Navigating the real estate landscape has always been a challenge, but today’s market presents even greater obstacles. Rising construction costs, limited site availability, increasing interest rates, and shifting consumer behavior are all reshaping how brands approach growth. Franchise brands, in particular, face fierce competition for prime locations, making it harder than ever to secure viable sites. As growth remains essential to sustaining a brand’s legacy, now is the time to adopt innovative strategies that minimize uncertainty and maximize long-term success.
With over 15 years of experience developing and executing growth strategies for growing brands, and now serving as the VP/ Development at Taco John’s, I’ve seen firsthand how the real estate market has evolved – and have proven tactics on how to navigate it. To help others overcome today’s challenges, I’m sharing five key strategies to turn real estate roadblocks into growth opportunities.
Implementing Proactive Planning
Success in real estate begins long before a site is selected. A comprehensive, proactive market planning strategy means understanding not only where your brand stands today but also where it aims to be in five or ten years. This involves building a multi-layered approach incorporating different building footprints with flexibility for different markets and conducting in-depth market analysis using geospatial data and predictive modeling to pinpoint high-potential areas. By gaining a clear understanding of the market now, brands can anticipate and adapt to changes in the local economy and consumer behaviors, ensuring their growth plans remain flexible and future-proof.
A proactive mindset also includes staying ahead of regulatory challenges and zoning restrictions. A strong franchisor development program provides hands-on support to franchisees, offering expertise from real estate and development professionals, assistance with construction planning, and personalized business models informed by predictive data. The key is clear, early communication – ensuring franchisees know they have a dedicated partner ready to troubleshoot obstacles before they become costly delays. By setting this proactive tone from the start, brands create a smoother, more efficient development process that drives long-term success.
Offering Concierge-Level Site Selection Support
For franchisees, finding the perfect location can feel overwhelming, especially for first-time business owners or those new to the category. That’s why providing one-on-one concierge-level support through each step of the process is essential. At Taco John’s, our team of experts gets involved early in the Path to Ownership process and works directly with franchisees to evaluate growth markets then eventually sites, conduct traffic studies, and due diligence. As a franchisor, it’s not just about expanding the brand – it’s about equipping franchisees with the resources and tools they need to thrive. With countless investment options available across various segments, they chose your brand. It’s your responsibility to guide them every step of the way.
This level of support not only reduces stress for franchisees but also ensures consistency in the site selection strategy. Every location should align with the brand’s growth goals and resonate with its core customer base. By streamlining the process and providing expert guidance, franchisors empower franchisees to focus on what they do best, running a successful business.
Finding Your Sustainable Growth Strategies
Not every opportunity is the right opportunity. One of the biggest mistakes brands make is expanding too quickly without a sustainable growth plan or signing numerous agreements without the right tools and support to convert those signatures into sites and operational businesses.
With responsible franchising and responsible growth becoming a major focus in the industry, now is the time to move beyond buzzwords and put those principles into practice. This means not only prioritizing deliberate expansion but actively pursuing it through growth tools and platforms that foster long-term success. At Taco John’s, we’ve implemented a Path to Ownership structure and an optimized business model to create a robust framework for franchisee support, so that we can maintain sustainable growth by ensuring franchisees will be able to stand on their own before expanding.
A well-rounded growth strategy also involves exploring non-traditional real estate options. From drive-thru and travel centers to smaller footprint locations, these flexible formats can unlock opportunities in high-demand areas. Diversifying your real estate portfolio not only mitigates risk but also enhances brand accessibility, ensuring your concept can thrive in various environments.
Adapting to Market Trends
Consumer behavior is constantly evolving, and your real estate strategy should follow suit. Factors like remote work, urban migration, and the rising demand for delivery services are reshaping site selection priorities. Continuously analyzing market data is essential for staying ahead of these trends and making informed decisions.
Understanding regional preferences is another critical component. A site that thrives in one market may not perform as well in another. Collaborating with local brokers and utilizing data-driven insights can provide valuable guidance, ensuring your locations align with the needs and habits of the surrounding community. Flexibility and responsiveness are key to adapting quickly to these shifts.
Competitive Differentiation of Real Estate Tactics
In a competitive market, differentiation is crucial. Brands that rely solely on traditional site selection methods risk losing valuable opportunities. Instead, set yourself apart with a relationship-driven approach. Building strong partnerships with developers, brokers, banks, and landlords can provide access to premium real estate options before they hit the open market.
Additionally, leverage your brand’s legacy and loyal customer base to negotiate favorable terms. Landlords are often eager to partner with established brands known for driving consistent foot traffic and generating buzz within a community. Emphasizing your brand’s value proposition in negotiations can give you a competitive edge when securing prime locations.
While the current real estate environment presents undeniable challenges, it also offers opportunities for brands willing to adapt and innovate. By implementing proactive planning, providing hands-on support, and committing to a sustainable growth strategy, franchisors can navigate roadblocks with confidence.
Looking ahead, development executives must recognize that smart growth is no longer just a brand differentiator – it’s a necessity. For those navigating the complexities of the real estate market, these strategies can serve as a practical roadmap to long-term success.
Contributed by Shannon Iverson, VP/Development for Taco John’s