Australian fast-food freehold sales hit $94 million in 2026
Investors have an increased appetite for fast food, with more than $94 million already recorded across 18 freehold sales this year.
Researchers say continuing cost-of-living pressures, rising interest rates and ongoing geopolitical tensions are behind the popularity of fast-food investment as consumers downgrade their eating-out budgets.
Jesse Lapham, CBRE’s head of private wealth research, said Australians are widely trading down when they dine out.
“So, maybe you’re not going to Gimlet this week, and maybe you’re going down a notch, and you might go to GYG instead,” he said.
“You don’t really need to see a big change in consumer behaviour for the aggregate to make a pretty sizable difference.”
Last year was a bumper one for fast-food freehold sales with $286 million in transactions. It reflects a demand that has only been growing since 2019, when total sales were $50 million.
Recent sales suggest 2026 could be an even bigger year for fast-food freehold sales.
“I’ve seen, say in the past, say three-ish years, the number of sales has increased by about three a month to about five a month,” Lapham said.
“The demand for the spaces is just going through the roof. I don’t see it slowing down. 2025 was a pretty big year for the sector, and I’d say we’re going to get pretty close to that figure, if not beat it.”
Macroeconomic pressures catalyse consumer shift to quick-service dining
CBRE’s Quick Service Restaurants report shows total sales since 2024 have been strongest in the metropolitan areas of Australia’s eastern states, with Victoria at $113.6 million, Queensland at $66.1 million and NSW at $48.185 million.
The 2025 cap rate was 4.48 per cent, slightly under the year-to-date cap rate of 4.94 per cent.
Although sales volumes have risen, yields have mostly stayed constant, with averages sitting between 4 and 5 per cent.
Investor demand is mainly driven by private buyers who are attracted by strong tenant covenants, 10 to 20-year leases, and high-exposure locations. Fast-food freeholds have also proven resilient during turbulent economic times, including the COVID-19 pandemic.
A big drawcard is the relative affordability when compared to other commercial real estate assets, Lapham said.
“The majority and the bulk of it is what we just call mum and dad investors and they are typically people that have a primary source of income that is not related to real estate,” he said.
“They don’t want to invest in residential. And if you’re not familiar with real estate, but you’re interested in it, fast food brands – everyone knows what McDonald’s is, everyone knows what KFC is – are just super approachable investments, and they’re very simple to get your head around as well.
“The rent increases by consistent amounts, fixed increases, and the price point’s also really good compared to other investments.
“So, a fuel service station or a childcare might be four to six million just on average, but fast food on average is sort of three-ish to four-ish [million].”
In February this year, a Hungry Jack’s in Devonport sold for $3.58 million with a yield of 3.38 per cent. The sale of the 1979 square metre corner site set a record for the highest return from a Tasmanian fast-food asset.
Other notable sales include the KFC in Dalyellup, Western Australia, which sold for $5.45 million with a yield of 4.19 per cent, and a Nando’s in Munno Para, South Australia, which sold for $6.2 million with a yield of 5.16 per cent.
Technological integration and new brand expansions fuel market liquidity
Healthy demand has also been attributed to innovations and new entrants in the fast-food market itself.
CBRE’s Quick Service Restaurants 2026 report points to McDonald’s, Hungry Jack’s, KFC and Red Rooster investing in AI-powered menu boards, app-integrated loyalty programs and predictive ordering systems.
Drive-through continues to be a popular format with many outlets offering double or even triple lanes. Grill’d, Nando’s, Schnitz and Soul Origin have also begun offering drive-through.
New entrants to the market include two Australian-founded fast-food restaurants: Lebanese charcoal chicken chain El Jannah and Mexican-theme chain Guzman y Gomez.
US burger giant Wendy’s opened its first branch on Cavill Avenue in Surfers Paradise on the Gold Coast in January 2025 and has since announced plans to open a drive-through in Melbourne.
