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Fast food sector draws strong investment despite economic challenges


Australia’s fast food industry continues to attract significant investment, with $136.3 million in transactions recorded over the past financial year, according to a new report.

The Fast Food Industry Insights report by Burgess Rawson reveals that capitalisation rates have tightened further, dropping from 4.46% in the second half of 2023 to 4.42% in 2024.

Yosh Mendis, National Partner at Burgess Rawson, said regional fast food outlets are performing particularly well.

“Cap rates for regional centres are at 3.62% compared to 4.72% for metro fast food outlets,” Mendis said.

He noted that this trend, which began in 2021, represents a reversal of historical patterns where metropolitan cap rates typically outperformed regional transactions.

“Investors are holding on to their premium metropolitan assets creating a flurry of activity in the regional counterparts,” Mendis explained.

The report highlights the industry’s resilience over the past five years, even in the face of challenges such as rising interest rates.


Australia’s fast food sector has become one of the most sought-after asset classes for investors, offering a combination of secure returns, robust growth, and innovation.

Mendis emphasised that brand strength plays a crucial role in determining capitalisation rates for fast food properties.

“Global giants like McDonald’s and KFC with well-developed networks in Australia benefit from strong brand recognition with investors, leading to lower capitalisation rates,” he said.

The report also reveals that Australia has one fast food outlet per 880 people, highlighting the country’s appetite for convenient dining options.

Location remains a key factor in the success of fast food investments, with establishments in high-traffic areas near major highways, shopping centres, and tourist destinations proving particularly attractive to investors.

Looking ahead, Mendis predicts continued growth and innovation in the fast food industry, driven by evolving consumer preferences and technological advancements.

“As the industry contributes significantly to the GDP and grows faster than the broader economy, it stands at the forefront of the commercial property investment landscape,” he said.

The strong performance of the fast food sector in Australia underscores its appeal as a resilient investment option, even as other areas of the economy face headwinds.

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