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US build-out cost baseline
Design, procurement, construction and installation joined up: build schedule, equipment commissioning and on-site coordination. This page answers the question that comes first, before anything is signed — what does a fit-out actually cost, and why two stores of the same size can come in three times apart.
Cost bands
USD per square foot, covering construction and MEP. Excludes equipment and FF&E.
| Format | NYC outer boroughs |
|---|---|
| Coffee / bakery | $150–350 |
| QSR | $200–300 |
| Full-service restaurant | $300–500 |
| Fine dining | $400–800 |
- The table is benchmarked on the New York outer boroughs. Manhattan generally runs 20-30% higher, and union labour 30-50% above the national average.
- In lower-cost markets (a second-tier Midwestern city, say) the gap is an order of magnitude rather than a percentage: one Midwestern second-hand unit we calibrated against came in at a third to a half of the outer-borough QSR band.
- The bands are wide because they depend on the condition of the unit, not on the quality of the work — the real variables are under “Where the cost comes from” below.
The bands come from the convergence of several local contractors’ published 2026 cost guides, with the trade structure calibrated against real North American jobs we have run. It is a budget anchor and a basis for comparing bids, not a quote — a real quote has to be based on a specific unit.
Where the cost comes from
Almost every variable that decides the cost is locked in before work starts. By the construction stage, this money can no longer be saved.
Second-hand restaurant unit vs shell space
Saves 30-50% and several months
Site selection: a former restaurant with the exhaust shaft and grease interceptor still in place and enough electrical capacity — those three are worth more than the rent line.
Grease interceptor capacity
Can differ more than 8x within the same format
Site selection: capacity is set by the local sewer authority. Ask before signing — find out afterwards and you live with it.
Whether the equipment schedule is final
Without it you get a preliminary quote only, and change orders push it up sharply
Design: the BOM must carry an equipment schedule, or power and plumbing get built to guesswork.
Electrical upgrade / gas line sizing
An upgrade is a six-figure line of its own
Site selection: if existing capacity does not meet total load and BTU, it goes to a utility application measured in months.
Landlord improvement allowance (TI)
Often offsets 10-20% of total build cost in outer-borough units
Lease signing: negotiate it into the lease. Note it is usually reimbursed only after final sign-off, so the cash flow has to be fronted.
One-off pre-opening costs vs the monthly upkeep of the same name
Fold them into monthly opex and they vanish from the opening budget
Budgeting: the deep clean and grease interceptor work done before opening, to pass fire and food-safety inspection, are one-off pre-opening costs. They are a different thing from the routine monthly upkeep that carries the same name — list them separately in the budget, do not fold them into monthly opex.
Trade shares
Based on a 2,000 sq ft QSR, as a share of the total contract.
Schedule
From due diligence to opening, usually 6-12 months end to end.
Payments tied to inspections
This is the core of how we work this stage: nothing is closed up, no progress payment is released, and no stage advances until it passes. Each payment needs three things together — a progress verification, a signed inspection, and a lien waiver.
| Milestone | Share | Released against |
|---|---|---|
| Contract and mobilisation | 10% | Contract, certificates of insurance, permits posted |
| Demolition complete | 10–15% | Site verification plus disposal tickets |
| MEP rough-in | 20–25% | Electrical, plumbing, gas, HVAC and exhaust shaft all pass rough inspection |
| Grease interceptor and exhaust | 10–15% | Interceptor installation passes; hood installed and awaiting fire-system test |
| Finishes and equipment set | 20–25% | Finishes complete, equipment placed and connected |
| Final sign-off | 10–15% | Building final, pre-opening health inspection and fire sign-off all passed |
| Retainage | 5–10% | Punch list closed out and the full close-out package delivered |
The exclusions to check line by line when comparing bids
Three bids can look alike, and the difference is usually entirely in here. Anything left unstated becomes a change order after award — and change orders have been measured eating more than a fifth of the contract value.
- High-capacity commercial water heaters (usually optioned separately, and not a small line)
- Restroom flooring and fixtures (commonly excluded from the flooring package)
- Countertops and wall panelling (the GC does substrate only; finish surfaces sit with FF&E or a separate contract)
- Type I kitchen exhaust (HVAC quotes often cover ductwork only, not the hood line for open-flame formats)
- Damage during vacancy (burst pipes over winter and the like — problems predating handover are usually not covered)
- Asbestos and lead paint abatement (found in older buildings, work stops and it goes to a specialist)
- Utility account deposits and service-upgrade application fees
What we do at this stage
Three bids, aligned to one basis
The same drawings and equipment schedule go to every bidder, and every bid comes back on a Schedule of Values. No lump-sum black boxes — without that, three bids are not comparable at all.
Payments tied to inspections
Each payment needs three things together: a progress verification, a signed inspection, and a lien waiver. Nothing is closed up and no stage advances before it passes.
Change orders held to account
Every change goes in writing, states its price and schedule impact, and takes both signatures. Change orders are the main source of overrun — in one 2024 North American set of books we went through line by line, they accumulated to more than a fifth of the contract value. The timing matters more still: in that set they were concentrated entirely in the month before opening, and once the opening date is bearing down on you, you have almost no room to negotiate a change. Whatever needs asking has to be asked before work starts.
Preconditions checked early
Exhaust, grease, power and gas get verified during site selection and design — by the construction stage there is nothing left to save on them.
A licensed local general contractor does the building. We hold the drawings, the schedules, the basis for comparing bids, the inspection milestones and the change orders — so that every progress payment corresponds to something that has already passed.
To compare this baseline against your own project:
⑦ Submit a build-out requirement Model the total investment firstTakes over the drawings from stage ④ (Space Design) and the equipment delivery schedule from stages ⑤⑥; hands over to stage ⑧ (Training) after final sign-off.