The oven is the decision. A three-deck bakery oven runs $15,000 to $45,000 and a rotary rack oven $30,000 to $80,000, which is usually more than every other appliance in the kitchen combined. Get the oven finance right and the rest of the fit-out follows easily.
The short version
- Ovens are the largest single line item in almost every bakery and commercial kitchen, and they hold value better than anything else in the room.
- Refrigeration is the second largest cost and the one most often underestimated, particularly if a walk-in coldroom is involved.
- Used commercial kitchen equipment is genuinely harder to finance than used machinery in other industries, and the reason is resale value rather than snobbery.
- Extraction canopies, grease traps and make-up air are building works, not equipment. They cannot be financed as assets.
- Gas, three phase power and ventilation capacity should be confirmed before you order anything. Retrofitting them costs more than the appliance.
What does commercial kitchen and bakery equipment cost?
| Equipment | Indicative cost | Notes |
|---|---|---|
| Deck oven, 3 deck | $15,000 to $45,000 | The bakery workhorse. Holds value well. |
| Rotary rack oven | $30,000 to $80,000 | Higher volume. Needs the space and the power. |
| Combi oven, 6 to 10 tray | $12,000 to $35,000 | The most versatile appliance in a restaurant kitchen. |
| Spiral dough mixer, 40 to 80kg | $8,000 to $25,000 | |
| Planetary mixer | $3,000 to $12,000 | |
| Dough divider and rounder | $10,000 to $30,000 | Volume bakeries only |
| Retarder prover | $8,000 to $25,000 | |
| Walk-in coldroom | $12,000 to $40,000 | Part equipment, part building work |
| Under-bench fridges and freezers | $2,000 to $8,000 each | |
| Refrigerated display cabinets | $4,000 to $15,000 | |
| Commercial dishwasher | $4,000 to $15,000 | |
| Extraction canopy and make-up air | $10,000 to $35,000 | Building work, not equipment |
| Grease trap | $5,000 to $20,000 | Building work, council requirement |
A modest cafe kitchen can be equipped for $60,000 to $120,000. A production bakery with a rack oven, spiral mixer, divider and prover starts around $150,000 and rises quickly.
Why start with the oven?
Three reasons, and they all point the same way.
It is the biggest number. In a bakery the oven is frequently 30 to 50 per cent of the equipment budget on its own. Every financing decision that matters is a decision about the oven.
It holds its value. A well-maintained deck oven from a recognised manufacturer has a working life measured in decades and a genuine second-hand market. That makes it the easiest item in the kitchen for a lender to secure against, and therefore the cheapest to finance.
It dictates everything else. Oven capacity sets your production ceiling, which sets your revenue ceiling, which is what a lender is actually assessing. Buying an oven one size too small to save $12,000 is the most expensive saving in the industry, because you cannot grow past it without replacing it.
Because ovens hold value, they suit a chattel mortgage over five to seven years. You will still want the oven at the end of the term.
Why is used commercial kitchen equipment harder to finance?
This is the question that surprises operators coming from other trades, where a used machine is routine.
The issue is resale value, and specifically the effect of hospitality failure rates on the second-hand market. A high volume of cafes and restaurants close each year, and their equipment lands at auction. That supply keeps used values low and unpredictable.
Add to that:
- Condition is hard to verify. Kitchen equipment lives in heat, grease and constant washdown. Two five-year-old fridges can be in wildly different condition and it is not visible from a photograph.
- Much of it is effectively consumable. Benches, shelving, small appliances and smallwares have almost no security value.
- Hygiene and compliance. Equipment that cannot be verified as food-safe and compliant is difficult for a lender to value.
The practical result is that used commercial kitchen equipment often gets funded through an unsecured business loan rather than asset finance. That is not a decline; it is a different product at a different price. Plan for it.
The exception is ovens and refrigeration from major manufacturers, which do retain enough value that some lenders will secure against them even second-hand.
What cannot be financed as equipment?
The building side of a commercial kitchen is substantial and it does not qualify as an asset.
Extraction canopies and ductwork, make-up air systems, grease traps, floor waste and drainage, gas and three phase power upgrades, waterproofing and food-grade wall and floor surfaces. On a full kitchen build this can easily be $60,000 to $150,000, and none of it can be repossessed.
That portion needs a business term loan or your own capital. Splitting your quote into equipment and building works before you approach a lender lets you put each half where it belongs, and it materially lowers the blended cost.
Worked example: a production bakery
A bakery moves from a small retail site to a production premises.
- Rotary rack oven: $55,000, chattel mortgage over seven years.
- Spiral mixer and divider: $32,000, chattel mortgage over five years.
- Retarder prover and coldroom: $38,000, chattel mortgage over five years.
- Under-bench refrigeration, benches and smallwares: $22,000, business term loan.
- Extraction, gas upgrade and grease trap: $65,000, business term loan over five years.
- Working capital for stock and wages during ramp-up: $35,000.
Total project: around $247,000, of which $125,000 finances cheaply as identifiable equipment and $122,000 does not.
The temptation is to take one $250,000 unsecured loan because it is simpler. It is also considerably more expensive, because half the project is security a lender would happily have taken.
What should you confirm before ordering?
Four things, all of which are cheaper to check than to fix.
- Three phase power. Most commercial ovens and rack ovens require it. Upgrading supply to a tenancy can take months and cost tens of thousands.
- Gas capacity. Deck ovens and rack ovens have real gas demands. An existing connection is not the same as sufficient capacity.
- Ventilation and council approval. Extraction requirements are set by the local authority and the mechanical engineer, and they are not negotiable.
- Access. A rack oven that does not fit through the door is a story every equipment supplier can tell you.
Frequently asked questions
How much does it cost to fit out a commercial bakery?
A small retail bakery with a deck oven and basic refrigeration typically costs $80,000 to $150,000 including building works. A production bakery with a rack oven, spiral mixer and divider generally starts around $200,000 and rises with capacity.
Can I finance used commercial kitchen equipment?
Sometimes, but it is harder than in other industries because used hospitality equipment has low and unpredictable resale value. Ovens and refrigeration from major manufacturers are the most likely to be accepted. Other used items are usually funded through an unsecured business loan instead.
Is a combi oven or a deck oven better to finance?
Both finance well. Deck ovens hold value particularly strongly and suit long terms. Combi ovens have more electronics and a shorter effective life, so shorter terms make more sense.
Can extraction and grease traps be included in equipment finance?
No. These are building works fixed to the premises and cannot be repossessed, so they fall outside asset finance. They need a business term loan or your own capital.
Do I need a deposit for bakery equipment finance?
For new equipment from a recognised supplier with trading history behind you, no-deposit structures are commonly available. Start-ups and used equipment generally attract a deposit.
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