the drive thru market - accessible retail
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The Drive Thru MarketAlfred Bartlett BSc (MRICS)Head of Agency & DevelopmentMay 2021
THE 1ST UK McDonalds
Alfred Bartlett
NETWORK SPLIT OF TOP UK DRIVE THRU OPERATORS
OPERATOR NO. RESTAURANTS
NO. DRIVE THRUS
DRIVE THRU UK ENTRY
PARENT COMPANY
FRANCHISEE OPERATED
McDonalds 1,300 962 1986 McDonalds Corp
75%
KFC 950 450 1987 Yum 90%
Costa Coffee 2,700 250 2011 Coca Cola 20%
Starbucks 1,033 234 2008 Starbucks Corp 70%
Burger King 530 180 1987 RBI 100%
Tim Hortons 28 6 2017 RBI 100%
Greggs 1,806 6 2017 Greggs Plc 60%
Subway 2,229 4 2017 DeLuca Family 100%
Taco Bell 59 2 2020 Yum 95%
Alfred Bartlett
TYPICAL DRIVE THRUS
Edge Lane, Liverpool
Warwick Old Road, Leamington
Alfred Bartlett
TYPICAL DRIVE THRUS
Hillington Retail Park, GlasgowPenn Road Retail Park, Wolverhampton
Alfred Bartlett
DRIVE THRU SITE CRITERIA
For Solus sites
• 0.4 – 0.75 acres
• E Class (A1& A3) & A5 planning potential
• Strong traffic counts
• Good prominence / profile to traffic
• Accessible
• Destination Position
• Large Catchment
Alfred Bartlett
DESTINATION DRIVE THRU
Enterprise 5 Retail Park, Bradford
Alfred Bartlett
DRIVE THRU DESTINATION
Cuckoo Bridge Retail Park, Dumfries
Alfred Bartlett
CONCENTRATION OF UK DRIVE THRUS
Who enjoys the top spot?
Manchester & Glasgow are in 1st place with 48 drive thrus a piece
In 2nd place is Birmingham with 41 drive thrus
And 3rd place goes to Liverpool with 37
Alfred Bartlett
CONCENTRATION OF UK DRIVE THRUS
City Population McDonalds KFC BK Per 100K
1 Middlebrough 140,639 9 4 0 9.24
2 Norwich 140,353 5 4 1 7.12
3 Manchester 545,501 17 16 1 6.23
4 Gloucester 129,083 4 2 1 5.42
5 Basildon 184,479 6 3 1 5.42
6 Stoke 255,378 8 4 1 5.09
7 Ipswich 138,480 4 1 2 5.05
8 Reading 163,075 5 3 0 4.91
9 Blackburn 148,772 4 2 1 4.71
10 Newport 151,485 5 2 0 4.62
11 Hull 260,673 6 4 2 4.60
12 Nottingham 329,209 8 6 1 4.56
13 Newcastle 295,842 9 4 0 4.39
14 Bristol 459,252 11 7 2 4.35
15 Warrington 209,704 6 3 0 4.29
Alfred Bartlett
TYPICAL SITE LAYOUT
Costa
Alfred Bartlett
TYPICAL SITE LAYOUT
McDonalds
Alfred Bartlett
TRADITIONAL BUILD DRIVE THRUAlfred Bartlett
MODULAR BUILD DRIVE THRUAlfred Bartlett
EDGWARE ROAD, COLINDALE, LONDON - INVESTMENT
• KFC investment sold February 2020
• Site comprised 3,778 sq ft purpose
built drive thru
• Passing rent of £141,000 pa
• Guaranteed by KFC GB Ltd
• Sold for £3.95 million representing
a 3.35% net yield
Alfred Bartlett
2020 FORBES LIST OF THE WORLD’S MOST VALUABLE BRANDS
Rank Brand Brand Value Brand revenue
10 McDonalds $46.1 Billion $100.2 Billion
37 Starbucks $17.8 Billion $26.5 Billion
96 KFC $8.3 Billion $27.9 Billion
97 Burger King $8.2 Billion $22.9 Billion
Alfred Bartlett
CURRENT STATISTICS
3 months from September to November 2020:
• 121 million visits to 2,000 drive thrus – 14% increase on the same period the year
before
• Spend was up 45% to £723 million over this period
• 17 million visits were switched to drive thru from eat in
• 12 million drive thru visits took the place of takeaway or collection
• November alone drive thru visits reached 37 million up 27% on November 2019 and
drive-thru spend rose 73% to £213 million
• Beneficaries – ‘Dinner’ trips up 20% and “treating & occasion” trips up 47%
compared to pre-covid levels.
*Source NPD Group Jan 2021
ONES TO WATCH NEW AND EMERGING DRIVE THRU BRANDS Alfred Bartlett
POST LOCKDOWN CHALLENGES
1. Delays to supplies after Brexit and lockdown
2. The availability of sites
3. Increased competition for the traditional, roadside, prominent roundabout,
accessible site. Especially versus value derived from multi-storey developments
4. Size of sites = smaller drive thrus?
5. Public health/obesity zones and planning
6. Traffic – queuing and planning
7. Inevitable need for innovation
Alfred Bartlett
© 2018 Rapleys LLP
Registered office: Falcon Road, Hinchingbrooke Business Park, Huntingdon PE29 6FG 0370 777 6292 | [email protected] | rapleys.comLONDON | BIRMINGHAM | BRISTOL | EDINBURGH | HUNTINGDON | MANCHESTER
Alfred Bartlett BSc (Hons) MRICSHead of Commercial Agency & Development Group
E: [email protected]: 07738 090760