How Much Does It Really Cost to Renovate Your First Commercial Shop in Singapore?

When transitioning from a home-based baking business to your first brick-and-mortar café, the initial excitement is often met with a severe case of "sticker shock." Many first-time F&B owners base their budget expectations on residential HDB renovations — but commercial F&B interior design is an entirely different beast. Unlike a residential kitchen, a commercial space requires heavy-duty infrastructure, strict government compliance, and durable materials designed to withstand hundreds of customers a day.

At Skai Atelier, we believe in absolute financial transparency. As an experienced café interior designer, we want to help you set realistic expectations before you sign a commercial lease. Here's a realistic breakdown of commercial F&B renovation costs in 2026.

1. The baseline: cost per square foot (psf)

In 2026, the average cost of a full fit-out for a café or small F&B outlet in Singapore ranges from $180 to $350 per square foot, depending on the condition of the unit and the complexity of your design. For a typical 1,000 sq ft café, prepare a baseline renovation budget of $180,000 to $350,000. Why is the range so wide? It comes down to whether you're taking over a "bare" unit or one that previously housed an F&B business.

2. The biggest budget eater: M&E and kitchen setup

If you're transitioning from an HDB kitchen, you're used to plugging your oven into a standard wall socket. In a commercial shop, Mechanical and Electrical (M&E) works will consume 40% to 50% of your total renovation budget.

Commercial exhaust & ventilation — if you're baking or cooking on-site, a fire-rated commercial exhaust system is mandatory. Installing the ducting, exhaust hood, and fresh air intake can easily cost between $15,000 and $30,000.

Plumbing & grease traps — commercial sinks require specialised plumbing and mandatory grease traps to prevent oils from clogging the city's sewage system.

Electrical upgrades — commercial espresso machines, display chillers, and heavy-duty ovens draw significant power. Upgrading the electrical load (e.g. to 3-phase supply) and rewiring the unit is a major, if invisible, expense.

3. Compliance and submission fees

Before a single hammer swings, find out which approvals your unit actually needs. That depends on the unit's approved existing use, your proposed use, the building or property type, any planning authorisation conditions that apply, and the scope of your works. A specialised interior designer for café projects will coordinate whichever submissions apply.

URA change of use — check the unit's last approved use in URA SPACE before you sign the lease, then confirm which of three routes applies. Converting between shop, showroom and restaurant in approved commercial premises needs no planning permission if the unit meets URA's qualifying conditions. Some pre-identified uses in selected commercial buildings and first-storey shophouses qualify for the Change of Use Lodgment Scheme. Every other case needs a full Change of Use application.

SCDF fire safety — the submission depends on the works. Works that require plan approval cannot start until SCDF has approved plans prepared by a Qualified Person. Qualifying minor additions and alterations can proceed after an MAA lodgement. Works covered by the Fire Safety (Exemption) Order are exempt from plan submission, but they must still comply with fire-safety requirements.

Budget — on our past café projects, professional endorsements and fire-safety plan submissions have typically cost $5,000 to $10,000. Treat that as a working allowance, not a fixed authority fee. The actual cost varies with which Qualified Persons are needed, whether a Professional Engineer (PE) must be involved, which authority submissions apply and the scope of the project. Starting works before a required approval, or trading under a use that isn't approved, can lead to costly rework and delay your opening.

4. Front-of-house: the "Instagram" factor

This is where your brand story comes to life. While you want your café interior to be highly "Instagrammable," commercial-grade finishes cost more than residential ones.

Custom carpentry — a beautiful, ergonomic barista counter with integrated under-counter fridges and hidden cable management is custom-built and can cost upwards of $15,000.

Commercial flooring — standard residential vinyl won't do in a high-traffic café. You need heavy-duty, slip-resistant commercial flooring (epoxy, terrazzo, or high-grade commercial tiles) that withstands constant foot traffic and daily chemical mopping.

5. The "takeover" strategy for first-timers

If a $200,000+ price tag is daunting for your first shop, the smartest financial move is to find a "takeover unit" — a space that was already an approved F&B outlet. By inheriting the existing exhaust ducting, grease traps, and upgraded electrical boards, you can slash your M&E costs drastically, letting your budget focus purely on the cosmetic front-of-house design.

About The Author

Written by Johnray Lee, a Melbourne-trained designer (Master of Architecture, University of Melbourne; architectural design, RMIT), Principal Designer & Project Manager and founder of Skai Atelier, an interior design studio in Singapore specialising in café renovation, F&B interior design, and residential renovation.

Keep Reading

• Café & Commercial Licensing Requirements for Cafes in Singapore
• How to Open a Cafe in Singapore
• Does This Unit Work for You? A Checklist Before Placing Your F&B Rental Deposit
• F&B Renovation Singapore: Complete Cost & Compliance Guide (2026)
• Commercial Kitchen Design & Renovation Cost Singapore (2026)