Retrofit or New Build: Opening a Restaurant Franchise in a Former Restaurant Space

One of the first real decisions you make as a new restaurant franchisee is the kind of space you open in. You can take over a unit where a restaurant used to be and rework it, which is called a retrofit. Or you can start with a space that has never had a kitchen in it, or a brand new building, and build from the ground up. Both can work. They just ask different things of you, your landlord and your budget.

Here is how we think about it at Sunnyside Grill, using what we look for in every site.

What a retrofit means

A retrofit is when you move into a space that was already set up as a restaurant and adapt it to your brand. Some of the hard parts may already be there: a kitchen layout, plumbing in the right places, washrooms built for the public, and sometimes ventilation that can be reused. You still redesign the dining room, update finishes and fixtures, and bring in the equipment and layout the brand calls for.

That is why "former restaurant space" sits right on our list of ideal site requirements. A space that has already fed people often gives you a head start.

What a new build means

A new build starts with a space that was never a restaurant, or a new building on a new site. Everything a breakfast kitchen needs has to be put in: the kitchen itself, the services that support it, the dining room and the washrooms. It is more work, but you get a space shaped around the concept from day one, and you are not living with someone else's old layout.

New builds also open up locations that a retrofit never could, like a new plaza, a growing neighbourhood or a standalone pad with its own sign by the road.

How the investment compares

The two paths do not cost the same. According to the Sunnyside Grill franchise FAQs, the total estimated initial investment is approximately $200K to $300K for a retrofit and approximately $400K to $500K for a new build.

Where your project lands inside those ranges depends on the space: its size, its condition, what the last tenant left behind and what the landlord contributes. Our real estate list includes a "generous TI allowance," which is the tenant improvement money a landlord puts toward building out the unit. That can make a real difference on either path. For the full breakdown of what the investment covers, read the franchise disclosure document with your accountant and lawyer.

What makes either space work for a breakfast restaurant

Retrofit or new build, the basics of a good site do not change. These are the things we look for first:

• High foot or drive-by traffic and good visibility
• Great co-tenants
• About 1,500 to 2,500 square feet
• Inline, standalone or endcap units
• Adequate customer parking
• A pylon sign visible from the road
• Patio space, if possible

A cheap former restaurant in a spot nobody drives past is not a bargain. A great corner that needs a full build may be the better choice. The location comes first and the type of build follows.

Questions to ask about any space

Before you fall in love with a unit, it helps to ask:

• Why did the last restaurant leave, and what did they leave behind?
• Is the existing kitchen equipment and ventilation usable, or will it all come out anyway?
• What will the landlord contribute toward the build, and what are the lease terms?
• Does the unit have the parking, visibility and signage a busy breakfast spot needs?
• How long will permits and construction realistically take in that municipality?

You do not have to answer these alone. That is where the franchisor's real estate and construction support comes in.

How Sunnyside Grill helps with both

Whichever way you go, the Sunnyside franchise program is built to carry you through it:

• Site search. We review sites with you and run site analysis using mapping tools from Corporate Geographics.
• Lease negotiation. An experienced franchisor real estate broker works on the offer to lease and the lease itself.
• Turn-key construction. Our in-house contractor handles the initial design and concept, hires the trades, engineers and architects, and provides the space plan, furniture layout and a construction manual for finishes, fixtures and equipment.

Once the agreement is signed, a typical store takes approximately 90 days to build while you and your team complete training. You can see every step from first call to grand opening on our next steps page.

Questions people ask about retrofit and new build restaurant franchises

Is a retrofit always the better choice?

Not always. A retrofit usually starts from a lower total investment range, but the location still matters more than the build type. A strong site that needs a new build can be a better long-term home than a weaker site that happens to have a kitchen already.

Can I open a Sunnyside Grill in a former restaurant?

Yes. Former restaurant spaces are on our list of ideal site requirements. Our team will look at what is already there and what needs to change to fit the Sunnyside concept.

Does Sunnyside Grill help with the build?

Yes. Sunnyside has a full design and construction team that handles design, construction, furniture and equipment, with an in-house experienced contractor and all the trades required.

Where can I find the full cost details?

The total investment ranges are on our FAQ page. The complete details are in the franchise disclosure document, which you receive once your application is approved and should review with your own advisors.

Get the Sunnyside franchise guide

Thinking about opening a Sunnyside Grill, and wondering what kind of space might suit you? Get the free franchise guide for the brand, the support, our real estate criteria and the steps to ownership. Or call our franchise team at (416) 604-0650. We are happy to talk it through.

This information is not intended as an offer to sell, or the solicitation of an offer to buy, a franchise. A franchise can only be sold through the franchise disclosure document.