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Hungry for Casual Dining? Investors Are, Too!



Commercial real estate’s retail sector is continuing to attract the eyes of eager investors, and restaurants are at the top of their lists. However, it’s not the fancy 5-star kind of joint that’s receiving all the attention - it’s the opposite.

Casual eateries are taking over the contemporary dining scene and for good reason. This booming industry is reaping in profits, pleasing today’s consumers, and scoring massive points with investors.

If you’re craving quality food served in a comfortable and laid-back ambiance, you’re not alone. Let’s look at a few reasons why investors simply can’t resist these opportunities.

Investors Love the Perks of Net Leases

Being an investor can be tough. Managing various assets, finding your next deal, and expanding your portfolio isn’t easy work. These common investor pain-points create the perfect opportunity to work with casual dining - and more specifically, commercial real estate. The reason being is that net leases give investors all of what they love without the stress, time, and effort.

Net leases are a popular aspect of commercial real estate. Their terms call for much of the day-to-day upkeep to be handled by the occupant, not the property owner. On top of paying rent, tenants are responsible for covering the property’s expenses such as taxes, maintenance, operative fees, and more.

Net leases allow investors to take a hands-off approach to these assets, which eliminates much of the work and costs associated with growing portfolios.

Fast-Casual Food Industry On the Rise

Fast and casual food is the new ‘it’ item for consumers. This culinary niche is providing its customers exactly what they’re looking for. High quality, no fuss, quick service, and tons of options are just some of the features that attract hungry crowds to dine at these quintessential spots.

On top of their attractive qualities, fast and casual dining also has an edge over other restaurant options. The US population is seeing a large decline in home-cooking, and more and more meals are being eaten out. The U.S Bureau of Labor Statistics reported that the average American household spends about $3,008 per year on dining out. Another statistic shows that the amount of money spent on restaurants vs groceries has increased by 94% since 2003.

This consumer climate shows promising signs for the restaurant industry, and investors are seeing this, too. Fast-casual eateries have the upper-hand when catering to this crowd since they are an inexpensive, convenient, and fast alternative. Business is booming, and it doesn’t look like a decline is coming anytime soon.

Putting Up a Fight Against E-Commerce

‘Retail apocalypse’, who? More than anything, the current climate is full of changes — not doom. While e-commerce continues to gain popularity, there are some things that the internet simply cannot deliver. Necessity-based retail, such as casual dining, puts up a strong fight against their digital competition. Popular chain restaurants are coming out on top, and it’s giving investors a great vantage point within the United States’ market.

What do you think about this dining trend? Will it stick around? To keep up with the latest CRE news, check out our blog! 

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Location: New Castle, DE 19720, USA

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