McDonald’s Reduces Restaurant Remodeling: COVID-19 Pandemic Reverberates to Commercial Construction Market

The recent announcement that McDonald’s would – as part of a company-wide retrenchment program – remodel fewer of its restaurants going forward is yet another adverse event for the US construction industry to weather. While there has a been a significant level of concern regarding the effect of the coronavirus pandemic on the housing market, the commercial construction industry will also be affected by COVID-19.

While a significant part of McDonald’s renovation plans for its restaurants were technological upgrades to more quickly process food orders and offer enhanced menu displays, every store renovation project also requires the use of a wide range of building materials, such as:

• lumber and plastic components needed to make store furniture, kiosks, and related fixtures
• decorative laminate surfacing to provide durable yet attractive wall and counter surfaces
• countertops with integrated charging ports for personal electronic devices
• new kitchen equipment, such as cooktops, refrigerators and freezers, and fryers
• upgraded plumbing fixtures and fittings and such related products as grease traps

It is anticipated that other businesses will delay, if not cancel altogether, large-scale renovation going forward as companies look to reduce expenses. Other businesses that require franchisees or other operators to regularly engage in regular renovations to modernize their appearance include restaurants, hotels, retail stores, banks, and senior living facilities.

For more information about the US commercial construction industry, see The Freedonia Group’s coverage of the Building and Construction industry, and for more information on the prospects of these key industries see the following reports: Restaurants & Foodservice, Elder Care Services, and Commercial Banking.