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How much does it cost to open a restaurant in the UK in 2026?

How much does it cost to open a restaurant in the UK? A realistic £25,000 breakdown, from kitchen kit to licences, based on a founder who did it.

Reading time 4 min read
Category Business guides
Written by The bizbritain team
How much does it cost to open a restaurant in the UK? In our experience, a small independent site can open for £20,000 to £30,000. Azmol Ali did it with a £25,000 Start Up Loan. This guide breaks that budget down, item by item.
The ranges below come from our work with first-time founders. Every opening is different. Treat them as a planning guide, not a quote.

Section 01

The cost to open a restaurant in the UK, item by item

Here is how a £25,000 budget typically splits for a small restaurant.

  1. Kitchen equipment: £8,000 to £12,000

    Ovens, fridges, freezers and prep stations are the biggest single cost. Buying good second-hand equipment can cut this in half.

  2. Fit-out and furniture: £4,000 to £6,000

    Flooring, lighting, tables and chairs. A simple room that opens on time beats a beautiful one that opens late.

  3. Deposit and rent in advance: £3,000 to £5,000

    Most landlords ask for a deposit plus rent up front. Budget for three months of rent before the till covers it.

  4. Licences and registrations: £0 to £500

    Registering your food business is free. A premises licence for alcohol starts at £100. The licensing section below has the detail.

  5. Opening stock: £1,500 to £2,500

    Enough food and drink for the first weeks of trading. Start lean and reorder fast.

  6. Working capital: £3,000 to £5,000

    Cash for wages, bills and quiet weeks. In our experience, running out of cash closes more new restaurants than bad food does.

Section 02

How Azmol Ali opened Lavang with £25,000

Azmol Ali wanted to open a restaurant in the West Midlands. His bank said no.
He came to bizbritain instead. We helped him prepare his application for a £25,000 Start Up Loan. He was approved in 2018.
He used the money to launch Lavang. The restaurant now serves customers seven days a week. You can hear Azmol tell the story himself in his short film.

Section 03

The registrations and licences you cannot skip

Every new restaurant must register as a food business with its local council. According to the Food Standards Agency, you must register at least 28 days before you open. Registration is free and cannot be refused.
After you open, a council inspector will visit and give you a food hygiene rating. A good rating on the door builds trust from day one.
Want to serve alcohol? You will need a premises licence. According to GOV.UK, the application fee is banded by your property's rateable value. Most small restaurants pay £190 or £315. There is also a yearly fee.
Licensing works differently in Scotland and Northern Ireland. The fees above apply in England and Wales.

Section 04

Can a Start Up Loan cover restaurant start-up costs?

Yes, for many first-time founders it can. The Start Up Loans scheme is backed by the government. It lends £500 to £25,000 per founder. The rate is 7.5%, fixed for the whole term.
£25,000maximum loan per founder
7.5%fixed annual interest rate
1 to 5years to repay, your choice
£100,000per business, across up to four co-founders
Opening with partners? Up to four co-founders can each apply. A single business can borrow up to £100,000 in total.
You can apply before you open or at any point in your first five years of trading. Every approved founder also gets 12 months of free mentoring.
The scheme will ask for a business plan and a cash flow forecast. We have short guides on both: your business plan and your cash flow forecast.
As a Start Up Loans Business Support Partner, we help founders get both documents right before they apply for a Start Up Loan.

Can I get a Start Up Loan for a food truck or cafe?

Yes. The scheme funds most food businesses, from food trucks to cafes to full restaurants. The same limits and the same 7.5% rate apply. The costs are smaller, though. In our experience, a food truck can open for well under £25,000.

This guide is general information, not financial advice. Applications are subject to status, affordability and lender criteria. Registration and licence figures are from the Food Standards Agency and GOV.UK, checked August 2026. Cost ranges reflect bizbritain's experience of typical small openings and are not quotes.

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