KFC Secures Leases for Two Melbourne Restaurants
KFC has recently secured leases for two prime restaurant locations in inner-city Melbourne. One of these sites was previously a Red Rooster, located in Richmond, while the other was formerly a Fonda Mexican restaurant in Collingwood. This expansion is indicative of the growing fast-food sector, as demand for such establishments continues to thrive.
KFC Establishes Presence in Richmond
The Richmond location spans 294 Swan Street, covering an area of 176 square meters. It is strategically positioned near a Peter Jackson outlet and a customer parking facility, right across from a BP service station. The site also features an adjoining laneway utilized for drive-through service.
The initial lease lasts for 10 years, reinforcing KFC’s commitment to this bustling area. Shane Mills from Fitzroys, who facilitated the deal alongside Chris James, highlighted the advantages of the Richmond location. He noted its ability to attract vehicular traffic, benefiting from the vibrancy of the Cremorne and Richmond office markets during the day and the influx of evening patrons from nearby events.
KFC Takes Over Collingwood Location
In Collingwood, KFC will occupy the premises formerly operated by Fonda Mexican at 236 Smith Street. This site is diagonally positioned across from the historic Woolworths Fitzroy, soon to be complemented by residential apartments developed by Daniel Grollo’s Casa.
This lease agreement, also secured for 10 years, encompasses a total area of 280 square meters, which includes a separate 140-square-meter apartment. The property includes three dedicated parking spaces, making it a highly desirable location for drive-through fast food.
Market Insights
Industry experts point out that the appeal of fast food locations for landlords is increasing. According to Shane Mills, the confidence in KFC’s brand played a significant role in the landlord’s decision to accept their proposal. Fast food tenants are gaining popularity due to their resilience in various economic conditions and their ability to offer longevity in leasing agreements.
Recent Trends in Fast Food Leasing
- KFC Richmond at 294 Swan Street: 176 sqm, leased for 10 years.
- KFC Collingwood at 236 Smith Street: 280 sqm, also leased for 10 years.
- Significant drive-through capability at both locations enhances customer appeal.
- Fast food establishments maintain strong performance amidst economic fluctuations.
KFC’s new leases represent a strategic move into two high-traffic areas, contributing to the brand’s expansion in Melbourne. With the continued growth of the fast-food sector, these locations are positioned to attract significant customer interest.
