Induction vs Gas Cooking in Commercial Kitchens: Upfront Costs, Running Costs, and What NZ Operators Need to Know

Choosing between induction and gas is one of the bigger calls you'll make when fitting out or upgrading a commercial kitchen. It affects your power bills for years, your extraction requirements, your maintenance costs, and the day-to-day experience of your kitchen team.

This is not a decision where one answer is obviously right. Both technologies work well. Both have genuine strengths. The question is which one suits your operation, your budget, and the direction your business is heading.

Here is a plain-language breakdown of what the numbers actually look like, and where each option makes sense.

The upfront cost comparison

Let's be direct: commercial induction equipment generally costs more upfront than equivalent gas equipment.

A quality commercial induction hob suitable for a busy café — four zones, robust enough for daily service — typically sits in the $2,500–$5,000 range from a reputable supplier. A comparable four-burner gas range starts from around $1,500–$3,000, depending on brand and output ratings.

At the higher end of the market — think heavy-duty units from established brands — the gap narrows, and for some specialist induction equipment it can widen again. But as a general rule, if you are comparing like-for-like performance specs, expect to pay a premium of roughly 20–50% for induction over gas.

There are ways to offset this. Equipment financing through providers like SilverChef allows you to spread the cost over time, which changes the upfront calculation considerably. Used or certified reconditioned induction equipment is also increasingly available as operators upgrade.

The upfront cost is real, but it is only one part of the picture.

Running costs: what the energy numbers actually look like

This is where induction starts to close the gap — and often overtake gas.

Induction is significantly more energy-efficient than gas. Gas burners lose a large proportion of their heat to the surrounding air. Induction transfers energy directly to the cookware through electromagnetic induction, with minimal loss. Depending on the comparison, induction is typically 70–90% efficient versus 30–55% for gas at the burner level.

NZ commercial energy rates

Current NZ commercial electricity rates vary considerably by region, provider, and consumption tier, but a working range for planning purposes is $0.12–$0.18 per kilowatt-hour (kWh) for electricity. Commercial reticulated natural gas runs at a thermal equivalent of roughly $0.05–$0.08 per kWh.

On the face of it, gas looks cheaper per unit of energy. But because induction wastes far less of that energy, the effective cost per unit of usable heat is much closer than the raw rate comparison suggests.

A worked example: busy café, four-zone setup

Take a busy café running a four-zone cooking setup for roughly eight hours a day, six days a week. That's approximately 2,500 hours of cooking per year.

Gas setup (four-burner range):
A four-burner commercial gas range running at moderate load might consume around 15–20 kW of gas input to deliver its usable heat output. At an average utilisation of roughly 40–50% over a service period (not full blast the entire time), you're looking at perhaps 7–9 kW average draw.

Over 2,500 hours: approximately 17,500–22,500 kWh thermal equivalent.
At $0.065/kWh (midpoint): roughly $1,140–$1,460 per year in gas costs.

Induction setup (four-zone induction hob):
A four-zone commercial induction unit with similar output capacity might draw 10–14 kW at peak, but because of its higher efficiency and the fact that induction zones only draw power when actively cooking (no standing pilot, no residual heat), average draw at similar utilisation is around 5–7 kW.

Over 2,500 hours: approximately 12,500–17,500 kWh.
At $0.15/kWh (midpoint): roughly $1,875–$2,625 per year in electricity costs.

In this example, gas still comes out ahead on running costs — but the gap is smaller than most operators expect. At the lower end of electricity pricing ($0.12/kWh), the induction running costs drop to around $1,500–$2,100, making the difference modest.

It is also worth noting that electricity pricing in New Zealand has been relatively stable, while commercial gas pricing has been more volatile. Forward planning on energy costs matters.

These are indicative figures — your actual usage pattern, equipment specifications, and energy contracts will produce different numbers. Use them as a starting framework, not a precise forecast.

Ventilation and extraction: a cost many operators underestimate

This is one of the most significant and frequently overlooked financial differences between gas and induction kitchens.

Gas combustion produces heat, combustion gases, and moisture — all of which need to be extracted from the kitchen. Commercial gas cooking requires substantial canopy systems, make-up air supply, and in many cases fire suppression integration within the hood. Getting this right is both expensive and subject to compliance requirements under the New Zealand Building Code and local council regulations.

For a mid-sized café or restaurant kitchen with gas cooking, a compliant extraction system — including hood, ductwork, fan, fire suppression, and make-up air — can easily run $15,000–$40,000 or more installed, depending on kitchen size and configuration.

Induction kitchens produce significantly less heat and no combustion gases. They still need some extraction — mostly for food odours and steam from cooking — but the requirements are considerably lighter. A well-designed induction kitchen can often use a smaller canopy, simpler ductwork, and a lower-capacity fan. That can reduce extraction fit-out costs by 30–50% compared to a gas equivalent.

If you are fitting out a new kitchen or renovating, this difference alone can go a significant way toward offsetting the higher upfront cost of induction equipment.

Performance and cooking capability: where each technology leads

There is a common assumption that gas is always the professional's choice for performance. The reality is more nuanced.

Where induction leads:

Induction heats up faster than gas. A commercial induction burner reaches cooking temperature almost instantly, whereas gas ranges take time to reach their working temperature. This matters during busy service when you need consistent, rapid response.

Induction also offers far greater temperature precision. You can hold a sauce at a specific temperature for extended periods, reduce gently without fear of scorching, and repeat results consistently. This makes it well-suited to controlled, precision-dependent cooking — stocks, sauces, custards, chocolate work, and any application where gentle, steady heat is important.

Induction surfaces are also easier to clean. There is no grate structure to scrub, no burner components to disassemble. A flat surface wipes down quickly at the end of service.

Where gas still has advantages:

Gas provides direct, visible flame — which matters for specific cooking techniques. High-heat wok cooking, open-flame charring, flambe work, and grilling over fire are all either impossible or significantly compromised on induction.

Gas also works with any cookware regardless of material. Induction requires ferrous (magnetic) cookware — if your kitchen already has a significant investment in copper, aluminium, or certain stainless pans that are not induction-compatible, switching carries a hidden equipment cost.

For kitchens where char, smoke, and flame are central to the menu — a yakitori bar, a Josper-centred restaurant, an open-fire kitchen — gas or solid fuel remains the right answer for those specific applications, even if induction handles the rest.

Honest summary: for the majority of café and restaurant cooking applications, induction performs as well as or better than gas. For a subset of high-heat, flame-specific techniques, gas is still the better tool.

Safety: a genuine advantage for kitchen teams

Induction has meaningful safety benefits that are worth considering, particularly for kitchens that employ less experienced staff or operate in tighter spaces.

There is no open flame. The risk of clothing or paper catching fire from a burner is eliminated. The cooking surface itself only heats where it is in contact with compatible cookware — put your hand on an induction zone without a pan in place and it will not burn you. This is a real practical benefit during busy service.

There is no gas line or gas supply. Gas leaks — even slow, undetected ones — carry risk. Eliminating gas from the kitchen removes that risk entirely, along with the requirement for gas safety inspections and the associated maintenance.

For kitchens with high staff turnover, induction's lower potential for burn injuries is a genuine health and safety advantage. It does not eliminate all risk — hot cookware, steam, and oil are still hazards — but it removes one category of risk that gas kitchens carry.

The NZ energy transition context

New Zealand has a strong grid — approximately 85% of electricity is generated from renewable sources. This is unusual by international standards and has real implications for how you think about the carbon footprint of your energy choices.

Across New Zealand, there is regulatory and policy momentum toward electrification in commercial settings and away from natural gas. Wellington has restrictions on new gas connections in some circumstances. Several councils are signalling a longer-term shift. Suppliers are noting increased lead times and higher costs for some gas infrastructure components.

This is not a reason to panic, and gas is not going away overnight. But if you are fitting out a kitchen today that you expect to operate for ten or fifteen years, the direction of travel in energy policy is worth factoring into your decision. An induction-ready kitchen is a more future-proof kitchen by most reasonable assessments.

Five-year total cost of ownership: indicative comparison

The table below sets out a rough five-year cost comparison for a mid-sized café kitchen — four cooking zones, substantial daily use. All figures are indicative and assume NZ commercial conditions. Your actual numbers will vary based on equipment choice, energy contracts, location, and usage pattern.

At the lower range, the gap is small and induction is competitive. At the upper range, the extraction saving is the dominant factor. Gas wins on running costs in most scenarios; induction wins or draws on total cost of ownership once extraction is included.

These figures do not account for financing costs if equipment is funded, or for the productivity value of faster heat-up times on induction. They are a starting point for your own modelling, not a final answer.

When gas still makes sense

We said this would be balanced, and we mean it.

Gas remains the right choice in several situations:

Your menu is built around flame. If open-fire cooking, wok hei, charring, or flambe are central to what you serve, gas gives you capabilities that induction cannot match. A hybrid setup — induction for precision work, gas or solid fuel for specific applications — is worth considering.

Your gas infrastructure is already in place. If you are fitting into a tenancy that already has a commercial gas line and compliant extraction, switching to induction means paying for infrastructure that already exists. The economics can favour staying with gas, at least for the current tenancy term.

Your budget is tight and time frames are short. If you are launching with limited capital and expect to review equipment in three to five years, the lower upfront cost of gas equipment can make more sense in the near term. Equipment financing changes this calculation, but it is a real factor.

Your existing cookware is not induction-compatible. A kitchen full of copper pans or non-magnetic stainless is not an argument against induction forever, but it is a real cost to factor in if you are switching.

There is no embarrassment in choosing gas. It is proven, reliable, and still the cooking medium of choice in many of the world's best kitchens. The point is to make the choice clearly, with the full cost picture in mind.

What to do next

If you are at the point of deciding, a conversation with someone who has worked through this with operators like yours is worth more than a spreadsheet.

We have helped cafés, restaurants, bakeries, and commercial kitchens across New Zealand think through equipment decisions for over a decade. We stock a range of commercial induction cookers and burners from brands we trust, alongside gas equipment for operators where that remains the right call.

Browse our induction cooking range at simplyhospitality.co.nz, or get in touch if you want to talk through what makes sense for your specific kitchen. We are not in the business of pushing products — we are in the business of helping you make good decisions.