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Outbank steak house in indiana12/16/2023 We had the tri chip dip which had cheesy steak dip(the best imo)pimento dip which was a chilled dip, and spinach artichoke, the chips were fresh and seasoned with salt and pepper which I appreciated! I stuck to something simple after the appetizer and house bread(which is also really good served with real butter!) I ordered the cheesy potato soup. Some brands, though, saw their median asking prices end the quarter above this number, including Outback Steakhouse ($3.75 million) and Red Lobster ($4.25 million).For a chain this is a decent place to go for lunch. The median asking price for net lease casual dining properties stood at $3.441 million in the United States during the first quarter of the year. As The Boulder Group’s report shows, the median asking price for franchisee-leased properties in this sector dropped 72 points this quarter when compared to the same period a year earlier. And Red Lobster’s cap rate plummetted 45 basis points to 6% during the first quarter of this year from 6.45% a year earlier.Īgain, though, it’s not accurate to say that the net lease properties in this sector have recovered completely from the pandemic. Chili’s saw a drop of 38 basis points, with its cap rate falling from 5.75% in the first quarter last year to 5.38% during the first quarter of 2022. Buffalo Wild Wings saw its cap rate drop from 6.15% in the first quarter of 2021 to 6% during the first three months of this year. Several casual dining restaurants have seen cap rates fall this quarter. “The recovery experienced by the restaurant sector has brought net lease investors back to this category.” “During the height of the pandemic, investors feared that diminished in-person dining would greatly impact store sales,” said Jimmy Goodman, partner with the Boulder Group, in a press release. Investors seeking net lease casual dining investments are most interested in higher-quality properties with strong tenants. Evidence of this trend? In the first quarter of this year, the discount associated with net lease casual dining properties compressed to 28 basis points, down from 82 a year earlier. So far this year, though, the net lease casual dining segment has returned to some form of normalcy. These worries caused cap rates to incerase. Both brands have announced major expansion plans.ĭuring the earliest days of the pandemic, investors worried that a drop in in-person dining would devastate in-store sales in the casual dining space. The Boulder Group reported that corporate brands such as Olive Garden and Texas Roadhouse are performing especially well today. Not all fast casual restaurants have seen as quick of a recovery, though. “Investor interest and transaction velocity increased due to recovery for casual dining restaurants following the pandemic.” “Cap rate compression in the casual dining space was primarily attributed to better overall market conditions for the restaurant sector post-pandemic,” said Randy Blankstein, president of The Boulder Group, in a press release. The Boulder Group also said that only 30% of the brands in the casual dining space exceeded their 2019 store sales last year. That doesn’t mean that this sector doesn’t face challenges. The Boulder Group reported that casual dining sales rose more than 30% in 2021 when compared to 2020. Why have cap rates in the casual dining space fallen? The Boulder Group points to better market conditions for the restaurant sector in general as consumers have returned to in-person dining following the COVID-19 slowdown. That’s a decrease of 70 basis points when compared to the same quarter a year earlier. Cap rates in the net-lease casual dining sector continued to fall during the first quarter of the year, according to the latest research from Wilmette, Illinois-based The Boulder Group.Īccording to the company’s report, cap rates in this sector fell to 6.03% in the first three months of 2022.
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