Tag Archive for: fast food investment

Franchise restaurant properties remain a smart bet—here’s why they belong in your portfolio.

With elevated interest rates, tighter capital markets, and shifting consumer spending, investors are seeking stable, income-generating assets. Franchise restaurant real estate remains one of the strongest retail sectors, offering long-term leases, prime locations, and brand-backed tenants.

Franchise Restaurants vs. Independent Operators: Why Brand-Backed Tenants Matter

Investing in real estate comes with inherent risk, but franchise-backed properties offer a level of stability that independent operators must build over time.

• Established brand recognition drives repeat business, making these properties more resilient than standalone non-branded restaurants reliant on personal reputation. Independent operators are fully responsible for their success or failure and often have to rely on higher marketing and operational costs to stay profitable. 
• Franchisees benefit from national supply chains and operational support, marketing, as well as extensive R&D investments, which give them greater financial durability in uncertain markets. Independent operators need to negotiate their own supplier contracts and logistics which has an impact on their profit margins. 

For investors, franchise-backed restaurant real estate delivers strong tenant security, reliable cash flow, and long-term appreciation potential.

Macroeconomic Factors Strengthening Franchise Restaurant Real Estate

1. Stability in High-Rate, High-Inflation Markets

After a period of aggressive rate hikes, interest rates remain elevated, making stable, cash-flow-positive assets even more valuable.

• Franchise restaurant properties often operate under longer-term leases, providing a more predictable income stream. Additionally, franchisees have the flexibility to structure leases with annual rent escalations, helping landlords hedge against inflation and maintain steady revenue growth over time.
• Many top brands have strong pricing power derived from their loyal customer bases and strong brand recognition. This allows them to pass on any rising costs to the consumer without seeing a fall in foot traffic.
• One of the most popular lease types with franchise restaurants, triple net leases, transfer the operating costs to the tenant, protecting investors from any rising expenses.
• Fast food demand remains strong even during unstable financial times, with many consumers favoring more affordable options. 

2. Sale-Leaseback Transactions Are Increasing, Providing Strong Investment Opportunities

Higher interest rates have increased the cost of debt for operators, leading many franchisees to look at alternative sources of capital through sale-leaseback transactions. Investors can capitalize on this opportunity and benefit from: 

• Higher cap rates, driven by the flexibility of franchisees who understand their rent affordability, make this a standout option compared to other asset types like office or multifamily, which have been impacted by rising interest rates and have less flexibility.
• Portfolio diversification with brands that have a proven track record. With multiple locations, multi-unit franchise operators have access to higher institutional knowledge, helping them navigate challenges. 
• Tenants with strong credit profiles and built-in rent escalations.

3. Prime Locations Drive Property Value and Long-Term Demand

Despite the dominance of online ordering and delivery services, physical restaurant locations remain a cornerstone of the franchise model. Rather than replacing brick-and-mortar spaces, digital demand is reshaping them, driving the need for prime locations with large kitchens, dedicated pickup areas, and expanded drive-thru lanes to accommodate both in-person and online customers. 

When evaluating restaurant real estate, it’s essential to consider these evolving needs, ensuring spaces are optimized for both traditional dining and the growing digital market.

The Future of Franchise Restaurant Real Estate in 2025 and Beyond

The restaurant industry is evolving, but franchise-backed QSRs continue to drive real estate demand. The sector is being reshaped by shifting consumer behaviors, evolving restaurant formats, and financial market conditions, creating new opportunities for investors who stay ahead of the curve.

Convenience stores (c-stores) have long been appreciated for their accessibility and essential offerings. Yet today’s consumers expect more than just convenience—they’re looking for healthier options, digital conveniences, and environmentally responsible practices. This shift in consumer expectations opens new opportunities for investors who see the potential of evolving c-stores to attract a broader, more engaged customer base and remain relevant in a competitive market. Embracing these changes not only boosts profitability and property value but also positions investors at the forefront of an industry in transformation. Sands Investment Group (SIG) offers strategic guidance to help investors leverage these trends for growth and resilience.

Changing Consumer Expectations

The evolving c-store industry is responding to changing consumer values and lifestyles. Key transformations in the market include healthier food options, advanced technological integration, and sustainable initiatives that resonate with today’s customers.

Hot and Healthy Food Options
Today’s health-conscious shoppers want more than traditional convenience fare. Many c-stores now offer hot, freshly prepared meals that cater to diverse tastes, including items like grilled chicken sandwiches and customizable salads. These nutritious and appealing options position c-stores as convenient dining destinations, increasing per-visit spending. By transforming their food offerings, c-stores turn quick stops into opportunities for customers to spend more while enjoying a higher-quality experience.

Technology Enhancing Experience
Technology is revolutionizing the shopping journey in c-stores. Self-checkout kiosks, mobile ordering platforms, and contactless payment systems are no longer optional—they are essential. These features streamline operations and create frictionless experiences that encourage customers to explore additional products. Andrew Ackerman, Executive Managing Partner at SIG, explains: “The industry has consistently evolved—from full-service stations to self-service, from cash-only to digital payments, and now to cashierless convenience. Innovation drives profitability.” For investors, adopting such technology boosts customer satisfaction while enhancing operational efficiency, reducing costs, and increasing transaction volumes.

Sustainability and EV Infrastructure
Sustainability is a growing priority for consumers, and c-stores are adapting by integrating environmentally friendly features such as electric vehicle (EV) charging stations. These stations attract eco-conscious customers, open doors to new revenue streams, and position properties as future-ready. Investors who prioritize such sustainable practices can align their assets with both consumer values and emerging regulatory trends, ensuring competitive positioning in the marketplace.

The Investor Advantage: Driving Profitability and Stability

Investors in modernized c-stores stand to gain substantial benefits and by aligning with consumer preferences, these stores can significantly increase their profitability. Enhanced food offerings, for instance, not only attract a broader range of customers but also drive higher spending per visit. A customer stopping for fuel might now spend an additional $15 on freshly prepared meals, beverages, or other essentials—a marked improvement over traditional transaction volumes.

Profitability also plays a critical role in the overall stability of a c-store investment. Successful stores with robust revenue streams bolster the creditworthiness of their operators, paving the way for stronger lease agreements. John Brown, Investment Sales Advisor at SIG, highlights this shift: “C-Stores are now expanding… with larger stores, sometimes over 4,500 square feet, and full kitchens. The trend is moving toward high-margin food service, clean landscaping, and an overall consumer-friendly experience.” Properties that fail to adapt risk losing value and missing out on future growth.

Conclusion

The evolving c-store landscape offers unique opportunities for investors willing to adapt. By embracing consumer-driven trends such as health-focused offerings, advanced technology, and sustainability, c-stores can stand out in a competitive retail space, attract a loyal customer base, and increase property value. For investors, these adaptations not only drive higher profitability but also build resilience against market shifts.

At Sands Investment Group, we are dedicated to helping investors navigate these changes with precision and insight. Our experienced advisors offer in-depth market analysis to pinpoint the best opportunities and provide tailored strategies to align c-store investments with emerging trends. By guiding investors through strategic improvements—whether in technology or sustainable practices—we ensure that c-store properties remain relevant, profitable, and positioned for future growth. With SIG’s support, your investments in the c-store sector can capture today’s consumer demands and drive long-term success.

Contact our C-Store Team today to learn more about our services and how we can help you achieve your financial goals.

The casual dining sector is evolving rapidly due to changing consumer preferences and technological advancements. These shifts are going to start having an impact on property values, making it essential for commercial real estate investors to understand how these trends influence investment potential. By aligning investments with the current trends shaping the casual dining landscape, investors can ensure long-term value growth and portfolio resilience.

1. Enhanced Customer Experiences and Property Value

Today’s diners seek more than just good food—they want memorable, immersive experiences. In response, casual dining establishments are investing in ambiance, expanding outdoor seating, and incorporating entertainment features. Properties that can accommodate these elements can help to increase the value, as they allow tenants to cater to the demand for experiential dining. For investors, choosing adaptable spaces that enhance customer experience can attract tenants who are willing to pay higher rents and sign longer leases. This ultimately boosts the property’s income potential and enhances overall asset value.

2. Digital Integration as a Value Driver

The adoption of digital solutions such as online ordering, delivery, and contactless payments has become a standard in casual dining. Properties with robust digital infrastructure—like high-speed internet and dedicated pickup areas—are increasingly appealing to tenants who want to stay competitive in the digital age. Doug Roland, investment advisor at Sands Investment Group, notes that with the rise of platforms like Uber Eats and DoorDash, operators have been able to “utilize smaller square footage, less parking, and reduce labor costs. This setup makes for more stable tenants which ultimately reduces investor risk.” Working with SIG investment advisors allows investors to have access to key insights into which tenants and operators are taking advantage of technological advancements and which are not.

3. Sustainability Enhances Appeal and Long-Term Value

Environmental consciousness is rising among both consumers and businesses. Casual dining establishments are thus seeking eco-friendly, energy-efficient properties. Buildings that offer sustainable features often command higher values because they align with tenants’ goals of reducing environmental impact and operational costs. Sustainable properties attract tenants willing to pay a premium for green features such as solar panels, gray water recycling, and LED lighting, which in turn strengthens tenant retention and supports long-term value growth. Investors who focus on sustainability not only meet current market demands but also mitigate potential risks associated with future environmental regulations, adding to their properties’ resilience.

4. Multi-Use Spaces Increase Versatility and Value

Casual dining establishments are increasingly interested in spaces that can serve multiple purposes beyond dining, such as hosting events or providing co-working areas. Multi-use properties that offer this flexibility tend to have higher market values as they can cater to diverse tenant needs and adapt to shifting demands. For investors, this versatility translates into greater revenue potential, as such properties can attract a broader range of tenants looking for spaces that maximize both utility and adaptability.

5. Prime Location and Accessibility as Core Value Indicators

Despite the rise of delivery services, location remains critical for casual dining success. Doug Roland emphasizes that “geography is very important, as properties in high-traffic areas with easy access to parking and public transit continue to attract a steady flow of customers”. For investors, focusing on properties in strategic locations helps maintain strong rental rates and consistent tenant demand. By choosing locations with prime accessibility, investors increase their chances for not only stable income but also long-term property appreciation.

6. Menu Innovation and Its Influence on Property Value

Menu innovation is another trend influencing casual dining real estate. Diners today are more adventurous, favoring unique, high-quality, and often health-conscious options. Restaurants focused on menu innovation often require adaptable kitchen spaces that can accommodate evolving culinary trends and specialized equipment. Properties with flexible layouts or potential for kitchen expansion appeal to tenants who prioritize menu creativity as a way to differentiate themselves. Investors who recognize this trend can select properties that cater to forward-thinking tenants, enhancing both rental income and property value.

How SIG’s Investment Advisors Provide Value to Investors

Our investment advisors bring valuable insights to investors in casual dining real estate by aligning investment strategies with key market trends. Through expert analysis, we identify properties that are adaptable, digitally integrated, and sustainability-focused, ensuring these assets meet current tenant demands and support long-term growth. By leveraging their deep knowledge of prime locations and multi-use property potential, our investment advisors help investors make informed decisions that optimize property value, attract quality tenants, and enhance portfolio resilience. This strategic guidance positions investors to navigate a dynamic market effectively and secure sustainable returns.

Contact our restaurant team today to learn more about our services and how we can help you achieve your financial goals.

In the ever-evolving Quick Service Restaurant (QSR) landscape, staying ahead of changing consumer behaviors is not just an advantage—it’s a necessity. Today’s QSR properties are not merely about fast food; they’re about smart, sustainable choices, technological advancements, and a commitment to quality that resonates with a new generation of consumers. It’s also becoming increasingly evident that in this dynamic arena, the role of informed, expert guidance cannot be overstated. This is where our team of product-type specialists come into play, offering expertise and insight into the QSR investment landscape, ensuring our investors are not just keeping pace but actually setting the pace in the industry. Read more →

SIG brokers handled the transaction on a Sonic NNN lease, a fast food restaurant in San Antonio, TX, selling for $125,000 above list price, days after hitting the market.

Working with SIG brokers is the best way to leverage top listings, lending, and marketing efforts. In this deal, lead SIG broker Will Schuhmacher, along with co-brokers Max Freedman and Elan Sieder, were able to sell a fast food restaurant within days of the listing hitting the market, for well over the asking price.

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SIG brokers handled a new loan for a recurring developer client who wanted to acquire a casual dining property as part of their investment portfolio, but the seller needed to wait 6 months to close on the deal for tax purposes.

When the goal is growing an investment portfolio with specific properties, you can’t trust a typical real estate agency to walk you through the process. SIG is a commercial real estate brokerage firm with a wealth of experience helping clients find, secure, and purchase properties to round out their investment portfolio.  

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Almost a decade ago, Chris Sands set out to create a different kind of brokerage firm: one that was built on honesty, integrity and fostered deep collaboration. Read more →

SIG brokers handled a new loan for a recurring developer client who wanted to acquire fast food property as part of their investment portfolio.

Working with SIG brokers is the best way to leverage top listings, lending, and marketing efforts. In this deal, lead SIG broker Max Freedman, along with co-brokers Chris Sands and Will Schuhmacher, was able to successfully find the right buyer in the first day of marketing the property. The transaction was seamless, with no delays or issues throughout the life of the transaction.

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