This past week or more has been a whirlwind of progress (finally). Here is a list of achievements;
- With the exception of the fan on the roof, the hood is in. It passed inspection and the fireproof duct work is completed.
- The fireproof tenant separation ceiling is up, taped and “mudded”. Waiting for inspection tomorrow, Monday, December 8, 2008.
- The electrical circuits are run and passed the rough-in inspection. The wall electrical inspection, which allows us to close all walls, should be inspected Monday.
- All walls are drywalled on one side and waiting for the electrical inspection to cover other side.
- As of last night a crew was completing some floor tile work in customer visible areas.
The items above may not seem like a big move forward, but you must consider we are dealing with 1800 square feet of space. That means when the restaurant contractors put the ceilings, tile and electrical into the location, the contractors are covering front to back.
This week should complete 90% of the rough-in construction. We have a schedule that looks like this:
- Monday - get electrical inspection. Begin covering rest of walls. Starting ceiling grid for drop-in ceiling tiles. Get final inspection on fireproofed ceiling separation. Order and construction of all counter tops.
- Tuesday - Complete wall covering and drywall mudding and taping after screw inspection. Complete drop-in ceiling. Install data wiring for POS system, phone and cable.
- Wednesday - Finish office space to begin putting up shelving, work space and computer locations. Start kitchen and bathroom floor tile. Grid system for ceiling complete for electrician to begin installing lighting.
- Thursday - Complete office and storeroom. Finish all flooring. Finish all electrical. Do wall finishing with primer and “knockdown” coat. Install FRP in kitchen. Plumber to starting final connections including gas piping. Wi-fi system in office.
- Friday - Paint walls final teal color and install wood beadboard. Start scheduling delivery of restaurant booths and equipment for following week.
- Saturday - Install baseboard. All counters installed. Office completed and operating with filing shelving and accounting computer. Start decorative shelving and finish work for interior.
- Sunday - Have restaurant cleaning crew come in and do complete cleaning before booths and equipment start arriving following week. Install video security system.
While all of the above work deals primarily with construction, during the coming week we will also;
- Order all remaining restaurant equipment to be purchased by Wednesday. Remember we have already purchased a lot of the kitchen equipment as we found bargains.
- Place a smallwares order for delivery early the following week.
- Purchase stainless shelving and install Friday or Saturday in kitchen.
- Schedule delivery and setup of POS system, beverage machines and cleaning system installation.
- Complete menu and testing. Start working on inventory initial order.
- Start interviewing potential employees late in the week. Process to continue until open.
- Complete forms and all filing and background office system.
If we have any chance to open before year end, next week will be the determining factor.
When building or remodeling a restaurant, selecting the right contractors and tradesmen is a process we outlined in previous posts. In the last post (Nov. 24), we noted how critical the week of Thanksgiving was to our goal of opening yet this year. We thought we had everyone scheduled to get over a big hurdle on Wednesday. This was the day we scheduled the roof penetration for the hood ventilation. This task required the general contractor, electrician, roofer and hood builder to coordinate the project. The goal was to get the hood in and inspected on Monday.
Everything went fine until the hood builder was a no-show at noon on Wednesday to install. He had confirmed he would be there on Tuesday. During the contractor selection process, the hood supplier was my biggest question mark. I had heard about some bad experiences with them from a couple of other sources. Despite my reluctance, the architect pushed to use this particular contractor and I relented. I am paying the price.
While the obvious response is to get someone else, that is a little difficult to do when it takes days to plan, build and get approval for a hood system. In addition, the hood designer got $6000 in advance to start the project for materials.
Just another lesson - if you have doubts, be absolutely confident of the people you choose to do the work. It could cost you days and weeks in the building process.
So far this week we have:
- gotten the electric circuits all run.
- made the floor penetration for the hood to the space above.
- made the penetration for the hood ventilation in the roof.
- finished all the rough in plumbing and had inspected.
- got our final slab inspection and can pour the last small remaining area of concrete where plumbing was run for drains, grease trap and vents in the floor.
- made the wall penetration for the make-up air to the hood system.
- put up drywall for the area around the hood where we will no longer have access around the hood.
Today we hope to find out what happened to the hood contractor and get the hood system installed.
In earlier posts we have covered costs to start a new restaurant. Of course, they vary based on the number of seats, type of cuisine, location, menu and other factors.
In this case, I have updated the estimated costs for this particular restaurant according to what I know so far. Keep in mind that we are in the construction stages and there will be updates as we go along. The numbers you will see in the estimates are based on quotes and actual payments made or items purchased as of this date.
One of the most significant costs will be the finishing and decorating costs which will be filled in as the actual numbers are calculated. Visit the site in a couple of weeks for another update. Remember, this is a 70 seat inside and 25 seat outside breakfast and lunch restaurant. Dinner could easily be added, but that is not our concept.
The waiting for approval to begin construction allows time for more planning and trying to cut down on other delays that can occur during the building process. In the last few days we have:
- Begun working on the prototype menu design and a couple of new menu items.
- Pressure cleaned outside areas and walk-in refrigerator/freezer that is outside the rear door.
- Got in the quote on a high volume ice machine.
- Listened to a proposal for the installation and contract for a dish washing machine, chemical system and cleaning system.
Restaurants have a number of options when it comes to dish washing. The machines cost anywhere from $4000 to $10,000 depending on the volume and style. However, there are programs that reduce the upfront costs and provide service. Both US Foodservice and Sysco can offer leases for $50 to $70 per month. You get the machine, installation and full service at no charge with the lease. You must buy their chemicals. The program is an excellent option for most restaurants - although you are committing to do business with that particular food wholesaler.
Ice machines also present options for restaurants. For large volume operations, my recommendation is to have two medium size machines rather than relying on just one large ice source. Smaller ice needs can be handled by one machine that can produce 50 pounds per day for a small undercounter unit or 500 pounds per day in a large capacity ice maker.
Ice machines can be leased or purchased with costs running from $500 to $5000. I have chosen to lease my ice machines for two reasons. First, immediate service is a necessity. When an ice machine goes down, you need someone there within an hour or two - not a day or two. Second, the companies who lease the machines generally will supply you ice while repairs are made.
For our new restaurant, we will be leasing at $185 per month for a medium volume machine. We could buy the same machine for about $3000, but service in this area is questionable at best.
Just when we thought things were getting ready to move to the demolition and construction stage, the HVAC contractor says the air handler for one of the A/C units must be moved from a closet in a stairwell to the main interior of the space. The only alternative is to take up about 10 square feet of the kitchen that will have to be re-designed. Losing any kitchen space is the same as losing seating - not good.
Yesterday we finally got the general contractor (the original), architect and HVAC contractor all together to finalize rough drawings. All three, of course wanted to tell me how busy they were. All three got my direct standard response to contractors - “If you don’t want this job or cannot meet the time frames of this job, tell me right now and we will part as friends. If you continue the “busy” routine and can’t devote the time to get this job done quickly, I will know and replace you - which is it?” All three decided they wanted to move forward.
The first portion of the drawings are to be done tomorrow for subssion to the county, landlord and municipality for permits to do two things; demolition and fireproof rating drywall on the supports for the second story space (not ours). This is tenant separation for fireproofing.
The rest of the drawings showing all the other steps will be done a week later. The remaining items to be included in the next set of plans includes:
- electrical
- HVAC
- plumbing
- grease trap
- gas lines
- hood installation
- seating
- equipment location
- walls
- restrooms
Restaurant plans are one of the most complicated to draw due to the wide range of utilities and equipment necessary to function. Multiple regulatory agencies complicate the permitting and planning even further.
This week has been a lesson in patience and persistence that culminated in the signing of the lease for the new restaurant yesterday. To put the whole lease negotiation behind us is a relief, but not without some misgivings about the “recession” we appear to be in and the closing of thousands of restaurants across the country.
The doubts, fear of failure and even a “slick-willie” attempt by the landlord’s attorney to get a long term personal guaranty on the lease from me, all have to be put aside and concentrate on getting the construction done and the restaurant open.
The events this week that have occurred include;
- Received a quote on a hood system of almost $12,000. Need to get second quote. $2000 higher than expected.
- Bank account opened.
- Security deposit and first months rent paid at lease signing totalling over $8000.
- Architect complaining about how long it has taken to get lease signed and now he is very busy with another project. Falling on deaf ears as far as I am concerned!
- Son has numbers plugged into business plan and completing text.
- One contractor is out of town until Tuesday, but did send forms to landlord for a “Notice of Commencement”. This is a document filed with the county that puts everyone on notice that construction is starting and the contractors have lien rights until work is done and paid for. Common form necessary for permits.
- Scheduled meeting with another contractor due to the lack of communication from the original contractor. Need a “plan B” if I continue to have problems.
Next week’s goals are;
- Pull permits for demolition of existing walls, ceiling and materials.
- Check on condition of existing walk-in box at the location.
- Meet with contractor and architect to move project along.
- Start getting ideas on wall finishing.
- Watch for bargains on equipment and seating from closed restaurants.
- Get electric switched on at the location.
- Start working on marketing plan and creating “buzz” during construction.
With the economy deteriorating and consumer spending patterns shying away from restaurants, I will be looking at ways to preserve cash in the construction and pre-opening phase. While the plan is to build the restaurant from cash reserves, I must remember I have three restaurants to watch cash flow and be able to weather any drastic change in revenues.
This past week or more has been a whirlwind of progress (finally). Here is a list of achievements;
