A Complete Guide to Restaurant Renovation
A complete breakdown of the restaurant renovation steps including whether you should shut down operations, interior design, timing, costs and more.
Article by Jude Kamal, Founder & Registered Interior Designer of Sansa Interiors
They say you don’t get a second chance to make a first impression. Though this is not always the case, in the restaurant business, the first impression your diners get of your establishment is very important. Restaurant renovation is a chance for a restaurant to reinvent itself, do away with the old and unnecessary and double down on the things that make it special.
When we wrote about the psychology of restaurant interior design, we emphasized that restaurant interior design is more than just creating a beautiful space. That is also true for restaurant renovations. With renovations, you have to have a full plan for the renovation from start to finish. At Sansa Interiors, we make sure to always start with a restaurant renovation checklist. You also have to know what your design story is and how that will play in with your operations setup.
There are many reasons why you might want to renovate a restaurant. Perhaps you’re starting a new restaurant and taking over a space that was also occupied by a restaurant. Or you have decided to reinvent your restaurant or freshen up the place. Whatever your reason for renovating a restaurant, there are important things you have to figure out. Restaurant renovation requires a lot of behind-the-scenes work. From figuring out your costs and setting your budget, doing proper research, getting the right permits, figuring out the electrical requirements, understanding the architectural and structural requirements, etc. Let’s dive in.
Image source: Unsplash
The Process of Restaurant Renovation
There is no one-size-fits all process for renovating a restaurant. However there is a process to get things done. Here we do a comprehensive breakdown of the restaurant renovation process to give you an idea of what's needed.
Research and Plan
Timeline
Cost and Budget
Outreach and Marketing
Restaurant Renovation Research and Plan
Logistics Research
The first stage for any restaurant renovation project is to do proper research about the logistical requirements of the project you’re about to embark on. Doing the proper research before you start any restaurant renovation project will help you know what should be included in your renovation checklist. For example, if you’re in Toronto Canada, doing proper research will help you know what permits you need and prepare accordingly. You would want to look into what the laws in Ontario allow and prohibit in terms of remodeling, parking permits for construction vehicles, contractors workers’ rights, etc. Research could also include finding the right interior designer, project manager, contractor or someone who offers the restaurant renovation services you need all wrapped in one. If you’re working with an interior designer or architect, they usually have all the information about permits for the city you’re in, general requirements, etc.
Design Research
Design research involves figuring out what your customers think of your current restaurant design and also doing a competitive analysis of other restaurants around your location and of those offering similar services like you. If you are doing a restaurant remodel and renovation, it is worth your time to get some feedback from guests. You would be surprised at the discovery you make about minor or major things that you would have missed but are very obvious to your guests. For example, you can create a little survey and ask guests to rate their experience in terms of the ambiance of the restaurant. Never miss a chance to get first person data and feedback from your customers. The second type of research you can do before your restaurant renovation and remodel is to look at what others in the industry are doing. You can look up design and architecture magazines to see what works and what doesn’t. Analyze the latest trends in your industry and use that as inspiration when putting together your renovation plan
Location Research
It is important to know your neighbourhood and understand how the environment and residents would affect how you operate. Find out if the demographics of your location has changed. Did a new apartment complex with lots of residents open up in your neighbourhood? Then it might be a good idea.
Restaurant Renovation Timeline
If you’re planning on renovating a restaurant, one of the important questions on your mind is probably:
How long does it take to renovate a restaurant?
The timeline of a renovation depends on the amount of work that needs to be done and the magnitude of the project. The process of restaurant renovation can take different forms. Your renovation could require you to build from scratch, renovate or replace certain features or sections, revamp the decor, re-do only the interior or exterior, or gut the whole place. What you need to do (which should be listed in your renovation checklist) will determine how long it will take to renovate a restaurant. Hiring a professional is the surest way to ensure you stick to your predetermined timeline.
Parkinson's law states that work will expand to fill the time it was allotted. When planning a restaurant renovation, you have to keep in mind the timing of the renovation. This includes deciding how long it will take, but also when to embark on the renovation project. Keep in mind that a restaurant renovation or remodel will hinder your restaurant's ability to operate smoothly and a major renovation could leave your restaurant closed for weeks. Taking this into consideration, you can decide to carry out renovations during a slow season. For example, if you’re a restaurant that specializes in Ramen then you know that winter and fall are your high season so don’t plan a renovation at that time.
If you’re doing a minor renovation, you have to decide if you want to shut down the entire restaurant till you're done or shut it down on certain days. Remember, work will expand to fill the time it was allotted so make your decision with this in mind.
Restaurant Renovation Cost and Budget
How much should you budget for a restaurant renovation? There are many things that you have to factor into the answer to this question. You have to take into account all the financial factors and your financial state. You should determine things such as your cash flow, whether you will get external financing for the project, and the effect of shutting down your restaurant to renovate will have on your sales and financial liquidity. Determining all these factors (or at least making an intelligent estimate) will enable you to make a realistic budget and plan.
The bulk of a restaurant renovation cost usually goes into the back of house costs, which is the commercial kitchen. It’s no surprise that the cost of a commercial kitchen will be quite high. When planning, always take into consideration the cost of the plumbing, electrical, and gas connections, installing commercial-grade gas ranges, commercial-grade freezers, and refrigerators, etc. If you don’t make proper preparations for these costs, they will eat into your budget in a way that ruins your renovation plans and timeline for other parts of the restaurant. After factoring in your back-of-house costs, then you have to determine what you want to spend on your front-of-house restaurant design which includes both the interiors and exterior. The front-of-house costs depend on your design aesthetic of choice, the size of your space, and the magnitude of your design job. For example, if all you have to do is repaint the walls your cost will be significantly different from if you have to get new flooring, knock down walls, erect a large counter or bar area, etc.
Restaurant Interior Design
The decor, layout, and ambiance of a restaurant are very important. Most of the time it is all your guests will see and it determines how they perceive your restaurant. Every restaurant renovation must include an interior design plan. The plan should cover various aspects of a restaurant’s interior and decor from the color theme, type of furniture and the layout, the type of lighting, density of the walls (for sound control), and how all these plays in with operations. No matter your design aesthetic of choice, you must make sure that it allows for seamless operations and functionality of the restaurant. Servers should be able to navigate the aisle to bring food and drinks to guests, diners should be able to find the bathroom with ease, and every table should be a good table. We go into more detail in explaining the different concepts in our The Psychology of Restaurant Interior Design article.
Restaurant Outreach and Marketing
You might not have thought of this, but restaurant renovation also involves a marketing aspect. You need to let the world know about your renovation and remodelling— before and after it is done. Let both new and regular customers know about your plans to renovate. After the renovation is done, share pictures of the new space on your social media channels, share them in your newsletter to customers and stakeholders, etc. You can also take advantage of unique public relations opportunities like contacting a design magazine for a possible feature.
Customers love when they can connect with a business so keep that in mind. You can share different stages of your renovation journey with before and after photos, share the inspiration behind the new design and let customers feel like they are part of the process.
What’s the difference between restaurant renovation versus remodelling?
The main difference between a restaurant remodel and renovation is the magnitude of alterations that take place. A renovation is when you update the look and interior of a room without changing its intended purpose. A remodel on the other hand involves altering the structure of a place. A remodel is more intense, usually more costly, and always requires permits. For example, turning a bathroom into a kitchen is a remodel as it requires major structural changes. If the design of your space is poor and needs major structural changes, then you should consider a restaurant remodel.
However, if your plan is to upgrade the look of your restaurant, change out some fixtures, update the design and optimize for better operational flow, etc, then that is a restaurant renovation. A restaurant renovation is also more DIY-friendly if you have the time and some basic skills.
DIY vs Hiring a Professional Restaurant Interior Designer
Speaking of DIY, when planning for a restaurant renovation, it is normal to wonder if you need to hire a professional or do it yourself. There’s no one answer to this, however, there are factors you should consider, which will help guide your decision. Restaurant renovation is no minor undertaking and can be full of surprises even more so when you decide to do it DIY style. There are also limitations to how much a private and unlicensed individual can do when it comes to making changes to and setting up commercial space.
For example, most cities do not allow unlicensed individuals to handle things like electrical wiring, plumbing, etc. If your renovation will include these changes, then you will need to hire a contractor or a professional eventually. Also, keep in mind your cost vs time-saving options. Even if you can handle your restaurant renovation, oftentimes it could take longer than expected which means your restaurant will be closed down or operating in a limited capacity for a while. If you compare what you are saving by doing it DIY vs what you are losing by reduced sales or a complete shutdown, you find that it’s better to get a professional.
At Sansa Interiors, we understand the ins and outs of restaurant renovation and we have worked with several happy clients on different restaurant renovation projects in Toronto and the Ontario area of Canada. We make sure to understand a client’s needs and make a holistic renovation or remodelling plan. Like we have stated repeatedly in this article, restaurant renovation is no minor undertaking but with the right knowledge, it can be done in a seamless and timely manner for optimum results and a beautifully renovated restaurant.
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