Flipping Profits: How Burger Chains Using The Sales Leaseback To Raise Capital

While many restaurant operators have invested in technology and automation to support the post-pandemic rebound by increasing efficiency and addressing staffing challenges due to soaring labor costs, higher interest rates and tighter lending regulations have created challenges for restaurant and foodservice operators to access the capital they need to fund these initiatives.

A ready source of capital that operators can consider is a sale leaseback of the restaurant properties they own. A sale leaseback is essentially the sale of owned property to an investor and the simultaneous leasing back of that same property from the new owner under a long-term lease. This transaction effectively unlocks capital that is tied up in the real estate. This capital can then be deployed to drive growth with investments in equipment and technology, new locations, the hiring of skilled staff, or used to reduce debt. 

Some Examples:

• FCPT in August 2025 acquired four newly constructed Burger King properties from Ampler Restaurant Group for $8.1 million. The deal included 19-year, triple-net leases with the franchisee.

• The Boulder Group, a real estate brokerage, in 2024 arranged the $2.6 million sale-leaseback of a Wendy's restaurant in Aurora, Illinois. The buyer was a New York-based private real estate investor.

• Red Robin full-service hamburger chain serving in 2024 completed a second Sale-Leaseback transaction with Essential Properties Realty Trust, Inc. to sell and simultaneously lease-back nine owned properties.

  The transaction generated gross proceeds of approximately $31 million.

  
  

The burger business continues to see strong demand for real estate, with many investors focusing on ownership of land and properties, rather than just the burgers. This is because well-established chains like Burger King are seeing increased transaction velocity, while new brands and classic concepts remain attractive due to strong revenue and corporate guarantees. Key trends include a growing market for gourmet and regional burgers, and the strategic use of real estate by franchisors to generate revenue through long-term leases to franchisees. 

Top Burger Chains Per Location in the US and Canada

1. McDonald’s has 13,500 US locations & 1,489 Canadian Locations with 14,989 total locations

   
   

2. Burger King has 6,584 US Locations & 390 Canadian Locations with 6,974 total locations.

3. Wendy’s has 5,972 US locations & 440 Canadian Locations with 6,412 total locations.

4. A&W has 850 US locations & 1,083 Canadian Locations with

1,933 total locations.

5. Five Guys has 1,400 US Locations & 160 Canadian Locations with 1,560 total locations

GARDEN STATE GRILLS

In Real Estate Connecting for Lunch over a Burger is perk of the business.

We polled real estate investors from the 8000+ REWI members in the Garden State, What were the best Burgers joints in NJ. Here are the top 25 in the State:

25. Jackson Hole, Englewood, NJ

24. Bond Street Bar, Asbury Park, NJ

23. Westwood Prime Meat- Westwood, NJ

22. Frankie's Point Pleasant- Point Pleasant, NJ

21. The Quarry Grill- Franklin, NJ

20. Rossi's Bar & Grill- Hamilton,NJ

19. 418 Burgers-- Highland Park, NJ

18. The Turf n Surf Burger Grill- Warren, NJ

17. Urban Burger- Morristown, NJ

16. Stage Left Steak- New Brunswick, NJ

15. Outlaw's  Burger Barn- Vineland, NJ

14. Marty's - Fort Lee, NJ & Hackensack, NJ

13. The Committed Pig- Morristown, NJ

12. One 53- Rocky Hill , NJ

11. Rocky Hill Inn- Rocky Hill, NJ

10. Habit Burger- Eatontown, NJ(Various Location)

9. The Claremont Tavern, Bernardsville, NJ

8. Eighty Twenty- Westwood, NJ

7. Tierney's Tavern- Montclair, NJ

6. Barnacle Bill's-Rumson, NJ

5. Bovine Burgers- Jamesburg, NJ

4. Steve Burgers- Garfield, NJ

3. White Rose System- Highland, NJ

2. Krug's Tavern- Newark, NJ

1. White Manna- Hackensack, NJ