It is not just New York Hedge Funds and California technology companies that are migrating their operations to Florida. The restaurant chains too!
Fast Food, Casual Dining, Fine Dining… .all restaurant segments are migrating or investing in Florida in search of a pleasant climate, fewer taxes and less severe restrictions for COVID.
According to consultant Tom Prakas, in an interview with The Business Journal, the last three months in the Boca Raton region were marked by the presence of investors from New York, New Jersey and Maryland. Prakas is a partner at Prakas & Co., specializing in real estate intermediation in the Boca Raton region, with a focus on restaurant chains.
What is most striking about the trend is that buying movements are not characterized by investors speculating occasional opportunities in a devalued market. They are players who, in fact, want to invest and stay in the region. Prices in this segment are even heated in regions like Boca Raton, Delray and other suburban areas of Miami and Orlando. With the growing flow of people from the North seeking “refuge” (pleasant climate and lower population density) in Florida in times of pandemic, the housing market, in general, is considerably heated. All these new residents and tourists are pushing up the demand for new establishments and restaurants.
Prakas also signals an increasing demand from investors in the north for Ghost Kitchens in Florida. Ghost Kitchens are commercial kitchens created to meet the demand for delivery orders. It is similar to the kitchen of a restaurant but without the physical space, with tables, for serving the public. With the growth of online food orders and marketplace platforms such as Uber Eats, these establishments are increasingly popular in Florida.
Another reason that attracts businessmen from the north of the USA and the west coast is the highly bureaucratic rules that states like New York and California impose on their entrepreneurs. Florida is seen as a friendlier state in this context.
It is worth remembering that, due to the lower temperatures in Florida, it is easier for establishments to maintain outdoor environments for their customers. In New York, for example, with the region’s harsh winter, going out to lunch or dinner at a restaurant is likely to require a closed environment, which is not desirable in pandemic times.