What does it cost to start a café business?
A café is one of the most capital-intensive small businesses to start because of the fit-out, commercial equipment and lease. Most independent Australian cafés open on a budget somewhere between a lean takeaway window and a full sit-down venue, and the single biggest swing factor is whether you take over an existing fitted café or build one from bare shell.
As a guide, plan for around $52,000 – $195,500 in one-off setup costs and $14,300 – $49,400 per month in running costs. Adding a three-month cash buffer puts a realistic launch figure at $94,900 – $343,700.
One-off setup costs
The costs you pay once to get up and running:
| Item | Typical cost |
|---|---|
| Lease bond & first month rent | $6,000 – $18,000 |
| Shop fit-out & furniture | $20,000 – $90,000 |
| Commercial espresso machine & grinder | $8,000 – $25,000 |
| Kitchen & refrigeration equipment | $10,000 – $40,000 |
| POS, signage & branding | $3,000 – $9,000 |
| Initial stock (coffee, food, packaging) | $3,000 – $7,000 |
| Council & food licences | $500 – $2,500 |
| Insurance (first year) | $1,500 – $4,000 |
Totals roughly $52,000 – $195,500. Buying used or starting lean lands you near the lower end.
Monthly running costs
The ongoing costs of operating each month:
| Item | Typical cost |
|---|---|
| Rent | $3,000 – $9,000 |
| Wages (staff) | $6,000 – $22,000 |
| Stock & ingredients | $4,000 – $14,000 |
| Utilities (power, gas, water) | $800 – $2,500 |
| Marketing | $300 – $1,200 |
| Accounting & software | $200 – $700 |
Totals roughly $14,300 – $49,400 per month. Work out your break-even point →
Licences & registrations
- Food business notification/registration with your local council
- Food Safety Supervisor certificate
- Council development/fit-out approval for a new venue
- Music licence (OneMusic) if you play music
- Liquor licence only if serving alcohol
Not legal advice — requirements vary by state and council. Check business.gov.au and your local council.
Tips to start lean
- Taking over an existing café with equipment can cut your fit-out cost by more than half.
- Negotiate a rent-free fit-out period into the lease — landlords often grant 1–3 months.
- Wages are usually the largest ongoing cost, not coffee — roster tightly around peak hours.
Frequently asked questions
How much does it cost to start a café business in Australia?
A small, owner-operated start typically costs around $94,900 – $343,700. That covers roughly $52,000 – $195,500 in one-off setup costs plus a three-month buffer for running costs of about $14,300 – $49,400 per month. Your actual figure depends heavily on scale, location and whether you buy new or used.
What are the ongoing monthly costs?
Expect ongoing running costs of roughly $14,300 – $49,400 per month, covering items like rent, wages (staff), stock & ingredients and more. Use the break-even calculator to see how many sales cover these.
What licences or registrations do I need?
Common requirements include: Food business notification/registration with your local council; Food Safety Supervisor certificate; Council development/fit-out approval for a new venue; Music licence (OneMusic) if you play music; Liquor licence only if serving alcohol. Always confirm the exact requirements with your state and local council.
Can I start a café business cheaply?
Yes — the low end of the range (around $94,900) is realistic if you start lean: buy used equipment, start from home or solo where possible, and avoid a fixed lease until demand is proven.
Cost ranges are general estimates for 2025–26 and vary widely by location, scale and choices. Not financial or business advice.