The restaurant industry moves fast—but chain restaurants continue to deliver steady, proven returns. Whether it’s a national brand or a rising franchise, these properties offer a strong mix of name recognition, efficient operations and consistent returns.
At Calloway Title and Escrow, we’ve seen that firsthand. In late 2024, we helped bring Zaxby’s to Madisonville, Tennessee—a project that expanded the brand’s footprint and showed how smart partnerships drive successful outcomes.
In this guide, we’ll cover what makes restaurant investments attractive in today’s market, from trends and benchmarks to ownership models and the title challenges unique to these deals.
A Market That’s Holding Strong
Despite economic uncertainty in recent years, chain restaurants continue to show real staying power. In 2025, they are expected to exceed $241 billion in revenue in the U.S., continuing a growth rate of over 10% annually since 2020 (IBISWorld). The broader foodservice sector is projected to top $1.5 trillion this year, supported by job growth and increased consumer demand, according to this article.
Quick Service and Fast-Casual Restaurants Lead the Way
Quick service restaurants (QSRs) stand out above the rest with same-store brands like Chick-fil-A, Raising Cane’s and Cava experiencing double-digit sales increases year-over-year. The global fast-food and QSR market was estimated at $308.3 billion in 2024, rising to $322.7 billion in 2025, according to this report.
Why QSRs are thriving:
- Convenience-driven consumer behavior: Modern consumers increasingly prioritize speed and convenience.
- Technology integration: Mobile ordering, delivery apps and automated systems improve operational efficiency.
- Lower labor costs: Streamlined operations and minimal sit-down dining require fewer staff members than full-service establishments.
- Adaptability: Focusing on value pricing and efficient service models makes QSRs less vulnerable to economic fluctuations compared to full-service restaurants.
While well-known chains dominate, emerging concepts are creating space for new opportunities. Fast-casual dining, healthy eating options and ethnic cuisine chains have captured significant market share. Brands focusing on customization, premium ingredients and unique dining experiences are particularly appealing to today’s consumers.
Investment Performance & Considerations
Industry benchmarks for chain restaurants:
- ROI: 12–18% annually for successful locations.
- Payback period: 5–7 years.
- Cap rates: 6–8% for established properties.
- Revenue multiples: 2.5–4x annual revenue (for acquisitions).
Key drivers of long-term performance include location, concept scalability and access to skilled operating partners.
Unique Title Insurance Considerations for Restaurants
Restaurant properties come with a unique set of challenges in title and escrow that don’t always appear in other asset classes. These challenges can impact both financing and timelines if they aren’t identified and resolved early by an experienced title team:
- Drive-thru easements: Access rights may involve shared parcels or off-site traffic flow that require recorded agreements.
- Cross-collateralization: Franchisors or lenders may place liens across multiple properties, complicating a clear title.
- Use and signage restrictions: Shopping centers or outparcels may limit hours, signage size, or competitor presence.
- Ground leases and landlord obligations: Long-term leases often include restrictive covenants or renewal clauses that affect valuation.
- Mechanics’ liens: Restaurant buildouts often involve multiple trades, increasing the risk of lien claims if not properly released.
Numerous restaurants, including Burger King, Bankhead Seafood and most recently, Zaxbys™, have trusted Calloway Title and Escrow to resolve these specific hurdles—ensuring the timely completion of their projects and protection from ownership risks and legal fees.
Project Spotlight: Zaxby’s Madisonville Expansion
Zaxbys™ opened its first location in Madisonville, Tennessee, on December 30, 2024, with the help of our team. Founded in 1990, Zaxby’s has grown to over 950 locations across 17 states, establishing itself as a leader in the chicken-focused QSR segment. The Atlanta-based company has built its reputation on fresh, made-to-order Chicken Fingerz™, signature sauces and Southern hospitality with a modern twist.
The Madisonville location represents a significant investment in the company’s existing Tennessee footprint. Located at 4461 US-411, the 2,100-square-foot restaurant features: 30 dine-in seats, an updated drive-thru and pickup window, multiple ordering options including mobile app, online ordering and third-party delivery, and up to 60 new employment opportunities, according to this press release.
Investment Models for Restaurant Ventures
There are multiple ways to get in on the action, depending on your risk profile and desired involvement with chain restaurants:
- Acquisition of Existing Locations
Considerations: Immediate cash flow, proven performance data & existing staff and customer base.
- Franchise Development
Considerations: Control over operations and territory, brand support and marketing alignment & ongoing royalty and compliance obligations. - Restaurant-Focused REITs
Considerations: Passive income through lease-backed real estate, diversified tenant base & institutional-grade asset management.
Critical Success Factors for Investors
Regardless of the model, high-performing restaurant investments require a lot of planning and thoughtful execution:
- Location analysis: Strong visibility, traffic patterns, demographics and parking are critical.
- Market research: Track development pipelines, competitors, employment trends and regulatory risks.
- Financial planning: Factor in rising food, labor and construction costs.
- Exit strategy: Plan early for resale, refinancing or expansion.
Your Title Partner in Restaurant Investment
Thinking about your next restaurant venture?Let Calloway Title and Escrow help you build your commercial real estate portfolio with confidence. We work with professionals all over the nation. Visit www.titlelaw.com to work with us.
