QSR Sector Now "Sweet Spot" for Private Investors

Quick service restaurants provide investors with brands they are familiar with.

CHICAGO—E-commerce resistant quick serve restaurants remain a popular investment vehicle as cap rates continue to compress, the “premium” paid for this retail sector increases further, and the 2018 mid-year level of activity was higher than the same period one year ago, according to the 2018 Net Lease QSR Market Report, published by Wilmette, IL-based The Boulder Group.

“This is the sweet spot of where private investors want to be,” Randy Blankstein, president of Boulder, tells GlobeSt.com. “Many worry about where certain sectors are going to be in five or ten years,” but “while e-commerce is rapidly changing our world, no one has perfected how to get a freshly made donut, taco or burger and fries through the internet.”