The Gray Cat Blog

A comprehensive collection of blogs designed to assist small business owners and multiunit operators.

Facilities Management: More Than Fixing Broken Things

Jun 24, 2026

It was one of those phone calls every executive dreads.

“The CEO would like to see you.”

As I walked toward his office, my mind raced through every possible mistake I might have made. Had I overspent the marketing budget? Missed a major sales target? Said the wrong thing during a media interview?

This couldn’t be good.

The CEO and COO invited me to sit down. After a few compliments about how my departments were performing, I finally relaxed—until the next sentence.

“We’d like you to take over Facilities Management.”

I responded with complete honesty.

“What the $%#@ do I know about facilities management?”

The answer was simple.

“You’re a smart guy. You’ll figure it out.”

Just like that, I became responsible for facilities management for more than 1,400 retail locations in addition to my existing responsibilities.

As it turns out, they were right.

I eventually realized that facilities management isn’t primarily about buildings—it’s about managing projects, processes, people, vendors, and capital. In many ways, it was simply another form of operational leadership.

Repair & Maintenance: Protecting the Customer Experience

Every retailer knows one universal truth:

Things break.

HVAC systems fail, refrigeration units stop working, parking lots deteriorate, lighting burns out, and plumbing inevitably leaks.

The best organizations don’t simply react to repairs—they prevent them.

A disciplined preventive maintenance program extends asset life, reduces emergency repair costs, minimizes downtime, and ensures customers experience a clean, safe, and well-maintained environment.

These are “stay-in-business” investments. They rarely generate headlines, but they protect revenue every single day.

Capital Investment: Spending to Grow

Unlike routine maintenance, capital investments are intended to improve the business.

Examples include:

  • New store construction
  • Remodels
  • Equipment upgrades
  • Store expansions
  • Energy-efficient systems
  • Digital technology
  • Customer experience enhancements

Each investment should be supported by a clear business case and expected return on investment.

Simply spending capital doesn’t create value. Investing wisely does.

Construction Management

Construction is much more than building stores.

It involves site selection, design, permitting, budgeting, scheduling, contractor management, inspections, and post-project evaluation.

The most successful companies track every project against budget, timeline, and expected financial return.

When organizations accurately capture both direct costs and internal labor, leadership gains a much clearer understanding of the true return on every capital project.

Environmental Stewardship

Environmental compliance has become increasingly important for retailers, particularly those operating fuel stations, manufacturing facilities, or businesses handling regulated materials.

During my corporate career, we managed more than 1,100 fuel locations. Any significant fuel release triggered a lengthy remediation process involving regulatory agencies, environmental consultants, contractors, and insurance providers.

While most retailers won’t encounter environmental issues of that magnitude, every company benefits from having clear compliance procedures and risk management protocols.

The best environmental strategy remains simple:

Prevent problems before they occur.

Strategic Purchasing

One of the most overlooked profit opportunities lies within purchasing.

Small savings spread across hundreds—or thousands—of locations quickly become significant.

I vividly remember one initiative where we simply analyzed dumpster sizes and pickup frequencies across our stores. By rightsizing waste services, we reduced annual expenses by nearly $200,000 without affecting store operations.

We found similar savings by renegotiating telecommunications contracts, freight services, maintenance agreements, and equipment purchasing.

Every expense deserves periodic review.

Over time, small improvements become meaningful contributions to profitability.

Managing Vendors, Not Just Buildings

Today’s facilities departments rarely perform all work internally.

Instead, they manage networks of contractors responsible for HVAC, plumbing, electrical, landscaping, roofing, janitorial services, snow removal, security, and dozens of other specialties.

Success depends on establishing performance standards, measuring response times, controlling costs, and holding vendors accountable.

Facilities management has become as much about relationship management as it is building maintenance.

A Strategic Function

Looking back, that unexpected meeting with the CEO turned out to be one of the most valuable learning experiences of my career.

Managing facilities across more than 1,400 stores taught me that every operational decision affects profitability.

Facilities management isn’t simply about fixing what’s broken. It’s about protecting assets, improving the customer experience, managing risk, allocating capital wisely, and creating systems that support long-term growth.

When managed strategically, facilities become a competitive advantage—not just another expense on the income statement.

And sometimes, the opportunities that seem most intimidating at first become the experiences that shape your career the most.

Want more ideas?  For more information on Gray Cat Learning Series, visit: https://www.graycatenterprises.com/gray-cat-learning-series

John Matthews, President & CEO, Gray Cat Enterprises, Inc.

John Matthews is the Founder and President of Gray Cat Enterprises, Inc. a Raleigh, NC-based management consulting company. Gray Cat specializes in strategic project management and consulting for multi-unit operations; interim executive management; and strategic planning. Mr. Matthews has over 30 years of senior-level executive experience in the retail industry, involving three dynamic multi-unit companies. Mr. Matthews experience includes President of Jimmy John's Gourmet Sandwiches; Vice President of Marketing, Merchandising, Corporate Communications, Facilities and Real Estate for Clark Retail Enterprises/White Hen Pantry; and National Marketing Director at Little Caesar's Pizza! Pizza!