Hooters TENANT OVERVIEW


Pros

  • Brand recognition
  • Niche restaurant concept

Cons

  • Theme can be off-putting
  • Limited target audience

Tenant Description

Casual bar and restaurant known for their servers and wings.

Hooters restaurants are an interesting investment opportunity due to their strong brand recognition and loyal customer base. Best known for their waitresses and wings, Hooters has built a niche fanbase that has made it one of America’s most recognizable restaurant brands. Hooters leases are typically triple net, alleviating the owner of any landlord responsibilities. Hooters generally have a layout similar to other restaurant concepts, allowing the space to be easily backfilled if Hooters were to vacate.

Hooters started in Clearwater, FL on April 1, 1983 by a group of six businessmen who lacked faith in their own idea, and sold the rights to Hugh Connerty in 1984. Today, Hooters of America Inc., is owned by Chanticleer Holdings, LLC, and is the proud franchisor and operator of more than 420 restaurants in 42 states and 29 countries.

Average Cap Rate
6.55%
12 mo avg with 10+ yr lease term
Average Property & Lease
Average Sale Price $2,764,815
NOI $181,095
$/Square Foot $460 - $615
Building SF 4,500 - 6,000
Lot Size .8 - 1.5 Acres
Lease Term 20 Years
Escalations Varies
Stock Symbol N/A
Credit Rating
S&P N/A
Moody's N/A
Average Cap Rate Trend
7.49%
2018
6.15%
2019
Rates reflect last 12 mos, short and long-term
Recent Sales Comps
Anderson, SC 6.30%
Houston, TX 6.73%
Gainesville, FL 6.00%