This is partly because they don’t want to make the investment in things like new drive-thrus, interiors, and ordering systems given today’s pressures, and partly because the values of their businesses and real estate are at all-time highs.Ĭurrently, inflation is affecting the real estate world with unpredictable price hikes. They have the capital and lending chops to make moves, and many longstanding owners are ready to get out of their businesses. Redesigns and upgrades have enveloped restaurant and retail concepts rapidly, opening opportunities for well-capitalized groups. The puzzling aspect of this is that there is a subset of franchise operators with deep pockets who are muscling through many of the challenges and are flush with opportunities to both buy and sell – and are doing just that, tapping into acquisition and fresh development opportunities that stem from evolving consumer trends. With inflation and interest rate hikes, supply chain issues, a labor shortage, and a host of other issues have arisen to dampen the dealmaking spirits of many. As a result, brick-and-mortar franchise concepts – and many of their franchisees in verticals such as restaurants, entertainment, and retail – face new challenges to their growth plans. Global economic pressures are putting a crimp on real estate dealmaking.