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Melbourne · Restaurants · 2026

Best Suburbs to Open a Restaurant in Melbourne

Melbourne has more restaurants per capita than any other Australian city. The viable entry points are specific — this guide scores each suburb on rent, foot traffic, income and competition density so you can identify exactly where the opportunity is.

87/100
Top suburb score (Fitzroy)
$4.5K–$14K
Monthly rent range
104
Suburbs with engine scores

Melbourne suburb scores — restaurants

Location score across foot traffic, income demographics, rent viability and competition density.

Scores based on ABS demographics, CBRE commercial rent data and OpenStreetMap competition mapping (Q1 2026).

Rent vs projected revenue

Monthly rent plotted against projected monthly revenue for a 60-seat restaurant (100–130sqm).

Revenue projections based on 60-seat venue at industry-average covers and ticket sizes for each suburb income tier.

Suburb-by-suburb breakdown

Click any suburb to expand the full analysis, risks and opportunity gaps.

Median income
$92,000
Monthly rent
$5,800–$7,800/mo
Direct competition
10 within 500m
Break-even daily
38/day
Payback period
8 months
Modelled annual profit (scenario)
$268,000
Profitability92
Area Demographics91
Rent viability76
Competition gap78

Fitzroy is where Melbourne's restaurant market has its highest ceiling and its highest floor. Brunswick Street and Smith Street together generate over 14,000 daily pedestrians, with the evening dining window (6–10pm Thursday to Sunday) consistently the strongest in Victoria. The demographic — 28–42, creative and professional, median household income $92,000 — dines out more frequently than any equivalent cohort in Australia. This is not a market you need to build; it exists and it is looking for new experiences.

Restaurant rents on Brunswick Street prime positions have risen to $5,800–$7,800/month for a 100–130sqm tenancy. That is a real cost that requires strong execution to manage — but the revenue potential supports it. A well-positioned 60-seat restaurant in Fitzroy turning over 45 covers at dinner can realistically generate $90,000–$110,000 monthly. Rent at $7,000 is 6–7% of that — well within the healthy zone.

The competitive density is real: 10 direct competitors within 500m is the highest of any suburb in this analysis. But the market is large enough to absorb multiple operators in the same category. Fitzroy's diners do not commit exclusively to one venue. They visit regularly and rotate. A restaurant that earns one visit per fortnight from 400 households is trading well.

RISKS

The competitive environment means weak concepts fail quickly. Three new restaurants opened on Smith Street in 2024 and two closed within six months — both generic concepts without clear positioning. Fitzroy's customers are highly food-literate and will not return if the first experience is average.

OPPORTUNITY

Natural wine and biodynamic dining is underrepresented relative to the demographic's stated preferences. A restaurant with a serious drinks program built around natural producers would face limited direct competition in the Brunswick Street precinct.

Which Melbourne suburb would you open a restaurant in?

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