Our first contractor meeting

So. We finally met with a contractor at our proposed spot in the Eastern Columbia today. Perhaps we should have done it sooner so that we have a more accurate idea of what our costs will be. I suppose we could have done it to have another opinion on the build-out process. Regardless. We met with a contractor today. And, we liked him! He came as a recommendation from our friend Bryant, who just launched a restaurant. Though Bryant didn't use Triple Five in his own build-out, he recommended that we reach out to Triple Five first. Interesting.

We wanted to meet at the space to see if he could identify any issues. Unexpectedly, he offered to review the lease (we've had two lawyers look it over already, but this is the sort of thing that needs lots of eyes). He also gave us a ballpark range for build-out. Granted, the spread was $160k. At least we have a better idea now for what we need to raise. We also feel more confident that we know the general process for launch, i.e. time-line, permitting, people to involve, etc.

We then followed up our meeting with lunch with our friend, who is starting a bakery down the street. She decided not to use a general contractor. She's using a project manager instead so she can save a bit of money. I'll need to explore this idea, and the idea of using an expeditor/engineer instead of an architect, but my initial sense is that we might save some headache with a contractor. As with all things, however, our options will be determined with a better idea of our cash situation. So. As with all things thus far, we wait for new developments. Stay posted.

Question: do we need an architect?

Yesterday afternoon, we met with David and Derrick from SODA, the architecture/design firm in Downtown Los Angeles working on the Umami concept at 9th & Broadway. Yes, it's across the street from our proposed location. We haven't had to determine an architecture firm yet (though we've obtained proposals from two of our architecture friends or their firms) because we are waiting to secure our construction loan. Since we're moving forward with the loan process (tomorrow is our first official meeting, cross your fingers!), we will need to decide on an architecture firm by next month so that construction can coincide with the disbursement of funds. Fingers crossed!!

Our time-line and our budget are very tight. Time-line because we have a limited rent abatement and the goal is to open before the abatement runs out. Budget because...well, just because. As with all things, we are asking a lot of questions and talking to as many people as possible so that we can make an educated decision. In this case, our homework has definitely paid off. Schematics, health department code, we gotcha. Oh Lisa at the Department of Buildings? Yea, we met with her a few months ago.

Ostensibly, the SODA guys are our type of firm: young, ambitious, hospitality-focused, located and connected in Downtown. Our meeting went well. They seemed to understand our time and budget constraints. We will get a proposal for services by Friday. At the end of the day, however, I guess the question is whether we need an architecture firm. Start-up restaurants have the luxury of choosing to forgo higher professional fees by hiring an engineer to design kitchen schematics. The design of the restaurant would then be up to the contractor and owners. Architecture firms provide experience, construction oversight, and design savvy, all useful things when you can afford them.

Whether we can afford an architect isn't so simple as whether their fees fit into our budget. If, for example, we can save a month in the permitting process because of an architect's knowledge about city processes and another month in construction time because the architect's project management skills, we've effectively saved $7k in rent (and potentially earned 2 months of restaurant revenue from an earlier launch date). If the architect manages to save us another $10k in furniture and fixtures because of a relationship with a vendor, the professional fees would take care of themselves. None of these things are guaranteed, however, so you get our quandary.

Answer: I don't know!

Grease Interceptors 101

Today I attended a workshop on Grease Interceptors organized by the business advocacy group, the Central City Association. We were invited by our very nice landlord who is, presumably, a member of the CCA. Price tag for membership starts at $1,500, big bucks for us small potatoes. There were developers, architects, expeditors, and restaurateurs in attendance. Well, mostly people of the first three categories. Most developers decide in advance whether they will court restaurateurs to lease their retail spaces and do so by obtaining big ticket items like grease interceptors or Conditional Use Permits in advance. Our space had been designated a grocery store by the developers (though the current owner is amenable to a restaurant) so there I was today, learning about grease interceptors.

A grease interceptor basically filters water involved in cooking or cleaning (though not sewage or bar water, mind you) to separate and collect oils that would block sewer lines or harm the environment if poured down the drain. The reserved oil then gets pumped out and disposed of properly. Since the trucks that remove the oil need regular access to the interceptor, it has to be installed in an accessible spot, i.e. a parking lot or private alley. The reason why the interceptor is of such interest to developers is because of the cost - the tank and electrical components are only $10k-$15k, but the installation involves demolition and depending on the configuration of the existing guts of the building, can run up to $75k. Presumably, a developer can save money by installing a larger interceptor for multiple restaurants on a property (think strip mall or food court).

I worked once for a restaurant that was able to side-step the interceptor requirement because it was in business before the regulations came into effect in 2005. The restaurant has a drum outside the delivery entrance that the staff fills manually with cooking oils from the restaurant. The drum is stinky and leaks occasionally onto the delivery driveway. Aside from disliking this past experience, I have few thoughts about this whole interceptor business since our landlord agreed to take care of it as part of our TI. Though, I do hope it's a smooth process to get the plans approved. From what I understand, a restaurant build-out can take as little as three months, but permitting can take a year or two. Since we signed up for the Restaurant & Hospitality Express Permitting Program (thanks, Raul!), we've been quoted a shorter 4-6 month time-line. This 6 month time-line is in our projections, which unfortunately for us, have little wiggle room. Eh, so it is. Go grease interceptor!