January 11, 2023

Australia Commercial Kitchens: Dos and Don’ts


Commercial kitchens are becoming an increasingly adopted business model for restaurant owners around the world, including Australia, due to the reduced financial investment required and the potential for major profit. These spaces can be shared by multiple brands, so business entities with multiple ventures can assess whether their dishes are a hit before scaling and branching out into new markets. 

With a growing number of commercial kitchen spaces for hire, there are a number of dos and don’ts restaurateurs need to be aware of prior to getting their business off the ground and firing on all cylinders. 

Determining the amount of space you need

When finding a commercial kitchen space for rent, you need to know which size will best suit your business needs. If you have plenty of orders, you may require a larger space for more equipment and staff. However, if you operate a smaller, or perhaps more specialised, operation, then you should consider if you want to spend more money on rent or use those funds for other aspects of your business. 

DO: Think long and hard about the commercial kitchen spaces for rent and which size is ideal for your eatery.

DON’T: Prematurely pull the trigger and rent a larger kitchen space. Think about the financial impact it may have on your business and whether it will harm the profits you could be making. 

How often will you use the space?

Before you move into your commercial kitchen unit, it is imperative to know whether you will be using the space all the time or if you only need it for a specific number of hours. For example, kebab houses may operate longer hours as they cater to a late-night crowd in comparison to a regular burger business. 

DO: Assess whether your business needs to operate for a lengthy period of time every day.

DON’T: Decide to rent a kitchen space on a full-time basis if it is not needed.

What amount of food do you need to sell?

When finding the perfect commercial kitchen space for rent, you will need to know how much you need to sell, along with the prices, to ensure your business is making the money and profits needed to keep its doors open. Depending on the amount of food needed to be made, it will impact the size of your kitchen, as well as the equipment required. 

DO: Find out how much food you need to make in order to hit your revenue and profit forecasts. This step will also help determine how many hours your restaurant needs to operate daily. 

DON’T: Prepare too much food thinking it will sell and net you more money. When launching your commercial kitchen business, you don’t want anything going to waste! 

How much equipment do you need?

Many commercial kitchen spaces for rent do come with some equipment, so it is necessary to see what is already available before noting down what you need to buy. Depending on the requirements of your eatery, you will need to think about the apparatus you will use every day, such as fridges, freezers and pans. However, don’t forget about specialist equipment that may be required to create particular dishes for specific types of cuisine. 

DO: Find out what equipment is already available in the kitchen space before purchasing what you need to create your dishes. 

DON’T: Go overboard when buying equipment as you could end up hurting your business’s profit margins.

Pick the right location

When finding the right kitchen unit for your business, you need to do your research on the surrounding area and learn whether your type of cuisine will be a hit with the locals. For example, if you make incredible burgers, you are going to want to be near schools and universities. It is also vital to be close to your suppliers and in a district where your food may be underrepresented so that your restaurant becomes people’s go-to choice for particular dishes they may be hungry for. 

DO: Locate the right area when finding a commercial kitchen space for rent as this will help you penetrate the market and boost your profits. 

DON’T: Select a location without doing any background research as it may not be the right area for your business to grow. 

What type of commercial kitchen best suits your needs?

Commercial kitchens are large spaces that are shared by multiple businesses, but there are different kinds available that are better suited for certain types of eateries. These include:

Catering kitchens – Businesses that use these facilities generally have large orders to cater to and require a lot more space and staff. Many restaurants use these spaces as an off-site venue as their on-site kitchen can’t handle the demand for all the orders that come in. 

Ghost kitchens – This is the perfect kitchen space to rent if your eatery solely revolves around a delivery-based model. At Chef Collective, our ghost kitchens are situated in strategic locations throughout Australia so that businesses that operate out of our facilities have an established customer base right from the get-go.

Central production units – These spaces are optimal for F&B businesses that prepare meals to be delivered to other locations before being served to customers. Restaurant owners that move into these units usually do so to reduce the size of their workspace or don’t have permission to make hot food on their own premises. 

DO: Look at the different types of commercial kitchen spaces for rent and pinpoint which one fully meets the needs of your restaurant. It is worth knowing that catering kitchens can be used part-time or full-time, and can be shared or rented privately. In regards to ghost kitchens, you need to ensure you find the ideal size and location. 

DON’T: Believe that all commercial kitchen spaces for rent are exactly the same. As mentioned above, they are completely different and used for varying purposes. 

Get your licencing in order

Just like all businesses, licences are a must, regardless of whether you operate a traditional restaurant or operate out of a commercial kitchen. At Chef Collective’s facilities, we handle all the work, so you can prioritise the growth of your business. 

DO: Look into what licences you need to run your commercial kitchen, so that you aren’t at risk of breaking any laws or getting shut down. 

DON’T: Be naive and think all your licences are in order. Do your research on which permits you need and check when they expire once they are granted.

Is all the safety equipment needed available?

Since workplace accidents can happen at any time, it is imperative that you have the necessary safety equipment present to deal with any type of emergency. The last thing you want is to breach any regulations by cutting corners! 

DO: Have all the required safety equipment available so that your employees are safe and well protected. 

DON’T: Neglect certain safety equipment as it can land you in a lot of trouble. 

Check the terms of your contract

Upon finding a commercial kitchen space for rent, you should check through the contract terms before signing on the fitted line. Be sure to keep a close eye on the following: 

  • When the rent has to be paid 
  • Does a break clause exist
  • What is the deposit amount
  • Are there hidden costs 

Even though it can be tempting to sign your contract immediately, especially if you like the kitchen unit, it is essential to thoroughly read through everything and know all the vital terms and conditions. 

DO: Check your rental contract properly so that you know all the details before moving in. 

DON’T: Blindly sign your contract without checking anything as it is a surefire recipe for disaster.

Your commercial kitchen awaits

Now that you know the dos and don’ts when looking for a commercial kitchen space for rent, it should be easy to implement everything that will help your business blossom. 

Interested in launching a CloudKitchen® delivery kitchen in one of our facilities in Australia? Complete the form or feel free to contact us

More insights & stories

There’s more where that came from. Get in the know and check out our addtional insights

Tap into the world of dark kitchens, powered by CloudKitchens™

Tell us a little more about yourself and your ideas so we can put you with the right people. Let us know if you want to schedule a tour of our CloudKitchens™ dark kitchen facilities in Australia or if you have questions.

Full name
Contact number
Company name

Estimated daily orders

Preferred locations

Thanks for contacting us!

We'll reach out shortly so we can understand your business and needs better.