Australia’s fast-food sector is thriving. 🍔 🍕 🥪 🌮 ☕ 🍣 🥣
At the end of last year, there were more than 30,000 outlets operating nationally. It’s an exciting time.
Fast-food, in particular drive-thrus, have become a familiar feature within retail centres. We’ve seen food offerings significantly increase foot traffic and dwell time. The convenience, ample parking and accessibility are very attractive to customers. In fact, it’s fast becoming an expectation.
Last year, we secured a drive-thru El Jannah & Red Rooster in a popular LFR Centre at Roxburgh Park, VIC. The addition of such major brands to a centre can markedly boost net income.
And it’s an attractive prospect for tenants, given longer leases, exposure, ease of access and longer trading hours. Whilst the major powerhouses are still thriving, there are also plenty of rising stars. Last year, we secured one of Soul Origin ‘s first Australian drive-thrus in Cranbourne West, VIC and have successfully leased space to Guzman y Gomez Mexican Kitchen in Craigieburn (who are currently aiming for 1,000 Australian stores within the next 10-20 years 👏).
Frango, the legendary chicken brand with somewhat of a cult following, is set to arrive at Homemaker Prospect later this year. This Centre has been redesigned to accommodate a drive-thru, which is expected to significantly increase foot traffic.
The demand for drive-thru space shows no sign of slowing, especially in metro areas. Over the past 12 months, we’ve finalised 10 drive-thru deals, from KFC South Pacific (Yum! Brands Subsidiary) & Starbucks Australia in Toowoomba down to GYG in Craigieburn.
This is a resilient asset class. From sophisticated tech, competitive pricing, a focus on sustainability and healthy menu options, fast food operators are formidable players within the retail space and we’re excited to see the continuing growth and development of this sector.
