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The Big Picture: Construction and renovation
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.
December 30, 2014
4 Min Read
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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