Designing a plug-and-play restaurant shell means preparing a space that is fully equipped with essential commercial kitchen infrastructure. The idea being that a tenant can begin operations in the new space with relative ease (from a construction perspective) – and for a lot less upfront investment.
For the landlord or commercial developer who is preparing a plug-and-play restaurant shell, this often includes pouring concrete, installing gas lines, and ensuring that fully functional bathrooms, grease traps, and other ready-to-use amenities are set to go. Those who want to level up even further should also consider making the plug-and-play restaurant hood ready.
Why Plug-and-Play?
In South Florida, we’ve seen a noticeable shift in the use of retail spaces. As traditional retail storefronts close, demand for restaurant spaces is on the rise, and so many former retail spaces are now transitioning toward restaurant development.
To stay ahead in this evolving market, many landlords are transforming their retail properties into restaurant-ready spaces. By renovating and upgrading their buildings to meet the specific needs of restaurants, they may be in a better position to secure new tenants. Though these efforts come at a cost, the return on investment can make it worth it.
By way of example, our team at Seacoast Consulting Group has recently advised on three restaurant conversion projects. Two out of the three were leased within a month. Before our involvement, those spaces had been on the market for more than five months without any interest.
A key reason for these long vacancies is the significant investment of time and money required by tenants to transform a space into a fully operational restaurant. Potential tenants often hesitate because they must pour substantial capital into upfront renovations, and, if they eventually vacate the property, the landlord retains all the improvements. While large restaurant chains can absorb these costs, smaller restaurant owners often can’t afford the same financial commitment.
Design Considerations When Preparing a Plug-and-Play Restaurant Shell
Building out a plug-and-play restaurant shell involves some risk and uncertainty. In many cases, you don’t know who your tenant will be when you prepare your white box so you can’t create the perfect custom build. The best you can do is prepare for a variety of situations so the tenant can adapt.
This is especially true when preparing a hood-ready restaurant shell. You may end up leasing to a pizza shop that requires little ventilation (in some cases, no hood at all). On the other hand, you may get an Argentinian restaurant that grills meats and has big fryers that produce tons of smoke and grease.
A lot of work goes into making a restaurant shell “hood-ready.” Most units for the hood system sit on the roof of the building. This includes a curb and exhaust fan that attaches to the equipment on the roof. Between where the hood sits in the kitchen and out to the roof penetration runs a seamless, fully welded duct. When a property is advertised as hood-ready, it means this sleeve is already in place for the tenant to tap into with their hood system.
The downside to making a space hood-ready is that the tenant will be limited to a certain-sized hood, as the duct size must be able to accommodate it. While there is some risk in going with a hood-ready restaurant shell, many landlords opt to install a system that will attract the most potential tenants. For the most part, this works out, and when it doesn’t, there are modifications one can do to expand it.
Call Us for Your Next Restaurant Buildout
If you own retail property in Miami-Dade and are considering converting the space into something restaurant-ready, come talk to us at Seacoast Consulting Group. We’re here to answer your questions about preparing a hood-ready restaurant shell and any other questions about restaurant design and construction in Miami. You can reach our office at 305-845-7785.
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