Quick-service restaurants or the fast-food industry offer their services to billions worldwide, and their popularity continues to rise. QSRs are also one of the least affected industries by the pandemic. Fifty million Americans eat at a fast-food restaurant daily, with compound annual growth projected around 4.6% by 2027, or 2.4% yearly. Established QSRs are stable and long-term net-lease investments – often with highly creditworthy tenants due to the requirements of the franchise.
Investing in a fast-food space, or a QSR, is a stable investment, often with decades of income and little to no maintenance required when paired with a triple-net lease.
A Look at the Numbers
- As of 2021, there were 196,839 fast food restaurant businesses in the US. This is an increase of 1.1% from 2020, when there were 194,700.
- The fast food industry in America is worth over 296 billion dollars – and still growing every year.
- Though Subway is the QSR with the most locations, McDonald’s has the highest sales per unit.
Why Are Fast-Food Restaurants a Good Fit for an NNN Investment?
In recent years, fast-food establishments have become a good way of building equity – without the risk of low revenue. A triple net lease makes investing in real estate more attractive, collecting high returns and leaving behind many of the hardships of being a landlord.
Lower operational costs, long-term tenancy, low-risk investments, tax alleviations, opportunities for flexible investment, and less managerial stress are some benefits of an NNN investment. This is why they have become a sought-after form of lease for fast-food restaurants.
Because of the many advantages of a triple net lease, many fast-food commercial spaces don’t stay on the market for long.
One of the main reasons fast-food restaurants and NNN leases go so well together is the continuous rate of income, which can limit additional out of pocket expenses that comes with a lease guarantee of 10 years, in most cases.
The Verdict: Is a QSR NNN Investment the Right Choice?
For investors looking to build equity by utilizing a lease, an NNN QSR Investment could be a top choice.
Many fast-food businesses for sale won’t stay available for long since many experienced investors know how to work an NNN lease to their advantage. The fast-food industry is growing and benefitting investors with a wide range of property choices, lease options, and stable, passive income.
Schedule an appointment with Brisky Net Lease today and let our experts provide you with all your NNN lease information and possibilities. Both sellers and investors are welcome to contact our real estate experts and browse all the options for a successful NNN lease venture. Get in touch today.