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Weekly Commercial Real Estate News 4/21/2023

Updated: May 6, 2023

‘Gold Rush’ in Artificial Intelligence Expected To Drive Data Center Expansion

The rapid adoption of new artificial intelligence apps and an intensifying bid for dominance among tech giants Amazon, Google and Microsoft are expected to drive investment and double-digit growth for the data center industry in the next five years. A “gold rush of AI” these days centers on the brisk development of tools such as ChatGPT, according to a new analysis from real estate services firm JLL. Voice- and text-generating AI apps could transform the speed and accuracy of customer service interactions and accelerate demand for computing power, as well as the systems and networks connecting users that data centers provide, the real estate firm said. Read Full Article...

Texas Roadhouse Could Soon Become the Largest Restaurant Chain In America

To say Texas Roadhouse is having a stellar year would be an understatement. The popular steakhouse chain started off 2023 with seven weeks of record foot traffic as it continues to draw in guests with its affordable steaks, massive margaritas, and fun atmosphere. Review site Yelp also recently named Texas Roadhouse as the second most loved restaurant brand in America, only coming behind breakfast and brunch chain First Watch. Read Full Article...

Yet Another Big Boston Chef Is Opening Restaurants in Los Angeles

One of Boston’s busiest chefs is opening in Santa Monica in the coming weeks, rolling out a trio of fast-casual restaurant concepts inside a walkable food hall right on the Third Street Promenade. The James Beard Award-winning chef Tim Cushman and restaurateur and partner Nancy Cushman — known for Boston restaurants O Ya, Bianca, and others — will open three different restaurant concepts under the same Kitchen United Mix roof, beginning today with some laid-back Japanese food. Read Full Article...

Welcome to the People-First Revolution of Raising Cane’s

Raising Cane’s is no stranger to the five-year plan. In early 2016, the chicken finger chain had just wrapped up a year at $500 million in sales, 290 locations, and a shade over $2 million in average-unit volumes. It was a bold crystal ball: Triple the size of the company in the next 60 months and reach $1.5 billion. Raising Cane’s “stoutly” did so, co-CEO AJ Kumaran recalls. It finished 2021 at $1.711 billion and $3.85 million AUVs. But forecasting soon spun sideways. Kumaran was in Cancun when he made the call to cancel Raising Cane’s next large-scale meeting, where it planned to celebrate those marks and announce the next five years. It was one of the first big chains to shutter a major conference due to COVID-19. So Raising Cane’s never did announce a five-year outline to follow the previous one. Read Full Article...

Rite Aid Corporation Reports Fiscal 2023 Fourth Quarter and Full Year Results and Provides Fiscal 2024 Outlook

For the fourth quarter, the company reported a net loss of $241.3 million, or $4.39 loss per share, Adjusted net loss of $68.2 million, or $1.24 loss per share, and Adjusted EBITDA of $128.6 million, or 2.1 percent of revenues. For the full year, the company reported a net loss of $749.9 million, or $13.71 loss per share, Adjusted net loss of $174.3 million, or $3.19 loss per share, and Adjusted EBITDA of $429.2 million, or 1.8 percent of revenues. The fiscal 2023 fourth quarter and full year results benefited from an extra week in fiscal 2023. Revenues for the quarter were $6.09 billion compared to revenues of $6.07 billion in the prior year’s quarter, largely due to an extra week in the fourth quarter and increases in both comparable front-end sales and non-COVID prescriptions, partially offset by a reduction in revenue from COVID vaccines and testing, store closures and the loss of commercial clients at Elixir. Read Full Article...

QSR Investments Are Less Expensive, Risky Than Other Single Tenant Net Lease Deals

Investors are finding quick-service restaurants to be easily accessible as a niche market that has a price point significantly less than other single tenant net lease sectors, according to Avison Young’s Net Lease QSR Sector Report 2023. The average sale price is roughly $2.5 million. “At this price point, like many other single tenant net lease sectors, turbulent financial markets present less of a headwind, with most transactions being at a low enough price point that debt markets, and the present uncertainty that comes with those, are not a major consideration facing investors,” according to the report.

As Killer Burger Grows, its Rebellious Spirit Lives On

For Killer Burger, 2022 set up things to come in the next five to seven years. The fast casual significantly upgraded its tech stack, including a transition to Olo for online ordering and Paytronix for loyalty membership. It also switched its accounting software and began using a new real estate analytics tool for more predictable growth. CEO John Dikos and vice president of finance Adam Sanders are fairly new to the brand as well, with Dikos joining in July 2021 and Sanders following in December of that same year.


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