The Houston suburbs are seeing an upsurge in fast-food outlets and coffee shops, with big names in the industry choosing suburban locales over the bustling city center for their new branches. One of the reasons these brands, such as Five Guys, McDonald's, and the renowned Hawaiian coffee shop, Bad Ass Coffee of Hawaii, are opting for the 'burbs? Cost-effective real estate. These new outposts aren't just a boon for suburbanites hankering for a quick bite or a caffeine fix; they're calculated business moves. According to a report by the Houston Chronicle, these locations, including outposts of Salad and Go and Dutch Bros. Coffee, are set to open in Cypress and other areas by 2025.
It's not just burgers and brews. The suburbs of Houston are becoming the prime real estate for restaurant chains to make their mark in the Texas market. Fast-casual restaurants with cult followings, like Bojangles and Canadian favorite Tim Hortons, have mapped their territories in these regions. An article by Chron.com explains the obvious, and not so obvious, reasons behind this shift. The suburbs offer more space and significantly lower commercial property costs compared to inner-city areas, which is appealing for new construction projects that need a lot of land or businesses aiming to cut down on rent expenses.
Monty Montgomery, Group Vice President of P. Terry's Burger Stand, conveyed that while it is indeed more figuring out a more expensive deal moving closer to the heart of Houston, their brand is eyeing all possible market angles around the city. As he told Chron.com, "It does become more expensive the closer you get to the heart of Houston. But we are looking at all hands of the clock of the Houston market; it's all in our purview." Montgomery also highlighted the importance of distribution ease, which remains a driving force behind opting for convenient locations for new restaurants.
Another critical factor in these decisions includes the demographic and population density, ensuring a market with enough demand. Montgomery has a point here: hospitals, schools, and residential areas play a significant role in choosing a location—with an expectation of consistent foot traffic and a hungry clientele. Don Crocker, CDO for Smalls Sliders, a fast-food joint backed by NFL great Drew Brees, underlined these ideas. Crocker indicated the importance of suburban sprawl not just from a customer standpoint, but also for the local entrepreneurs and franchisees looking to expand their portfolios.
The expansion plans into the suburbs align with a broader trend of American food chains opting for locations outside the city center, a topic dissected in an article by Chron.com. Along with the analysis of profitability, these business moves reaffirm an essential ethos of franchise strategy: location, location, location. For Houstonians accustomed to the sprawl and drive, these suburban additions mean more options closer to home and possibly fewer trips to the city center for a quick food stop.
