Corporate News & Perspectives

In the hospitality sector, a restaurant's lease is often the determining factor in its long-term viability. As the commercial real estate market in South Africa evolves, securing favorable lease terms requires a strategic, data-driven approach. At Powers Group, real estate is treated as a core competency, not an afterthought. Our site selection process begins with rigorous demographic analysis and traffic flow studies. We look beyond current footfall to understand the long-term development plans for the surrounding node. Are there new residential developments planned? Is infrastructure improving? We invest in locations with sustainable growth trajectories. When it comes to negotiation, our scale is our greatest asset. Because we operate multiple brands, we can often negotiate multi-site deals with major landlords, securing better rates and tenant installation allowances. We prioritize long-term leases with predictable escalation clauses, ensuring our unit economics remain robust even in inflationary environments. Furthermore, we actively seek out "second-generation" restaurant spaces—locations previously occupied by other operators. By leveraging existing infrastructure (such as extraction systems and grease traps), we significantly reduce our initial capital expenditure, accelerating our return on investment and allowing us to scale more rapidly.