Thinking about opening a hotpot restaurant, but not sure where to start with budgeting? You’re not alone.

The startup costs for a hotpot restaurant in Australia typically range from $350,000-$700,000, depending on your location, restaurant size, business model, and whether you’re going independent or franchise.

This blog explores what each category involves so you can understand where your money goes.

Key Insights

• Opening a hotpot restaurant in Australia generally costs between $350,000 and $700,000, depending on location, size, and your business model.
• Specialised equipment like induction cookers, custom hotpot tables, and strong ventilation make hotpot venues more expensive to fit out than standard restaurants.
• The pay-by-weight model can reduce startup costs, lower food waste, and simplify staffing needs compared to traditional all-you-can-eat hotpot.
• Expenses include fit-out expenses, equipment, licensing and permits, inventory, staffing and pre-opening prep.
• Franchise models offer support and brand recognition, while independent stores have lower entry costs but require more hands-on management.
• A 6-12 month cash buffer is essential to protect against unexpected delays, slow early trading, or extra council requirements.

What Are the Startup Costs for a Hotpot Restaurant?

Opening a hotpot restaurant requires more capital than a standard café or casual dining spot. Why? The specialised equipment. Restaurants with at-table cooking require built-in induction cookers, proper ventilation systems, and furniture that can handle constant heat and moisture. The average restaurant owner in Australia spends around $650,000 establishing a restaurant, and hotpot venues often sit at the higher end of that range due to their unique infrastructure needs.

The startup costs for a hotpot restaurant break down into several major categories: premises fit-out, specialised equipment, licensing, initial inventory, and working capital for your first few months.

Pay-By-Weight vs All-You-Can-Eat: How Your Business Model Affects Costs

Before diving into the detailed cost breakdown, you need to understand how your chosen business model shapes your budget. The pay-by-weight model, popularised by hotpot restaurants in Melbourne like David’s Master Pot, offers some distinct financial advantages for new operators.

In a pay-by-weight hotpot restaurant, customers select their own ingredients from refrigerated displays, and you charge based on weight (typically $2.80-$3.50 per 100g in Australian markets). This model has spread rapidly across Australia since around 2017, with venues in Box Hill, Glen Waverley, and throughout Melbourne’s dining precincts.

How Pay-by-Weight Reduces Startup Costs

• Lower initial inventory investment: You stock ingredients based on actual usage patterns rather than unlimited consumption estimates.
• Reduced food waste: Customers choose exactly what they want, minimising plate waste and spoilage.
• Simplified portion control: No need to standardise “unlimited” portions or worry about excessive consumption.
• Lower staffing needs: Self-service model reduces front-of-house requirements.

Additional Considerations

• Requires commercial scales and weighing stations (add $2,000-$5,000 to equipment budget)
• Need larger refrigerated display areas for ingredient selection
• The POS system must handle weight-based pricing
• Simpler menu reduces kitchen complexity

Overall, you can potentially save $40,000-$60,000 on initial setup compared to traditional all-you-can-eat venues.

Major Cost Categories You Need to Plan For

Premises Fit-Out & Renovation ($80,000-$200,000)

Your fit-out budget will vary based on whether you’re taking over an existing restaurant space or starting from scratch. This is typically one of the largest startup costs for a hotpot restaurant. In 2025, restaurant staff are paid an average of $22 per hour, and this scales up for senior roles.

Budget for:

• Commercial kitchen setup with industrial-grade extraction systems
• Plumbing modifications for table-mounted hotpots
• Electrical upgrades to handle multiple high-powered induction cookers
• Dining area design, including flooring, lighting, and décor
• Pay-by-weight specific: Refrigerated ingredient display areas with customer access

Specialised Hotpot Equipment ($60,000-$150,000)

This is where hotpot restaurants differ most from traditional dining venues, and it’s often the largest component of startup costs for a hotpot restaurant. Custom hotpot dining tables typically range from $280-$600 per piece, and you’ll need enough to seat your target capacity.

Traditional table-service model equipment:

• Custom hotpot tables with built-in induction cookers
• Commercial-grade cookware (pots in various sizes and styles)
• Table-mounted ventilation and smoke extraction systems
• Refrigeration units for fresh ingredients
• Prep equipment for your back-of-house kitchen
• POS system tailored to hotpot operations

Pay-by-weight model equipment:

• Open refrigerated display cases with customer access ($15,000-$30,000)
• Commercial weighing scales and stations ($2,000-$5,000)
• Individual serving bowls and customised hotpot equipment
• Ingredient prep and portioning equipment

Many operators opt for marble or granite tabletops paired with smokeless induction technology, which adds to upfront cost – but pays off in customer experience and lower maintenance.

The pay-by-weight model typically requires 20-30% less initial equipment investment because you’re not outfitting every table with built-in cookers. Instead, you invest more heavily in refrigerated displays and weighing systems.

Licensing, Permits & Insurance ($5,000-$15,000)

In New South Wales, liquor licence base fees are approximately $785, whereas in Victoria, fees range from $504.30 to $1,008.60 depending on customer capacity. You’ll also need food licences, council permits, and business registration.

Generally, you’ll need to set aside costs for:

• Food safety licence (mandatory for all food businesses)
• Liquor licence (if serving alcohol)
• Council permits for signage and outdoor seating
• Business insurance (public liability, contents, workers’ compensation)
• Fire safety certificates
• National Police Certificate ($42) required before liquor licence application

Initial Inventory & Supplies ($15,000-$30,000)

Your opening inventory will be your highest food cost outlay until you establish supply relationships and understand customer demand patterns. This is where pay-by-weight models show a significant advantage – you can start with smaller quantities and scale based on actual consumption data.

Staffing & Pre-Opening Costs ($20,000-$50,000)

As of July 2025, the national minimum wage is $24.95 per hour for full-time and part-time adult workers. You’ll need to budget for recruiting and training staff before you open, plus at least two weeks of wages before your first revenue arrives.

Factor in:

• Front-of-house staff training
• Kitchen staff recruitment and onboarding
• Trial service nights and soft opening events
• Initial marketing and launch promotions
• Superannuation (11% on top of base wages as of 2025)
• Payroll tax (once wages pass state-specific threshold)

Franchise vs Independent: What’s the Difference?

Considering franchise opportunities? Opening a hotpot franchise can cost as much as $1,075,500, depending on the franchise you go with, the location, and the size of the franchise. Initial franchise fees typically start around $35,000-$50,000.

• Franchise benefits: Established brand recognition, proven systems, supply chain support, marketing assistance, and operational training.
• Independent benefits: Complete creative control, lower upfront costs, flexibility in menu and pricing, and no ongoing royalty fees.

The right choice depends on your experience level and risk tolerance. First-time restaurateurs often find hotpot franchise opportunities provide valuable guardrails, while experienced operators may prefer the freedom of going independent.

Getting Your Numbers Right

Understanding the startup costs for a hotpot restaurant is just the beginning. Most successful operators keep a cash buffer of 6-12 months’ operating expenses – that’s typically another $100,000-$150,000 on top of your startup budget.

Smart budgeting means planning for the unexpected. Council requirements you didn’t know about, equipment that arrives damaged, or a slower-than-expected first quarter can all eat into your contingency fund quickly.

Whether you’re eyeing a spot in Melbourne’s bustling dining scene or considering a new venture in your neighbourhood, having a realistic grip on costs will help you open with confidence and stay open for the long haul. 

Looking for hotpot franchise opportunities with David’s Master Pot? Get in touch with our team at franchise@davidmg.com.au.