Atlanta Restaurant Real Estate
This Week on The Street (A more or less regular compilation of news, factoids and observations.
by Harold V. Shumacher
August 1, 2017
A Mid-Year Snapshot
For those of us in the Real Estate business, at least on the commercial and retail sides, the month of July and early August is an interesting time. You’re halfway through the year, still enough time to accomplish some of the goals set in January but also facing the stark reality that whatever you’re working on, and can get into the pipeline by the end of the month may be all that gets accomplished (i.e. you get paid on this year.)
I often say we’re like farmers, continually planting seeds in anticipation of a harvest several months down the road, fully knowing no matter what you do and how hard you work there’s a distinct likelihood that not everything will come to fruition.
So, what will the second half of the year bring? Many projects that started in late 2015 and 2016 are close to completion or will be by summer’s end. The pipeline behind seems a bit thin as lenders are putting the damper on apartment development and retailers, especially those large enough to qualify to get a project initiated, seem to be slowing down as well.
The announced acquisition of Whole Foods, by Amazon, seems to be having a chilling effect on the grocery sector-at least based on the prices of publicly traded companies,- but has had little impact on the announced growth for Aldi and Lidl (at least to date.) It will be interesting to see if the frenetic pace these two German based competitors have shown to date abates in the coming months. Meanwhile, Kroger and Publix continue to expand, at least in metro Atlanta, but at a much slower pace than in earlier years.
Restaurant activity remains strong, especially in the fast casual sector with a seemingly endless number of me too concepts-operators in the pizza, Mexican, sandwich, poke bowl, healthy salads, juice bar and Mediterranean categories -continue to announce expansion plans and search for locations.
Among the newcomers to keep an eye on over the summer are Babalu, Midtown Atlanta and Wahlburgers, at Battery Park. Both are clients of The Shumacher Group, Inc. and are anticipating additional growth in the metro area.
Overheard…Men are like parking spaces-the good ones are taken and the others are handicapped.
How Big is the Restaurant Industry in Georgia?
Some interesting statistics from the Georgia Restaurant Association (GRA) provide an indication. The restaurant industry employs more than 446,000 people state-wide, or ten percent of Georgia’s entire workforce. That’s second to agribusiness, the state’s largest employer.
Restaurant business represents some $19.6 billion in revenues but, perhaps even more importantly, are a major source of employment for women, first time job holders, minorities and immigrants. In fact, more than half of all restaurants are owned or co-owned by women; forty four percent of employees come from minority backgrounds and one third of all restaurants are owned by minorities. Two in five restaurant managers are women and a quarter are foreign born.
Finally, more than half of all Americans have worked in the foodservice industry. Industry giant McDonald’s even began an ad campaign recently, noting the company is your best first job.
Recent transactions for the Shumacher Group, Inc. include:
Bad Daddy’s Burger Bar Decatur & Smyrna
Tier Couture Cakes-Lawrenceville Square
Sales of the Following Businesses:
South City Tavern-Stateboro, Ga.
The Butcher & Bottle-Canton
Our thanks to all of you.