High prices, hot properties: Which restaurant brands are worth their square footage?

By Matt Lipson, co-founder of Northmarq’s National Restaurant Group
    
Have you ever wondered which restaurant brands command top dollar from real estate investors?

The latest breakdown from Northmarq’s National Restaurant Group found that some of the hottest brands with investors are producing the highest price per square foot.

But what does that number really mean? Is it an indicator of security and a surging, sustainable brand — or a red flag for investors?

Coffee is hot

Coffee, chicken and burger concepts are currently leading the market in price per square foot. For example:

• Dutch Bros — $2,198/sq. ft.
• 7 Brew Coffee — $2,137/sq. ft.
• Caribou Coffee — $1,583/sq. ft.
• In-N-Out Burger — $2,038/sq. ft.
• Shake Shack — $1,583/sq. ft.
• Raising Cane’s — $1,349/sq. ft.
• Dave’s Hot Chicken — $1,135/sq. ft.

Coffee shops and large-format quick-service restaurants (QSRs) may command top dollar, but they often occupy highly customized spaces. If the tenant leaves, it can be expensive and time-consuming to find a replacement, especially if the space was built specifically for one brand.

And while these brands generate strong sales volume at each location, known as average unit volume (AUV), not every new tenant can afford the same rent. That limits the pool of viable successors for a former 7 Brew or In-N-Out location.

Big prices behind small spaces

So why are some buyers still willing to pay so much? Because these restaurants bring in serious revenue and a strong corporate guarantee, meaning the parent company backs the lease, not just the individual franchise owner.

Brands like Dutch Bros and Raising Cane’s offer some of the strongest guarantees in the QSR space, and their high AUVs support those commitments.

That combination — strong sales and a corporate-backed lease — gives investors peace of mind. High-performing tenants are more likely to stay in business, keep paying rent, and attract customers. For many investors, that stability outweighs the risks of a customized space or a premium price.

Positive media coverage and consumer buzz around these brands also play a role, reinforcing investor confidence by signaling strong public interest and brand momentum.

Don’t count out the classics

Well-known names like Papa John’s ($351/sq. ft.), Pizza Hut ($397/sq. ft.), and Hardee’s ($552/sq. ft.) trade at much lower prices.

These deals may not be flashy, but they often come with more attractive, long-term value, under-market rents and more flexibility. While there’s some risk in the brand’s sales volume, these properties can offer value-add opportunities when the tenant leaves.

In the right location, these can be solid additions to an investor’s portfolio.

Bottom line

Price per square foot is more than just a number — it reveals how much risk investors are willing to take on a brand’s promise of performance.

The next time you drive past your local Papa John’s or notice a new Dutch Bros being built nearby, remember: behind every storefront is a real estate investment and a clear signal that investors are paying close attention to the brands people know, trust and keep coming back to.