ENCINITAS – Before Southern California Restaurant Design Group (SCRDG) made its name as a top restaurant design firm, in 2000 President Michael Benson founded its first branch, Institutional Food Equipment (IFE), which became a top government contractor for food service equipment domestically and internationally.
When Benson founded SCRDG in 2014, he did not predict the opportunities it would open up.
“At first, my thought was that it would be a nice segue of business to blend with the government work,” Benson said. “We were going to be a local company that had all jobs between San Diego and greater Los Angeles… As things started to take off, we had a number of national chains that wanted to come on board.”
Since then, SCRDG has grown to a $42 million company, collaborating with brands like Gordon Ramsay, José Andrés, Habit Burger and local landmarks like The Whaling Bar, Katsuya at University Town Center (UTC) and Omni La Costa. SCRDG is also responsible for the Marzul restaurant at the new Gaylord Pacific Resort.
As the company marks its tenth year in San Diego, the firm continues to expand its footprint in Los Angeles and Las Vegas.
“We see a lot of promising opportunities,” Benson said.
New Era of Growth
Last year, Florida-based food service contractor and dealer Johnson-Lancaster and Associates acquired SCRDG and IFE to expand its west coast footprint. The acquisition, said Benson, has strengthened SCRDG’s prestige and infrastructure.
“The company got to a point where, in 2023, we became one of the top 50 design and kitchen equipment contractors in the U.S.,” Benson said. “I had pushed the rock up the hill for over 20 years, and I was at an age where there was no succession plan within my family. It wasn’t going to be a legacy business. We started to get a number of offers, especially from major, top 10 dealers on the east coast.
“With everything [Johnson-Lancaster] had to offer, we’re in the process of taking our company to a much higher level,” he continued.
One part of that growth was the company’s recent expansion into Las Vegas. While SCRDG already did work in the city, the establishment of offices sets the stage for a “long-term, 10-year plan,” said Benson.
Compared to SCRDG’s competitors — companies like TriMark USA and Edward Don & Company — Benson said that his company offers efficiency and positive customer experience.
“Even though we have a large parent company, we’re still being run as a separate entity,” Benson said. “We still act like we’re a small company that’s growing, and we take the extra step to make sure our clients are happy.”
In 2025, SCRDG is experiencing about a 20% growth rate despite “an economy that’s stagnant and an industry that’s in a rut,” Benson said.
“We’re doing exceptionally well, considering that most of our competitors are down this year,” Benson said.
Adapting to Changing Market
Like many other hospitality companies, Benson noted that SCRDG is observing challenges in the market including tariffs and rising costs of labor, cooking equipment and raw materials. Due to uncertainty, Benson said a lot of clients in the industry have put future projects “on ice.”
“Believe it or not, there’s a huge pent-up demand from groups, individual entrepreneurs and chefs that are in the process of designing restaurants,” Benson said. “What we’ve seen is a slowdown between the demand and the design being completed, moving on to the construction phase.”
Benson said that many developers are banking on at least a quarter-point drop in interest rates this fall before moving forward with late 2025, early 2026 projects. He believes that the drop will happen.
Since the pandemic, Benson said that developers across the board have seen a decrease in restaurant square-footage from profitable 10,000 square-foot spaces to economical 2,500 to 5,000 square-foot spaces.
SCRDG is working on a major restaurant project at the Beverly Hills Hotel, designing restaurants for celebrity chefs in Nashville and New York City, recently signed a contract for two restaurants at the Manchester Grand Hyatt in San Diego and plans to open Katsuya at UTC this fall.
The group is also focused on doing work in the fast-casual space, which Benson said is a successful market right now.
“Construction isn’t a perfect science,” Benson said. “You have to guide first time restaurant owners through the process so they don’t burn out before they even open. It’s emotional, like watching your favorite football team play and they’re behind, then they get ahead, and then they get behind again. You’re up and down the whole game. I feel the most fulfillment that we put a lot of people in business… I’m very proud of their success.”
As SCRDG grows, Benson plans on doubling its employees within the decade. Despite the challenging market, he urges business owners to persevere and consumers to support local restaurants when they can.
“Most entrepreneurs have been through the same times as me,” Benson said. “There are mornings when you wake up and wonder how you’re going to get through the day. You’re struggling with capital issues, you’re struggling with employment and customer issues, and somehow, when you just keep pushing forward, you get through it.
“I urge everybody out there that has a company to stay positive and work through your issues, because there’s always daylight at the end,” he continued. “Fortunately, we were able to see that daylight.”
Southern California Restaurant Design Group
FOUNDED: 2014
PRESIDENT: Michael Benson
HEADQUARTERS: Encinitas
BUSINESS: Hospitality
EMPLOYEES: 37
REVENUE: $42 million
WEBSITE: https://socalrestaurantdesign.com/
CONTACT: [email protected]
NOTABLE: SCRDG is a nationally recognized brand with deep roots in San Diego—its portfolio spans from iconic brands such as Gordon Ramsay, José Andrés, Habit Burger and local landmarks like The Whaling Bar, Katsuya and Omni La Costa.
Born and raised in San Diego, Madison takes great pride in local storytelling. Her coverage at the San Diego Business Journal includes tourism, hospitality, nonprofits, education and retail. An alumna of San Diego State University’s journalism program, she has written for publications including The San Diego Union-Tribune and The San Diego Sun. At the 2024 San Diego Press Club awards, Madison was recognized for her exemplary profile writing. She was also a speaker for the 2023 TEDx Conference at Bonita Vista High School. When she’s not working on her next story, Madison can be found performing music at a local restaurant or on one of San Diego’s many hiking trails.
