Celebrity-Backed Restaurants Help Developers And Landlords Drive Foot Traffic And Feed Local Fan Base

The restaurant and foodservice industry has grown by leaps and bounds since the end of pandemic lockdowns of 2020 and 2021. In fact, sales for the sector in 2024 are projected to surpass $1 trillion for the first time in history, according to a report from the National Restaurant Association.

Unsurprisingly, that growth has attracted the attention of both established brands and new entrants hoping to grab a slice of this lucrative pie. In a marketplace that has seen a dearth of white space, embracing celebrity-backed restaurants is one way property developers and owners can cut through the clutter and come out ahead.

A JLL analysis of owned and licensed celebrity restaurant openings shows that from 2019 to 2024, 361 eateries backed by renowned chefs, actors, athletes or musicians opened in the U.S. and Canada. The appeal of these establishments for property developers and owners is that association with celebrities opens a new marketing dimension and word-of-mouth that run-of-the-mill businesses just can't replicate.

A new take on an old concept

Celebrity-backed restaurants are not a new phenomenon. Ever since boxer Jack Dempsey opened his namesake restaurant in New York City in 1935, actors, musicians, athletes and celebrity chefs have been mixing fame and gastronomy to cook up successful ventures. Dempsey made sure people knew he had become a restaurateur by putting his name in huge red letters across the front of the property and by making frequent appearances, shaking hands and signing autographs.

Thanks to social media, that kind of overt connection is less necessary today, as savvy celebrities use their influence to drive their large group of followers to their restaurants. For example:

Comedian Kevin Hart launched his Hart House in Southern California in 2022 and has leveraged his 179 million Instagram followers to help build the chain up to ten locations, with more on the way.

Although Blaze Pizza doesn't mention anything about Lebron James on its website, the fast-casual pizza franchise has grown to 330 franchised locations thanks in large part to support from the 160 million fans following the basketball star on Instagram.

Hart and James are not the only stars that successfully convert their millions of social media followers to restaurant customers. In fact, celebrities that opened restaurants between 2019 and 2024 had an average of 15.1 million Instagram followers. Those are a lot of mouths to feed.

The celebrity restaurant footprint is expanding

Social media has changed the nature of celebrity and, with it, the footprint of the celebrity restaurant market. Added to the ranks of typical celebrity restaurateurs like Gordon Ramsay and Robert De Niro, we now have social media influencers like Lisa Vanderpump and Tue Nguyen. Meanwhile, other chefs like Shane Roberts-Thomas, have used local television and national programs like Food Network's Chopped, to drive the expansion of their restaurants.

Celebrity-backed restaurants have also expanded their geographic reach to non-traditional markets. Historically, celebrity-backed restaurants have flourished in places like New York, Los Angeles and Las Vegas that are home to a lot of celebrities, attract a lot of tourists, or both.

However, Atlanta ranked second for celebrity restaurant openings from 2019-2024. Nashville is another up-and-coming market, thanks to its status as the epicenter of country music. Within just a few blocks along Lower Broadway in downtown Nashville, patrons can choose from over a dozen bars and restaurants backed by chart-toppers like Blake Shelton, Miranda Lambert and Justin Timberlake. These second and third tier cities are seeing increased interest, media coverage, social engagement and foot traffic due in part to visitors being inspired by a celebrity restaurateur to visit the destination.

A boon to property developers

With the U.S. retail vacancy rate at 4.1 percent, according to JLL's Retail Q1 2024 report, the competition for restaurant space is high and availability is low, especially in the most desirable locations. One way property owners can increase their chances of filling open space and driving increased traffic is to have a famous name behind the food — whether they are a full or partial owner, a licensor or manager. Whether a star has been paid a fee or is an owner is irrelevant customers, as in their eyes it is still the celebrity's restaurant.

Landlords will be checking to make sure a prospective tenant has healthy financials, is backed by an experienced executive team and proposes a restaurant concept that fits with their vision of the surrounding development.

With all those boxes checked, a celebrity-backed restaurant can be a great way for landlords to maximize their space, for restaurateurs to supercharge the potential of their establishment, and for all parties involved to stand out in a crowded market and thrive. The result is a legion of loyal fans that easily turn into hungry customers.