Should Restaurants Compromise Building Design to Save Costs

Could it be that restaurant companies are becoming more accepting of new locations that lack the integrity and design standards of their prototypical building designs?

I think so.

Much of the space available now is second or third generation space. And no matter the effects of the recession, remodels and retrofits of existing buildings typically result in compromised designs anyway. If restaurant companies must build properties according to specification with budgets less than what they are accustomed and TI money from landlords is also less than usual, then compromising building design is probable.

Reduced construction budgets and increased building costs are other reasons restaurant companies might be willing to compromise proto building design. With many material plants and manufacturers closing due to the economic downturn, we are seeing an increase in building costs due to increased material costs. This could get worse as new construction rebounds and construction demand outpaces supply. This might not be a bad thing in the long run, however. If companies can value-engineer their buildings by cutting costs in areas that do not affect customer experience or the operation of the restaurant, i.e. less expensive finish materials and finishes customers don’t see, etc., the result could be greater revenue falling to the bottom line.

Diluting brand standards companies work so hard to establish — especially ones in building design, so integral to differentiating restaurant brands — is a decision restaurant companies will struggle to make. Still, though, we should keep at least two things in mind: For one, competing profitably is a top priority; an economic recession of historic proportion seems like an acceptable reason to temporarily compromise brand aesthetics. Secondly, let us not forget the customer experience, the undeniable and main reason for restaurant success. Surely operations managers agree that a customer’s choice to return is more a function of food and service than the aesthetics set by crown molding and window casings.