The call to renovate comes more often for restaurateurs than for other businesses. There’s so much that hinges on your restaurant’s aesthetic appeal that you can’t hope to get by with repairs.
Also, people tend to be drawn to restaurants that keep up with architectural and interior design trends. If you hope to keep attracting customers, you need to plan for regular renovations.
The first part of renovating involves understanding what needs to be done and creating a budget that fits the bill. The big question is, how do you create the perfect budget to avoid running out of money? Stick around to find out.
Restaurant Renovation Costs to Budget for
Here are the most common costs you need to include in your restaurant renovation budget:
1. Contractor Costs
Labor costs will occupy a significant part of your budget. Generally, remodeling costs run from about $200 to $250 per square foot. However, there are many factors that could make you pay higher or lower.
For example, the size of your restaurant, the amount of work required, and the equipment they need to use affect how much you spend. Plus, a restaurant in Washington DC will cost more to renovate than another one in a small town.
You can work with a designer from the beginning for tips on what to spend more money on and what you can spend less on.
2. Materials
Materials typically cover every hard surface you have to renovate. For example, epoxy flooring costs in 2021 ranged from $1,407 to $2,942 while professional installation cost $3 to $12 per square foot. Hardwood floorings cost $6 to $12 per square foot. It also matters how the wood has been treated –such as engineered versus solid and so on. You also need to think about whether the floor needs preparation work.
Additionally, consider whether your restaurant renovation requires buying new furniture or refurbishing the old ones, any new art you may need to buy, and how the make of each of these things affects the cost.
Your contractor can guide you on costs, quality, and stores that give discounts. Do some homework too and compare different prices for everything you need before you lay down the costs.
3. Opportunity Costs When Closed
Major structural changes in a restaurant usually render it inoperable for a while. Smaller ones, like those that affect just one section, may also make it impossible for you to do business as usual.
For example, you can’t keep cooking in a kitchen under renovation. That means the lifeline of your restaurant will be cut off for a while. If it’s only the dining area, you may have to resort to take-out.
The point is to estimate how much you’ll miss out on sales and reservations for that period and plan for it. There’s good news though. Restaurant sales go up from 10 to 20% after renovations.
4. Utilities
If you’re adding a new section, you need to consider the cost of utilities such as plumbing, electrical wiring, and exhaust systems.
Kitchen restaurant design cost can take up to 75% of the total budget. If you’re doing an overhaul, plan for $300 to $500 per square foot.
Commercial plumbers charge an average of $85 per hour, and an additional cost followed by 15-minute increments after the first hour. They also charge service call-out fees ranging from $50 to $150 and travel fees of $1 to $2 for each mile after traveling for ten miles.
You can use the renovation as an excuse to go green and save money on your budget and in the long term. These include lower flow fixtures while you remodel the bathroom and LED lighting fixtures.
5. Permits
Renovation permits are much cheaper compared to other renovation costs. Your contractor can let you know which ones you need according to your state’s requirements.
Typically, you need a building permit when you’re adding floors or structures. This permits costs anywhere between $50 and $1,000 depending on the age of the building and location.
In Conclusion
The safest way to plan your budget is always on the higher side to cover unforeseen costs. Plan for the renovation during low seasons such as winter when you’re more likely to get cheaper quotations from contractors.
Better yet, enlist a designer who understands the restaurant scene so they’ll help you capitalize on aspects that will make every dollar you spend worth it.
OPENUU is a design studio with more than 20 years of experience in architecture branding, and interior design. We help businesses like yours to combine design and function for the best results. Learn more.