This post is for anyone taking on their first QSR (Quick Service Restaurant) TI (Tenant Improvement) project — whether you’re a PC on a construction team or a franchisee preparing to open. I’ve worked as a PC on several QSR TI projects in Canada, including a Greek food franchise. These are things I learned by doing, not from any textbook.
Why QSR TI Is More Complex Than Regular Commercial TI
Compared to office or general retail TI, QSR TI is significantly more involved — even at smaller square footage. Two reasons.
First: there’s a kitchen. The moment a kitchen goes in, you’re looking at fire suppression systems, kitchen exhaust, make-up air units, and grease traps. These aren’t independent systems — they’re interconnected, and they need to be thought through at the design stage, not during construction.
Second: franchise brand standards exist. Every QSR franchisor has a corporate design standard. You receive their base drawings and work from those — but the franchise drawings don’t always align with local code or actual site conditions. Every discrepancy needs an RFI (Request for Information). Skip it, and you’ll pay for it later.
Real Numbers — A 1,200 sq ft QSR Build
QSR tenant improvement costs are hard to find published anywhere. Here are the actual figures from a 1,200 sq ft restaurant I coordinated in Winnipeg between 2021 and 2023.
| Item | Total | Per sq ft | Share |
|---|---|---|---|
| Total construction | $550,000 | $458 | 100% |
| Mechanical (plumbing & HVAC install) | $90,000 | $75.00 | 16.4% |
| Electrical | $75,000 | $62.50 | 13.6% |
| Mechanical + electrical | $165,000 | $137.50 | 30.0% |
| Everything else (architectural, finishes, GC) | $385,000 | $321 | 70% |
Stating the scope precisely: these figures are the total contract value including GC margin and permit fees. However, the mechanical line is installation only — kitchen equipment (MAU, EXF, hood) is excluded.
Three Things This Data Tells You
1. Mechanical and electrical land at exactly 30%. Food service TI in North America typically runs 25–35% for M&E, so this sits mid-range. If a quote you receive falls well outside that band, treat it as a signal that something is either missing or padded.
2. At $458/sq ft, this is two to three times a standard office fit-out. Office TI generally runs $100–200/sq ft. The delta is kitchen supply and drainage, grease exhaust, and electrical capacity — all of which are additive, not substitutive.
3. And the one that matters most: equipment is not in that mechanical number. MAU, exhaust fans and hoods are all excluded, and mechanical still came to $90,000. Add the equipment and the mechanical share climbs well past 30%.
This is precisely where franchisee budgets go wrong. A construction quote comes in, the number gets treated as the build cost, and the separately procured kitchen equipment surfaces later. Before signing, get it in writing: is equipment included or excluded from this scope?
Why You Should Not Apply These Numbers Directly
- Location — Winnipeg. Metro Vancouver labour costs more; budget above this
- Timing — spent 2021–2023. Material and labour escalation since then needs to be layered on
- Brand — franchise specifications vary enough that identical square footage produces different totals
- Starting condition — shell space versus renovating an existing restaurant changes everything
That said, the ratios hold better than the absolute dollars. The 30% M&E share and the 2–3× multiple over office TI travel reasonably well across regions and years. Use those as your benchmark rather than the raw totals.
The Hardest Part Isn’t Quality — It’s Schedule
Honestly, what stressed me most on QSR TI projects wasn’t construction quality. It was schedule. Here’s why.
Fixturing Period
Most QSR TIs happen in leased spaces inside shopping centres or commercial buildings. When you sign the lease, the landlord typically grants a Fixturing Period — time to build out the space before rent fully kicks in. Around 90 days is common. Miss that window and you’re paying full rent on a space that isn’t open yet.
Ninety days sounds like a lot. It isn’t.
Equipment Procurement Lead Times
Kitchen equipment — ovens, refrigeration units, fryers, grills — often has lead times that don’t line up neatly with permit timelines. In some cases, you need to place equipment orders before Building Permit is issued to hit the delivery date you need.
But ordering early means equipment may arrive before the space is ready to receive it. Storage costs money. And if the permit takes longer than expected, that storage window stretches.
| Scenario | Risk |
|---|---|
| Order equipment after permit issued | Delivery may land after fixturing period ends |
| Order equipment before permit issued | Equipment arrives early → storage cost, damage risk |
| Best approach | Confirm permit turnaround with city early; align order timing accordingly |
Permit Turnaround Varies by Municipality
Even within BC, permit processing times vary significantly by city. Same drawing set, same scope — one city takes 3 weeks, another takes 6+. If you don’t account for this upfront, you’ll burn through your fixturing period waiting for permit.
Call the Building Department before the project kicks off. Ask for their current estimated turnaround. In my experience, a direct call gets you a more accurate answer than anything else.
Kitchen Systems You Need to Understand
Kitchen Exhaust + Make-up Air Unit (MAU)
Cooking generates smoke and heat. The kitchen exhaust (hood) system pulls it out. When air is exhausted, replacement air has to come in — that’s the Make-up Air Unit.
The challenge: many existing buildings don’t have adequate space or routing for both systems. Exhaust typically needs to run to the rooftop, and building structure doesn’t always allow a straight path. This has to be coordinated with the mechanical contractor during design — not discovered mid-construction.
Grease Trap and Tile Thickness
A grease trap intercepts grease from kitchen sink and dishwashing drain lines before it reaches the municipal sewer. It’s installed in the floor — and this is where a small detail matters a lot.
Kitchen floors get tiled. The finished floor height — tile thickness plus mortar bed — affects where the grease trap lid sits relative to the finished surface. Get this wrong and the lid ends up proud of or below the tile, which means rework.
💡 Confirm tile and mortar thickness with the flooring sub before rough-in. Lock in the grease trap rough-in elevation accordingly.
Fire Suppression System
QSR kitchens require a dedicated fire suppression system — separate from the building’s sprinkler system. It’s typically mounted under the exhaust hood and uses chemical suppression agents.
This system requires its own permit and a post-installation inspection. It’s usually installed by a specialized contractor (not the sprinkler sub), so coordinate this early with your GC.
Health Authority Inspection: What to Prepare For
QSR projects require a Health Authority inspection in addition to Building Permit inspections. Both need to pass before the location can open.
Based on my experience, here’s what Health Authority inspectors focus on:
| Inspection Focus | What They’re Looking For |
|---|---|
| Cove base | All wet areas (sink surrounds, dishwashing zone, beverage stations) must have coved base tile or vinyl at wall-floor junctions. Missing or improperly installed cove base = immediate flag. |
| Refrigeration / freezer temps | Equipment must be operational and holding correct temperatures on inspection day. If equipment hasn’t been commissioned yet, expect a re-inspection. |
| Hand wash sinks | Dedicated hand wash sinks required at specified locations per food service code — not shared with prep sinks. |
| Surface finishes | All kitchen surfaces must be smooth, non-porous, and cleanable. Unfinished drywall, raw OSB, or exposed insulation will fail. |
Schedule commissioning a few days before the Health Authority inspection. You want to know equipment is working properly before the inspector arrives — not find out during the visit.
Franchise Drawings: Don’t Take Them at Face Value
Franchisor drawings are a baseline — a standard template. They’re not site-specific. The actual site will differ.
A common example: washroom counts. A franchise base drawing shows two washrooms. But BC Building Code requirements for washroom count depend on occupant load — and for some locations, the code requires more than two. Accessibility requirements add another layer.
Review the franchise drawings against local code early. Any mismatch goes through an RFI to the franchisor or design team. Construction first, ask questions later is an expensive approach on these projects.
At the End of the Day, It’s About the Team
The technical details matter — but the single biggest factor in whether a QSR TI goes smoothly is the team. GC, mechanical sub, electrical, plumbing, tile, millwork — all of them. QSR TI has high trade interdependency. One sub running late cascades into every trade that comes after them.
When you’re selecting a GC, ask directly whether they’ve done QSR TI before. An experienced GC already knows these nuances. One that hasn’t done it before will learn them on your project — and you’ll pay for that learning curve in time and money.
Quick Reference: PC vs. Franchisee Checklist
| PC Checklist | Franchisee Checklist |
|---|---|
| Confirm equipment lead times at project initiation — align procurement schedule first | Negotiate fixturing period length with landlord — 90 days is tight |
| Check permit turnaround with the city before scheduling anything else | Coordinate equipment order timing with your GC or PC — don’t order blind |
| Review franchise drawings against local code; log all discrepancies as RFIs | Know that Health Authority and Building Permit inspections are separate — both must pass before opening |
| Schedule commissioning before Health Authority inspection | Experienced GC = time and money saved |
| Brief trades on cove base, grease trap elevation, and other QSR-specific details in advance |
QSR TI has a lot of moving parts for its size. Once you understand the structure, you start to see the repeating patterns. I hope this post helps you get there faster.
Questions? Drop them in the comments.
📌 Also read: The Complete Guide to PC in Canadian Construction — Role, Skills, Culture, and Career Path