Business & Tech

Why Are Most New Restaurants—Chain Restaurants?

North Hills area restaurant consultant Ron Sofranko says he has the answer.

One of the most popular articles posted on Pine-Richland Patch in recent days is an article detailing three new restaurants slated for the nearby McCandless Crossing retail plaza. 

The development is expected to include a Panera Bread, Chipotle  and First Watch restaurant.

If you've ever wonder why most of the new restaurants moving into the area are chain restaurants, Patch has the answer.

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A few months back, , and he talked about chain restaurants. He said it all comes down to economics.

"With development costs these days, the little guy can't afford it," he said. "An acre in Cranberry is $800,000 to a million. A restaurant needs up to two acres, then you have to build the building and the equipment. Not too many independents can afford a $3 to $4-million-dollar investment. But the chains sure can." 

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Sofranko, who is one of the owners of Jergel's Rhythm Grille in Warrendale, says if one chain moves in, more are bound to follow.

"The thing that chain restaurants want is to have multiple units around them. They don't want to build by themselves," he said. "The chains want restaurant parks, where there are four or five within walking distance of each other. Restaurants like other restaurants."

Sofranko said that doesn't mean locally owned restaurants can't flourish.

"Often times, an independent restaurant does better when it leases space, like at the end of a strip mall," he said. "That way, they can bring in their own concept without spending millions on new construction."

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