The Big Picture: Construction and renovation

Sprucing up the place

The majority of operators said they are planning to renovate at least part of one or more of their dining facilities in the next two years. Universities (71%) are most likely, while hospitals (46%) and long-term care/senior living (43%) are the least likely.
Operations with $5 million or more in annual purchases are significantly more likely to be planning a renovation than those with lower annual purchases (88% vs. 46%).

                          Total        Business &    College &      Schools        Hospitals     LTC/Senior
                                             Industry       University                                                   Living

Renovations Past 2 Years Next 2 Years Past 2 Years Next 2 Years Past 2 Years Next 2 Years Past 2 Years Next 2 Years Past 2 Years Next 2 Years Past 2 Years Next 2 Years
Partial back-of-house renovation 26% 22% 18% 22% 42% 31% 26% 23% 16% 14% 24% 21%
Partial front-of-house renovation 24% 25% 18% 30% 27% 40% 19% 28% 14% 22% 18% 15%
Full front-of-house renovation 20% 17% 23% 17% 36% 26% 18% 13% 8% 11% 18% 16%
Full back-of-house renovation 16% 13% 23% 22% 24% 21% 20% 17% 8% 5% 10% 9%
No renovation 49% 48% 41% 39% 22% 29% 47% 49% 67% 54% 55% 57%

Planning construction

About one-quarter of operators said they plan to open a new dining location in the next two years, with college and university operators (43%) the most likely to do so. In addition, operations with annual purchases of $1 million or more are significantly more likely to open a new location within two years (43%) than smaller operations (11%).

  Total Business & Industry College & University Schools Hospitals LTC/Senior LIving
Within 2 years 23% 26% 43% 16% 16% 18%
3-5 years 9% 0% 15% 12% 8% 6%
6 or more years 4% 9% 1% 4% 7% 3%
None planned 64% 65% 41% 68% 69% 73%

Renovation challenges

Finding money for renovation projects (55%) and continuing services during a renovation (41%) continue to be the most daunting challenges for non-commercial operators. College operators (65%) were most likely to encounter funding hurdles, while long-term care/senior living operators (43%) were least likely. 

  Total Business & Industry College & University Schools Hospitals LTC/Senior Living
Funding 55% 59% 65% 56% 60% 43%
Continuing service during renovation 41% 50% 51% 18% 45% 42%
Administrative approval 31% 27% 43% 27% 35% 23%
Finding space 22% 5% 25% 15% 39% 14%
Construction delays 16% 18% 31% 14% 10% 13%
Dealing with vendors/contractors 12% 5% 15% 22% 6% 11%
Selecting equipment, materials, etc. 11% 14% 3% 22% 15% 8%
Time 11% 14% 22% 11% 10% 5%
Plans/blueprints 7% 9% 7% 8% 6% 6%

 

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