How to Successfully Renovate and Refurbish Your Hospitality Business

Renovating or refurbishing your hospitality business, such as a restaurant, bar, or hotel, can be an exciting yet stressful undertaking. With proper planning and preparation, you can execute a smooth refurbishment that results in a fresh, highly functional, and profitable establishment.

Do Your Homework Before Getting Started

Before diving into a renovation project, thoroughly research and evaluate all aspects of your business. This will help you create a realistic budget, timeline and plan:

Gather Info About the Building and Infrastructure

• Obtain electrical, plumbing, HVAC and gas plans to know where everything is located and how it works.
• Find out when systems and equipment were installed and last serviced or replaced.
• Identify what needs repairs or upgrades.
• Learn where utilities can be turned on/off.
• Check for potential issues like leaks, faulty wiring, etc.

Analyse Operations and Layout

• Review workflow between the dining room, bar, kitchen, storage, etc. What works and what needs improvement?
• Evaluate the customer experience. Do seating arrangements, lighting, or décor upgrades need to be addressed?
• Assess equipment. What needs to be replaced or added?
• Examine inventory systems, POS software, and other operations.

Research Supply Costs and Availability

• Get price quotes for equipment, furniture, lighting, building materials, decor and anything else you’ll need.
• Verify supplier lead times so items arrive when needed.
• Look into sustainable and energy-efficient options to save on costs long-term.

Consider Hiring Specialized Contractors

• Contractors experienced in restaurant/bar renovations know how to navigate regulations, work efficiently, and obtain the right supplies.
• Get several bids and check references thoroughly before hiring.
• Be sure contractors are properly licensed and insured.

Create a Budget with Breathing Room

When creating a renovation budget, plans often exceed reality. To avoid going over budget:

• Get quotes from at least three reputable contractors for each significant project (electrical, plumbing, construction, etc.). Avoid going with the lowest bidder.
• Add at least 10% overage to your budget as a contingency for unexpected costs.
• Have 20% + in reserves if you need to source alternative materials or labour.
• Consider financing to cover costs, keep cash reserves intact and manage cash flow during closure.

Develop a Realistic Timeline

A successful renovation depends heavily on an accurate project timeline. Be sure to:

• Create a project schedule that outlines every task, assigned contractor, equipment/supply delivery dates, and expected duration.
• Build in 10-20% extra time for inevitable delays and setbacks.
• Schedule contractor work carefully so jobs that impact each other are coordinated appropriately.
• Front-load tasks that require lead time include custom fabrication or item shipping.
• Plan for time at the end for testing systems, finishing touches and staff training.

Manage Construction Carefully

Overseeing various contractors simultaneously is challenging. Stay organised with:

• Detailed contracts covering the scope of work, fees, timeline, quality expectations, and penalties for mistakes/delays.
• A point person to coordinate contractor schedules, answer questions, monitor progress and quality, and authorise payments.
• Plans for utilities, waste removal, site security, neighbour impact mitigation, inspections, etc.
• Contingency plans and alternate contractors if issues arise.
• Daily meetings and walk-throughs to identify problems quickly.

Execute Interior Design for Functionality

A hospitality space must be highly functional above all else.

• Design should facilitate efficient workflows for staff and maximise customer capacity/comfort.
• Carefully evaluate lighting, acoustics, layouts, furnishings, equipment, etc. Emphasise durability.
• Storage space and organisational systems need ample attention.
• Focus on flexibility – movable, modular furniture allows resetting as needed.
• Branding and aesthetics matter, but form follows function.

Roll Out in Phases for Faster Opening

The shutdown and construction timeframe can be a business killer. Opening in phases allows some revenue generation sooner:

• Open patios, rooftops, sidewalk cafes or a food truck before interior spaces.
• For multi-room venues, complete one section at a time.
• Host pop-ups or soft openings in done spaces to start marketing/hype.
• Add signage announcing “New Space Coming Soon!” to engage curiosity.

Just get open! The perfect space does not exist. Improve gradually once operating.

Expect Some Pushback from Long-Time Patrons

Customers accustomed to “their” bar or restaurant often resist change. Prepare them by:

• Announcing exciting changes coming far in advance across all media channels.
• She was addressing concerns transparently and positively.
• I am incorporating nostalgic elements from the old place (signage, décor, dishes, events, etc.).
• Explaining how updates improve their experience.
• They invite key “influencers” to preview events to get their buy-in.
• Training staff to address criticisms appropriately. Adopt a “customer is always right” attitude.
• Holding firm – politely stand by your vision and decisions.

Maintain Vigilant Financial Management

Meticulous accounting and cash flow management are vital when costs are high and revenue is halted during closure.

• Review spending in real-time to nip budget overages immediately. But don’t sacrifice quality to penny pinch.
• Keep excess materials for future repairs, so you don’t have to repurchase.
• Invoice fully and collect from contractors promptly when milestones are met.
• Consider small pre-opening events like a staff soft opening night to generate cash.
• For revenue, get creative with pre-opening marketing partnerships (sponsorships, social media takeovers, etc.).

FAQ About Renovating a Hospitality Business

How much does it cost to renovate a restaurant or bar?

Restaurant renovations range from $200 – $500 per square foot, and bar renovations range from $150 – $400 per square foot. High-end establishments with extensive customisation run $800 – $1,200+. Contingency funds of 10-20% of total costs are recommended.

How long does a restaurant or bar renovation take?

Significant renovations take 10-20 weeks on average. Timelines depend heavily on project scope. Opening in phases can allow operating portions sooner. Allow ample buffer time in schedules.

How do you create a renovation budget?

Get multiple bids for all major construction, materials, equipment, furniture, signage, and professional services. Add 10-20% overage to account for surprises. Have financing to cover overages without tapping reserves.

How should you select contractors for a hospitality renovation?

Verify contractors are licensed, insured, and experienced in relevant hospitality projects. Get 3+ bids per trade and review references meticulously. Require detailed contracts. Hire specialists for a highly customised project.

What are renovation best practices for restaurants and bars?

Create detailed project plans and schedules. Hire experienced hospitality contractors. Inspect work frequently. Stick to budgets. Manage cash flow closely—design for flexibility and easy maintenance. Open in phases when possible.

Final Thoughts

Renovating a hospitality business demands immense preparation, patience and attention to every detail. But the rewards of a fresh space designed precisely for your needs make the efforts worthwhile. With proper planning and diligence during execution, your newly renovated restaurant, bar or hotel can thrive for many years.