How Much Does it Cost to Renovate a Restaurant?
Restaurants rely heavily on ambiance to create a pleasant dining experience. As restaurant buildings age, it becomes important to keep up their appearance. Remodeling can involve anything from installing new furniture to replacing the flooring.
Remodeling a restaurant is a big job, and it's important to know what costs to anticipate. Once you know about how much you can expect to spend, then you can decide for yourself whether this type of business upgrade is right for your establishment.
Keep reading below for to learn about what you should expect for restaurant renovation cost.
Average Cost to Renovate a Restaurant
In general, most restaurant renovations cost about $200 to $250 per square foot. However, there are so many variables that can affect the cost of a restaurant renovation, the best way to know for sure what your restaurant renovation will cost is to talk to a qualified general contractor.
Start your renovation by contacting at least two or three contractors. A good way to find a contractor is to get a referral from someone else who has had a successful restaurant renovation in the recent past. Meet with each possible contractor at your restaurant to discuss your upcoming renovation. Each contractor should be able to produce a quote that can help you decide about how much you can expect to spend on your particular renovation.
Factors that Affect Cost
There are many factors that affect cost during a standard commercial kitchen renovation. The cost of restaurant renovation spans a range, based on the type of work being done, the size of the restaurant, materials being used and other factors. Below are some of the biggest cost drivers in a standard kitchen renovation.
The cost of new equipment can drive up the cost significantly. However, investing in ENERGY STAR appliances and products can save money over time. In fact, some ENERGY STAR appliances use about 70% less energy compared to standard appliances. To purchase an ENERGY STAR appliance, you'll have to pay more up front, but investing in green products can save you hundreds or thousands of dollars on utility bills over a span of several years.
Furnishing replacement is one of the most expensive aspects of any restaurant renovation, especially in a big restaurant with many tables. The percentage of the renovation spent on furnishings can vary depending on the quality and quantity. Wood furnishings, for example, often cost much more than plastic or metal.
The exhaust system is a critical part of any restaurant. Working with an exhaust engineer can ensure that the system is properly designed. Hiring a professional can drive up the cost, but the money spent is worth it. The restaurant’s exhaust system has a big impact on indoor air quality and climate control. A poorly designed exhaust system can negatively impact the dining experience, which can drive away customers.
Compliance comes at a price. However, working with the state and local officials to ensure the safety of your employees and customers is critical. It’s important to hire a contractor who has good relations with local permitting offices, to ensure that this process goes smoothly and quickly.
Best Ways to Save Money
Although kitchen remodels are expensive, there are ways to save. Shop around before committing to a type of furnishing or material. Work with your contractor to find deals. Your contractor may have connections at the local building supply company, and may even have leftover materials that can be used for your restaurant renovation.
Talk to your contractor about your budget, and keep your contractor apprised of any changes to your spending limitations. Once your contractor knows how much you can afford to spend, they can help you find ways to keep costs down. A good contractor will also give you change orders for every alteration to the original plan, so you can keep track of how much you’re spending over your original amount.
Where to Splurge
Sometimes you have to spend money to save money. Don’t skimp on parts of the restaurant that will endure the most wear and tear, like the flooring. Buy good quality flooring to ensure that your restaurant stays looking its best for as long as possible. If the flooring is not good quality, your restaurant may need a remodeling again in the near future.
Make a Budget
It’s easy to overspend during a commercial renovation. You can avoid this problem by creating a well-researched and thoughtful budget. Work with your contractor to estimate the cost of materials, labor, and installations. Itemize each part of the budget, and make adjustments as the project progresses. If you’re getting a business loan, work with your lender to determine the maximum amount of money that you can afford to spend and pay back every month.
Contact Litchfield Builders
Are you going to renovate your restaurant in the next 6 months? Do you need to know the restaurant renovation cost? Tell us about your project in the comments box below. Let's start a dialogue!
Spending money is inevitable during a commercial kitchen renovation, but the return on investment can be much bigger than the price tag. If you’re ready to take the leap and invest in your business, contact a company that has experience renovating restaurants.
Contact Litchfield Builders for information about how to remodel your commercial kitchen.
Set up an appointment for a consultation, or download our free guide, A Guide to Restaurant Renovation in Connecticut.