October 31, 2025

Central Kitchens in Australia: Should You Build or Rent?

As Australia’s food delivery and catering scene continues to expand, the need for agile, scalable kitchen solutions has never been greater. Whether you’re launching a new food venture or expanding an existing one, there’s a key decision to make: Do you build your own central kitchen, or rent one that’s ready to go?

The answer isn’t always straightforward, but it’s one that can significantly impact your costs, timelines, and ability to grow. Here’s how to weigh up both options and decide what makes the most sense for your business.

Building a Kitchen in Australia – Is It Worth It?

Setting up your own kitchen can offer freedom and control, but it comes at a cost — both financial and operational. Let’s look at what’s involved when you build from scratch in Australia.

Pros of Full Ownership

  • Custom design – You have complete control over layout, workflow, and branding. Everything can be tailored to your operations.
  • Permanent setup – A built-for-purpose space means you’re not relocating or adjusting to shared infrastructure down the line.
  • Long-term investment – For well-funded businesses, owning the property and kitchen can build long-term asset value.
  • Brand alignment – You can create a physical environment that perfectly matches your brand identity and service model

Cons Most Aussie Startups Face

  • High upfront costs – Launching a traditional food premises in Australia can exceed AUD 200,000, especially when including fit-out, licensing, and equipment.
  • Slow time to market – Expect 6–12 months before launch, with added risks around construction and approvals.
  • Regulatory hurdles – Navigating food safety codes, zoning laws, and council permits can be complex and time-consuming.
  • Operational distractions – Managing contractors, licensing, and ongoing compliance takes time away from growing your actual business.

Why Renting Makes Sense for Modern Food Entrepreneurs

For many of today’s fast-moving food businesses, renting a commercial kitchen is the more strategic choice. Here’s why it works.

Faster and Less Risky

You can launch in weeks, not months, which is a major advantage in a competitive market. With plug-and-play setups like Chef Collective’s, the infrastructure is already compliant and ready to go. This reduces both cost and risk from day one.

Flexible and Scalable

Renting allows you to start small, test your model, and scale up or relocate as needed. With shorter-term commitments and a variety of kitchen sizes, it’s easy to adapt based on market demand or business evolution.

Operationally Hassle-Free

You don’t need to worry about permits, grease traps, or utility fit-outs. Chef Collective production kitchens are already fitted out to industry standards, so you can focus on food quality, delivery, and customer experience — not construction headaches.

Build vs. Rent: Which Kitchen Model Wins in Australia

Choosing between building and renting your kitchen comes down to speed, cost, and long-term goals. This comparison highlights how each option stacks up for Australian food businesses ready to grow.

FeatureBuildRent via Chef Collective
Initial CostFrom AUD 200,000+From AUD 10,000
Time to Launch6–12 monthsWithin weeks
ComplianceSelf-managedPre-certified
ScalabilityFixed setupEasy to adapt or relocate
Ideal ForLarge, stable groupsStartups, virtual brands, expanding operators

Many operators underestimate the operational burden of the building. Renting not only speeds up launch but also frees up headspace, so you can focus on growing your brand instead of managing a construction site.

Key Questions to Help You Decide

There’s no perfect model for every food business — only the one that aligns with your stage, goals, and budget. Below are some key questions to help clarify your decision.

  1. How much can you invest upfront? Building a central kitchen demands hundreds of thousands before you’re operational. Renting lowers the barrier, keeping more capital available for growth.
  2. Do you need to go to market quickly? Speed is everything for early-stage brands. Renting gets you cooking in weeks, not months. This is ideal for capturing demand fast or trialling new concepts.
  3. Is your business still evolving? If you’re still refining your menu, delivery model, or target market, renting gives you the flexibility to pivot without locking in major costs.
  4. Are you planning to grow or stay local? Expansion-ready rented kitchens let you scale into new areas easily, without the overhead of building from scratch every time.
  5. Do you want to focus on operations or overheads? When you rent, you’re free from the burden of managing utilities, permits, and maintenance. This lets you spend more time on food, not facilities.

Your Kitchen, Without the Commitment

Owning your own kitchen might sound like the ultimate goal, but for most modern food businesses, it often means unnecessary complexity and delay. Renting a purpose-built commercial kitchen gives you the speed, flexibility, and clarity to move forward with confidence.If you’re ready to simplify operations and grow your brand with less friction, explore Chef Collective and our range of production kitchens across Melbourne and Brisbane. With plug-and-play setups, flexible terms, and expert support, we make it easy to get cooking and get ahead!


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