The Boom in Restaurant Construction – Part 1

Have you noticed that new restaurant buildings seem to be popping up everywhere, even in the most unlikely places?

At Leon Williams Contractors it’s a trend we’ve been following closely and the momentum of restaurant construction that began in 2012 has carried through to 2013 and looks even more promising for next year.

There are many new active commercial construction projects in the East Tennessee area including Knoxville and Maryville. It’s safe to say we have not seen this level of new restaurant construction projects in the general contracting industry since 2007-08.

Leading the way in new construction activity are the national chains and fast food giants. Even high-end bistros and new fast casual concepts are taking off as restaurants are expanding at a rapid pace.

A couple reasons for this unprecedented growth include online shopping and changing demographics. As consumers turn to the web to make more purchases, restaurants still offer an experience and convenience that can’t be duplicated.

The other factor driving restaurant construction is new demographic patterns. New restaurants, especially fast casual concepts, are opening at a quick pace in suburban malls and outer-ring locations as a cost-effective way to build brand awareness and gain a presence in the market.

The idea behind this restaurant commercial construction wave is a change in restaurant philosophy which shows them chasing traffic instead of raising prices. Urban locations are the most desirable. Even though construction costs are sometimes double or triple those of suburban areas, the dense population is bringing in a nice return on investment.


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