RRupdates
« 3Q:18 Same Store Sales | Main | Carl's Jr. »
Tuesday
Nov202018

New Unit Investment

  • RR’s New Unit Investment Report provides average building cost estimate details (excluding land) and franchise fee summaries for 47 national restaurant chains.
  • Report Highlights: (1) the sales-to-investment ratio for $1B+ chains continues to trend down after peaking in 2013, driven by construction cost increases and a slight decline in new build AUV’s; (2) RR's New Build vs. Buy Ratio rose for the 2nd consecutive year as construction cost inflation increases appeal of acquiring existing stores while store-level acquisition multiples have been relatively flat; (3) franchisors stepped-up development incentives which include franchise fee reductions to improve new build economics; (4) increasing use of non-traditional building formats should help to improve future new build returns; and (5) 9 chains introduced new or tweaks to existing building designs. 

Reader Comments

There are no comments for this journal entry. To create a new comment, use the form below.

PostPost a New Comment

Enter your information below to add a new comment.

My response is on my own website »
Author Email (optional):
Author URL (optional):
Post:
 
All HTML will be escaped. Hyperlinks will be created for URLs automatically.