In 2021, the quick-service restaurant industry saw approximately 50 million daily consumers, and the market accounts for $272 billion in consumer expenditure. Because the industry lends itself to technological innovation and adaptation to meet the increasing convenience requirements of buyers, businesses are able to keep up with the evolving demand and lifestyle needs of their customers. Mainstream culture is becoming more conscious about healthy eating habits, and fast-food restaurants are changing the focus of menus to include healthier options.
The excessive adaptability of the industry future-proofs businesses against fluctuating shifts.
Fast-food providers are resilient against unpredictable social and economic downturns, such as the global pandemic. This is because customers can access services in a socially distanced approach from delivery and drive-through options available.
Properties
One of the most noticeable aspects of safe-chain QSR giants is the onsite visibility and branding which attracts strong customer bases. Restaurants are typically located on high-traffic streets, in bustling shopping malls and strip plazas that capture a high volume of consumers.
Triple net lease terms are usually for a duration of 20 years, with five-year lease renewal options. Because of the liquidity of this asset, properties can be purchased with shorter terms available. Leases can come with rental escalations built-in, and some of our tenants boast up to 5-10% increase every five years, which landlords find very alluring for investments over the long term.
The QSR industry typically has low capitalization rates, which for a longer investment period, makes for a reliable and low-risk venture.
Tenants
We partner with a range of fast-food franchise market dominators, such as McDonald’s, Burger King, Starbucks, and Wendy’s to name a few. The golden arches of Mcdonald’s are recognized across the globe as one of the biggest brands in fast-food. The company holds the largest market share, owning 10% globally and 43% in the United States fast-serve the market.
McDonald’s owns a total of 37,000 restaurants in over 100 countries serving burgers, fries, and other convenience foods. There are over 14,000 outlets in the United States alone.
Within America, the corporation pulled a net revenue of $22.16 billion in 2021. Revenue is drawn from sales in company-operated restaurants, as well as rent, royalties, and franchise fees.
The McDonald’s corporation owns primary, secondary, and tertiary market locations. The scope and reach of their influence bring a competitive advantage across the industry and allow triple net lease buyers various risk/return opportunities. A strong operational capacity, excellent credit ratings, and brand recognition support McDonald’s integrity as a prime nnn lease investment opportunity.
If you’re seeking a fast-food business for sale, McDonald’s stands among various other stable, well-recognized safe chain brands in the fast-food industry with triple net lease real estate properties to help you step towards your goals. Speak with the team at Buy NNN Properties to learn how to get started today.
