On last week's earnings call Krispy Kreme highlighted how its newest doughnut hub -- an adaptive reuse of a former CVS drugstore -- saved the Company 20% in capital and real estate costs
Smart move by Krispy Kreme,this isn’t just a retrofit, it’s a reallocation of sunk capital into income-generating assets with compressed deployment time.
In a market where development timelines kill IRR and interest carry erodes margin, repurposing high-traffic, pre-zoned retail boxes like CVS stores is one of the fastest paths to operational yield.
You’re getting location, infrastructure, and entitlement.without speculative construction risk. When a retrofit comes at 20% capex savings and delivers >3x revenue vs peer QSRs, that’s not cost-efficiency, that’s alpha capture.
This kind of play turns stranded retail into hybrid revenue infrastructure. I wouldn’t be surprised if more franchise-based operators start looking at mid-box conversions this way.
Smart move by Krispy Kreme,this isn’t just a retrofit, it’s a reallocation of sunk capital into income-generating assets with compressed deployment time.
In a market where development timelines kill IRR and interest carry erodes margin, repurposing high-traffic, pre-zoned retail boxes like CVS stores is one of the fastest paths to operational yield.
You’re getting location, infrastructure, and entitlement.without speculative construction risk. When a retrofit comes at 20% capex savings and delivers >3x revenue vs peer QSRs, that’s not cost-efficiency, that’s alpha capture.
This kind of play turns stranded retail into hybrid revenue infrastructure. I wouldn’t be surprised if more franchise-based operators start looking at mid-box conversions this way.