cnn.com
Vacant Restaurants: Prime Real Estate for Fast Food
Bankrupt restaurant chains are creating opportunities for fast-food companies who are expanding into these spaces, adding drive-thru lanes.
English
United States
EconomyLabour MarketBusinessReal EstateRestaurantsFast Food
Longhorn SteakhouseTgi FridaysRed LobsterNorthern Credit UnionChick-Fil-ADenny'sThai UnionTriartisan Capital AdvisorsChipotleIn-N-OutWhataburgerRaising Cane'sFogo De ChaoFirst WatchFederal RealtyCbreNorthmarq
Kelli ValadeJeff KreshekMatt LarsonChris Tomasso
- Why are so many restaurants closing?
- Several restaurant chains, including Red Lobster and TGI Fridays, have filed for bankruptcy, leading to a wave of closures. This has created an opportunity for other businesses, particularly fast-food chains, to acquire these prime real estate locations.
- Which companies are expanding by taking over closed restaurants?
- Chains like Chick-fil-A, Chipotle, In-N-Out, Whataburger, and Raising Cane's are expanding into these vacated spaces, often adding multiple drive-thru lanes. Smaller chains like First Watch are also taking advantage of this opportunity.
- Why are these vacant restaurant locations considered prime real estate?
- The high demand for restaurant space coupled with limited supply of vacant properties and high construction costs has made these pre-existing locations highly sought after. Landlords are also eager to find tenants who pay higher rents.
- What types of businesses are taking over these vacant restaurant spaces?
- Fast-food and fast-casual chains are converting these former sit-down restaurant spaces into drive-thru locations, which are often more profitable due to lower operating costs and staffing needs.
- What are the key factors driving this trend of restaurant closures and replacements?
- The shift away from traditional sit-down dining to faster, more convenient options like drive-thrus is a key factor driving this trend. Consumers are increasingly opting for cheaper and more efficient dining experiences.