May 30, 2024

Understanding the Costs of Renting a Commercial Kitchen

Location Matters

The rental price for commercial kitchen spaces in London can vary significantly based on location:

Central London

Prime locations such as Covent Garden, Soho, or Shoreditch can cost between £2,000 and £8,000 per month depending on size, equipment and access. These areas are ideal for businesses needing to be close to suppliers and customers but come with a higher price tag.

Outer London

Areas like Croydon, Ealing, or Barking offer more affordable options, ranging from £1,000 to £5,000 per month (depending on size, equipment etc). While these locations might be less central, they can provide substantial savings and still offer good access.

Kitchen Size and Layout

The size and layout of the kitchen can significantly impact the commercial kitchen cost. Here’s a more detailed breakdown based on specific kitchen sizes:

Small Kitchens

Suitable for start-ups or small-scale operations, small kitchens typically range from 200 to 500 square feet. On average, these spaces can cost around £1,000 to £2,500 per month - sometimes less and sometimes more.  They should provide basic amenities, including essential kitchen equipment such as ovens, stovetops, and refrigerators, and offer enough space for prep and/or production.

Medium to Large Kitchens

For businesses requiring more space and facilities, medium to large kitchens are ideal. These kitchens typically range from 500 to 1,000 square feet for medium kitchens and 1,000 to 2,000 square feet for large kitchens. Costs can vary even more depending on access and how modern the building and its equipment is. These kitchens often include additional prep areas and larger storage facilities, making them suitable for growing businesses with increased production needs.

Specialised Kitchens

Large kitchens with specialised equipment and extensive facilities can exceed 2,000 square feet and can cost more than £5,000 per month. These spaces are ideal for large-scale operations or businesses that require specific kitchen layouts. Specialised kitchens come with custom layouts, advanced professional-grade kitchen equipment, and extensive amenities such as large walk-in refrigerators, dedicated sections for different types of food preparation, and possibly office space within the kitchen area.

Understanding the size and layout of the kitchen that best suits your needs can help you better manage the commercial kitchen cost and ensure you have the appropriate space and facilities for your business operations.

Kitchen Equipment and Amenities

Many commercial kitchen spaces are often equipped with professional-grade kitchen equipment, which can be a significant cost-saving factor as purchasing equipment on your own can be expensive.

Additional Amenities

Features like extra storage, and office space can add to the overall cost. For example, if available, extra storage might add £100 to £300 per month, while dedicated office space can add another £200 to £500 per month.

Kitchen Utilities

Utilities are another critical cost component in commercial kitchen cost:

Inclusive Rentals

Some kitchen rentals include utilities (electricity, water, gas) in the rental price, making budgeting simpler for your business.

Separate Charges

If utilities are billed separately, you can expect additional costs ranging from £100 to £500 per month, depending on kitchen size and usage.

Budgeting Tips

  1. Assess Your Needs: Evaluate your business requirements to avoid overspending on unnecessary features. A clear understanding of your needs will guide your choice.

  1. Compare Options: Use platforms like Oya Kitchens Marketplace to compare various kitchen rental prices in terms of location, size, equipment, and price.

  1. Long-Term vs. Short-Term Rentals: Long-term contracts often offer better rates. For example, a 12-month contract might reduce the monthly cost by 10-15% compared to a month-to-month rental, providing significant savings.

  1. Factor in Additional Costs: Don’t forget costs like insurance, permits, and any additional staffing needed to manage the kitchen space.

Expanding Your Reach

In addition to traditional commercial kitchen rentals, consider other opportunities, like a Residency or Pop-up.

Renting a kitchen for pop-up experiences can be a great way to test new concepts without a long-term commitment. These can be found in various locations across London and since 2020 even more Pubs and Bars are always looking for new brands for residency opportunities.

Food Trucks

If you're considering a mobile option, renting a kitchen space to prepare food for your food truck can be more affordable than a permanent location.

More Useful Content

For a detailed guide and further insights into what to consider when renting a commercial kitchen, check out the complete guide to “Find a Commercial Kitchen to Rent in London”. Other useful content includes:

By understanding these cost factors and following our budgeting tips, you can ensure that you get the best value from your spacious commercial kitchen rental, setting your food business up for success.