RESTAURANTS MAXIMIZING SQUARE FOOTAGE TO ACCOMMODATE THE RIGHT SITE LOCATIONS

Finding the right piece of real estate is probably one of the biggest hurdles facing Quick Serve Restaurants that are on track for growth. There are a substantial number of up and coming restaurants looking to explode into the market and prime real estate is being scooped up. The competition is fierce. Companies are constantly looking at maximizing there square footage revenue in an effort to deal with the higher costs of doing business at good locations in prime markets.

Corporate heads of QSR companies are realizing the importance of having solid relationships with brokers and developers that have street level knowledge of what is happening rather just depend on a Costar list. In truth, the best pieces of real estate sometimes never hit the open market but a savvy broker or developer will have their pulse on what is happening in a community.

QSR companies are learning that in today’s market they have to think outside the box and be wiling to make adjustments based on a property that they are very interested in. If a QSR is looking at a small piece of real estate, and like the demographics, then they may consider downsizing their original prototype model, while keeping the same efficiency and needed technology to preserve their production pace and maintain solid revenue. On the other hand, if companies are looking at a larger space in an acceptable demographic, then they may be willing to incorporate sit down seating areas that they may not have ordinarily done in their previous restaurants to garner square footage revenue.

QSRs are also considering repurposing an already existing structure that they can re-image to their existing model if the site is something that they are excited about.

Another trending concept for a QSR company that holds a few branded restaurants, is the idea of co-tenancy. To entice a developer, they can have two restaurants on the same site, which means one go-to person to work with, while conceptually offering greater value on the sight.

OneTen REI is a commercial real estate development company specializing in build-to-suit, ground up development and redevelopment of single and multi-unit retail projects across the United States. Through state of the art technology and local street knowledge ONETEN REI can help pinpoint the most successful retail locations for corporate companies and franchisees.