Preconstruction Strategy Makes or Breaks Restaurant Projects

Hospitality construction is uniquely nuanced, Rafael Reyes, president of Miami-based Us Construction, told Modern Restaurant Management (MRM) magazine. 

“Successful hospitality construction is not simply about building beautiful spaces. It is about managing complexity, protecting budgets and schedules, simplifying decision-making, and maintaining open, transparent communication from start to finish.”

The company has worked with brands including Fogo de Chão, Darden Restaurants, Bloomin’ Brands, Sixty Vines, and Smith & Wollensky as well as Chef Thomas Keller, and destination properties and hospitality environments such as Little Palm Island and Isla Bella Beach Resort, among others. 

Reyes feels his philosophy: “build it like you’re building it for your family” has been one factor that helped him maintain long-term partnerships with chefs, operators, and developers across South Florida’s hospitality scene.

“Those projects often feel especially personal, and there is something incredibly rewarding about helping owners navigate complex decisions while creating spaces that reflect their vision and support how they want guests to feel and return.” 

In this Q&A, the third-generation builder discusses development challenges, preconstruction and timeline management, the expanding role of technology, cost control, guest experience, and market trends.

What are the key challenges and frustrations of restaurant development and how has it evolved post-pandemic?

Since 2020, restaurant construction costs have increased roughly 25-40% across trades and opening a 3,500-square-foot full-service restaurant requires an investment between $1.5 and $2.5 million dollars before the doors even open. 

At the same time, rents in major South Florida markets such as Brickell, Miami Beach, Wynwood and the Design District often range from $100 to more than $250 per square foot on a triple-net basis, meaning tenants also pay taxes, insurance and maintenance costs. Landlords are also underwriting deals based on aggressive revenue assumptions, while interest rates, rising labor costs and reduced landlord contributions have only added pressure to already tight budgets.  

Permitting and regulatory approvals have also become a major source of risk. Restaurant projects often require sign-offs from multiple city, county and state agencies, including those overseeing construction, zoning, fire safety, environmental compliance and food service licensing. Each approval can affect the timeline, and especially today, time risk is financial risk. Carrying costs alone can derail an otherwise strong concept if a project gets delayed. 

The projects that succeed today are led by experienced, decisive teams. Clear communication, phased planning and fast decision-making are more important than ever. Too often, projects stall because there are too many stakeholders involved without clear direction or accountability.

Why are the best practices of preconstruction strategy to keep all necessary aligned?

Successful restaurant projects begin with clarity from ownership. Operators need to clearly define what the project must have versus what would simply be nice to have. Too many owners fall in love with aspirational ideas without evaluating whether the experience they want to create actually supports the financial realities of the business. 

Ultimately, the strongest projects are built by owner-focused teams that operate without ego or hidden agendas and remain committed to solving problems collaboratively.

Establishing clear decision-making authority early is also critical. Projects move more efficiently when there is a designated decision-maker and when all consultants, contractors and vendors are aligned around realistic budgets and timelines from the start. 

Another major best practice is freezing the scope before construction begins. Constant changes during construction create a chain reaction of administrative delays, rework and added costs. Teams should also prioritize locally available materials and readily available equipment whenever possible to reduce supply chain risks and avoid unnecessary delays. 

Technology also plays an increasingly important role during preconstruction. Tools such as 3D scanning help document existing site conditions accurately, reducing surprises later in the process.  

Ultimately, the strongest projects are built by owner-focused teams that operate without ego or hidden agendas and remain committed to solving problems collaboratively.

What are common missteps on restaurant projects?

One of the most common mistakes restaurant operators make is signing a lease before fully understanding the condition of the space, project costs and the landlord’s responsibilities versus the tenant’s. 

Many operators also underestimate how quickly budgets can shift during construction. Restaurant projects should never operate on razor-thin margins. A healthy contingency is essential because unexpected conditions and costs are inevitable. 

Another major challenge is when projects become overly design-driven instead of balancing design with operational realities, budget and timeline considerations. Restaurant operators are experts in hospitality, but they are not always experienced developers or construction professionals. 

There is also a misconception that second-generation restaurant spaces are automatically less expensive. In reality, unless the back-of-house systems and utilities remain largely untouched, a second-generation restaurant can sometimes cost as much—or more—than building a new space from a landlord white box.

What are the best ways to create a realistic project timeline and keep to it?

Realistic timelines begin with honest conversations early in the process. Owners need to evaluate whether they have the experience to make timely design and operational decisions. If not, they should either bring in experienced advisors or build additional time into the schedule. 

It is also important to verify the capacity and responsiveness of all consultants and subcontractors—not just the architect and engineer. Some of the biggest project delays come from specialty consultants, utility coordination or permitting reviews. 

Teams should always include contingency time because no construction project goes exactly as planned. At the same time, it is important not to publicly overextend the schedule. In construction, people tend to use all the time they are given, so disciplined schedule management is essential. 

The projects that stay on track are the ones with decisive ownership, consistent communication and minimal scope changes during construction. 

What role is technology including AI and automation playing in restaurant construction projects?

Technology is becoming increasingly valuable in improving communication, accountability and efficiency across restaurant construction projects. 

Project management platforms are streamlining RFIs, submittals and scheduling, while tools such as Matterport, OpenSpace and 3D scanning provide highly accurate documentation of site conditions and project progress. 

Additionally, AI-powered meeting transcription and recording tools help track discussions, document action items and create accountability because everyone knows conversations are being accurately captured. Real-time information sharing also allows teams to respond to issues faster and make more informed decisions. 

These technologies are helping teams reduce errors, improve coordination and make faster decisions throughout the construction process.

What are the best ways to control construction project costs without compromising quality?

Cost control begins long before construction starts. The most successful projects establish a realistic budget early, involve contractors during preconstruction and design specifically to that budget rather than designing first and pricing later. 

The most successful projects establish a realistic budget early, involve contractors during preconstruction and design specifically to that budget rather than designing first and pricing later.

Projects should also be bid apples-to-apples using standardized bid forms so ownership can make informed comparisons between vendors and subcontractors. Value engineering is most effective when it happens early in design, not after construction documents are complete. 

Another important strategy is prioritizing simple, proven systems and equipment over highly customized or overly specialized solutions. Guests experience quality through functionality, comfort and atmosphere—not necessarily through expensive back-end systems. 

Controlling change orders is equally important. Scope changes during construction almost always impact cost and schedule. If something is not absolutely necessary, it is often better to phase it into a future improvement rather than disrupt the active construction process. 

Ultimately, the best cost-control strategy is maintaining strong communication, tracking schedules and budgets weekly, and selecting reliable subcontractors who understand that the true cost of a project is the cost to finish successfully—not simply the lowest starting price. 

What do guests want from the restaurant experience and how has that impacted design?

Guests today want authenticity. In markets like Miami, there is always excitement around what is new and trendy, but long-term success comes from creating warm, welcoming environments paired with strong service and high-quality food and beverage offerings. 

People are looking for experiences that feel unique and memorable while remaining comfortable and familiar. Operators sometimes make the mistake of over-designing concepts or chasing trends too aggressively. The best restaurant spaces strike a balance. They create atmosphere and energy without losing focus on hospitality, functionality and guest comfort.

What makes Miami and South Florida in general flourishing hospitality scenes?

South Florida continues to attract people from major markets such as New York, Los Angeles and Chicago, many of whom are looking for elevated hospitality experiences and are willing to spend on quality. 

The region’s climate and lifestyle also play a major role. People want to be outdoors, interact with their surroundings and enjoy experiences connected to the water, the streetscape and the overall energy of the city. For operators who have a clear niche and execute it well, there is tremendous opportunity in this market. Miami rewards originality, quality and strong hospitality experiences.