Good morning! May this month be good to you!

Cautious consumers are dining out less right now, but there are still restaurants using CapEx projects to increase or add streams of revenue, and you can too. 

What’s on tap in this issue:

• Smart, strategic CapEx 
• Penny-pinching diners
• Cool Sips 20% savings flex

🤠 Going to Dallas in June? Us too. We’ll be there for R365’s Restaurant Transformation Tour in Dallas on June 3rd. There will be plenty of insights and some free limited time edition shirts 👀. Are you coming? Hit “Reply” and let us know.

Industry news

What’s cookin’ in the industry? 

Some restaurants are doubling down on ROI-linked renovations, just as diners are dialing back their visits. 💰

Smart CapEx is all about the payback

Big spending can be smart business when it’s tied to real returns. 

Operators of all types, from mountain-top eateries to bakeries climbing out of bankruptcy, are going all in on CapEx with a clear, measurable upside.

➕ A patio with an ROI. Burnaby, BC, just approved a $3.4M all-weather patio for city-owned Mintara restaurant, even with a 30% cost increase from the original estimate. Why? The project is still expected to pay for itself in 6–7 years and generate up to $500K in annual profit after that.

• The upgrade adds 2,000 sq ft and 50 seats, plus a full bar, BBQ station, and storage — essentially creating a new revenue stream without building a whole new restaurant.

🏗 Renovations breathe new life. Meanwhile, Corner Bakery is using CapEx to write its comeback story. 2 years after filing Chapter 11, the chain has already poured $6.2M into self-funded remodels in California and Pennsylvania, with another $500K planned for the 1st half of 2025 as part of a broad revitalization effort.

• Renovations include interiors, exteriors, kiosks, patio furniture, and tech improvements to boost guest experience, with plans to refresh all 100 units by 2027.

Smart CapEx is tied to throughput, seats, tech, or revenue expansion. It’s not an expense, it’s an investment.

Economic uncertainty has consumers tapping the brakes on spending

Consumers are still dining out, just less often. 

As economic pressure builds, diner frequency’s down, even among middle-income guests. Here are the latest numbers:

• 📉 GDP fell by 0.3% in Q1, spending slowed to 1.8% growth, the weakest since mid-2023, and consumer sentiment is at its lowest since 1990.
• The NRA forecasts just 0.7% GDP growth for 2025 and warns that “uncertainty” may be the industry’s word of the year.

The results from these numbers are a mixed bag. 

📉 McDonald’s & Chipotle reported their worst quarters since the pandemic. 

• McDonald’s reported less low and middle income diner traffic, especially for breakfast. And while certainly, consumers are watching their spending, it looks like Chipotle may also have a “value perception problem.”
  
  

📈 Chili’s & Taco Bell are crushing it with same-store sales up 31.6% and 9%. 

• They’ve both gone deep on offering serious value, Chili’s also attributes operational efficiency as a sales driver.  

Consumers are cautious right now. Brands that adapt to lower traffic flow and make every visit frictionless and memorable will be better positioned for what’s next.

Timely tips 

Make your CapEx $$$ count

⚒️ Don’t just build, future-proof. If you’re spending millions to open a new location or overhaul an old one, make sure it's built for how guests actually order today. 

• Think: smart shelving, seamless ordering tech, dedicated third-party lanes, and sensor-backed kitchen equipment. 

🤔 Rethink ROI beyond just revenue. Today’s CapEx projects should serve double duty by fueling topline growth and operational payoff. 

• Does that remodel reduce labor hours? Speed up throughput? Cut energy costs? If the answer’s yes, you’re playing the long game of leaders.

ResQ’s new CapEx projects offering helps you complete equipment installations, buildouts, and reno jobs faster and typically at a lower cost.

From the community

How Cool Sips stayed chill with a CapEx win

Andrew Moger, founder of Cool Sips, NYC’s dirty soda hot spot, was working on a new store buildout when he hit a snag. His go-to contractor was unavailable during their tight timeline for the full kitchen equipment install. 

So, he turned to ResQ’s Vendor Network.

Andrew quickly connected with a certified Super Vendor who had the proper permits and experience to take on the job. The vendor was responsive and ready to go, and the entire install was completed smoothly and on time.

By tapping into the ResQ Vendor Network for their project, Cool Sips saved 20% compared to typical install costs, and the project was completed on time. They also got ongoing support from ResQ for warranty coordination and punch list follow-through.

With ResQ, Cool Sips kept their opening on track and their CapEx spend in check. 

Break time

When your CFO goes from "Why?" to "Well played."

It'll be a good time.

— Kareem at ResQ 

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Shameless plug

What does ResQ do?

ResQ is the most trades-friendly facilities management platform that streamlines restaurant R&M operations, while providing value to the trades industry.

Operators can efficiently track assets, create work orders quickly, and choose from a network of quality vendors to work with.

Love free samples? Same here. Schedule a FREE demo to learn more about ResQ.