer.
  • A restroom got large-format marble-look porcelain tile on the walls and floor, and the front of house new flooring, lighting and walls.
Stainless steel kitchen exhaust hood and cook line installed at Abuelo's Steakhouse
The stainless exhaust hood and cook line we built at Abuelo's Steakhouse.

A kitchen like that is where one coordinating contractor pays off: the hood, ventilation, fire suppression, gas, electrical and plumbing each need their own inspection, in the right order.

See the Abuelo's before and after photos

How a restaurant job runs with us

Every commercial account starts with a retainer. It covers the design phase, the drawings and the permit submissions, before construction pricing is final.

  1. Retainer and site review: measure the space, confirm what the business needs, bring in the architect.
  2. Drawings and permits: plans, trade drawings, submissions to the town's construction office.
  3. Build: demolition, structure, rough plumbing and electrical, fire protection, finishes.
  4. Inspections and turnover: trade and final inspections, then handover to the owner.
  • We work alongside your architect, or provide the architectural drawings as part of the job.
  • Electrical work is done by master NJ-licensed electricians, and plumbing by a master NY/NJ-licensed plumber.
  • Financing is available on commercial work too.

Sales tax on a restaurant build-out

New Jersey doesn't tax labor on an exempt capital improvement when the property owner gives the contractor a completed Form ST-8. Three lines on that form matter for a restaurant:

  • It may be issued only by the owner of the real property. If you lease the space, ask your accountant or the Division of Taxation how your lease is treated before you count on the exemption.
  • It can't be used for installing flooring or a hard-wired fire alarm system. Those are taxable capital improvements.
  • The contractor pays sales tax on the materials either way.

The Division's contractor bulletin (S&U-3, May 2025) adds one every restaurant meets: installing a permanently affixed sign has been a taxable capital improvement since October 1, 2022.

Why published restaurant prices disagree

What the pages Google showed for this search said on October 15, 2026, and what each number measures:

  • Timeless Construction (Wilmington, NC, August 2026): $200 to $450+ per sq ft. Hard construction only, from jobs it priced and built.
  • D56 Construction (central Pennsylvania, August 2025): $175 to $700 per sq ft for a renovation, with most at $250 to $400.
  • Toast (November 2024): $100 to $800 per sq ft with every opening expense added up, not just construction.
  • RestaurantOwner.com (member survey, undated): a median of $50 per sq ft for construction, reported by owners, remodels and new builds together.
  • HowMuchToStart (reviewed May 2026): $218,750 to $937,500 to start a restaurant in New Jersey, middle estimate $468,750. That is everything it takes to open, and its calculator's default line for lease and build-out together is $80,000.
  • Deon Design Custom Builders (a New Jersey restaurant contractor): $150 to $750 per sq ft.
  • AB Contracting & Design: $400,000 and up on average for a new restaurant of about 1,000 sq ft, with what it covers listed above.

Whatever number you start from, leave room past it. In the same RestaurantOwner.com survey, owners reported a median cost overrun of 15% compared to budget, and an average of 33% (626 answers).

Restaurant build-out questions

How much does it cost to build out a restaurant in New Jersey?

Our published average for a new restaurant of about 1,000 sq ft is $400,000 and up. It covers the building work, electrical, plumbing, fire protection, the hood, vent and suppression system, and the architectural drawings. For comparison, a 2026 contractor's breakdown puts hard construction at $200 to $450+ per sq ft depending on the type of restaurant, before equipment, furniture and fees.

How much does it cost to build a 5,000 or 10,000 sq ft restaurant?

At Timeless Construction's 2026 hard-cost span of $200 to $450+ per sq ft, a 5,000 sq ft restaurant comes to $1,000,000 to $2,250,000+ and a 10,000 sq ft restaurant to $2,000,000 to $4,500,000+, before equipment, furniture and soft costs. Owners in the RestaurantOwner.com survey reported a median of $50 per sq ft for construction, which would be $250,000 and $500,000; that survey mixes remodels with new builds.

Is $20,000 enough to open a restaurant?

Not for a build-out. In the RestaurantOwner.com survey, three out of four owners spent at least $49,500 on construction alone, and the median was $140,000. Our own published average for a new 1,000 sq ft restaurant is $400,000 and up.

What is required to open a restaurant in NJ?

On the construction side: every prior approval, such as zoning; a construction permit, which the town must act on within 20 business days; plans approved by the local health department before construction, which must answer within 30 days; a ventilating hood, duct and automatic fire suppression system over any cooking that makes grease-laden vapors; a certificate of occupancy if the build-out changes the use of the space; and the health department's inspection before you open. Liquor licensing and business registration are separate from construction.

What is the 30/30/30 rule for restaurants?

It is a rule of thumb for splitting a restaurant's sales, and it is about running the restaurant, not building it. The closest published version we found is restaurant owner Irene Li's benchmarks for a financially healthy restaurant (WBUR, 2019): food 20-30% of revenue, labor 30-40%, overhead 30% and operating profit 10%.

Which type of restaurant is most profitable?

A contractor can't promise that; it depends on the menu, the rent and the sales. What we can speak to is what each type costs to build. In Timeless Construction's 2026 breakdown, quick-service hard costs run $200-$350 per sq ft, full-service $250-$400 and specialty $300-$450+. Across all types, owners in the RestaurantOwner.com survey reported a median profit of 8%.

Does a restaurant kitchen in New Jersey need a fire suppression system?

Yes, if the cooking produces grease-laden vapors. The state fire code, N.J.A.C. 5:70-4.7(g), requires a ventilating hood, duct and automatic fire suppression system, designed and installed under the Uniform Construction Code. Completely enclosed ovens and steam tables are excepted.

How long does a restaurant build-out take?

Your written proposal sets the schedule for your job. For comparison, Timeless Construction publishes 60 to 90 days of construction plus 30 to 60 days of permitting for a quick-service build-out in an existing shell, and D56 Construction publishes 8 to 16 weeks for a renovation. New Jersey's own clocks: 20 business days for the permit decision, 30 days for the health department's plan review, and inspections within three business days of a request.

Is a restaurant build-out exempt from New Jersey sales tax?

Much of it can be. Work that is an exempt capital improvement isn't taxed when the owner of the real property gives the contractor a completed Form ST-8. The form says it may be issued only by the owner of the real property, and it can't be used for installing flooring or a hard-wired fire alarm system, which are taxable.

Do you build out restaurants in Essex County?

Yes. We handle the build-out end to end: drawings, permits, structure, electrical, plumbing, fire protection and the kitchen hood, vent and suppression system. Our Abuelo's Steakhouse job on Bloomfield Avenue in Bloomfield is one example.

Sources

  1. N.J.A.C. 8:24-9.1 and 9.2, plan review and pre-operational inspection

    New Jersey's retail food establishment rules, read on Cornell's Legal Information Institute.

  2. N.J.A.C. 5:70-4.7, Uniform Fire Code

    Subsection (g), hoods, ducts and fire suppression over commercial cooking.

  3. N.J.A.C. 5:23-2, Uniform Construction Code, administration and enforcement

    Sections 2.6, 2.15, 2.16, 2.18 and 2.23, current through August 17, 2026.

  4. N.J.A.C. 5:23-1.4, definition of prior approvals

    Zoning is the first approval the definition lists.

  5. NJ Department of Community Affairs, adoption of the 2024 codes, R.2026 d.086

    Adopted July 15, 2026, effective August 17, 2026.

  6. N.J.A.C. 5:23-1.6, grace period

    Six months to file a complete application under the previous code.

  7. Construction Code Communicator, Fall 2022

    How the state counted the last filing day after the 2021 codes took effect.

  8. NJ Division of Taxation, Form ST-8

    The exempt capital improvement certificate, with the taxable installations it can't cover.

  9. NJ Division of Taxation, S&U-3

    Contractors and New Jersey taxes, with the list of taxable capital improvements.

  10. Timeless Construction, restaurant construction cost breakdown, August 15, 2026

    Hard costs by restaurant type, line items, soft costs and timelines.

  11. D56 Construction, the true cost of restaurant renovation, August 7, 2025

    Renovation cost per square foot and line items.

  12. RestaurantOwner.com, industry survey on the cost to open a restaurant

    Construction cost, cost overruns and profit, from more than 700 member responses.

  13. Irene Li, Restaurant Finance 101, WBUR, January 28, 2019

    Food, labor, overhead and profit benchmarks.

  14. Toast, HowMuchToStart and Deon Design figures from each linked page, checked October 15, 2026.

Planning a restaurant? Get your number from the drawings.

Call to talk the job through with Andrew, or send the details and Andrew will get back to you. An in-person estimate is $50, and it comes off your contract when you sign.

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