What kind of restaurant ownership is favored by landlords in the current economic climate?

Landlords in the current economic climate favor established franchises for several reasons. Established franchises typically have a proven business model, a recognizable brand, and a loyal customer base, which reduces risk for landlords. These characteristics provide a sense of stability, which is especially critical during uncertain economic times when consumer spending may be more cautious.

Furthermore, established franchises often come with higher financial backing and operational support compared to newer or experimental concepts. This financial stability can lead to more reliable rental income for landlords, as established franchises are less likely to default on lease agreements. In contrast, high-risk ventures, experimental dining concepts, and food trucks can have variable success rates and may not offer the same level of assurance regarding sustainability and long-term profitability, making them less attractive to landlords focused on securing dependable tenants during challenging economic conditions.