Jared Himes’ Post

Great article here from QSR Magazine surveying changes in QSR and Fast Casual Restaurant consumer behavior: - Overall guests stating “eating less often than last year” at specific restaurants continue to outpace those who are eating “more often.” - 19% of respondents reported visiting Starbucks less in the last year, with just 5% reporting they are visiting more often. 52% of those reporting visiting less cited "too expensive" as the primary reason. - By age bracket, spending growth was led by a 25% increase from those 45-60 and a 13% increase for those 18-29. This was offset by a 4% decline from those 30-44 and a 6% decline for those over 60. - 15% of respondents reported visiting Chipotle Mexican Grill less in the last year, with just 4% reporting they are visiting more often. 28% of those reporting visiting less cited "inconvenient" as the primary reason, with 22% citing "too expensive". - On a sequential basis (last three months), more than 70% of concepts surveyed posted improvement in perceived consumer value, with the largest gains at Pinstripes, Dutch Bros Coffee, Kura Sushi USA, and Potbelly. Full article: https://lnkd.in/gCqYH6H6 #consumerspending #qsr #fastcasual #restaurants #retailrealestate #qsrmagazine #cbre

PwC released their 2024 Holiday Outlook report this week. Some takeaways: - 7% increase in holiday spending expected in 2024 vs 2023 - 57% of consumers describe their financial situation as 'strained' - 85% of consumers are considering spending cutbacks over the next six months - The overall increase is noted by a bifurcation in spending habits - low and middle income consumers expect to spend the same or less; high income consumers plan to spend substantially more. - Millennials make up the largest share of projected spending per person, followed by Gen Z, then Gen X, and lastly Baby Boomers. - Gen Z (17-27) has the largest projected increase in spending, at 37%. This compares with a 16% increase for Millennials (28-43), 18% for Gen X (44-59), and 2% for Baby Boomers (60-78). - Physical stores continue to play a crucial role in holiday shopping, in part due to their experiential appeal. Nearly one-fifth of consumers rank holiday displays and store atmosphere (22%), holiday-specific products (21%), and making an event out of the shopping trip (17%) as the top three factors influencing their decision to visit physical stores during the holiday season. Full report: https://lnkd.in/gSCbPr6E #consumerspending #holiday2024 #retailrealestate #pwc #cbre #outlook

Placer.ai recently had a great article on Fast-Casual (Chiptole, sweetgreen, CAVA, etc.) vs QSR (McDonald's, Taco Bell, Starbucks, etc.) site visits. In H1 2024, Fast-Casual restaurants had 3.2% YOY site visit growth compared to just 0.4% for QSRs. Rising QSR (fast food, drive-thru) prices have narrowed the gap between QSR and Fast Casual costs, prompting all but >$75K AHHI consumers to more frequently pay just a little bit more for a perceived larger increase in quality. Full article from Placer.ai here: https://lnkd.in/gR3G_wXx #qsr #fastcasual #placerai #restaurants #cbre #retailrealestate

Happy to attend another ICSC Western this week - 2024 was hosted in the Inland Empire at the Palm Springs Convention Center. A few takeaways: - Similar to sentiment at ICSC Vegas in May - retailers, restaurants, and operators remain aggressive with future location count goals. However, recent trends in consumer spending are starting to give pause and create scrutiny in deal terms amongst some. - Our CBRE booth had full tables from 9 AM to 5 PM on Tuesday. We need more tables next year. Activity was great, it was nice to see many familiar faces. The Palm Springs Convention Center seemed a bit smaller than the San Diego Convention Center, which helped the overall event seem more alive as well. - Justified or not, the Federal Reserve Board's recent 50 bps interest rate cut has seemed to boost optimism for dealmaking going into 2025 from retailers, developers, and landlords alike. Almost every meeting I was in touched on this news in some way. Thank you to everyone who took the time to stop by the CBRE Retail booth to meet with me: Harrison Simon, Jordan Farahnik, Melani Dannenberg, Kim Von Der Ahe-Arial, Wingstop Restaurants Inc., Kieran Sheridan, Sandra Agraz, Vicki R Donkin, Greg Quan, Ashton Wunsch, Linda Hinojos, MPA, City of Glendora, Adam Taylor, PMP, Chris Costanzo, Firestone Tires, Circle K, Maria Talpas, City of Azusa, bp, Karina Rostomiani, Ontario Economic Development Agency, Karen Khukoyan, & others. #cbre #icsc #retailrealestate #consumerspending #networking #palmsprings #western #inlandempire #cbreretail

Interesting takeaways from Darden's earnings report today: - Same-store sales down 1.1% YOY system-wide. - Eddie V's Prime Seafood & The Capital Grille had same-store sales down 6.6% YOY. - Olive Garden had same-store sales down 2.9% YOY. - LongHorn Steakhouse helped soften declines with a 3.7% increase YOY. I read this as: Low income consumers are dining out significantly less or not at all. Middle & upper income consumers are dining out, but opting for mid-priced options such as LongHorn Steakhouse rather than more full service options such as Eddie V's Prime Seafood or The Capital Grille. In short - consumers are watching their spending carefully. Darden noted significant softness in July, but reaffirmed full year guidance and said sales trend is improving. Placer.ai’s recent data supported this, reporting a 4.4% foot traffic decline in July and a 6.9% rebound in August at Olive Garden. Darden stock was up over 8% after the news, primarily related to a first-party delivery agreement with Uber Eats and a positive forward outlook. Article on Darden's earnings from Bloomberg below: https://lnkd.in/gvJxGeee #darden #restuarants #retailers #earnings #consumerspending #retailrealestate #cbre

Love this. Many So. Cal communities need this. Look forward to seeing the results of this new venture from NewMark Merrill Companies, Inc. and Jermaine McMihelk: https://lnkd.in/gR8R6AvQ

Big Lots Files Ch. 11 Bankruptcy; Plans Sale - Discount retailer Big Lots has filed for bankruptcy protection and plans to sell the firm’s assets and ongoing business to Nexus Capital Management for $620M in a court-supervised process. - Under the agreement, Nexus Capital Management will serve as a “stalking horse bidder”, meaning that if no higher or better offers come from other parties, Nexus will buy the business. - Big Lots is already in the process of closing or has closed 300 stores, and laid out a plan to close an additional 250 stores by mid-January. This would mean 550 total closures out of their 1389 current locations. - Big Lots has secured commitments for $707.5 million of financing in the form of a post-petition credit facility, according to the company. As a result, Big Lots expects to have sufficient liquidity while it works to complete the sale transaction, it said. - ICSC recently reported Dollar Stores as a category were down by 8% YOY on their Average Sales PSF. - This follows recent restructuring and closing plans from 99 Cents Only Stores, RITE AID, Walgreens, and others. Many of these closings have created opportunities for growing retailers and proactive landlords to improve the offering of these locations, but not all will be as fortunate. Article from Bloomberg below: #consumerspending #dollarstores #biglots #bankruptcy #privateequity #retailrealestate #cbre

We recently occupied our brand new CBRE Ontario Office. In my opinion, our CBRE design team did an incredible job creating an office environment that features both social and collaborative areas, as well as private space for focused work. Grateful to work here. Take a virtual tour using the link below: https://lnkd.in/g4FXT_nH #Workplace360 #CBREWorkplace #InlandEmpire #OntarioOffice #CBRE

Happy to attend the Ribbon Cutting Ceremony last week for Lumia - a brand new mixed-use project with 127 luxury residential units and ground floor restaurant/retail space. Adjacent to Target, Lumia aims to help enable the City of Azusa's longstanding goal of having a walkable downtown with shops, residences, and public transit. We are working on a line-up of national brands for the ground floor retail/restaurant space we hope to announce in the coming months. Appreciate the invite from Jason Tolleson with Serrano Development Group. CBRE Greg Nassir Philip Florida Ben Strom, CFA Sergio Gonzalez Robert Gonzales Dennis Beckwith Jesse Avila Jr. Linda Hinojos, MPA CBRE Retail #mixeduserealestate #communitydevelopment #retailrealestate #realestatedevelopment #cityofazusa

The Press-Enterprise recently published their "Best of Inland Empire 2024: Editor's Picks” for various industries. Here were their choices for Italian, Mexican, and BBQ Restaurants: Italian - Mario's Place - 3646 Mission Inn Avenue, Riverside, CA Mexican - Olivia's Mexican Restaurant - 9447 Magnolia Ave, Riverside, CA BBQ - Smoke & Fire - 5225 Canyon Crest Dr, #9, Riverside, CA Full lists below: