In this interview by Michael Bull, a commercial real estate broker in Georgia, Daren Tristano, EVP at Technomic, discusses current restaurant industry trends and as well as performance, and the implications for commercial real estate. Which franchises are finding the most success in today’s market. Which are struggling?
A consistent theme in this interview is that higher costs, both in site costs, including land, construction, and FF&E, and labor, are having an impact. Tristano indicates that restaurants target the more affluent are doing the best, with mid-market chains like Applebees having the most challenges. He also notes that footprints are shrinking in response to higher operating costs.
Finding suitable real estate for restaurants is certainly a challenge in the Miami area. Michael Bull, in fact, mentions Miami in a question to Tristano about some of the more challenging markets.