The restaurant sector will continue to see growth in 2020. Over 90% of American adults report that they enjoy going to brick and mortar restaurants, according to Hudson Riegel of National Restaurant Association. Restaurant concepts such as craft breweries, entertainment, chef driven restaurants and fast casual giants continue to be active and seek to lease space. Growth within the sector remains to be moderate but steady, as top chains are being very methodical and strategic before signing off on new leases. Restaurant tenants tend to drive traffic at a property ultimately leading to the ability for landlords to increase overall rents at the center. By securing a good restaurant tenant, it can lead to a ripple effect by increasing desirable for other tenants to lease space at the property and increasing value in many circumstances.
Fast causal chains are demanding highly visible pads or end caps spaces. In many instances, it is critical for their concepts to have access to drive through lanes. Brands such as Panera and Starbucks are pulling out of locations where a drive through is not an option in order relocate to incorporate this feature. In situations where these restaurants can add or relocate to a new site with a drive thru, sales can increase 30-35%. Landlords continue to lease more space to restaurant tenants and look for restaurants that offer service and quality. The right restaurant tenant can increase dwell time at the property, retaining consumers on site which can translate to higher overall sales at the shopping center.