What are your senses telling you about KFC? Think it will be around in another 19 years?

I am he-hawing a lead around for a NNN tenant.

I worked closely with a family that had 5 KFC franchises for decades. They sold them all last year because they got tired of dealing with KFC at the corporate/national level. (That being said, the eldest family member that started it all had passed away a few years ago and his wife was ready to retire -- so I think it was more than JUST the corporate KFC stuff, but that was the straw that broke the camel's back.)

That being said, about 4 years ago, a local Popeyes popped up just two blocks away from our local KFC -- and was out of business within a year. That building sat vacant for a while and then, during Covid, was purchased by someone to try to put another Popeyes in there! It is opening soon, so we'll see how it does against KFC for the 2nd try. :)

- John...

Chick-fil-A had suddenly become very popular in the suburbs of the San Francisco Bay Area, even opening a location in the San Jose Airport. Nevertheless, KFC seems to maintain a stronghold in its existing locations. The few Popeye’s franchise locations seem to be a minor presence, opening no new stores.

My 2 cents worth...

KFC as a brand and entity will still be around in 19 years.

These franchise's are expensive to acquire, I had a friend that wanted to get a MacDonald's,..According to him,.they were going to charge him over 450000 to build one AND they required him to have a cushion of 500,000 that he couldn't touch for quite a while unless it was for running the business.

Then they turn screws,..they really don't tell you what the costs of things you MUST buy from them (McD cups w/their logo etc,etc,. somewhat reasonable at first then the creep begins and you can't do much about it.

I know I do like their food!

If they go under, put a lien on the equipment and become a chicken man!

A local LL rented a small commercial space to a gourmet popcorn shop. The shop went under, owing rent so the LL negotiated for the equipment and the website to pay off the rent.

LL now has a booming gourmet popcorn business shopping popcorn around the country. Top sellers are carmel, cheddar cheese, and dill pickle.

my thought wouldn't be for KFC specifically but the location and what else would/could go into that building should KFC (or that specific franchised location) leave you. Parking, access, upcoming busy business/commercial area or so-so area, in a shopping center parking lot, etc.

As a businessman I would think it totally irrelevant what Franchisee goes in there

It all about the numbers. and the Franchisee stability and business record

I have an opportunity to pick up the NEW building for under construction cost with an existing tenant in place. The builder is caught in a COVID construction black hole.

Rate of return is pretty small - but that entire sector was a safe haven before and CAP rates shrank. So now there is a new store, newer franchisee, in a new unproven location.

IT IS HOWEVER ABOUT HALF OFF - the price I would expect it to be.

KFC is owned by PepsiCo... not going any where as a brand. Store wise... its location location location.

KFC is owned by Yum Brands. PepsiCo spun it off in the 1990s (to anther entity that eventually merged with some other entity and then got renamed to Yum).

Yum also owns Pizza Hut and Taco Bell, though, so I tend to agree it isn't going anywhere.

- John...

Concur

I remember as a kid thinking the food was awesome.. Now a days, maybe I don't a weeks worth of trans fats in a single piece of slimy piece of white meat.

Taste change........

I great up with meatloaf and potatoes and if I mention that to someone younger, they would say something like didn't your parents love you.

Do you have the option of opening a chic filet?

Chick a filet is the closest thing to a "money tree" currently.