Quick answer
A refurbishment refreshes an existing café, shop or salon — new surfaces, lighting, seating, signage or layout — without starting from a bare shell. New Zealand owners usually fund it with unsecured term funding sized on turnover (typically $5,000 to $500,000) or a property-secured business loan ($20,000 to $5,000,000) for bigger jobs, timed for the quiet season so disruption costs less.
Key points
- A refresh should have a clear payback: more customers, higher spend or lower costs.
- Time the work for your quiet season to reduce lost trade.
- Check the lease: landlord consent, alterations clauses and make-good obligations.
- Spread the cost over the years the refresh earns, not one season.
Every main-street business eventually looks tired. The banquette seating sags, the lighting feels dated, the counter is in the wrong place now that most orders are takeaway, the salon’s colour scheme was fashionable two owners ago. Customers rarely complain about it — they just drift to the newer place down the road.
A refurbishment is how you win them back. Done well, it pays for itself. Done badly, it’s an expensive coat of paint.
When does a refurbishment make sense?
A refresh earns its keep when it changes something measurable:
- Capacity. More seats, more chairs, a second service point.
- Flow. A counter layout that serves the morning rush faster, or a salon reception that stops bottlenecks.
- Spend. A space that supports a higher price point or a bigger average sale.
- Visibility. Better signage and window displays that turn walkers-by into customers.
- Costs. Efficient lighting, better refrigeration, or a layout that needs fewer staff at quiet times.
If you can’t name the benefit, it’s probably a “nice to have” — better funded from cash, if at all.
What should I check first?
Your lease. Business.govt.nz suggests clarifying who pays for renovations and repairs and understanding the make-good provisions — what you’ll need to restore when you leave. Most leases need landlord consent for alterations. Get it in writing.
Time left on the lease. A refresh with a long useful life on a lease with eighteen months left is a gamble unless you have rights of renewal.
Consents. Cosmetic work usually doesn’t need consent, but work affecting structure, fire safety, plumbing or accessibility might. Check with your council.
Building condition. In older buildings, business.govt.nz recommends asking about structural assessments and asbestos reports. Discovering asbestos halfway through a refit is expensive.
How is a refurbishment usually funded?
| Size of job | Often suits |
|---|---|
| Small refresh: paint, lighting, signage | Cash, or a small unsecured facility |
| Mid-size: new seating, counter, flooring | Unsecured term funding, typically $5,000 to $500,000 |
| Major: layout change, kitchen, new rooms | Property-secured, $20,000 to $5,000,000, or a mix |
| Equipment-heavy | Equipment finance plus a facility for the building work |
Unsecured options are sized on turnover and bank statements and don’t need a valuation. Property-secured loans use a home or commercial property and can allow longer terms. The right mix depends on the job, your lease and how much cash you want to keep in the business.
Pricing a refresh? Start an enquiry and a person will talk it through — there’s no credit check to ask.
Timing: refit in the quiet season
Lost trade is the hidden cost of any refurbishment. Plan the work for your quietest weeks — winter for many beach-town and hospitality businesses, January for many city cafés and trades, the shoulder months for tourism towns. Stage the work if you can stay partly open.
The cash gap estimator lets you add the refit cost in a specific month and see whether your cash holds up through the disruption.
A note on tax
Inland Revenue confirms that commercial fit-out items — such as non-structural interior walls, electrical cabling and fire protection equipment — can be depreciated separately from the building. Investment Boost may also allow 20% of the cost of eligible new assets acquired from 22 May 2025 to be claimed upfront. Talk to your accountant: the after-tax cost may be lower than you think.
An illustrative example
Illustrative only. A neighbourhood restaurant with a loyal following has a dining room that hasn’t changed in a decade. The owners want new seating, lighting, a reworked bar and acoustic panels to make the room less noisy.
They price every line with the fit-out budget checklist, get the landlord’s consent, and book the work for two weeks in early winter. An unsecured term facility, sized on their twelve months of statements, covers the work; their own cash covers the fortnight of reduced trade.
What does a staged refurbishment look like?
If closing for a fortnight isn’t an option, staging the work can protect your takings. A typical approach:
- Do the night and weekend work first. Electrical, data and lighting upgrades can often happen outside trading hours.
- Refresh one zone at a time. Close half the seating or one side of the shop while the other stays open.
- Save the counter for last — and do it in your quietest week, with a temporary service point if possible.
- Finish with signage and the shopfront, so the “new look” moment arrives all at once.
Staging usually costs a little more in builder time, but it can cost far less in lost trade. Ask your builder to price both approaches so you can compare.
Which questions should you ask your builder?
Before signing up for a refurbishment, ask:
- What exactly is included, and what’s excluded?
- How will you protect the parts of the business that stay open?
- What’s the payment schedule, and what triggers each payment?
- Who arranges any consents or inspections?
- What happens if you find something unexpected, like asbestos or rot?
- How long will the work take, and what’s the plan if it runs over?
Ready to refresh?
If your café, shop, salon or bar is due for a new look, start your 60-second enquiry. Asking costs nothing on your credit file, your details aren’t handed round to other lenders, and someone who understands main-street businesses will phone you. Please be accurate about the cost, your lease and your takings — it helps us match you properly first time.
Frequently asked questions
How do I know if a refurbishment will pay off?
Be specific about what it changes — more seats, a faster service flow, a better window display, a higher price point — and estimate what that's worth each month. If you can't name the benefit, think twice.
Do I need the landlord's permission?
Usually, for anything beyond minor cosmetic changes. Check the alterations clause in your lease and get consent in writing before work starts.
Should I close during the refit?
If you can stage the work and stay open, you'll protect cash flow. If you must close, do it in your quietest weeks and tell customers well in advance.
Can I fund a refurbishment soon after buying a business?
Yes. Many buyers plan a refresh after settlement. Including it in the purchase funding plan from the start is often easier than asking later.