The restaurant and retail market is facing a period of change. While activity remains strong, many developers are becoming more strategic about their projects in response to a shifting economic landscape.
Jamie Sullivan, director of restaurants & retail markets at Bowman, is deeply embedded in the day-to-day realities of the industry. His hands-on involvement across multiple brands enables Bowman to maintain a strong pulse on the shifting market dynamic. This approach enables Jamie and Bowman’s restaurant and retail specialists to offer perspectives that help developers alter their approach to navigating challenges—resulting in streamlined speed to market delivery and predictable costs.
Q: What challenges are developers in the restaurant and retail space currently facing?
A: One of the most prominent challenges is the strain on capital markets due to interest rates and inflation. This has caused many developers to either slow down their projects or put them on hold altogether. The high cost of construction is another burden, which is making it harder to justify spending on new developments—especially when profitability is a concern.
Additionally, low returns caused by underperformance or staffing issues has prompted many developers to shift their focus from building new spaces to remodeling existing ones. By doing this, they can improve revenue potential without incurring the full costs of a new build.
Despite these challenges, though, some fast-casual and quick service restaurants are still expanding but they are being more selective and strategic with their developments.
Q: How does Bowman help clients navigate these challenges, especially in terms of program management?
A: Our goal is to provide a programmatic approach instead of just one-off projects. For brands like Chipotle, Chick-fil-A and Dutch Bros, we’re handling multiple locations simultaneously across the country, which allows us to streamline processes and maintain efficiency. This includes everything from civil engineering to MEP and structural services.
We also work closely with brands to navigate challenges posed by high construction cost and capital constraints by offering best practices and solutions that help improve design efficiency. Working with thousands of brands across the nation has enabled us to fine tune this process to help clients keep their costs predictable and manageable.
Q: Do you see any changes in the market that would benefit the retail and restaurant sector?
A: From a civil program management side, we’re seeing more clients looking for a single point of contact to manage their projects, which can help simplify the development process and minimize inefficiencies. This is where Bowman is stepping up—offering full-service program management across multiple services so brands don’t have to juggle multiple contacts for various needs. Not only this, but the approach ensures that projects stay on track and within budget, which is particularly important given the current economic pressures on developers.
About Jamie Sullivan
Jamie Sullivan, director of restaurants & retail markets at Bowman, has dedicated most of his career to the residential and commercial sectors, focusing on high-volume national retail brands such as Starbucks, Panda Express, Taco Bell and Jack in the Box. His passion for the industry, combined with a deep understanding of the broader consulting landscape, allows him to effectively guide clients through project challenges and successfully reach their goals. Contact Jamie at jsullivan@bowman.com to learn more about Bowman’s experience in the restaurant and retail market.
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