Invest
Fast food assets a nutritious investment: real estate specialist
Some Australians believe fast food is part of a balanced diet, but according to Burgess Rawson, fast food property is also part of a balanced portfolio.
Fast food assets a nutritious investment: real estate specialist
Some Australians believe fast food is part of a balanced diet, but according to Burgess Rawson, fast food property is also part of a balanced portfolio.
Real estate agency specialising in commercial property, Burgess Rawson has sold 78 per cent of major drive thru free standing fast food assets in Australia in the last five years, and they argue the sector’s ability to embrace technology coupled with historical resilience makes it a compelling asset.
Speaking to mark the launch of Burgess Rawson’s Fast Food Property Investment Report this week, director Simon Staddon said: “These highly sought-after assets have a low risk profile with an upside and continue to grow in popularity, particularly with investors who own SMSFs. They offer long-term indexed income streams, underpinned by strong land values.
“Demand continues to increase for these tightly held ‘set and forget’ assets, with many landlords holding multiple properties. Investors are prepared to pay a premium to de-risk their property portfolios.”
From 2012 to 2017-18, fast food sales yields compressed from a median 7 per cent to 4.92 per cent, with investment prices sitting between less than $1 million to $9 million. Across their portfolio, assets have seen a capital gain of 64.9 per cent, or $1,252,000, between 2012 and 2017.
With 24 million Australians eating out twice a week on average, food is a “recession proof” asset, argued Neil Honan, managing partner of Honan Partners Chartered Accountants.
Statistics from the Australian Bureau of statistics back him up; at an average individual spend of $44 a week, eating out is Australians’ fourth-largest expense after rent, mortgage repayments and car loan repayments.
According to the report, demand for these assets is outweighing supply as brand recognition, compounded by land values, contributes to yield compression.
However, Mr Honan and Mr Staddon acknowledged that assets such as these can be “lumpy” for SMSFs attempting to fit them into a portfolio, given the price and value of the asset and the length of time it requires to be held.
With this in mind, Mr Honan noted that some investors choose to buy with a partner, or as part of a syndicate.
For example, three or four properties can be bought in a unit trust structure with four or five people putting $500,000 in each from their superannuation.
“What we’re seeing is that with a lot of wealthy clients, what they’re doing is using the super fund for overseas and domestic equities, term deposits, hybrids, real estate investment trusts and so on and then of course they're using their company or family trust structure to get 70 per cent debt, 30 per cent equity or in some cases 90 or 100 per cent equity and pay cash for those.
“They're not the typical investor but that's what they're doing. They’re putting the asset outside of super because it is such a lumpy asset and the price is so high.”
RELATED ARTICLES
Property
The 2026 Suburb Thesis: A case study in turning trend lists into investable strategy
A new crop of ‘suburbs to watch’ is hitting headlines, but translating shortlist hype into bottom-line results requires more than a map and a mood. This case study shows how a disciplined, data-led ...Read more
Property
From signals to settlements: A case study in turning property insight into investable action
Investor confidence is rebuilding, first-home buyers are edging back, and governments are pushing supply — yet most property players still struggle to convert signals into decisive movesRead more
Property
Australia’s rental choke point: why record-low vacancies are now a boardroom issue
A tightening rental market is no longer just a housing story—it’s a macro risk, a labour challenge and a strategic opening for capital. With vacancies near historic lows and rents still rising, ...Read more
Property
Rents are rewriting the inflation playbook: what record‑low vacancies mean for Australian business
Australia’s rental market is so tight that housing costs are now a primary transmission channel for inflation and interest rates. This isn’t just a property story; it’s a business risk story—affecting ...Read more
Property
Off-market real estate is going mainstream — and changing the rules of dealmaking
With public listings tight and sales still climbing, Australia’s investors are shifting to off-market channels that reward speed, networks and data advantage. The playbook is closer to private equity ...Read more
Property
Australia’s rental squeeze is now a business problem: inflation, capacity and the new growth calculus
Record-low rental vacancies are no longer just a social headline – they’re reshaping cost structures, wage dynamics and capital allocation across corporate Australia. With economists warning of a ...Read more
Property
Rents Are Repricing Australia Inc: What record‑low vacancies mean for inflation, talent and strategy
Australia’s rental market has slipped into a vacancy desert, and it’s not just tenants feeling the heat. Persistently tight supply is pushing up rents, embedding services inflation and complicating ...Read more
Property
Young buyers poised for a comeback as 5% First Home Guarantee takes effect
In a move set to reshape the Australian property landscape, the government’s revamped First Home Guarantee is poised to open the doors of homeownership to a new generation of young AustraliansRead more
Property
The 2026 Suburb Thesis: A case study in turning trend lists into investable strategy
A new crop of ‘suburbs to watch’ is hitting headlines, but translating shortlist hype into bottom-line results requires more than a map and a mood. This case study shows how a disciplined, data-led ...Read more
Property
From signals to settlements: A case study in turning property insight into investable action
Investor confidence is rebuilding, first-home buyers are edging back, and governments are pushing supply — yet most property players still struggle to convert signals into decisive movesRead more
Property
Australia’s rental choke point: why record-low vacancies are now a boardroom issue
A tightening rental market is no longer just a housing story—it’s a macro risk, a labour challenge and a strategic opening for capital. With vacancies near historic lows and rents still rising, ...Read more
Property
Rents are rewriting the inflation playbook: what record‑low vacancies mean for Australian business
Australia’s rental market is so tight that housing costs are now a primary transmission channel for inflation and interest rates. This isn’t just a property story; it’s a business risk story—affecting ...Read more
Property
Off-market real estate is going mainstream — and changing the rules of dealmaking
With public listings tight and sales still climbing, Australia’s investors are shifting to off-market channels that reward speed, networks and data advantage. The playbook is closer to private equity ...Read more
Property
Australia’s rental squeeze is now a business problem: inflation, capacity and the new growth calculus
Record-low rental vacancies are no longer just a social headline – they’re reshaping cost structures, wage dynamics and capital allocation across corporate Australia. With economists warning of a ...Read more
Property
Rents Are Repricing Australia Inc: What record‑low vacancies mean for inflation, talent and strategy
Australia’s rental market has slipped into a vacancy desert, and it’s not just tenants feeling the heat. Persistently tight supply is pushing up rents, embedding services inflation and complicating ...Read more
Property
Young buyers poised for a comeback as 5% First Home Guarantee takes effect
In a move set to reshape the Australian property landscape, the government’s revamped First Home Guarantee is poised to open the doors of homeownership to a new generation of young AustraliansRead more
