5 Reasons Restaurant Construction is Staying Steady

Have you noticed a recent slew of new restaurants going up all over the place? It’s not a fluke. After several rough years, restaurant construction has had quite a comeback, and it shows no signs of slowing down. Restaurant development, like other commercial construction and general contractor projects, took a big dive in the recession of 2007 and 2008, but started picking up at the end of 2012.

Here in East Tennessee, Leon Williams Contractors helped build several popular new restaurants, including the Bucket Head Tavern in Knoxville. We’re looking forward to the prospect of getting involved in more restaurant construction projects.

So are there good reasons for the ongoing boom? Chances are it’s going to stay steady through 2014. Here are some of the reasons why.

  1. Continuing visitors. The NPD Group did a report earlier this year and found that the number of people eating at restaurants stayed stable in the first quarter. Although it’s not exactly an increase, stable numbers are good because it means that people are continuing to eat out regularly.
  2. More disposable income. Related to the first reason, people are spending more when they do go out to eat. As the economy continues to recover, people find they have more money to spend on things like drinks and desserts when they visit a restaurant.
  3. More long-term commitments. Restaurant proprietors often have to make the decision between renting or buying a property. While renting is lower-risk, those who buy and build are confident that the ongoing demand for restaurants will keep them in business for years to come.
  4. Lower interest rates. Cheaper mortgages also make owning a restaurant a more attractive prospect. And owning the property gives the restaurant the ability to remodel or expand to accommodate even more demand.
  5. New trends. In 2013, the big trend in restaurants was the fast-casual concept. Somewhere between a sit-down and a fast-food restaurant, patrons typically order at a counter and have their food brought to them. In 2014, there’s likely to be a rise in fine dining restaurants, as people look for a higher-quality experience when they go out to eat.

It seems like 2014 is going to be an exciting year for the restaurant construction industry. We’ll be watching closely at Leon Williams Contractors, and look forward to any opportunities we have to be a part of it.

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