Why Arby’s Is a Good NNN Investment
In the past few decades, the fast food industry in the United States has continued to record high gains and returns, and it seems to be even getting better. As millions of Americans, especially those in the working class continue to require fast food services, the market for these services will forever remain valid and running.
Therefore, it’s important to take the wise step of investing in the food services business, especially in NNN fast food franchises which have constantly recorded high returns in the nation, by creating a niche for their unique recipes and food options.
An example of this kind of franchise is the Arby’s fast food franchise which has recorded an amazing turnaround in sales and customer retention in these past few years. This article aims to shed light on the benefits of investing in Arby’s triple net fast food leases, and why there are numerous Arby’s real estate for sale.
However, before we delve into the subject matter fully, it is necessary to understand the concept of NNN properties and why they are so important in commercial real estate.
What Are NNN Leases?
Triple Net Leases are otherwise known as NNN Leases, and they are a form of commercial real estate lease format that gives the tenant the power to stay free of additional rent expenses. A triple net lease tenant is only required to cater for expenses concerned with the management and operation of the property, and they include property taxes, area maintenance fees and building insurance.
To further understand the concept, it is wise to know that the term “NNN” stands for “net, net, net,” which explains the additional expenses involved in this leasing form. The fees, including the rent, are usually paid to the landlord monthly.
The favorable nature of Triple Net Leases is one of the many reasons why this form of commercial real estate is becoming a common lease form in industries, fast food eateries and other co-operations. They are, however, more common in retail properties.
Having shed some light on the concept of NNN Leases, it is time to understand why Arby’s has become a profitable commercial real estate investment using the triple net lease form, and why looking out for an Arby’s restaurant for sale is necessary. For more information on the nature of triple net leases, kindly read our article on the topic.
Arby’s: An Overview
Founded in Boardman, Ohio in 1964 by the Raffel Brothers, the fast food sandwich franchise has grown to become the second largest restaurant chain in the US, only behind Subway, with over 3,300 restaurants and a total revenue of around $3.884 billion as of 2019.
Now a subsidiary of Inspire Brands, Arby’s Inc. is well distinguished in the fast food industry by its menu which is composed of only roast beef sandwiches. Over the years, after the change of ownership and leadership, Arby’s has grown tremendously to include other menu options such as milkshakes, curly fries, iced tea and others.
Their expansion also included a total revamp of its restaurants with the franchise being found in over 40 states and 8 countries across the globe. Through innovation and by carefully sticking to their brand message, Arby’s ignored the mediocre popularity trends undertaken by other fast food franchises, thus paving its way towards greatness.
Little wonder, the company has come to possess a level of financial and consumer stability which may account for the high number of Arby’s franchise owners around the country.
By focusing on giving their customers a stellar experience, Arby’s has continued to create a name for itself all over the country, allowing it to be easily recognized as one of the go-to fast food restaurants.
Investing in an Arby’s NNN Lease
As discussed above, Arby’s food franchise has recorded major gains in the past decades, hence it is therefore a good investment avenue. However, many will be quick to wonder what the best way of investing in such a profitable franchise is.
From previous study of the commercial real estate market and its wide variations, it is evident that acquiring an Arby’s in the form of an NNN lease is not only profitable but cost-saving. If becoming a restaurateur has been one of your dreams, then you may decide to save yourself the stress of starting out your own food chain business and just rent one of the many Arby’s real estate for sale.
Below are a few reasons why investing in Arby’s Real Estate For Sale is a good decision to make:
Profitability
In recent times, Arby’s fast food franchise has recorded a massive increase in sales and returns with the company recording $4 billion in sales in just 2019. In 2020, it reported an EBITDAR (earnings before interest, taxes, depreciation, amortization, and rent/real property costs) of $246,192 per restaurant. The data was based on 1,111 of its units across over 40 states.
The above data goes to show that the fast food franchise not only offers value but also reaps a lot of profit from doing so. Also, as numerous fast food courts and quick services restaurants are looking to indulge multiple triple net lease investors to push their businesses to different locations, it is evident that this will create a win-win profit situation for property owners and fast-food corporations alike.
Market Availability
There is an ever-present market for the services of the food industry as the populace will always require gastric satisfaction. In cities where the working class comprises most of the population, there is an even bigger market for these services as there is little time available for workers to make their own meals.
Nevertheless, despite the pandemic shutting up most offices, forcing workers to work from home, the number of drive-through and online orders are reported to have reached new highs. Recent studies also show that drive-through restaurants are gunning for more market growth, especially with the rising demand for affordable but quality food.
As Arby’s is one of the nation’s leading fast food franchises, it can thus boast an even larger market of loyal customers who are willing to continue patronizing their favorite restaurant at any given time. Hence, it is very profitable to seek out Arby’s real estate for sale and acquire it.
Innovative Marketing Approaches
Over the years, Arby’s began implementing more decisive and profitable business approaches to adapt to the ever-changing consumer demand. This included the diversification of their menu, the infusion of digital technologies and enhancement of customer-oriented servicing. The above restructuring decisions have over time, led to an increase in orders, especially online, and a total upward turn of revenue.
Are You Ready to Rent an Arby’s?
Investing in a fast food NNN lease means allowing for steady income generation with low risks. This eventually paves the way for the expense-free ownership of such franchise outlets with a corporate-backed lease guarantee for an extended period.
If you find the above idea of building equity over a lease term attractive, then Arby’s NNN property lease option will be the best for you. Kindly contact Buy NNN Properties today to choose between a range of our amazing Arby’s real estate for sale.