Modular for QSR and retail: what chains are doing and what to plan for

Quick-service restaurants and small retail buildings have a lot in common with modular construction. They are small. Brands repeat the same prototype many times. And every day a store isn't open is a day of lost sales. So it isn't surprising that several chains have moved some of their building programs into factories.

What recent rollouts look like

A few public examples give a sense of the approach.

Wawa. In early 2024, the convenience chain opened its first modular drive-thru stores, built with the modular firm Modlogiq. According to Restaurant Dive, the buildings are built in a warehouse over a period of about 40 days, assembled on site in a matter of days, and ready for a certificate of occupancy within 20 working days. The first store was in Trexlertown, Pennsylvania, with Largo, Florida next. The same report notes that Modlogiq has also built for QSRs in Pittsburgh and for Starbucks.

Whataburger. In mid-2024, Whataburger partnered with Russo Modular on a 3,000-square-foot modular prototype in Gilbert, Arizona, the brand's first modular restaurant in that state.

These reports are from the vendors and trade press at launch. They tell you what was planned, not long-term results, so ask any manufacturer for completed-store data of their own.

Why it fits

• Repetition. A chain with one approved prototype can build the same box many times. That is where factory production is strongest.
• Parallel work. The building is made while the pad, parking, drive-thru lane and utilities go in on site.
• Weather. Factory work keeps going in winter and rainy seasons.
• Smaller crews. Less on-site labor helps in markets where trades are hard to schedule.

What to plan for

State approvals in every market. A chain expanding into several states needs the building approved under each state's program. MBI's list of state program administrators is the place to start. Ask the manufacturer which states they are already approved in.

Local design rules. Many towns have design standards for commercial corridors, such as facade materials, roof lines and signage. A prototype may need local versions, which cuts into the benefit of repetition. Plan a small set of approved facade options early.

Transport and permits. Restaurant modules are often wide loads. Oversize permits are issued state by state, and local streets near retail sites can be tight. Have the hauler review the route before you commit to a site.

Site work stays on site. Grading, drive-thru lanes, grease interceptors, utilities, parking, landscaping and signage are all still built in the field. They often take longer than setting the building, so your schedule savings depend on running that work in parallel.

Equipment and finishes. Decide which kitchen equipment ships installed and which is set after delivery. Heavy or sensitive equipment may travel better separately.

Ownership and leases. If the building sits on a ground lease, confirm with the landlord and lender how a factory-built structure is treated, and whether it can ever be moved.

Questions for a QSR or retail modular supplier

• How many stores of this size have you delivered, and in which states?
• What is the time from order to delivery today, and from delivery to certificate of occupancy?
• Which kitchen equipment do you install in the plant?
• How do you handle local facade and design requirements?
• What does your scope include on site: foundation, set, hookups, finish work?
• What is your warranty, and who responds to service calls in each market?

Bottom line

Modular suits chains that can standardize a prototype and roll it out in volume. The building itself is the easy part. Approvals in each state, local design rules and site work decide how much time you save. Plan those before you sign a multi-store order.

Think about the whole program

For a chain, the real decision is not one building but a program. A few questions shape that program:

• How many stores a year, and where? Plants serve regions. A national rollout may need more than one manufacturer, which means more than one set of approvals and quality checks.
• How fixed is the prototype? The more the building changes from site to site, the less the factory helps. Many chains settle on one core module with a few approved exterior options.
• Who owns the building design? If the brand owns the design, it can bring a second manufacturer in later. If the manufacturer owns it, switching is harder.
• What about franchisees? If franchisees build their own stores, decide whether they must use the program, may use it, or can build any way they like.

Relocation and reuse

Some small modular buildings can be moved, which matters for leased pads or test markets. Don't assume it, though. A building set on a permanent foundation and connected to site utilities is not built to be moved. If relocation matters, design for it up front and confirm with the manufacturer and your state program how a relocated building is approved.