
No one can debate the fact that retail sales have changed more over the last decade than ever before. With the advent of the Internet, shopping habits have been completely altered. Those who break into a sweat at the thought of going to the mall or spending a few hours in a big chain store are now able to make nearly all of their necessary purchases online, from food to furniture and everything in between.
For retailers, it has never been more important to cater to consumers. Experts say that 80 percent of the business comes from 20 percent of the clientele. Retaining those customers should be every retailer’s goal.
Shoppers expect retailers to deliver on a promise, which often means increasing accessibility through store expansion into their geographic market area. And they don’t want to wait months or years for your business to open.
One way chain stores, restaurants and businesses big and small are meeting those demands is by using construction firms that specialize in completing build-outs and renovations on time, on or under budget, against even the biggest odds.
General contracting companies get on board with those kinds of projects in the earliest planning phases, often working with architects and landlords before the blueprints are drawn.
Engaging customers and promoting an opening date will keep the momentum going for a popular expanding business. Yet some retailers have announced or advertised grand opening dates, then been delayed by construction. As a result, they end up putting off anxious customers, losing credibility in the industry, or opening their doors before they’ve worked out the kinks of running the operation.
One national company planned to open almost a dozen new stores and refurbish six others in several different states up and down the East Coast over the course of two months. Two of the locations weren’t approved until the end of the first month and the long permitting process left 10 days for workers to build out and open the store.
Because some opening dates were already advertised, much of the construction work had to be done simultaneously and project-planning and oversight needed to be virtually error-free. The general contractor hired for the job pulled out all the stops, completing the entire project on time and on budget. The scenario proved that quality does not have to be compromised in the face of seemingly impossible deadlines.
If you’re a business owner who’s thinking of expanding your physical space with an addition, remodel or a whole new restaurant or store, focus on ensuring your contractor follows these five concepts:
• Understands you as the client. The builder you hire should understand your goals, from design and preferred materials to your timeline. Make sure the company has done its homework, and get a feel, early on, for whether you’re both on the same page. Check referrals thoroughly to ensure you’re working with someone with a proven track record.
• Doesn’t make promises that can’t be kept. You should get a sense from the construction firm you’re working with whether your planned opening date is feasible or not. Ask about subcontractor schedules, whether there are backup workers to fill a spot in the event a worker falls ill or takes another job. Find out what a completion date might be if the space you’re renovating for a restaurant doesn’t have the proper infrastructure for plumbing, electrical or venting required in most commercial kitchens. If you’re a retailer, make sure you’re open to capitalize on a specific sales cycle.
• Plans carefully and allows for delays. Smart builders will put as much pre-production planning time into your project as it will take for them to complete the project. Supplies are ordered, work phases planned out, and staff hired weeks before the first nail is hammered in. Unfortunately, some contractors are known to play a “shell game” with their other current jobs – fitting you in when there’s time, without building on the momentum that may have been created when work on your project began.
Delays are inevitable. Even with the best planning possible, they can happen for reasons beyond anyone’s control. Maybe the building’s exterior needs rehabbing but the weather won’t cooperate, or a distributor suddenly goes out of business without warning. Planning for delays and having alternate scenarios in mind is crucial to completing the project.
One restaurant owner’s desire for a specifically designed buffet/condiment bar meant one general contracting company had to custom-build all the casework on-site. There wasn’t enough time to measure and assemble it in the field. Because there also were numerous graphical elements supplied by the owner’s people that had to be assembled by the contractor, constant coordination was required in order to make all the work flow smoothly.
Another issue with permitting arose during an inspection. No work had originally been slated to be done on the fire alarms or sprinklers. As the project unfolded, though, the contractor discovered he had to install a smoker in the kitchen for the barbecue fare the restaurant served. Several logistical issues arose during the process, requiring split-second decisions and reassurance to inspectors that everything would be done to code, which it was.
Tight space. Limited time. Multiple players. The key is having the flexibility to make last-minute changes on the spot and work around unexpected obstacles.
• Pre-screens vendors. Does your contractor have a history with vendors? In most cases, you wouldn’t want to use an un-vetted electrical or building supply company. Partnering with professionals you can rely to keep up their end of the bargain is always a good move.
Ask for a list of vendors in advance and query business associates about their reputation. On the other hand, if you’ve already vetted your general contractor, you can trust that the right connections have been made for you.
• Includes everything in the price. Builders should include all possible expenses when you receive your bid. It helps when they’re familiar with the business model and can anticipate your costs. Tacking on fees, overhead costs and allowing for other accruals can put you way over budget. Read your contract and ask a lot of questions early in the game. Putting money issues on the table right away helps everyone maintain a professional relationship before, during and after completion of the project.
Marketing and sales experts say it’s five times more profitable to retain current customers than acquire new ones, so providing a seamless experience for them is the ultimate goal. If you advertise an opening date for a new restaurant, franchise or storefront, meet it. When your doors open, be prepared to do business.
The United States’ retail industry generates more than $3 trillion dollars each year. Consumers have a lot of choices about how to use their discretionary income and where they want to spend it. You often have one chance to catch their attention, so make them sit up and take notice when you do.