Franchising
Golden Chick's money-saving move into modular store construction
In about a month, Golden Chick will open the doors on its first store created entirely through modular design and construction, but it certainly won't be the last according to the brand's leaders who say the approach is already reaping benefits for company, its franchisees and ultimately, its customers.
February 2, 2021 by S.A. Whitehead — Food Editor, Net World Media Group
Weather. Unforeseen costs. Inconsistent design. These are among the many monkey wrenches that can get thrown at the traditional stick-built restaurant construction process that growing Dallas-based chain needed to circumvent to hit the rate of growth it was shooting for. And like many in the architecture and home design communities, the chain's leadership saw an option to do just that by building at least some units by modular construction instead.
As you may know, modular construction takes some of the unknown of traditional construction out of the process by moving it into the far less weather-dependent and more precisely controlled conditions of an indoor warehouse or factory. Many of the variables experienced on an outdoor construction site — with everything from labor and rain, to site theft and material warping — just aren't significant factors in modular construction.
That's why Golden Chick's leadership spent a hefty chunk of time in their approach to this new-to-them form of store construction to research, then vet potential providers for what would become their company of choice for their first modular construction unit in Saginaw, Texas, opening this March, asQSRweb first reported in mid-January.
"One major benefit of modular building is once the first one is complete and minor adjustments are made, it is done and ready for mass production.Also, the one-time state-wide permit approvalfor the modular building is a huge plus in terms of design requirements and timing."
-Larry Nelson, Golden Chick
Palomar Modular Buildings filled the bill of the four considered for the final cut, according to Golden Chick Director of Construction Larry Nelson. He said the company best addressed the challenges Golden Chick leadership laid out for them and helped them get everything going more expediently since, after all, time savings are one of the big advantages of the modular construction process.
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| On Jan. 14 poll, QSRweb readers were asked whether they have previously or are now considering modular construction for some of their brands' store construction. Although this was a totally unscientific poll, it does provide some sense of the popularity of the idea of modular unit construction now among QSR brands, with more than half of those responding saying their brand is currently considering the modular option. |
But perhaps surprisingly, Nelson said many of the modular construction firms they considered had at least some restaurant construction experience, though usually in more institutional settings like hospitals. Nelson said that while modular construction goes more quickly than stick-built once things are sent to the factory, the first planning stages are more time-consuming than in traditional construction.
"The upfront planning for the modular building requires a much higher level of accuracy and foresight than a conventional stick-build," Nelson told QSRweb in an interview. "Once the modular building is produced at the plant in a very short time frame, it is done. Whereas, the stick-build process is slow and affords you time to catch and correct on site errors.
"One major benefit of modular building is once the first one is complete and minor adjustments are made, it is done and ready for mass production. Also, the one-time state-wide permit approval for the modular building is a huge plus in terms of design requirements and timing."
But the big "ding-ding" in the advantages column for modular store construction is the fact that it can slice 15% off the cost of traditional construction, often achieved in some measure by the faster turnaround time. Modular stores can be up and open in about five weeks, the company said.
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| This photo shows Day 2 of construction on the Saginaw, Texas Golden Chick store opening in March. (Image provided) |
The modular unit Golden Chick is building in Saginaw is not a small store either, boasting 1,920 square feet and of space. Two other models are completed and ready for sites, including a 1,400-square-foot model without interior seating is also in the works, which will include drive-thru and walk-up windows.
"The modular approach for the restaurant industry offers a great deal of time and cost savings, while providing consistency," Nelson said. "Additionally, many of the required onsite inspections are eliminated, since the building comes with the interior nearly complete and exterior ready for the finished materials."
Golden Chick President Jim Stevens said the first store opening in March is a corporate project, but will be owned by a franchisee. In fact, he said the chain's franchisees are already quite enthusiastic about the new options.
"We've received a tremendous response thus far," he told QSRweb in an interview. "Once we get this first one in the ground, we will invite our franchise communities out to 'kick the tires.'"
"Don't rush the process. There are a tremendous amount of details that can't be overlooked for this to be successful."
-Golden Chick President Jim Stevens
Interestingly, Nelson did say that the modular process is bringing the brand a way to modify its current stores to include the newly all-important drive-thru and walk-up access, along with more easily replacing existing traditionally constructed stores.
"One option available with the modular building approach is to remove old legacy buildings and replace them with a brand new version in a very short period of time," Nelson said. "This is important for staff retention and guest loyalty. Additionally, we are developing a drive-thru and walk-up only application, which is suited for today's environment."
It all sounds pretty alluring in the fast lane of fast food store creation, particularly at a time when operating models are changing on a dime. But Stevens was careful to note that just because it looks like a faster route to some of the end-goals in store construction does not in any way mean that brands should go equally as quickly through the processes of selecting a vendor and then planning the modular stores themselves.
"Don't rush the process," Stevens offered as a piece of advice to his fellow QSR leaders. "There are a tremendous amount of details that can't be overlooked for this to be successful. There will also be an investment and some risk involved. However, the value of six months faster to market is a difference maker!"
The corporate-owned restaurant opening in Saginaw will be on North Old Decatur Road and will mark the brand's 200th location. Competitor, Chick-fil-A opened a modular unit last October in Roswell, Georgia, and as you can see by the poll response in the graphic above, the form of construction is increasingly being considered by QSRs for its many cost-saving and control-of-product benefits.
About S.A. Whitehead
Pizza Marketplace and QSRweb editor Shelly Whitehead is a former newspaper and TV reporter with an affinity for telling stories about the people and innovative thinking behind great brands.
