Franchisee Comments about Building Costs

  • According to RR’s recent survey on new unit development, franchisees & franchisors rated the current environment a 4.5 on a 1 worst to 10 best scale.


Franchisee Comments
  • Delays, challenge finding owners that will sell property (only ground leases available).
  • Site availability and costs, government regulations, fee increases, increase in franchise fees from parent, long lead times.
  • Everything costs more, takes longer, labor shortages, supply chain for food price increases and shortages make me question if I want to develop anything ever again. ROI isn’t what it used to be and everything is just a headache. Will wait a year and see how things go before deciding if I want to just get out of this industry, sell my locations (all are high profit margin) and do something else with less headache. Price increases to the consumer do not fix all of this.
  • Excess cost increases, delays in lumber and equipment, labor shortages.
  • COGs and labor issues persist (both wages & staffing). Equipment and parts for repairs is a mish mash, you may or may not get it.
  • Delays in receiving equipment, much higher costs for everything.
  • Equipment packages lead times increased from 8 weeks to 14 weeks. Cost are increasing due to shipping and metal.
  • Equipment and fixture delays up to 36 weeks.
  • Labor, equipment shortages, supplies shortages, price increases for everything.
  • Labor shortage.
  • Longer permit approvals; increased lead times; shortage of subcontractor labor; longer construction schedules; longer wait times for inspections and sign-offs; increased prices for most everything; Covid-related schedule impacts; too much government in everything we do.
  • Costs are up…permitting time is up….supply chain issues are up.
  • Long lead times on many items.

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