HOW MUCH SPACE DO I NEED TO OPEN A RESTAURANT?
If you’re thinking of opening a new restaurant it will certainly be of some relief to know that a first-year failure rate of over 90% – a ‘fact’ once passed off regularly as common knowledge – has since been exposed as little more than a myth.
A landmark study carried out at Ohio State University between 1996 and 1999 found the failure-rate within the first 12 months after opening was actually closer to a slightly more positive figure of 26% to offer budding restaurateurs hope that engineering a successful business is an achievable ambition.
The reasons offered for early failure are wide-ranging, but one thing most early closures frequently have in common is that they have usually come about due to a lack of planning.
“A lot of people think that setting up a successful restaurant is a lot easier than it actually is,” says Chris Lee, design manager at Gloucester-based catering facility design solutions firm Space Group.
“Ideally you need to have as much financial information and market-informed research as possible before you start to design interiors or put offers in to secure properties.”
A relatively accurate calculation of the space required to house any new restaurant venture is an important part of the business plan you’ll need to put together to show potential investors you’ve done your homework.
How do I work out how much space I will need?
Industry experts recommend that allocating 1.5m² per restaurant seat is a good base to work from when trying to establish rough size requirements.
“That is definitely a good starting point,” agrees Chris, who has 16 years of experience in hospitality establishment design, “but it is a very broad estimate and there are a number of factors that will alter it.
“What the client will definitely need is a fair idea of the number of covers they are expecting to service. If a client comes to me saying that they want to get 100 covers into their dining room, it is easier to make a rough estimate on overall space requirements.
“It is a formula that should only be used as a guide at the pre-design phase. Once you start putting pen to paper, estimates can go out of the window due to a whole host of variables.”
What can affect the amount of space I’ll need?
Concept
There are a number of factors that will determine how big will be big enough.
“There definitely needs to be some clarity on the offer or concept that is being proposed,” Chris says. “The food that is going to be on the menu will determine the type of equipment needed in the kitchen and that will in turn affect the space requirements.
“You'll also need to incorporate a pass to provide an effective traffic workflow. Front of house staff will need access space to pick up food, take it to the tables and eventually return plates to the wash in an efficient manner.
“In a pure high street takeaway you might just need a small waiting area without tables or chairs for people to hang around in for a short period of time to wait for food that is quick and easy to prepare and serve.”
Location
Remember to consider the effect location can have on both the amount of consumers that come through your doors and on your bottom line.
Are you planning to open a restaurant near a football stadium or concert hall? How will these external variables impact your business? Will you have enough space to capitalise on increased demand around key events that may be taking place near you? Do these events take place regularly enough for you to factor them in to your space requirement calculations?
It is always advisable to seek expert advice from a specialist designer, architect or experienced chef/restaurant industry professional to determine if your concept is workable in any desired location before making a commitment to rent or purchase.
TIP: Explore the area to determine who your competitors might be. Do this at peak times and quieter times to get a feel for how many diners they have. If they are full, turning people away or have long waiting times, will you have the opportunity to capitalise on this? Is there not enough business to share if you’re aiming to make the most of foot fall? What size restaurant is working for them…or not? ...
Should I build more than I initially need?
The short answer is “no”. The motto ‘if you build it, they will come’ may be a successful strategy in some industries, but a prospective restaurant owner needs to have a good idea of how many are likely to come before their establishment is fully operational.
Planning your space requirements accurately and with efficiency in mind will help you to make savings on the rental costs or purchase of any potential sites.
“It’s a tricky balance to strike,” says Chris. “Getting a new business off the ground requires a large amount of time and cost.
“Will you want to go through all that again when it comes to an expansion that will require new premises? Or do you aim a bit higher and think about future proofing the business from the outset?
“There is the risk/reward ratio you have to consider. A bigger space means bigger walls to warm, more staff, more equipment and more furniture. You could end up losing a lot of money if the business doesn’t become a success."
The average consumer will also generally be drawn towards a restaurant that is always close to full because they will perceive it as a place that people want to be. You always have the option of opening a second restaurant in another location if demand begins to outpace capacity.
How is the total amount of space divided up?
Once you have worked out the overall area you will need, it will be down to you and/or your interior designer to allocate that space effectively for maximum efficiency.
There will be variances between different establishments, but the general rule of thumb is to set aside 60% of total area for the dining room, with the remaining 40% allocated to the kitchen and other essential requirements such as storage areas, offices, toilets, and changing rooms.
“The 60/40 split is generally a good rule of thumb, but nothing is ever set in stone,” Chris says. “We tend to err on the side of caution when making allowances for seats. We don’t like to put in too many seats so that they are all too tight up against each other.
“But the final decision rests with the client. They may be happy to squeeze seats together because an extra four seats could mean an extra £20,000 per year in revenue.”
Beyond the basics, your interior designer will be able to formulate a floor plan designed to maximize space and to manage traffic and workflow.
“We start with a block layout,” Chris explains. “We allow for optimum working gaps of 1200mm in the kitchen for double-sided working between prep, cook and pot wash.
“We’ll then move on to the dining area to determine how many covers we can get in the space that is left. If the client wants another 10 covers, we’ll look at how we may be able to pare the kitchen back in order to achieve that.”
How much space will I need outside?
Make sure to consider the amount of access space available for different-sized delivery trucks and vans.
You will also need space for a bin area that is large enough to meet the highest standards of health and safety and is accessible to commercial waste disposal contractors.
Is there a possibility you might consider using a third party delivery company in the future? If so, you will need to consider a collection area somewhere where you won’t be disturbing seated diners.
Are you planning to offer alfresco dining? Is there space already outside the property to provide this? Or would you have to make costly and time-consuming re-structural changes?
The space you will require will again be dependent on the size and type of establishment you are proposing.
What can I do to save space?
There are lots of things you can do to exploit every nook and cranny in order to save money.
The ‘McAlister’s Deli’ chain of fast casual restaurants in the United States of America managed to save up to 10% in build-out costs during a 2009 programme of site renovations by streamlining kitchens.
As part of the remodelling, the chain, which currently operates 350 stores across the US, switched from walk-in refrigerators and freezers to reach-in models.
“You will save some space by using reach-in fridges instead of walk-in fridges,” Chris says, “but in an operation where you are going to be servicing large-scale covers is that going to be practical?
“You can also look at maximizing storage space by using prep tables and sinks with storage shelves underneath.
“You can always work upwards with shelving for storage of pots and pans and hooks to hang utensils. We can also look at installing kitchen or front-of-house furniture with smaller dimensions such as slim fryers or booth seating.
“But sometimes a chef or a restaurant owner will be adamant that they want a particular piece of equipment and we will have to find the space for it.
“You could be dealing with a high-end Michelin-starred chef who wants a relatively cheap Pitco fryer in his bespoke £60,000 Charvet or Athanor cooking suite simply because it is a workhorse that never let him or her down in their last restaurant.”
Who can help me determine how much space I need?
Unless you already have some experience of working in the hospitality industry, it is advisable to seek out expert opinion when attempting to determine the space requirements of your new business.
“To put the money down on potential premises without some sort of consultation with a designer or an architect would be risky,” says Chris.
“Sometimes a client will have their heart set on a particular location or premises and we’d be required to tailor their idea to fit that space. That can be done but it would be advisable to ask an expert to assess the viability for that before any financial commitment is made to secure those premises.
“Appointing an experienced chef at the pre-design stage can also be really useful. They have the working experience that usually adds some valuable input into the design and budget that may save you money two or three steps down the line.”