Remodels and Capital Expenditures
Restaurants spend billions of dollars every year remodeling and renovating their sites. Getting the most out of these capital investments can have a significant impact on profit growth, returns measures, and stock price - but optimizing these investments is very complex.
APT has worked closely with leading restaurant companies to help them better understand the impact of remodels and renovations and answer such critical questions as:
- In terms of guest count, sales, gross margin and net profits (and inclusive of losses due to business interruption during the site work), what is the attributable economic lift caused by a new remodeling investment?
- Can capital investments be “value engineered” prior to rollout to improve the economic returns?
- How will returns vary in different locations and markets? Are certain restaurants likely to perform much better than others?
Using its Test & Learn™ methodology, APT has observed a set of performance patterns and developed a set of best practices that companies can employ to maximize the returns from these significant capital investments.
Click here to learn how APT clients use Test & Learn™ to optimize remodeling and capital expenditure decisions in the Restaurant Remodels Case Study.
