Renting a commercial kitchen is a savvy way to reduce restaurant startup costs and open more quickly versus building a traditional kitchen from the ground up.Generally, commercial kitchens are shared spaces that come outfitted with the equipment chefs need to start serving hungry customers right away. Likewise, they’re already certified for business operations, forgoing the need to obtain expensive permits.You may be pleasantly surprised to learn that renting a commercial kitchen can help you bring your restaurant concept to life for a fraction of the cost. With the median restaurant rent in America hovering around $5,000, it’s usually a much cheaper option than the traditional route.How much does it cost to rent a commercial kitchen, you ask? This guide does the prep work of breaking down commercial kitchen costs so you can focus on what you do best: whipping up mouthwatering dishes.
There is no cut-and-dry industry standard for how much commercial kitchens cost to rent. In fact, a plethora of items may ring up a restaurateur’s final bill, including:
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•Deposits, and anything subtracted from them•The amount, type, and quality of equipment the kitchen has•The overall size and capabilities of the space•How many people will be working for the business•Monthly leases and membership dues•Dry goods storage fees•Hourly rental rates, which usually rise during peak times•Energy bills for refrigeration, freezers, and gas appliances
But perhaps the greatest determining factor for commercial kitchen rent is location. Where you plan to open up shop will directly affect the overall price you pay.
Specific rates vary from business to business. But, to give you a better idea of prices in different areas, we’re serving up some regional averages for commercial kitchen rental rates.
From Kansas creamed corn to the Juiciest Lucies in Minneapolis, the Midwest has a wide variety of culinary diversity to offer. It’s also one of the more affordable regions in America for commercial kitchen rents.
Hourly rates in rural areas of Kansas for example, may go as low as $10. Some higher-end kitchens may rent for up to $50 an hour. In more populated urban centers, such as Minnesota’s twin cities, the rates can triple—or more.
When people think of the northern states, they think of New York—the urban area with the most potential customers in America. And, whether you’re baking bagels or broiling bratwursts in the Big Apple, you’ll likely pay some of the highest kitchen prices in the nation.
Most spaces outside New York City’s center begin around $30 per hour, at the lowest. In Manhattan, however, rents sit at skyscraper heights—meaning some commercial kitchens lease for thousands of dollars a day.
Alongside the Empire State, America’s East Coast is defined by New York’s even more populous southern cousin: Florida. And, with a quick zip down the Atlantic shoreline, you’ll find that restaurateurs in the Sunshine State are also paying similar premiums for commercial kitchens.
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While Florida may not have any mega metropolises like NYC, there are several smaller cities that are among the most visited in the country. Commercial kitchens in the likes of Miami, Tampa, and Orlando start from around $25 per hour but, like New York, climb significantly from there.
California is the epicenter of West Coast America. And, from San Francisco to San Diego, it has some absolutely stunning (and notoriously expensive) cities.
That said, $30 or more per hour is a relatively common base rate for commercial kitchens in Los Angeles and other popular cities in the Golden State. This makes commercial kitchen rentals slightly more attainable on the West Coast compared to the East.
Commercial kitchens offer a secure way to test-run your restaurant concept in new areas or expand into up-and-coming neighborhoods without having to put up a lot of capital or obtain brick-and-mortar permits.
Likewise, they offer more flexible rental plans than traditional brick-and-mortar restaurants. This lets you see if your dishes are a hit with the locals—or if their palates aren’t refined enough to appreciate your exquisite cuisine. And, without multi-year contracts, you’re free to leave if an area doesn’t bring the traffic you need to thrive.
Simply put, commercial kitchens are a less risky way for restaurateurs to try a new area without having to go all-in on funding a brick-and-mortar location.
Ghost kitchens from CloudKitchens offer all the benefits of commercial kitchens with prices that get you closer to your revenue goals. Our kitchens are designed to streamline food preparation and delivery to delight every takeout customer and expand your growing operation.
Our expert-designed ghost kitchens also have the technology you need to master the delivery game. And, with CloudKitchens, you can be up and running for as little as $30,000—far less than six months of traditional commercial kitchen rent in New York or LA.
Book a tour of one of our facilities and begin serving your culinary creations sooner than you thought possible.
Sources:
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CloudKitchens. How much does it cost to start a restaurant business?. https://cloudkitchens.com/
Kansas Department of Agriculture. List of Available Kitchens and Resources. https://agriculture.ks.gov/
Minnesota Department of Agriculture. SHARED COMMERCIAL KITCHEN DIRECTORY. https://www.mda.state.mn.us/
World Population Review. The 300 Largest Cities in the United States by Population 2023). https://worldpopulationreview.com/
Opportunity New York City Housing Authority. Commercial Kitchens. http://opportunitynycha.org/
CNN Business. Manhattan median rents hit another high in March. https://edition.cnn.com/
Home Cooking New York. Commercial Kitchen Rentals in New York City. https://homecookingny.com/
World Population Review. US States – Ranked by Population 2023. https://worldpopulationreview.com/
Visit Florida. Research FAQ. https://www.visitflorida.org/
Pick Your Own. List of Florida Commercial Kitchens, Community Kitchens, Licensed Kitchens, Shared Kitchens – Places to make foods to sell. https://www.pickyourown.org/
Pick Your Own. List of California Commercial Kitchens, Community Kitchens, Licensed Kitchens, Shared Kitchens – Places to make foods to sell. https://www.pickyourown.org/
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Categories: Kitchens
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