Here are just some of the bigger examples of what can go wrong in a new restaurant build. Chefs and owners, BEWARE! If you’ve never created a new restaurant space, it’s critically important to be aware of these five issues that can drive up your building costs substantially.
- If your space has never been a restaurant before, you may need to bring in gas
One recent build-out a Fort Lauderdale restaurant is a great example of this. We knew the space had never been used as a restaurant before, but the plans did not reflect any work needed to be done with bringing in gas lines required for the equipment. In the preconstruction phase, we looked for the closest gas line in the shopping center area. We finally found the closest gas line at the other side of the shopping center parking lot. The work involved creating 700 feet of gas line alongside the property, then digging up the parking lot to take the gas line through to the restaurant location.
This type of situation may be unnoticed by someone with no experience building out a new restaurant location. In this particular example, neither the architect nor the leasing company (for the restaurant space) thought about the need for gas. This situation added tens of thousands of dollars to the restaurant construction budget.
- Every restaurant also needs a grease trap
In addition, if you plan on cooking at your location, you’ll need a grease trap. Like the gas line, this may need to be created at a new location, if there wasn’t a restaurant there previously. And even if there was a restaurant in the location before, the grease trap may be in poor condition.
What’s a grease trap? The food service industry generates grease, oil, food wastes, litter, and other byproducts that can contribute to stormwater pollution. All restaurant locations must have the proper grease traps, by building code, so the establishment can be environmentally responsible and within city or local codes.
Danto Builders understands that a grease trap is a need for every restaurant location and works with the designers to create the best option with respect to location and cost, if a new one must be created.
- You may need the power of 3-phase electric – do you need to upgrade?
Single-phase electrical power is commonly used in households and commercial buildings. A 3-phase service provides much more power and energy efficiency than single phase, and most U.S. larger commercial buildings and restaurants have 3-phase power to support all the kitchen equipment and air conditioning needed for restaurants cooling and heating buildings as required while cooking and at various occupancy levels.
A leased space may not have 3-phase power if the power needs were much lower for previous tenants (if the space was a retail clothing store, for example). If higher-power electricity hasn’t been done for the space already, the electrical power has to be upgraded to accommodate the higher-energy needs of commercial-grade kitchen and HVAC equipment. The local power company, like FPL, may also have to upgrade equipment which costs money and takes more time.
- Do you have enough water?
If there’s never been a restaurant in the location where you’d like to build, there may be water constraint issues. Water is necessary for dishwashing and cleaning on a commercial scale, and the water feed may need to be expanded. Putting in larger pipes for water delivery can involve opening up pavement or sidewalks. Again, not being aware of the water constraints at your new location can mean additional costs in the build out.
- Having to pay for structural issues – by not negotiating with your landlord
Beware the lease that’s written “as is.” This means that the landlord is not responsible for any necessary (unforeseen) work to the space that may be uncovered during construction or required by the building department. Some examples include fixing / supporting the roof, dealing with mold issues, upgrading utilities, and fixing plumbing and filling voids under the flooring due to rising waters. Be sure to have an attorney look over your lease, so that capital improvement issues that arise in the construction phase which should be the responsibility of the owner are addressed at their expense.
We’ve been in situations where there wasn’t adequate air conditioning to a leased space and new air conditioning had to be brought in. But, in one case, the roof was in such poor condition it couldn’t support the commercial-grade units. The “as is” lease signed by the restaurant owner meant that he was responsible for the added cost of upgrading the roof structure.
On the other hand, landlords will sometimes provide incentives to a new restaurant owner to make it easier and more cost-effective to use their commercial space. This might include providing the grace period of a number of months for free, up-front, as you’re designing, permitting and building out the space to your needs and requirements. Or it might include upgrades to the space to accommodate the needs of a new restaurant, i.e. roof repairs, FPL service or gas service to the building, and plumbing upgrades..
Many new owners don’t realize the up-front timing involved in building out a new space, which includes months of working with an architect, kitchen designer and engineers to draw up plans, getting all necessary local permits, and the build-out. It can be six to 12 months before an owner is able to open up, to start making money. Favorable terms in the leasing agreement often take into consideration this initial design, permitting and build-out period.
If you’re looking for an experienced restaurant builder in this area,contact Danto Builders and let’s talk!