Report Highlights

  • RR’s New Unit Investment Industry Data Report provides average building cost estimate details (excluding land) for 47 national restaurant chains.

Conclusion

  • Report highlights: (1) the sales-to-investment ratio for $1B+ chains continues to trend down after peaking in 2013, driven by construction cost increases and a slight decline in new build AUV’s; (2) RR’s New Build vs. Buy Ratio rose for the 3rd consecutive year as construction cost inflation and a slight decline in store level acquisition multiples increase appeal of acquiring existing stores; (3) franchisors stepped-up development incentives which include franchise fee reductions to improve new build economics; and (4) 6 chains introduced new or tweaks to existing building designs.

 

New Unit Investment Report Outline