Wendy’s, Popeyes, Shake Shack, and other global fast-food titans are racing to secure prime drive-through sites across Australia, paying record-high rents to do so. These American burger and chicken empires are reshaping the country’s commercial property market, fueling an unprecedented quick-service restaurant (QSR) boom.
Savills retail investment director Rick Silberman describes this period as Australia’s “peak QSR era,” with international brands fiercely competing for a limited supply of prime corner blocks, allowing developers to cash in on the demand.
Convenience and Cost: The Key Drivers
“More than ever, people are time-poor and want to grab dinner on the way home for the family,” said Silberman. “The drive-through model has proven it’s a winner. Convenience and cost have never mattered more.”
Operators are reportedly paying between $250,000 to $400,000 annually in rent for top-tier drive-through locations, equating them with major service stations. “Where you’ve got a main road, 2000 square metres or more, and room for dual-lane drive-throughs, that’s gold,” Silberman added. “Those sites are fought over.”
Major Players and Their Strategies
Wendy’s: The 200-Store Comeback
After a 40-year hiatus, Wendy’s is making a significant comeback in Australia. Backed by Flynn Group, the world’s largest restaurant franchisee, Wendy’s plans to open 200 stores by 2034, starting with locations on the Gold Coast and in Melbourne’s Bayswater North.
Silberman notes that Wendy’s will be the “litmus test” for the US fast-food wave, stating, “If Wendy’s performs, others will double down. It’s the brand everyone’s watching.”
Firehouse Subs: Subway’s New Challenger
Owned by the same parent company as Burger King and Popeyes, Firehouse Subs is targeting Subway’s dominance with plans for 165 restaurants over the next decade, beginning in southeast Queensland. Its flexible store formats make it a versatile new entrant in the market.
Shake Shack: The Premium Burger Play
The New York-based Shake Shack is targeting Sydney and Melbourne, aiming to elevate the country’s burger scene with its “fast-casual” format. Retail insiders believe its entry will create a new premium subcategory in Australia’s burger market.
Local Players and Market Dynamics
Flappy’s: Melbourne’s Homegrown Disrupter
Flappy’s Fried Chicken, a local brand from New South Wales, is quietly building a loyal following and scouting drive-through sites, demonstrating that nimble local players can thrive alongside global titans.
Auntie Anne’s and Chuck E. Cheese: Expanding the Fast-Food Landscape
The American pretzel chain Auntie Anne’s has opened its first Australian outlets, while Chuck E. Cheese has introduced its “eatertainment” concept in Perth, combining dining and entertainment in a single space.
The Property Boom Behind the Chains
According to Silberman, the real winners of this fast-food frenzy are property owners. “The tenants who can pay the highest rent are the ones developers want,” he said. “GYG and El Jannah are top of that list, but the next wave, Wendy’s, Firehouse, Popeyes, are right behind them.”
Many operators now prefer ground leases, which remove construction risk for landlords and guarantee a blue-chip tenant for 15 or 20 years. “The Covid-era demand for drive-through convenience hasn’t faded; it’s become the foundation of a billion-dollar property boom,” Silberman concluded. “This is just the beginning of Australia’s fast-food land rush.”
