Restaurant Construction Projects: Key Factors From Planning to Closeout

Creating a successful, established restaurant begins with its construction. Because restaurants must be functional, durable, and noticeably unique, restaurant construction requires both technical precision and creativity, as well as the ability to work within tight timelines and rigid budgets. There’s always a need for contractors with experience building restaurants, and understanding how to manage the specific demands of restaurant construction can lead to a lifetime of professionally and financially rewarding work. 

This article explores restaurant construction, including what makes it unique from other types of commercial projects, common challenges and what to expect from each phase of building.

The Basics of Restaurant Construction

Restaurant construction usually takes somewhere between six months to a year and a half, though the timeline and building process is different for each project. Important variables include the restaurant’s location, size, whether it’s a new building or an old space being repurposed, and the restaurant type, such as a standalone diner, a one-of-a-kind high end establishment, or a fast food chain. 

General contractors (GCs) working in restaurant construction need to be able to work quickly, creatively, and have a knowledge of local health codes and regulations to help achieve a restaurant owner’s unique vision for their establishment, which might reflect the identity of their neighborhood, the culture of the food they’ll serve, and include unique finishes. 

Many leases offer restaurant owners or restaurateurs the first six months rent free so they can prepare the space without losing money. This often adds urgency to complete construction in that timeframe.

Budgets can also be very tight, as restaurant owners often pour their life savings into opening a new restaurant, or borrow money from their bank or loved ones. Many general contractors (GCs) try to avoid change orders, which can devastate the budget and hurt their relationship with the restaurateur, and they work to recommend affordable alternatives for materials and methods during planning and preconstruction. 

The Restaurant Construction Process

The type of restaurant changes how GCs, designers and owners approach the construction process. For example, chain restaurants are often built quicker than independent restaurants because many of the components are standardized. 

Each phase of restaurant construction has unique demands and rewards compared to those in other types of commercial projects. The examples below will refer to a full-service, independently-owned restaurant. 

Planning Phase

The planning and design phase is heavily focused on three things:

• Originality
• Safety
• Functionality

Restaurant owners want to building a space that will be unique, safe, and functional. 

Design and preconstruction activities are heavily influenced by local regulations and inspections by authority having jurisdictions, or AHJs. Restaurants must comply with an extensive list of codes and regulations to pass inspections and receive licenses from a range of institutions, including the local health board, the liquor board, and the fire department.

Codes for restaurants commonly apply to: 

• Kitchen safety
• Fire suppression systems
• Accessibility for people with disabilities
• Kitchen airflow
• Emergency signage and lighting

Codes vary greatly between municipalities. Many places post construction requirements on their website, such as this guide from the Minnesota Department of Health. 

Ensuring the restaurant will be unique and functional requires immense attention to detail. Compared to owners in other commercial projects, restaurateurs tend to be more involved with designing details to curate a specific experience for future customers, such as selecting lighting, furniture, or flooring. 

Preconstruction Phase

For existing buildings being retrofitted to have a commercial kitchen, preconstruction usually involves assessing the needs of the space, which might include running probes on the capacity of electrical, airflow, and water systems.

Many projects will bring on specialized consultants to address the specific needs of each part of construction. Preconstruction is often a time when consultants engage in value engineering for material and equipment, assess if design plans are up to code, and ensure materials can be procured and installed without delay.

For example, equipment consultants are often brought on to ensure cooking and kitchen equipment meets or exceeds safety regulations, is within budget and will meet the restaurant’s needs.

Construction Phase

The construction phase epitomizes the process of building a restaurant because it requires work to be done as quickly as possible, but with extremely high craftsmanship. Most restaurants are relatively small, which means work, material staging, deliveries and installations are often being done in the same, confined spaces. GCs should have a detailed plan for phasing work and managing materials. Many GCs, particularly in big cities, will have a warehouse to store equipment, receive deliveries, and stage materials. 

In an attempt to save money or customize the space, restaurant owners will sometimes find their own subcontractors to do parts of the job. These scopes of work can range from tiling a bathroom, installing a ceiling, to building a bespoke bar. 

Post-Construction

After the build, restaurants must pass a variety of inspections and acquire licenses from different AHJs, such as the local health board, the liquor board, the fire department, and the municipality for the certificate of occupancy. 

Compared with other types of commercial projects, the closeout process on a restaurant project is often faster. Restaurant owners are generally more heavily involved throughout construction and are eager to open. Owners are sometimes willing to overlook something that would otherwise be a punch list item, such as a chipped floor tile, as long as the kitchen equipment is working and they are able to open. Communicating with the owner throughout the process can help to minimize and expedite the punch list process.

The usability of a restaurant can’t truly be assessed until the restaurant has opened, servers are walking the floor, cooks are moving around the kitchen, and customers are seated and eating. GCs are regularly called back a few weeks after the opening of a restaurant to make small adjustments, even when major systems are working well. 

Roles and Responsibilities

Here are a few things that make the stakeholders in restaurant construction unique.

Common Challenges In Restaurant Construction

Many characteristics that make restaurant construction engaging and rewarding are also what can make it challenging. 

Tight Timelines

Many restaurateurs have signed a lease that allows them a few months, often six, to prepare the space without paying rent. The clock is ticking until they need to get their certificate of occupancy (CO) and open for business. GCs should work with consultants to anticipate potential delays and use a variety of planning and project management techniques, such as the critical path method or work breakdown structure, to build precise schedules.

Tight Budgets

Restaurants have a relatively high failure rate, so every penny matters to someone launching their business. The budget a restaurateur comes with is often exactly what they have to spend, so there is little room for change orders or adjustments once work has commenced. GCs should communicate in the early phases of construction to understand the plan and to develop effective and affordable ways to execute it.

Uniqueness

Most restaurants are unique in one way or another. While that allows contractors to engage their artistry and creativity, it can also be a challenge because the process lacks repeatability. Most things are being done for the first time, which can make it hard to create systems and to anticipate issues that might cause delays. 

Small Spaces

While restaurant construction often requires many people and a lot of equipment, restaurants are often built in relatively small spaces. This requires diligent planning by GCs for phasing work and coordinating material deliveries and storage.

The Secret To Success In Restaurant Construction

Best practices in building restaurants are often the same as with other commercial construction projects: organization, communication and planning. However, one key to finding success in restaurant construction is the simple, yet difficult practice of empathy. 

For many restaurateurs, their restaurant represents years of work, dedication and financial savings. It’s also sadly common for restaurants to close within a year or two, simply because of the competitive nature of the industry and the high price of doing business. Remembering their passion and the high stakes for their business when they have questions or preferences on tiny details can help maintain a positive relationship between the owner and the GC and can cultivate a unique sense of collaboration that makes building restaurants a uniquely rewarding type of construction.

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