Matthews™ Senior Vice President & National Director Michael Pakravan and Senior Vice President Scott Lifschultz provided insights for CoStar News’ article on the topic of burger chain StormBurger’s scout for underutilized drive-thrus for its Los Angeles expansion.

Growing Los Angeles burger chain, StormBurger, is seeking out the region’s inventory of second-generation restaurant space for its expansion. The goal is to open drive-thrus in under served, lower-income neighborhoods.

Pakravan says this is a strategy that has gained traction among restaurant chains looking to expand. According to Pakravan, these companies are either targeting under-utilized properties left behind by larger chains that are consolidating, moving into larger spaces, or out of Southern California altogether.

These sites are typically easier to secure since they have already navigated the infamously complex Los Angeles construction process, allowing “mom and pops to compete with national chains,” says Pakravan, who is assisting StormBurger on site selection.

Cities have started to withdraw permission for drive-thrus. “A lot of cities are moving away from allowing drive-thrus. Some have moratoriums, especially in places like Santa Monica and Koreatown, where they want higher-density, mixed-use development,” said Pakravan.

While sales for Stormburger’s first location have exceeded/doubled expectations, Pakravan says securing drive-thru locations for future growth still proposes a challenge.

According to Pakrvan, “there’s a lot of competition.” While corporations have the means to hire expediters, lobbyists, and top performing architects, “mom-and-pop operators can’t navigate this process as easily.”

Pakravan believes in Stormburger’s potential to grow into a major player. “There’s no limit. This could be the next Raising Cane’s,” he said.

On top of the challenge of finding the right sites, persuading landlords to lease to an emerging brand rather than a national tenant is another hurdle.

“We had to accept some dead rent on our first location because there was no other way to get into that drive-thru space,” Pakravan said.

Second-generation sites have become an attractive alternative, due to the fact that building new locations from the ground up takes about 30 months. “For a brand like Stormburger, moving into a former Burger King with an existing drive-thru is a major advantage,” Pakravan said. “It allows them to expand much faster than waiting for new construction.”

Read the full article here to learn more about Stormburger’s strategy of scouting underutilize drive-thrus for fast growth.