Extra costs in a restaurant fit-out usually come up when shortfalls in electrical, gas, water or drainage capacity, or hidden faults, weren’t picked up before signing or starting, and when the works categories or permitted working hours weren’t made clear.
Whether you take on an existing restaurant space or a shell, checking the services’ capacity and condition with a specialist before you sign and start — and clearing up every “excluded works” line in the quote one by one — keeps surprise costs mid-job to a minimum.
This article covers eight situations where costs creep up and how to head them off, the difference between second-hand restaurant space and shell space, the risks of choosing on price alone, and a quote checklist — all from a practical point of view. For ways to keep costs down, see “Hybrid DIY”, and for health centre and fire department procedures, “Pre-Consultation with the Health Centre & Fire Department”.
Second-hand restaurant space vs. shell space
A second-hand restaurant space is a unit let with the previous tenant’s equipment and fit-out still in place. A shell space is a unit let with the fit-out and services stripped out, leaving the building’s structure (concrete or steel) exposed. Where extra costs tend to arise depends on which you take on.
| Item | Second-hand restaurant space | Shell space |
|---|---|---|
| Condition | Previous restaurant’s equipment and fit-out remain | No fit-out or services |
| Common causes of extra cost | Faults in the remaining equipment / changing a layout that doesn’t suit the new concept / insufficient electrical or extract capacity / removing and disposing of unwanted equipment | Bringing in water, gas and electricity from scratch / new waterproofing or grease trap / changes in material prices |
| Watch out for | If equipment you counted on doesn’t work, you pay to remove it and to install new | Plumbing, extract and other services take a big share of the budget, leaving less for finishes |
* Fit-out costs vary widely with the unit’s condition, the type of restaurant, the floor area and the materials and equipment chosen. There is no single nationwide benchmark, so check with a site survey and quote.
Eight situations where costs creep up — and how to head them off
1. Not enough electrical, gas, water, drainage or extract capacity
Why it happens: bring in different cooking equipment from the previous tenant (high-output burners, a large oven, a commercial dishwasher) and the existing electrical capacity, gas supply or pipe sizes may fall short, so the supply has to be upgraded.
How to prevent it: before signing, list the power and gas consumption of all the kitchen equipment you plan to install, and ask an electrical contractor and the gas company whether the current capacity is enough.
2. A new or bigger grease trap
A grease trap is a device that separates out fats, oils and food scraps from kitchen wastewater before it reaches the sewer.
Why it happens: if the existing grease trap is too small or there isn’t one, local rules or the building’s rules may require a new one.
How to prevent it: check in advance with the municipality’s sewerage department, a designated contractor or the building management whether one is required and whether the existing capacity is enough.
3. Hidden faults in equipment left behind
Why it happens: air conditioning, extract ducts, water heaters or pipework taken over with the unit may look fine but fail or leak once you run them, needing repair or replacement.
How to prevent it: before handover, run everything with a specialist present, and set out in the fixtures-transfer contract who pays if there are faults.
4. Rework after health centre or fire station comments
Why it happens: after work starts, it turns out the facility standards of the public health centre (hand-washing facilities, number of sinks and so on — these vary by municipality) or fire standards (flame-retardant products, exit signs, fire alarms and so on) aren’t met, so walls have to be redone or equipment added.
How to prevent it: before starting, take your plans to the health centre and fire station, and update the plans with their comments before work begins.
5. Not checking reinstatement terms
Why it happens: building fixtures without considering the lease’s reinstatement terms (how much has to be returned to its original state when you leave), or damaging the building’s structure, means the scope has to be revised or reinforcement added.
How to prevent it: share the lease’s reinstatement clause with your contractor, and confirm in writing with the landlord or management company what you may alter.
6. Misunderstanding the building’s works categories (A, B and C works)
Works categories are a Japanese building rule that splits fit-out work in multi-tenant buildings into “A, B and C works” according to who orders it, who pays and who chooses the contractor.
Why it happens: work you planned to save on with your own contractor (C works), such as connecting extract ducts or fire-protection equipment, turns out to be “B works” that only the building’s nominated contractor can do, so you have to accept the building’s price.
How to prevent it: check the unit’s works-category schedule before signing, and get a quote from the building’s nominated contractor for anything classed as B works in advance.
7. Night and weekend surcharges
Why it happens: in shopping centres and office buildings, noisy work and deliveries may not be allowed during the day, and night or weekend working can add surcharges and security costs.
How to prevent it: check the permitted working hours in the building rules, and if night work is needed, have it included in the quote from the start.
8. Disposing of strip-out waste
Why it happens: if strip-out produces more concrete rubble or unwanted fixtures than expected, the cost of disposing of it as industrial waste and similar rises.
How to prevent it: agree on site exactly what will be stripped out, and check that disposal is itemised by quantity in the quote rather than as a lump sum.
The risks of choosing materials and contractors on price alone
Choosing on the cheapest labour or materials can cost more in the end through wear and upkeep after opening.
- Durability and hygiene: cheap materials that don’t stand up to water and grease around the kitchen can peel or deteriorate early, forcing you to close for repairs.
- Ease of cleaning: heavily textured finishes and complicated joinery take longer to clean, adding to staff workload and making hygiene harder.
- Ease of repair: using lots of unusual imported materials or discontinued furniture can mean no spare parts when something breaks, so you have to replace the whole item.
What to check in a quote
In a contractor’s quote, check that the following are spelled out.
- What “lump sum” covers: rather than “electrical works — lump sum” or “strip-out — lump sum”, is there a breakdown of cable lengths, numbers of fittings, labour and unit prices?
- What is “excluded”: are power connections to equipment, links to fire-protection systems, openings for ducts, and temporary electricity and water during the works included or excluded?
- Installing and adapting owner-supplied items: is fitting furniture or used materials you supplied included? Check delivery from the store to the site and the on-site installation labour separately.
- Disposal and carrying in: are delivery charges for materials and disposal of waste from the works clearly stated?
Want help keeping fit-out costs down?
At Tenpos Kawaguchi Interior Materials, you can talk to us about buying used restaurant interior materials (chairs, tables, lighting, doors and fittings, flooring, reclaimed wood and more) and finding craftsmen for just the trades you need, all at once. Everything we buy in is inspected, cleaned and repaired in our own workshop before it goes on sale. For craftsman introductions, there’s no fee to you as the client, and quotes are free; you contract with and pay the craftsman directly.
In store, you can also build a 3D plan of your restaurant with our staff, free of charge (by appointment; finished on the spot; viewed on screen in store; not an official drawing). It’s useful while you’re working out the layout.
Build your restaurant (craftsmen and 3D plans) → Ask about a craftsman →