Budget-conscious restaurant design: a fact of life - Opinion - column

Someday a client will walk into my office with an attache case full of money and say, "Design a restaurant for me; I don't care what it costs." Since it is unlikely that this will ever happen, I will trudge along designing restaurants on tight budgets.

Since most restaurateurs are keenly aware that three out of four restaurants fail in the first year, it is the responsibility of the designer to understand that the budget cannot be exceeded. Restaurants, unlike other commissions, depend on revenue to survive.

The initial investment determines the amount of money that has to be financed. That debt service is factored into the operating budget.

Most restaurants are undercapitalized and do not have enough operating capital to overcome the "bugs" in the first year. That is why the pressure is on the designer, especially in restaurant design, to come up with the most for the least.

The first step toward a cost-efficient design is establishing a firm understanding of the client's goals and objectives.

(1) How many seats are required to make a fair return on his investment?

(2) How many "turns" on tables does he have to make at lunch and dinner?

(3) What is the average check price?

(4) What market is he trying to reach?

(5) What preconceived notions does your client have concerning materials, lighting and overall theme?

(6) Establish a realistic budget. If the average check is $40 and he expects to do two turns at both lunch and dinner and expects marble and wood for $50 per square foot, then you've got a problem.

The average new restaurant in an urban area costs between $175 and $225 per square foot. Those figures include heating, air conditioning, plumbing, electricity, equipment and interior design. Restaurants costing below $175 per square foot are considered "budget jobs." Sixty-five percent of the budget is absorbed by mechanical and electrical requirements, 15 percent goes toward kitchen equipment and the remaining 20 percent is left for decoration.

Most budgets are exceeded because the mechanical, electrical and equipment costs have been underestimated. In addition, utilities, such as gas, sewer, and electrical services, are not available or not sufficient for the proposed space and have to be upgraded At a later date at great cost. Code violations, such as egress, and fire ratings are overlooked and need to be added once the friendly inspector comes around.

In some cases the landlord's "work letter" should be negotiated before signing the lease to ensure that utilities are sufficient.

Operating costs are part of the overall budget and reflect the energy-efficient design of the entire HVAC package. Those operating costs can be reduced, however; initial costs can be higher because of more sophisticated controls.

Once a budget range has been established, prepare a slide show, illustrating what the client can expect if he spends $100 per square foot, $150 per square foot or $250 per square foot. It will dispel any fantasies concerning what the client can afford.

Tight budgets should not be a constraint on creativity. They should provide the designer with a challenge to create an environment that is satisfying yet cost efficient. Tight budgets usually produce exciting, spirited designs amd stretch the designer's range.

Below are several ways to possibly reduce the budget and still retain the design integrity:

Investigate industrial materials that were fabricated for another use that can be substituted for more expensive alternatives:

Galvanized steel, corrugated metal, aluminum sheets, flakeboard, particleboard, fiberboard, sonotubes (cardboard form used in making concrete columns).

These materials can be used for wall surfaces, ceiling and table tops, especially if they are burnished. They also can be stained to create intersting textures.

It is also important to leave enough time to solicit and negotiate contractor's bids. Everyone is in a mad rush to start construction and leaves one week for securing a contractor. One will sign a contract for a fixed price only to find 25 percent overruns at athe end of the job because the contractor didn't have time to study the plans. Several major specialty items can be purchased by the owner directly through the designer in order to reduce the budget.

In summary, Budget-conscious restaurant design is a requirement, not an option.

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