F&B fit-out cost in KL and Selangor, and how long a lease it needs

There is no honest single figure for F&B fit-out per square foot in KL or Selangor. A café that takes over a working kitchen and a new restaurant that needs exhaust ducting, a grease trap, 3-phase power and a cold room can differ several times over. Price your own shop from three itemised contractor quotes, add every other opening cost, and then choose a lease whose fixed term plus renewal options lasts longer than your payback period.

Most first budgets only count renovation. The real number is everything you spend before the first customer pays, plus enough cash to survive the slow first months. Use this list and fill in your own quotes:

The first two rows alone tie up three to four months of rent. On a RM 12,000 shop that is roughly RM 36,000 to RM 48,000 before a single tile is laid.

Work from the drawing, not from a rate you heard elsewhere:

1. Fix the menu first. Wok cooking, deep frying and grilling need heavier exhaust and more power than a coffee bar.
2. Survey what the shop already has. Our guide to exhaust, 3-phase power and water points explains how to check each one. A former restaurant with a working duct route can save a large part of the budget.
3. Get three itemised quotes on the same layout. Compare line by line, not just the total.
4. Add a contingency. Old shops hide surprises behind ceilings and floors.
5. Count the exit cost. Many tenancies require you to restore the shop when you leave. Read do you have to reinstate the shop and price it now.

Often yes, but check four things before you sign:

• Power. Walk-in chillers and several upright freezers usually push a shop onto 3-phase supply. Confirm the meter board and whether the landlord will let you upgrade it.
• Floor and space. A cold room needs a level floor, insulation and clear space for the door to swing. Ask the landlord about any limits on heavy loads.
• Where the condensers go. Outdoor units need a place at the back lane or on the roof, and the landlord's or management's consent. Never assume the five-foot way is available.
• Drainage and noise. Condensate needs a drain, and neighbours notice noisy compressors at night.

If any of these needs approval from the building owner, get it in writing before you pay the deposit.

Start with the payback. If the fit-out has to earn back RM 500,000 from profit, the time depends on what the restaurant clears each month:

The rule: your fixed term plus the renewal options you control should run well past that payback. With a 4-year payback, a plain 3-year tenancy is too short. A 3+3 with a written renewal option is the minimum, and 3+3+3 is safer. These are illustrations only; use your own forecast.

Two legal points shape the drafting. Fixed terms over three years, or renewals taking the total over three years, may be treated as a lease that needs registration under the National Land Code (LH Low & Associates), and the term changes the stamp duty band. Our guide to 3+3 terms, rent caps and break clauses covers the negotiation. This is general information, not legal advice; have your lawyer draft the renewal clause.

• Renewal is the tenant's option, not "subject to mutual agreement".
• The renewal rent follows a formula or a cap agreed now.
• A rent-free fit-out period matched to the real build time.
• Clear rules on which fixtures you may remove and what you must reinstate.
• Consent to assign the tenancy if you sell the business.
• Rent you can carry: Pavilion REIT put F&B occupancy cost at 10% to 15% of sales before the pandemic. Test yours with the rent affordability calculator.

Chains compare many units at once, and the shop that saves them time and money usually wins. Before marketing the unit, a landlord can:

• Confirm or provide 3-phase power, water inlet and outlet, and a grease trap point.
• Show a realistic exhaust route to the roof or rear, with the building's consent.
• Hand over a clean, bare shell rather than a dated fit-out the chain will strip out. See should you renovate before renting out.
• Offer a rent-free fit-out period and a longer term with renewal options.
• Provide floor plans and approved-use documents so the chain can apply for its licence quickly.

Send MCE your menu, size and budget, and we will shortlist ground-floor units that already have the kitchen services, so less of your money goes into building works.

Written by Tok Ginstee (REN 37505), CID Realtors Sdn Bhd (E (1) 1855). Updated November 2026.