The Complete Guide to Restaurant Construction Costs in Canada
Launching a restaurant is a dream for many in Canada's vibrant hospitality scene. But turning that culinary vision into a physical reality hinges on one critical question: How much does it cost to build a restaurant in 2025?
From initial design to final construction, a clear understanding of every cost is essential to protect your investment and ensure a successful grand opening. As a coast-to-coast leader in specialized builds, including restaurant and food service construction, HKC Construction has created this guide to provide a detailed cost breakdown for aspiring and established restaurateurs.
Average Restaurant Construction Costs in Canada (2025)
In 2025, the cost to build a restaurant in Canada ranges from 150 per square foot for a simple quick service restaurant (QSR) to over 150 per square foot for a simple quick service restaurant (QSR) to over.
600 per square foot for a high-end, fine-dining establishment with bespoke finishes.
| Restaurant Type | Low Range (CAD/sq ft) | High Range (CAD/sq ft) |
|---|---|---|
| Quick Service Restaurant (QSR) | $150 | $350 |
| Casual Dining / Café | $250 | $500 |
| Fine Dining / Premium Hospitality | $350 | $600+ |
HKC Expert Insight: Costs are highest in major urban centres like Toronto and Vancouver due to higher labour rates, complex logistics, and more stringent permitting processes.
Deconstructing Your Budget: Key Factors Influencing Restaurant Construction Costs
Your final cost per square foot is a sum of many parts. Here’s where the budget is allocated.
1. The Space: Size, Location, and Condition
Naturally, a larger restaurant costs more to build. Beyond size, the condition of the space is critical. A "cold shell" (a completely unfinished space) requires a full build-out, while a "second-generation" space (a former restaurant) may have existing plumbing and ventilation, potentially reducing costs.
2. The Engine: Kitchen & MEP Systems
The commercial kitchen and its supporting Mechanical, Electrical, and Plumbing (MEP) systems are the operational heart of your restaurant and the most expensive part of the build.
Kitchen Equipment: This includes exhaust hoods, fire suppression systems, ovens, grills, walk-in coolers, and stainless-steel prep stations. Estimated Cost: $100,000 – $300,000+
MEP Systems: These are the critical, non-negotiable infrastructure components.
Electrical: Power for kitchen equipment, lighting, and POS systems. (20 - 40/sq ft)
Plumbing: Drains, grease traps, and water lines for kitchens and washrooms. (25 - 50/sq ft)
HVAC: Make-up air units for kitchen exhaust and climate control for dining areas. (30 - 60/sq ft)
HKC Pro Tip: Investing in detailed engineering plans for your MEP systems upfront is the single best way to prevent costly change orders and code violations during construction.
3. The Experience: Design, Finishes, and Furnishings
Your restaurant's ambiance is what defines the customer experience. This includes:
Design & Architecture: Concept development, architectural drawings, and interior design. Estimated Cost: $25,000 – $100,000+
Interior Finishes: High-impact elements like flooring, wall treatments, lighting, and custom millwork for bars and host stations. Estimated Cost: 75–250 per sq ft.
Beyond Construction: Understanding the "Soft Costs"
Your total project budget must account for soft costs the necessary expenses outside of physical construction.
| Soft Cost Category | Typical Cost Range |
|---|---|
| Design & Architectural Fees | $25,000 – $100,000 |
| Permits & Inspections | $5,000 – $25,000 |
| Legal & Consultant Fees | $3,000 – $15,000 |
| Project Management | 5–10% of total construction |
Strategic Ways to Manage Your Restaurant Construction Budget
Engage a Design-Build Partner Early: Bringing a specialized restaurant contractor like HKC on board during the design phase is the most effective strategy. This allows for value engineering, realistic budget alignment, and proactive problem-solving before construction even begins.
Evaluate Second-Generation Spaces: A former restaurant with existing infrastructure can significantly reduce your MEP costs. However, a thorough assessment is needed to ensure the existing systems can meet your operational needs and current code requirements.
Bundle Trades Under One General Contractor: Using a single-source general contractor eliminates the risk and coordination headaches of managing multiple trades. It ensures a single point of accountability, leading to fewer delays and change orders.
Why Partner with a Specialized Restaurant Contractor?
Building a restaurant is unlike any other commercial construction project. It requires a deep understanding of unique workflows, health codes, and specialized systems.
A specialized partner like HKC Construction brings invaluable expertise:
Navigating Health & Building Codes: We have an in-depth knowledge of local regulations, ensuring your design is compliant from day one.
Proven Kitchen & Bar Layouts: We understand the nuances of creating efficient and ergonomic workflows for your staff.
Vetted Supplier Networks: We have established relationships with top-tier kitchen equipment suppliers and trades.
Streamlined Permitting: Our experience with municipal authorities helps to expedite the approvals process.
Conclusion
Building a restaurant in Canada is a significant investment, with costs ranging from $150 to over $600 per square foot. Success depends on a meticulously planned budget that accounts for everything from kitchen equipment to municipal permits.
By understanding the full scope of costs, partnering with an experienced restaurant contractor, and implementing smart, strategic decisions, you can build a beautiful, efficient, and profitable space that brings your culinary vision to life.
Ready to build your restaurant vision? The expert team at HKC Construction is here to help. Contact us today for a free consultation and let’s build something incredible together.
Start Your Restaurant Construction Project Today
Talk to HKC
We’ll assess your goals, timeline, and budget, then recommend the optimal delivery model for your restaurant project.
905-565-1220
info@HKCconstruction.com
