Zaxby’s
Baskersfield, CA
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Zaxby’s is a franchised/corporate chain of fast food restaurants offering chicken wings, chicken fingers, sandwiches, and salads. The company operates primarily in the Southern United States with more than 801 locations.
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Typical Lease Characteristics
Lease Term: 15 - 20 Years Years
Lease Type: Absolute NNN Lease
Lease Increases: 10% Every 5 years
Lease Extensions: 2- (5) Year Options
Lease Guarantor: Corporate and Franchise
Tenant Overview
All Zaxby’s locations are full-service restaurants in freestanding buildings that provide in-store seating and drive-thru windows. The average restaurant is 3,300-3,800 square feet. Approximately one commercial acre is required, though this can vary depending on zoning or other requirements. Key real estate characteristics include suburban or rural locations with excellent visibility and access, as well as strong residential and daytime populations driven by office, retail and university environments.
From the beginning, Zaxby’s has been known for having the right combination of great food, a comfortable vibe, and fun people who care about each other. Turns out, those things also translate into customer loyalty. One of Zaxby’s main objectives over the years has been carefully preserving the personality of the company, and year after year, they’ve grown their customer base around this important nucleus. Blake Bailey, chief financial officer for Zaxby’s, also attributes the chain’s continued growth to an ongoing focus on speed of service, an LTO-centric marketing strategy and the recruiting of franchisees that have more people skills than restaurant skills
Positives:
- Over 800 locations throughout United States
- Loyal customer base
- Typically Long term leases with increases
Negatives:
- Strength dependent on Franchisor
- Competitive Industry Sector
- Susceptible to economic trends and pressures
Market Snapshots:
On Market Ranges:
# of Properties in set: 9
Price: $1,984,310 - $2,333,200Average: $2,180,562
PPSF: $560 - $790Average: $672
Year Built: 2005 - 2018Average: 2011
CAP Rate Range: 5.76% - 7.95%Average: 6.86%
Size range: 2,201 sq ft - 3,950 sq ft Average: 3,300 sq ft
Last 12 Month Range:
# of Properties in set: 11
Price: $1,740,350 - $2,201,640Average: $2,096,802
PPSF: $589 - $694Average: $620
Year Built: 1994 - 2018Average: 2006
CAP Rate Range: 6.45% - 7.28%Average: 6.93%
Size range: 2,244 sq ft - 3,666 sq ft Average: 3,311 sq ft
Zaxby’s Company Profile
Headquarters Information
Athens, Georgia
Founded in 1990
Company type: Private
Industry: Food