Modular Buildings for Restaurants Are on the Rise

An increasing number of restaurant brands are turning to modular buildings as a way to reduce build-out costs, overcome limited real estate availability, and to open new units faster, according to an article in Nation’s Restaurant News. “Traditional brick-and-mortar real estate is hard to find, often comes with an expensive lease that would reduce our profit margin greatly, and costs associated with bringing the space up to brand standards,” said Megan Rosen, CDO at NextBrands. “Our modular concepts can go in undeveloped parcels, parcels of big box retailers, and territories where expansion is usually overlooked.”

The article interviewed several more people and companies involved in supplying and exploring the benefits of modular buildings: Smalls Sliders CEO Maria Rivera said she believes that “modular is the future.” Sticky Bird President Brandon Howard, who recently opened a modular location in Wichita, said it allowed his team to move quickly and bring the product to a new city faster. Domino’s franchisee Ty Turner, who recently opened two modular units in Arkansas, said, “I’m impressed with how fast we were able to get up and running.

The process was efficient and cost-effective, and I appreciate the speed at which a store can evolve from an idea on paper to fully functioning and operating.” Domino’s, in a press release, said Turner’s two single-module stores are serving as a proof of concept for future stores. For more comments from franchisors, franchisees, and modular building vendors, find the entire article here.