Fast-Casual Restaurants Trumping Retail


At least in sunny southern California, restaurants are reigning supreme and taking over the scene. The only "tail" part of the retail business may be the fact that this sector is being sent packing with its tail between its legs. 

Brokerage company Kennedy Wilson has recently completed three lease transactions with Jersey Mike's Subs. Although these three leases only total 4,100 square feet, the restaurant's rapid crop-up in the greater Los Angeles area illustrates how the dining experience is steadily being more prioritized than the shopping experience. 

"Today, restaurants are the anchor tenants and people are going to retail destinations specifically for restaurants, whether that is a fast-casual experience or a sit-down experience," Kennedy Wilson VP Michael Pakravan said. "Overall, people eat out a lot more. It used to be that you would eat out two to three meals a week, but millennials are now eating out two to three meals a day. When planning a shopping center or a mixed-use development, it is important to have both the fast casual and the sit-down restaurants to cater to different needs."

Due to the rise in popularity of fast-casual restaurants, there has been a shortage of quality spaces. More players in the game are trying to fit in the field. With twice as many quick-service restaurants as there were five years ago, competing businesses are taking spaces at higher rates. How does a restaurant's reputation help it stay competitive in the retail space? Read More

Posted on June 15, 2015 and filed under Fast Casual, Fast Casual Trends.