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Data, Analysis & Insight for a Stronger Industry Building Bridges between Franchisees, Franchisors & Financiers
Industry Data Report Remodeling 2019 - 2020
Report Highlights ➢ Remodel data and analysis on 50+ national chains, including: (1) remodel progress/system condition; (2)
investment costs; (3) post remodel sales increases; (4) estimated return on investment; (5) franchisor remodel
incentives; and (6) program scope.
Conclusion ➢ The pace of remodels picked-up substantially in 2019 as new/improved programs from 2018 took effect and
operators caught-up on remodel mandates. While remodel costs are trending higher given higher-end upgrades,
new technology and rising construction labor costs, remodel ROI is improving due to higher sales bumps and
stabilizing unit level margins.
Table of Contents Pages
➢ Chain Remodel Progress Summary 2 – 4
➢ Chain Remodel Benchmarking Stats 5
Remodel Trends
➢ Remodel Costs 6
➢ Incremental Sales Lift 7
➢ Year 1 Remodel Return on Investment 8
Remodel Overview by Chain
➢ Remodel Incentives by Chain 9
➢ Fast Casual 10
➢ Family 11 – 12
➢ Casual 12 – 13
➢ Chicken 14
➢ Sandwich 15 – 19
➢ Sub-Sandwich 19 – 20
➢ Pizza 21
➢ Coffee/Bakery 22
Appendix
➢ Remodel Appendix 23
Data in spreadsheet form available at http://www.ChainRestaurantData.com
Copyright: This Restaurant Research LLC document is copyrighted material. Due to the No Electronic Theft (NET) Act of
1997, electronic forwarding or other forms of redistribution, without the express permission of Restaurant Research LLC, are
violations of law and could be subject to fines of up to $250,000 and up to five years of imprisonment, even when no financial
gain or commercial advantage accrues to the forwarder/re-distributor. Copyright 2019 Restaurant Research® LLC. All rights
reserved.
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Data, Analysis & Insight for a Stronger Industry Building Bridges between Franchisees, Franchisors & Financiers
IDR: Remodeling 2019 - 2020 Source: RR Estimates Page 2
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Data, Analysis & Insight for a Stronger Industry Building Bridges between Franchisees, Franchisors & Financiers
IDR: Remodeling 2019 - 2020 Source: RR Estimates Page 3
Percent of System at Current Image
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Data, Analysis & Insight for a Stronger Industry Building Bridges between Franchisees, Franchisors & Financiers
IDR: Remodeling 2019 - 2020 Source: RR Estimates Page 4
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Minor Major Minor Major Minor Major Minor Major Minor Major Average
Panera Bread
Qdoba
Fast Casual
Denny's
IHOP
Perkins
Family
Chili's Grill & Bar
Olive Garden
Texas Roadhouse
Buffalo Wild Wings
Applebee's
Outback
Red Robin
Casual
KFC
Bojangles'
Church's
Popeyes
Chicken
Checkers/ Rally's
Dairy Queen
Jack in the Box
Sonic Drive-In
Culver's
Arby's
Taco Bell
Five Guys
Wendy's
Burger King
McDonald's
Carl's Jr.
Hardee's
Zaxby's
Chick-fil-A
Sandwich
Jersey Mike's
Firehouse Subs
Jimmy John's
Subway
Sub-Sandwich
Domino's
Little Caesars
Pizza Hut
Pizza
Dunkin Donuts
Coffee/Bakery
Total FSR
Total QSR
Grand Total
(2) Estimated incremental cash flow-thru margin (= 2x concept EBITDAR margin) reflects the benefit of sales leverage given a restaurant's significant level of fixed costs.
(1) Average remodel cost/estimated useful life (7 years for a minor & 10 years for a major)/AUV.
(3) Return on investment (ROI) = (year 1 % sales lift * AUV * estimated incremental cash flow-thru margin)/cash remodel investment.
Chain Remodel Benchmarking Stats (Ranked by Average ROI)
ChainEstimated Remodel Cost Cost/ Sq. Ft. Remodel Cost/AUV
(1) Major Remodel/
New Build Cost
Remodel Sales Bump Incremental Cash
Flow-thru % (2)Remodel ROI
(3)
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Data, Analysis & Insight for a Stronger Industry Building Bridges between Franchisees, Franchisors & Financiers
IDR: Remodeling 2019 - 2020 Source: RR Estimates Page 6
Remodel Trends
Remodel Costs
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Data, Analysis & Insight for a Stronger Industry Building Bridges between Franchisees, Franchisors & Financiers
IDR: Remodeling 2019 - 2020 Source: RR Estimates Page 7
Post Remodel Sales Lift
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Data, Analysis & Insight for a Stronger Industry Building Bridges between Franchisees, Franchisors & Financiers
IDR: Remodeling 2019 - 2020 Source: RR Estimates Page 8
Remodel ROI
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Data, Analysis & Insight for a Stronger Industry Building Bridges between Franchisees, Franchisors & Financiers
IDR: Remodeling 2019 - 2020 Source: RR Estimates Page 9
Remodel Incentives by Chain
Burger
King
Checkers/
Rally's
Dairy
Queen
Domino's
Jersey
Mike's
McDonald's
Subway
Wendy's
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Data, Analysis & Insight for a Stronger Industry Building Bridges between Franchisees, Franchisors & Financiers
IDR: Remodeling 2019 - 2020 Source: RR Estimates Page 10
Remodel Summary by Chain
Fast Casual
Chipotle
Corner
Bakery Café
Moe's
Southwest
Grill
Panera
Bread
Qdoba
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Data, Analysis & Insight for a Stronger Industry Building Bridges between Franchisees, Franchisors & Financiers
IDR: Remodeling 2019 - 2020 Source: RR Estimates Page 11
Family
Bob Evans
Cracker
Barrel
Denny's
Golden
Corral
IHOP
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Data, Analysis & Insight for a Stronger Industry Building Bridges between Franchisees, Franchisors & Financiers
IDR: Remodeling 2019 - 2020 Source: RR Estimates Page 12
Family
Perkins
Casual
Applebee's
BJ's
Restaurants
Buffalo Wild
Wings
Cheesecake
Factory
Chili's Grill
& Bar
Olive Garden
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Data, Analysis & Insight for a Stronger Industry Building Bridges between Franchisees, Franchisors & Financiers
IDR: Remodeling 2019 - 2020 Source: RR Estimates Page 13
Casual
Outback
Red Lobster
Red Robin
Texas
Roadhouse
T.G.I.
Friday's
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Data, Analysis & Insight for a Stronger Industry Building Bridges between Franchisees, Franchisors & Financiers
IDR: Remodeling 2019 - 2020 Source: RR Estimates Page 14
Chicken
Bojangles'
Church's
KFC
Popeyes
Wingstop
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Data, Analysis & Insight for a Stronger Industry Building Bridges between Franchisees, Franchisors & Financiers
IDR: Remodeling 2019 - 2020 Source: RR Estimates Page 15
Sandwich
Arby's
Burger King
Carl's Jr.
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Data, Analysis & Insight for a Stronger Industry Building Bridges between Franchisees, Franchisors & Financiers
IDR: Remodeling 2019 - 2020 Source: RR Estimates Page 16
Sandwich
Checkers/
Rally's
Chick-fil-A
Culver's
Dairy Queen
Five Guys
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Data, Analysis & Insight for a Stronger Industry Building Bridges between Franchisees, Franchisors & Financiers
IDR: Remodeling 2019 - 2020 Source: RR Estimates Page 17
Sandwich
Hardee's
Jack in the
Box
McDonald's
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Data, Analysis & Insight for a Stronger Industry Building Bridges between Franchisees, Franchisors & Financiers
IDR: Remodeling 2019 - 2020 Source: RR Estimates Page 18
Sandwich
McDonald's
Continued
Sonic Drive-
In
Taco Bell
Wendy's
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Data, Analysis & Insight for a Stronger Industry Building Bridges between Franchisees, Franchisors & Financiers
IDR: Remodeling 2019 - 2020 Source: RR Estimates Page 19
Sandwich
Whataburger
Zaxby's
Sub-Sandwich
Firehouse
Subs
Jersey
Mike's
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Data, Analysis & Insight for a Stronger Industry Building Bridges between Franchisees, Franchisors & Financiers
IDR: Remodeling 2019 - 2020 Source: RR Estimates Page 20
Sub-Sandwich
Jimmy
John's
Subway
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Data, Analysis & Insight for a Stronger Industry Building Bridges between Franchisees, Franchisors & Financiers
IDR: Remodeling 2019 - 2020 Source: RR Estimates Page 21
Pizza
Domino’s
Little
Caesars
Papa John's
Pizza Hut
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Data, Analysis & Insight for a Stronger Industry Building Bridges between Franchisees, Franchisors & Financiers
IDR: Remodeling 2019 - 2020 Source: RR Estimates Page 22
Coffee/Bakery
Dunkin
Donuts
Krispy
Kreme
Starbucks
Tim Horton's
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Data, Analysis & Insight for a Stronger Industry Building Bridges between Franchisees, Franchisors & Financiers
IDR: Remodeling 2019 - 2020 Source: RR Estimates Page 23
Remodel Appendix
Remodel Classification Overview
Remodel Type Scope of Work Frequency (in Years)
Refresher
5
Minor Remodel
7
Major Remodel
10
Scrape & Rebuild
25
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Copyright: This Restaurant Research LLC document is copyrighted material. Due to the No Electronic Theft (NET) Act of
1997, electronic forwarding or other forms of redistribution, without the express permission of Restaurant Research LLC, are
violations of law and could be subject to fines of up to $250,000 and up to five years of imprisonment, even when no financial
gain or commercial advantage accrues to the forwarder/re-distributor. Copyright 2019 Restaurant Research® LLC. All rights
reserved.
Sources: All data represents RR estimates which are derived from various private and public sources.
Disclosure: Restaurant Research LLC often sells report subscriptions to concepts under our coverage.
Disclaimer of Liability: Although the information in this report has been obtained from sources Restaurant Research® LLC
believes to be reliable, RR does not guarantee its accuracy. The views expressed herein are subject to change without notice
and in no case can be considered as an offer or solicitation with regard to the purchase or sales of any securities. Restaurant
Research’s analyses and opinions are not a guarantee of the future performance of any company or individual franchisee.
RR disclaims all liability for any misstatements or omissions that occur in the publication of this report. In making this report
available, no client, advisory, fiduciary or professional relationship is implied or established. This report is intended to provide
an overview of the restaurant industry, but cannot be used as a substitute for independent investigations and sound business
judgment.