Baby, It’s Cold Inside: The Chilling Realities of Finding and Funding Freezer/Cooler Warehouse Space
By James (Jay) Rigelsky on Nov 7, 2019
The world is speeding up, thanks to the Internet, which has revolutionized consumer behavior and expectations. This new mindset has brought a sense of urgency to the food industry, which has seen increasingly high demand for fast and fresh foods coupled with an exponential increase in ordering prepared food online to meet this high demand.
In their bid to meet this increasing demand, restaurants and supermarkets are stocking up their cold storage warehouses with a fresh variety of food choices. The challenges of how to acquire adequate space and operate efficient facilities to store the food product and keep it constantly fresh is ever-present. The need for building not just any freezer/cooler space but one which is state of the art cannot be over-emphasized.
Customers are now demanding access to fresh food quicker and faster than ever before; hence the need for more cold storage warehouses to keep food fresher for longer periods of time. Other benefits of these cold storage warehouses include a more spacious freezer to accommodate more product per square foot than conventional freezers.
Difficulties involved in building a state-of-the-art freezer space
Numerous developers and corporations deliberately avoid the business of constructing and providing cold storage warehouse options, owing largely to the difficulty associated with financing, building and maintaining the facilities.
Below is a brief summary of the difficulties associated with financing, building and maintaining the state-of-the-art temperature-controlled facilities:
- Capital: Developing a state-of-the-art cold storage warehouse is highly capital-intensive, costing at least twice the amount of building a conventional warehouse. The majority of food businesses do not have access to, or the desire to invest this kind of capital, thus discouraging them from even considering it.
- The need for qualified operators: These facilities are modern and specialized and would, therefore, require specialized technical know-how to ensure seamless operation. It is challenging to get experienced technicians and an adequate workforce to operate and maintain the facilities.
- Risky Venture: The specialized use of cold room warehouses also makes it seem like a risky venture. Interested investors may worry about the profitability of the facility, with fears that it may under-perform because potential tenants may not be able to afford the services.
- Location and Siting: The freezer/cooler space needs to be constructed in a location that can timely service its customer base. It should also take into consideration if transportation costs could be offset, as there might be a good land opportunity priced at a premium.
Despite the challenges involved in building and maintaining these facilities, our company is conscious of the fact that they are highly needed in fostering the growth of any business in the food retail industry. And because we care about the success of your company, we have developed strategies to quickly identify all available facilities, as well as potential opportunities to build, at costs that always keep your bottom line in mind. Whether you’re in need of a standard cold storage warehousing facility or a third party logistics company that can handle your requirement, contact us today with your project information, we’ll make sure to help you identify and negotiate the solution that makes sense for you and your company.