Our first restaurant build out - before and after!

SC · Member since 2014 · 303 posts · 183 votes

Hello All,

The commercial RE forum seemed like the best place to post this.

I just wanted to share before and after pics of our first bar/restaurant build out! This is our first project and we have certainly learned a lot! We went from a gutted space that was basically an old industrial building and we built out a full kitchen with walk in cooler/freezer, 70-tap draft beer system (not yet installed in the after pic), full bar, and 80 seats inside with an additional 35 seats on a 600 sqft covered patio. This is the first of 12 units that we will be building, and after many delays and unexpected problems we are FINALLY going to be opening our doors. I have certainly learned that things never go as planned, and you have to be able to adapt very quickly in this business! Enjoy!

5 Reply

70 views

Most Popular Reply

Joel OwensBusiness Member

Moderator

Real Estate Broker · Canton, GA · Member since 2010 · 15k+ posts · 11k+ votes

11y

Decades of experience in all facets of the restaurant industry before getting into real estate.

It is a very hard business.

Right now you have the "New Factor" as a restaurant. Do not get overly excited by lot's of business to check you out. That Is nothing that isn't normal.

I see owners hands on in the beginning and things are going well. Then owner get comfortable and believe things will hum along with the status quo. Biggest thing I see is they get cheap in the kitchen and use great products but have so-so cooks preparing the meals.

I want to repeat as it is that important. Many concepts have test kitchen facilities where they test product with quality ingredients and believe it tastes amazing. When sales fall flat at a store location they can't figure it out. It comes down to execution of the product. You could have meat at 20 a pound costs but if prepared wrong it can taste like crap. Conversely if you have only decent ingredients but a great chef the dish can be made to taste great.

It is as much about skill as the products used. I eat out a lot for business and pleasure. I would rather wait 20 minutes longer and have poor service and excellent food then get good service with fast food that tastes poor to okay.

Consistency of excellent food will be a major key to your success of the restaurant. Your biggest killers to your bottom line will be keeping rents in place and increases over the years if you do not own the space, labor cost policies with people asking for 15 an hour, and having FFC's ( fixed food contracts where you have set food costs even in a rising market ). FFC's are huge for small operators because it is the big boy's advantage in that if food costs soar you can't pass along all of that to the consumers so it starts eating into your bottom line.

Another factor is long term planning. Right now the asset is new and fresh. Over the years it will get older and older. Classic mistake is the owner will hoard cash and live fat for years and make good bank. They will not allocate 80k per year over 10 years for a re-image.

Podcast Guest on Show #47

NNN Invest53 Reviews

Website View Page

5 Reply

See this reply in the discussion

69 Replies

Jump to latestLatest

Sort by

Richard Dunlop
Investor · Detroit, MI · Member since 2014 · 755 posts · 462 votes
11y
Nice
1 Reply
Account Closed
Investor · Cedar Bluff, AL · Member since 2015 · 83 posts · 17 votes
11y
Congrats! Hope the rest goes smoothly.
1 Reply
Tom Yung
Investor · Winnipeg, Manitoba · Member since 2013 · 303 posts · 321 votes
11y
@Dave Hurt
@Dave HurtA gutted industrial to food service. I just can't imagine the type of traffic & customer base that you can be attracting to these industrial zoned location.
The area must be changing to fit this type of investment. Can you describe a little more on the location & market; so I can understand a little better.
Also interested to find out what is your cost/seat.
1 Reply
Shane H.
Investor · Wichita, KS · Member since 2015 · 769 posts · 279 votes
11y
Yes - echo the sentiment, would love to hear more details if you can share -- general location, (are you the property owner, contractor, restaurant owner, etc)?
Something I'd like to learn a bit more about.
Going to throw a wild guess and say the delays were due to permitting/local officials? HA
0 Reply
Account Closed
San Jose, CA · Member since 2015 · 4k+ posts · 3k+ votes
11y
Gorgeous!
1 Reply
Dave Hurt
OP
SC · Member since 2014 · 303 posts · 183 votes
11y
Thank you @Richard Dunlopand @Account Closed!
@Tom Yungit is in an area has transitioned from an old warehouse/industrial district to a hip neighborhood for young professionals with hundreds of new luxury apartment units, retail shops, restaurants, etc. The space was functionally obsolescent and the highest and best use was definitely restaurant or retail - it just required a heck of a build out!
@Shane H.we are actually the restaurant owner and YES the delays were due largely to permitting and local officials. It is in the South End area of Charlotte, NC.
2 Reply
Greg Mucha
Flipper/Rehabber · Charlotte, NC · Member since 2015 · 33 posts · 12 votes
11y
Good for you Dave! My family bought an industrial sewing facility and built out I nto a Polish restaurant up here in the metro Detroit area. 25 years later it's still turning a nice profit.
Good luck with the new venture, I'll have to stop in once we're moved into the Charlotte area! With 12 more units planned, you must be franchising? Something I always wanted to get into...
Cheers!
1 Reply
James SlaughterPro Member
Environmental Scientist / Investor · Statesville, NC · Member since 2015 · 94 posts · 41 votes
11y
Very nice Dave! I work in this area and wish you all the luck (although luck most often involves a lot of hard work) and can't wait to visit!
1 Reply
Jasmine S.
Investor · Charlotte, NC · Member since 2014 · 99 posts · 18 votes
11y
@Dave Hurt looks great and you know I'm foaming at the mouth waiting to get a craft beer and burger! Way to go!
1 Reply
Katie Neason
Flipper/Rehabber · Bryan, TX · Member since 2014 · 258 posts · 170 votes
11y
Very cool. What is your experience in the restaurant business? Are you going to be working in the business? What led you down this path? How did you finance it? Bank, Private investors, etc? What is the breakeven timeline? Stabilized ROI? Would love to hear more about the story. Building looks great.
1 Reply
Dawn BrenengenBusiness Member
Moderator
Real Estate Broker · Raleigh, NC · Member since 2014 · 2k+ posts · 1k+ votes
11y
@Dave Hurt What's the name of the restaurant? I'd love to check it out next time I'm in town!
Podcast Guest on Show #101
1 Reply
Mike Carino
Engineer · Suwanee, GA · Member since 2013 · 127 posts · 47 votes
11y
Originally posted by @Dave Hurt:

Hello All,
The commercial RE forum seemed like the best place to post this.
I just wanted to share before and after pics of our first bar/restaurant build out! This is our first project and we have certainly learned a lot! We went from a gutted space that was basically an old industrial building and we built out a full kitchen with walk in cooler/freezer, 70-tap draft beer system (not yet installed in the after pic), full bar, and 80 seats inside with an additional 35 seats on a 600 sqft covered patio. This is the first of 12 units that we will be building, and after many delays and unexpected problems we are FINALLY going to be opening our doors. I have certainly learned that things never go as planned, and you have to be able to adapt very quickly in this business! Enjoy!
Great looking place and best of luck in your business venture! It truly is a accomplishment to get that first one up a running, and seeing the customers enjoy the atmosphere.
I have had alot experience with a couple fast casual restaurant/bar build outs in the Atlanta area. Those headaches will never go away for you next build outs. Be strong and firm on your LOIs and be on top of city codes. And know those the long sleepless nights of going over budget will be coming :-)
1 Reply
Dave Hurt
OP
SC · Member since 2014 · 303 posts · 183 votes
11y
Apologies for the delay everyone - it has been opening week and needless to say...a bit hectic!
@Greg Mucha thank you! Yes we are franchising - this first project has certainly had its bumps along the way, but we will take what we've learned and apply it to the next to (hopefully) have a smoother build-out and opening!
@James Slaughter haha you are right! I find that I have more and more 'luck' the harder I work! I see you're in Davidson - if you're ever in the South End area let me know!
@Jasmine S. thanks! Today was our first day open to the public and it went well. If you stop by please let me know what you think of it!
@Katie Neason lots of questions! We used a combination of bank financing and our own capital. I have worked in the industry, but have never been an owner. I was led down this path basically when the opportunity presented itself to secure the franchise rights to a large territory through a partnership. As of now, I still have a corporate job, so my role is more behind the scene, but as we grow I will transition into the business full time.
@Dawn Brenengen the restaurant is called [redacted]. It is an upscale craft beer bar with a full kitchen, wine, and cocktails. We would love if you stopped by next time you're in CLT, and of course let me know!
Thanks so much @Mike Carino! It was definitely a gratifying experience today to see all of our guests enjoying themselves - now the real work begins!
2 Reply
Jasmine S.
Investor · Charlotte, NC · Member since 2014 · 99 posts · 18 votes
11y
Hey @Dave Hurt so excited to hear the doors are open. I may try to make it out that way tomorrow but if not you'll certainly see me before the weekend closes I'm looking forward to spending my money on burgers and brews for a BP brother!
Congrats and of course CHEERS!
0 Reply
Ryan Pemberton
Investor · Newburgh, IN · Member since 2014 · 63 posts · 47 votes
11y
Looks great! Good luck on the rest of your journey...also, put Journey in the juke box. It seems to be a universal bar prerequisite.
0 Reply
Chanté Owens
Insurance Agent · AZ · Member since 2013 · 306 posts · 161 votes
11y
@Dave Hurt That's AWESOME! Many kudos to you and wishing you much future success.
0 Reply
Justice Cannie
Investor · Charlotte, NC · Member since 2015 · 66 posts · 21 votes
11y
I say to all that are in Charlotte we should have a business lunch one day this week. Support a colleague and network.
1 Reply
Christopher Telles
Investor · Irvine, CA · Member since 2015 · 373 posts · 205 votes
11y
Nice!
This building and its end use would fit nicely in any of todays urban core renaissance areas.
0 Reply
Justice Cannie
Investor · Charlotte, NC · Member since 2015 · 66 posts · 21 votes
11y
Is anyone interested in meeting up at [redacted] this Friday between 12- 2pm. I am looking to build relationships and network with like minded people. I can be reached @ 704 293-2587 Justice
0 Reply
Joel OwensBusiness Member
Moderator
Real Estate Broker · Canton, GA · Member since 2010 · 15k+ posts · 11k+ votes
11y
Decades of experience in all facets of the restaurant industry before getting into real estate.
It is a very hard business.
Right now you have the "New Factor" as a restaurant. Do not get overly excited by lot's of business to check you out. That Is nothing that isn't normal.
I see owners hands on in the beginning and things are going well. Then owner get comfortable and believe things will hum along with the status quo. Biggest thing I see is they get cheap in the kitchen and use great products but have so-so cooks preparing the meals.
I want to repeat as it is that important. Many concepts have test kitchen facilities where they test product with quality ingredients and believe it tastes amazing. When sales fall flat at a store location they can't figure it out. It comes down to execution of the product. You could have meat at 20 a pound costs but if prepared wrong it can taste like crap. Conversely if you have only decent ingredients but a great chef the dish can be made to taste great.
It is as much about skill as the products used. I eat out a lot for business and pleasure. I would rather wait 20 minutes longer and have poor service and excellent food then get good service with fast food that tastes poor to okay.
Consistency of excellent food will be a major key to your success of the restaurant. Your biggest killers to your bottom line will be keeping rents in place and increases over the years if you do not own the space, labor cost policies with people asking for 15 an hour, and having FFC's ( fixed food contracts where you have set food costs even in a rising market ). FFC's are huge for small operators because it is the big boy's advantage in that if food costs soar you can't pass along all of that to the consumers so it starts eating into your bottom line.
Another factor is long term planning. Right now the asset is new and fresh. Over the years it will get older and older. Classic mistake is the owner will hoard cash and live fat for years and make good bank. They will not allocate 80k per year over 10 years for a re-image.
Podcast Guest on Show #47
NNN Invest53 Reviews
Website View Page
5 Reply
Ramon Jenkins
Real Estate Agent · Milwaukee County, WI · Member since 2009 · 3k+ posts · 525 votes
11y
very nice work
Congrats
0 Reply
Brian W.
Commercial Real Estate Agent · Long Island, NY · Member since 2011 · 71 posts · 9 votes
11y
Nice!!!
0 Reply
Michael Askew
Wholesaler · Charlotte, NC · Member since 2014 · 33 posts · 14 votes
11y
Congratulations @Dave Hurt!! I reside in the Charlotte area and I can't wait to support your business in the near future.
0 Reply
Nick L.
Buy & Hold Investor · Milwaukee, WI · Member since 2012 · 378 posts · 179 votes
11y
Good looking project! Thanks for sharing.
That looks like an industrial clearspan-type building with a steel frame and curtain walls. Is that right, and did it make the conversion any easier than with a traditional building?
Would you be able to share any data on square footage and improvement cost per sq ft?
0 Reply
Dave Hurt
OP
SC · Member since 2014 · 303 posts · 183 votes
11y
@Joel Owens thank you for the advice - I will certainly take all of this into consideration moving forward, because I know you've been in the game for quite a while! Were you a franchisee of a full service concept prior to getting to real estate by any chance? We do not intend on taking any distributions for quite a while - everything stays in the business.
Thank you everyone else for the positive feedback! We are just coming off our first week, and while we've enjoyed strong numbers - I know it is largely due to the newness factor. Now the real work begins!
@Nick L. actually I do not think the building is clearspan style, but honestly I'm not sure - but I can tell you that with the age, etc. we did have to do considerable upfit to bring it to our work letter standards. The space is 3100 sqft, and our build out cost was in the neighborhood of 140-150/ft, including a 600 sqft covered patio wired for electrical, with fire sprinklers, etc.
1 Reply

Join the conversationCreate a free account to reply, vote on answers and follow this thread.