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What does it cost to open a restaurant in the UK? Start-up costs and funding

Editorial team tischlein · Updated on October 16, 2026

The short answer

There is no official benchmark for what a restaurant costs to open, so any single number is a guess. Guides quote totals from tens of thousands to several hundred thousand pounds, depending on size, location and the state of the premises. Work in three blocks: one-off investment, monthly running costs and a reserve for the first months. Funding usually combines your own money, a bank loan and, for new founders, a Start Up Loan of up to £25,000.

Why there is no single figure

A small café in an existing shell and a mid-market restaurant in central London are different businesses. The ranges below come from commercial guides, not from an official statistic, and they vary widely. Use them to see which items exist and roughly how big they are, then replace them with quotes for your own premises.

One-off costs: typical ranges

The table collects ranges from a bank guide published in August 2026 that cites Sage and 3S-POS, plus official fees from GOV.UK. They are orientation, not facts about your project.

Item Range found Source and caveat
Rent deposit 3 to 6 months of rent plus one month in advance Zempler citing Sage
Commercial kitchen £30,000 to £150,000 Zempler citing Sage
Furniture, tableware, decor £15,000 to £35,000 Zempler citing Sage
Opening stock £2,000 to £5,000 Zempler citing 3S-POS
Card reader / terminal £20 to £200 / £250 to £1,000 and more Zempler citing Sage
Premises licence £100 to £1,905 application fee, plus an annual charge GOV.UK (official)
Personal licence about £37 Council pages
Limited company £100 online GOV.UK (official)
Food business registration free Council pages
Insurance from about £500 a year Zempler citing Sage

On top of this come the fit-out and any building work, which depend entirely on the premises. We do not give a number for them because we found no reliable source.

Running costs and reserve

The same guide puts monthly rent at £2,000 to £5,000, and £12,000 or more in London. Staff costs depend on your rota: the National Living Wage is £12.71 an hour from age 21 since 1 April 2026 (£10.85 for ages 18 to 20, £8.00 under 18), and employers pay National Insurance of 15 percent above £5,000 per employee and year in 2026 to 2027. We have not benchmarked business rates or energy.

Commercial guides recommend working capital of four to six months of fixed costs. Treat that as a rule of thumb: the first months are rarely at full capacity.

Funding for founders

Most founders combine their own money with a loan. Two programmes are worth knowing about; check the terms on the provider’s page before you plan with them.

  • Start Up Loans (British Business Bank, through the Start Up Loans Company): an unsecured personal loan of up to £25,000 per person (up to £100,000 per business) over one to five years, with 12 months of free mentoring, for new businesses or those trading for up to 60 months. A fixed rate of 7.5 percent applies to new loans from April 2026 according to the provider, but rate and eligibility changed this year, so re-check them.
  • The King’s Trust Enterprise programme: for ages 18 to 30, a grant of up to £5,000 and a loan of £500 to £25,000, delivered through the Start Up Loans Company; no funding is guaranteed.

A business plan that a bank can read is the usual entry for bank lending, asset finance or landlord incentives. We have not researched regional grants in the devolved nations or from combined authorities, so ask your local business support.

Where to get advice

Your accountant, your local council’s business support and the mentoring that comes with a Start Up Loan are the practical places to start.

Status and sources

Status 16 October 2026, not legal or financial advice. Ranges come from commercial guides and change; the Start Up Loans terms changed in April 2026. Sources:

  • Zempler Bank: Restaurant startup costs UK (28 August 2026) (https://www.zemplerbank.com/resources/food-and-drink/restaurant-startup-costs-uk/)
  • GOV.UK: Premises licence (https://www.gov.uk/find-licences/premises-licence)
  • GOV.UK: Companies House fees (https://www.gov.uk/government/publications/companies-house-fees/companies-house-fees)
  • GOV.UK: National Minimum Wage and National Living Wage rates (https://www.gov.uk/national-minimum-wage-rates)
  • Start Up Loans: interest rate and eligibility changes (https://www.startuploans.co.uk/support-and-guidance/frequently-asked-questions/changes-to-interest-rate-and-eligibility)
  • Business Wales: Start Up Loans (https://businesswales.gov.wales/news-and-blog/start-loans)
  • GOV.UK: Enterprise programme for young people (The King’s Trust) (https://www.gov.uk/business-finance-support/enterprise-programme-for-young-people-uk)

Calculate before you commit

Use the tischlein costing tool to work out the food cost and selling price of every dish, and let the rota show what staff cost per week. That turns the ranges above into your own numbers.

New venues get a discount on the plans in the Startup Center at /gruenden.

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Frequently asked questions

How much does it cost to open a restaurant in the UK?

There is no official figure. Commercial guides quote anything from tens of thousands to several hundred thousand pounds depending on size, location and condition of the premises, so build your own plan from quotes.

Can I get a loan to start a restaurant?

Start Up Loans offer an unsecured personal loan of up to £25,000 per person with 12 months of free mentoring, for new businesses or those trading for up to 60 months. Banks lend on a business plan. Check the current terms with the provider.

Is there a grant for young founders?

The King’s Trust Enterprise programme supports ages 18 to 30 with a grant of up to £5,000 and a loan of £500 to £25,000, through the Start Up Loans Company. Funding is not guaranteed.

What are the official fees?

A limited company costs £100 online at Companies House. A premises licence costs £100 to £1,905 depending on rateable value, plus an annual charge. Food business registration is free according to councils.

How much cash should I keep in reserve?

Commercial guides suggest four to six months of fixed costs. It is a rule of thumb, not a legal figure.

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