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- Quick-Service Brands Embrace Drive-Thru and Pickup-Only Format for Growth
Quick-Service Brands Embrace Drive-Thru and Pickup-Only Format for Growth
Many quick-service brands are pivoting towards drive-thru and pickup-only locations as they capitalize on the increasing popularity of these channels.
Estimated read time: 4 minutes and 32 seconds
Notable Sale: Brad Canova of Horvath & Tremblay just sold this Access Health Urgent Care in Lockhart, TX:
Price: $2,265,625 @ 6.40% CAP
Notable Loan: Michael Bucaro and Matthew Bucaro of Tauro Capital Advisors just funded this Popeyes, KFC, and Arby’s portfolio:
Amount: $6,000,000 (50% LTV) @ 6.29% Fixed
10-Year Term / 30-Year Am / Step-down Prepay
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Here’s what we’ve got for you today:
Quick-service brands are embracing drive-thru and pickup-only models to cater to the increasing demand for off-premises dining.
Popeyes overtakes KFC to become the No. 2 chicken chain in the U.S. due to the success of its chicken sandwich.
Sprouts Farmers Market plans to open six new stores in the Philadelphia area, as part of its growth strategy to expand 10% year-over-year.
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DTO OR GTFO
Quick-Service Brands Embrace Drive-Thru Centric Units to Meet Customer Demand (Read Here)
Captain D’s
Shifting Focus: Restaurants are increasingly prioritizing drive-thru and pickup options to meet customers where they are and improve operational efficiency. This approach is driven by factors like higher costs and the sustained popularity of off-premises dining.
Efficiency and Flexibility: Drive-thru-centric units offer several benefits, including smaller footprints, improved speed of service, and cost savings. These concepts can be implemented in urban areas with high real estate costs and serve as fill-in locations between regular restaurants.
💰 THE MONEY SHOT
Driving Success: Successful drive-thru-centric prototypes have demonstrated the potential for profitability and customer satisfaction. Brands like Jack in the Box, Del Taco, Captain D's, Biscuitville, and Portillo's are strategically experimenting with drive-thru-focused units to optimize performance, reduce costs, and cater to the growing demand for off-premises dining.
For a contact list of Drive-Thru-Only property owners reply “DTO List” to this email.
CHICKEN SAMMIE
Popeyes Overtakes KFC as the No. 2 Chicken Chain in the U.S. (Read Here)
Popeye’s
Bicken Wars: Popeyes has surpassed KFC to become the second-largest chicken chain in the United States, following behind only Chick-fil-A. The chicken sandwich wars and the success of Popeyes' blockbuster menu item have contributed to this shift in the market.
Chick-fil-A's dominance: Chick-fil-A continues to hold the top spot in the chicken chain industry, with its market share expanding to 45.5% from 38.3%. The chain's exceptional customer service, limited menu, and efficient drive-thru lanes have been credited for its ongoing success.
💰 THE MONEY SHOT
KFC's decline: KFC's U.S. market share has dropped significantly in the past year, falling from 16.1% to 11.3%. The chain has struggled to keep up with the competition, taking a long time to respond to Popeyes' popular chicken sandwich.
For a contact list of Popeye’s, Chick-Fil-A, and KFC property owners reply “QSR Chicken List” to this email.
FARMERS MEET DOT COM
Sprouts Farmers Market Plans to Open Six More Stores in Philadelphia Area (Read Here)
Sprouts Farmers Market
Expansion plans: Sprouts Farmers Market, the natural and organic grocer based in Phoenix, will be expanding its presence in Philadelphia with the opening of six new stores in the city and surrounding areas over the next two years.
Growth strategy: The expansion in the Philadelphia area is part of Sprouts' five-year plan, which aims to achieve a 10% year-over-year growth. With the addition of these new stores, Sprouts will have a total of 11 locations in the Philadelphia region.
💰 THE MONEY SHOT
Continued growth: Sprouts' expansion into the Philadelphia area reflects its commitment to a robust growth strategy, as the grocer continues to open new stores across multiple states. The company currently operates in 23 states nationwide.
For a contact list of Sprouts Farmers Market property owners reply “Sprouts List” to this email.
TRIPLE NET TENDIES
🧠 Thought Leader: Aaron Allen shares how profitability has winners and losers in every category of the restaurant industry (McDonald’s, Starbucks, D&Bs)
👂 Ear Hustle: Karly Iacono of CBRE dives into the institutional view of net lease
💎 Web Gem: Matthews publishes report on the ALDI acquisition of Winn-Dixie & Harveys Supermarket encompassing 400 grocery stores in the Southeast
NET LEASE NUGGIES
Capital Markets Challenges: Commercial real estate loans worth over $400 billion are set to mature in 2023, with an additional $500 billion maturing in the following two years.
Retail Theft Crisis: Rising theft and violence are plaguing the retail industry, with multiple incidents of large-scale thefts occurring across the country.
Caffeine Cutback: Starbucks is set to close seven of its downtown San Francisco locations in the coming weeks, reducing its store count from 59 to 52.
Economy defies predictions: Despite challenges like labor disputes and uncertainty caused by Congress, the U.S. economy continues to grow, proving its resilience.
Korean Fried Bicken: Bonchon is focused on strategic growth and aims to continue providing high-quality Korean food to customers worldwide.
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