Updated November 11, 2026
Quick answer
Budget restaurant equipment in Canada using the price of the equipment, the work required to install and test it, and the cash you need while the kitchen opens or reopens. Request quotes for your menu, service volume and premises. A second-generation restaurant with usable utilities and ventilation has a different scope from an empty unit. Make each supplier show what's included, who does the work and when you pay. Use that schedule to calculate how much cash you will need before the first service.
Key takeaways
- Size the cook line, refrigeration and dishwashing for your busiest service and your menu.
- Compare delivered, connected and tested costs. Check that two quotes cover the same equipment and work.
- Keep separate amounts for equipment payments, building work and the cash the restaurant needs until receipts cover expenses.
Start with the menu and the room
Write down what will come off the line in your busiest hour. A breakfast counter can put most of its workload on a griddle and coffee station. A small dinner menu can need more cold prep space, separate hot holding or a different dishwashing setup. Ask the supplier to estimate how many portions, racks or drinks each proposed model can handle in your service pattern. Price the cook line and the equipment that feeds and clears it. A faster oven has limited value if the cold line is short on prep space or clean trays are still in the dishwasher.
Then walk the site with your installer and the equipment schedule. Record door widths, loading access, delivery hours, service clearances and utility connections. An oven can fit in its final position and still be too large for a turn in the delivery route. For an existing kitchen, confirm who owns the installed equipment and ask for service records before assuming you can reuse it. If you expect the landlord to provide working ventilation, check what the premises agreement actually includes and ask an installer to assess the proposed cooking line against it.
Talk to the local health and building authorities before ordering equipment that depends on the layout. Toronto Public Health, for example, asks operators to submit plans before construction, with the location of kitchen equipment, dishwashing and handwashing facilities. The city describes a pre-opening inspection after construction. Use the guidance for your own municipality and province when you schedule the work and set a deposit date.
If you have a choice between two locations, price the same kitchen in both. An existing hood may be useful if it can serve the planned line and pass the required checks. If the layout needs changes, ask which utilities can stay and which must move. At an unfinished site, price the route for ductwork and check access for the contractors before finalizing the floor plan. Keep the equipment list constant until you can see what each room adds to the project.
Build the budget by work station
| Station | Typical items to specify | Costs to check separately |
|---|---|---|
| Cook line and hot holding | Ranges, ovens, fryers, griddles and cabinets | Gas or electrical work, clearances, ventilation and fire suppression where required |
| Cold storage and prep | Reach-ins, freezers, prep tables and walk-in components | Installation, drainage, walk-in assembly and access for service |
| Warewashing | Dishwasher, sinks, dish tables and racks | Water, drainage, booster heating or chemical supply as specified for the model |
| Beverage and ice | Ice machine and bin, coffee equipment and undercounter refrigeration | Water filtration, drainage, connections and cleaning supplies |
| Prep and smallwares | Worktables, shelving, mixers, pans and utensils | Assembly, racks, spare inserts and enough smallwares to cover the service cycle |
Give the same schedule to each vendor. Ask for model numbers, quantities, substitutions and lead times. Put freight, inside delivery, rigging, connection and commissioning on separate lines. Commissioning is the work that confirms the installed equipment runs as intended. Ask who's responsible for it and what happens if a model arrives damaged or cannot be connected. For ventilation, have the installer identify the complete scope. A hood quote might cover only the hood itself, leaving ductwork, make-up air, controls and related trades to other contractors.
Take overlapping lines off the comparison only after you know which contractor owns them. If the equipment dealer and plumber both include connection, ask which quote covers the actual model and site. Where no quote covers the connection, assign someone to price it and leave the line open. A blank line can disappear from the total while the work is still required.
Compare new, used and refurbished at the point of service
For a used or refurbished unit, request the model and serial numbers, test results, the scope of any repairs and the written warranty. Ask what “refurbished” covers. A cleaned machine with new door seals has a different repair history from one with a replaced compressor. For refrigeration, ask a technician to confirm it reaches and holds the required temperature, and whether parts and local service are available. For warewashing, verify the proposed machine's requirements against the site's water supply and installation plan.
Compare two offers for the same job. A dealer package can include delivery and commissioning, while a private seller or auction may quote only the unit. Add buyer fees, removal, transport, repairs and an installer visit where applicable. Ask whether the unit can be tested before payment and what happens if it fails at startup. Check the provider's rules for the asset and seller before you bid or make a deposit. The used restaurant equipment guide covers financing questions for those purchase channels.
Ask what failure would do to the menu. If a single reach-in holds the ingredients for several core items, decide how you would store them safely if it went down and what a technician call or replacement would cost. For new and used equipment with comparable capacity, compare energy and water use using model data and your operating hours. Natural Resources Canada lists commercial food service equipment categories eligible for ENERGY STAR, including some ovens, self-contained refrigerators and dishwashers. Use the model's own figures and your utility rates to estimate operating costs.
Turn the quotes into a cash schedule
For each major item, record four amounts. First enter the unit and accessories. Next add the costs needed to get the equipment into position, connected and tested. Then enter the portion the signed financing offer covers and when the provider pays it. Finally, record the remainder you will pay, with dates. Include deposits, labour or building work excluded from the offer. Where you will receive reimbursement, show the outgoing payment and incoming reimbursement on their separate dates.
Now total the deposits and balances by week. If equipment arrives before utilities are ready, price any storage, second delivery or extra contractor visit. Ask which payments would still be due if the opening moved back. Keep those costs beside rent, staffing and initial inventory in the cash plan. A separate contingency for changes to the site work makes it easier to see whether the equipment budget is using money needed for operations.
For replacement projects, add the cost of removing the existing unit and the time you will lose at that station. If you can shut the line for only one day, confirm who disconnects the old unit, who delivers the new one and when the trades are available. Ask who keeps or disposes of the old equipment. Use the second-location financing guide if you need to coordinate a larger opening with an existing operation.
Frequently asked questions
How much should I set aside for restaurant equipment?
Start with site-specific quotes for equipment, building work and installation. Add enough cash for known deposits and the unfunded balance. Then add a contingency tied to unresolved work, such as a utility upgrade that still needs a contractor's price. Revisit the total when those costs are firm. A national equipment range cannot tell you whether your unit needs new connections or whether an existing system can support your menu.
Can installation be included in equipment financing?
Ask the provider to confirm each item in writing. Send separate vendor and contractor invoices for the equipment, freight, connections and commissioning. If the offer excludes ductwork or other building improvements, show how you will pay for them before booking the work. The commercial kitchen line financing guide covers mixed invoices and staged supplier payments.
Can I finance equipment for a first location?
Financing depends on the business, equipment and provider. Mehmi's startup financing review requires at least six months of revenue shown on bank statements. If the restaurant has no operating revenue yet, check which equipment purchases and building costs you need to cover with available cash before making commitments.
Tools and next steps
Use the equipment financing calculator for an estimate on the equipment portion. Compare its payments against the signed offer and add the amounts you owe the installer and other vendors on their due dates. Keep the site plan, equipment schedule and quote revisions together so each contractor works from the same equipment list.
To review a Canadian kitchen equipment quote with Mehmi Financial Group, contact us or call 1-833-863-4644 with your itemized quotes and planned opening date.
Sources
- Toronto Public Health plan submission guidance, equipment placement and inspection sequence.
- Ontario Food Premises Regulation, equipment, sanitation and ventilation requirements.
- Natural Resources Canada commercial food service appliances, energy-efficient equipment categories and model search.
By Jodhbir Mehmi. Read our editorial standards.