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Category: Industry News, Net Lease Retail Tags: infographic, net lease retail, restaurant, STNL

The U.S. restaurant industry has shifted dramatically in 2018 as consumer preferences and spending change. Restaurant operators are optimistic that business conditions will continue to improve in 2018, and into 2019. Here’s a quick look at today’s six trending restaurant cities and some of the factors that have contributed to their success.

Atlanta, GA

  • Georgia’s most populous city & the 3rd largest metropolitan region in the Southeast
  • Restaurant sales volume increased 1% in Q3 2017 vs. Q3 2016
  • 650+ new restaurants, from fast casual to fine dining, opened in Georgia last year, 80% of which were in the Metro Atlanta area
  • Site availability is back to 2007 levels & competition for prime location real estate is high
  • New residents dine out more than 3x per week
  • Current development wave is expected to drop off in 2018 as restaurant owners begin downsizing

Los Angeles, CA

  • #1 most attractive commercial real estate market in the Western Hemisphere
  • #1 destination for overseas money, bringing in $23 billion in foreign investments
  • Downtown is undergoing a construction boom
  • From 2010-2015, there has been an 8.1% increase in millennials
  • New restaurants are flocking to neighborhoods in and around downtown Los Angeles
  • Competition among fast food chains has increased

Nashville, TN

  • Restaurant industry has grown 16-17% year over year for the past 5 years
  • Restaurant count has grown every year since 2010 but dropped in 2016 as a result of increased competition
  • 2,887 QSR locations in 2016, projected to grow 6% from 2015-2020
  • QSR taking Nashville’s food trends & incorporating them into national menus
  • 92 new restaurants opened in 2017
  • In 2017, Nashville-based chains with 3+ locations grew by 2%

Austin, TX

  • Surpassing 2 million people in 2016
  • 19.82% increase in population growth from 2010-2016
  • Rents, property taxes, and operating costs were all high in 2017
  • Triple net properties are paying rents as high as $28.78 per square foot
  • 92 restaurants opened & 62 closed in 2017
  • Casual dining, pop-up restaurants, sandwich shops and the old Texas stand-by diners have increased

Chicago, IL

  • 3rd most populous city in the United States
  • The craft beer industry exploded—65+ breweries within Chicago’s borders
  • In the summer of 2017 alone, 43 new and coming soon restaurants opened
  • High-profile restaurants closings & the disappearance mom-and-pop eateries
  • Restaurants and bars are becoming a solution to fill retail vacancies in the city
  • 2016 was marked as the city’s greatest dining year ever due to high-quality & first-rate restaurants opening in the market

Dallas, TX

  • Gained 146,000 people in 2017
  • In 2016, Dallas-Fort Worth had a total of 14,965 restaurants, with 6% being QSR
  • New concepts and trends entering the market to cater to an influx of millennial professionals and Gen-Xers
  • $5 Billion in capital entered the market, fueling a large supply of new apartments
  • The region accounts for 4% of the total QSR market
  • Restaurant landlords are increasing rents

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