Johnny Carino's Italian Grill - What RE Investors Should Know

Johnny Carino's Grill is a fast growing franchise, casual dining restaurant with about 170 sites in 30 states, Bahrain, Kuwait, Egypt, United Arab Emirates since 2008. It is fully serviced and serves southern Italian cuisine with pizza, pasta, shrimp, beef, chicken, and pork. Most dishes are between $ 10-20. Mark and restaurant concept owned by Fired Up, Inc. was founded in 1997 and headquartered in Austin, TX. Fired Up owns about 50% of the restaurants and the rest is owned by franchisees. In 2007, Fired Up has changed its name from Johnny Carino country's Italian Johnny Carino Italian Grill highlight the open kitchen and an open flame grill. The official website is carinos.com. Johnny Carino has been expanding rapidly in California, with 15 seats now. Currently a development deal with 15 franchise partners to expand the chain restaurants in more than 490 locations worldwide.

property and place

typical of the new Johnny Carino's restaurant custom-built, tile-roof, free standing, and clearly designed Tuscan farmhouse building with several different models, each approximately 6500 SF on 1.5 acres lot. You will normally Johnny Carino's in the suburbs or the new and growing area, but not in down town area or areas established without zemljišta.Restoran development is often highly-visible prime location with dense traffic: the main artery, corner lot, near or in front of the main shopping mall or center. Fired Up works with about 20 developers to build new restaurants. Once the restaurants are in operation for several years, then sold real estate and lease back the property. In this way the company can get the capital to expand further.

Johnny Carino's as a tenant

the tenant often means 20 years absolute triple-net lease with a 10% increase in rent every 5 years. When an object has a lease with a corporate guarantee by Fired Up, rent increase is more conservative, eg, 1% godišnje.Prihod in place a $ 2.5-3M range in the first year, which is very decent. The building is often cost between $ 2.5-4M, and offers a 7.25% to 7.5% cap.

Despite the fact the franchise is expanding rapidly, to close several sites lately, such as 3 seats in Florida in 2007 and a place so far in Hampton, VA in 2008. It is not all that unusual in the hospitality industry.