When and How to Renovate Your Restaurant

Stuff falls apart. Stuff gets dated. These are facts of the restaurant business. Even if this is your first restaurant you need to accept that as your business grows, you will be facing these issues before you know it.

Maintenance is important, but if you are just fixing equipment, applying fresh paint, replacing worn items - you are not really renovating. And maybe you don't need to renovate. Operators have been known to throw money at a renovation project that does little to increase cash flow.

The restaurant you created or purchased even a few years ago may still be doing fine, but perhaps you've changed direction in terms of ambience, menu, or pricing; or conditions in your neighborhood are pressing you to reinvent the concept. Better yet, you have the very happy problem of having so much business that your existing facility can't keep up with all the demand.

In this article, we look at reasons to (and not to) renovate, and how to approach a true renovation. First, let's make sure we agree on terminology. A true renovation involves altering a facility so that it alters or improves its performance, not just returns it to the status quo.

Almost all restaurateurs face the problem of whether to renovate and, if so, how much to spend on the project. Let's have a look at how to approach these questions and to plan ahead to make whatever renovations you choose to do have the best chance for being successful.

According to a RestaurantOwner.com survey, 30% of 472 respondents acquired their restaurant by purchasing an existing concept. More than likely, most of them also acquired the four walls of the business. If you are one of these operators, you might be wondering how much you should spend on a renovation. This article promises to be helpful in this regard, as well.

Forced vs. Planned

Sometimes you don't have a choice in the matter. There are renovations driven by necessity. They aren't the best scenarios, but they are beyond your control. One example is when there are changes in code requirements which you or your landlord are responsible for adopting in order to continue to hold a certificate of occupancy.

In many cases, existing businesses are "grandfathered" when codes change - that is, they aren't required to update the space to meet the new codes until there is some major renovation or, in some cases, a change of ownership.