— By David Conklin —
Retail-to-restaurant conversions have proven to be a profitable real estate strategy for Golden Corral.
The rising costs of new development present an opportunity for retail and restaurant brands to rethink their expansion strategies. One of the most effective ways to fuel growth while mitigating high development costs is by repurposing second-generation spaces — previously occupied retail locations — into thriving restaurant concepts. Golden Corral is leading the charge, targeting these spaces as prime opportunities for conversion and rapid expansion.
Why Second-Generation Retail Spaces Work for Restaurants
The retail sector is undergoing major shifts, with several national chains closing locations nationwide. Rather than letting these spaces sit vacant, restaurant operators can transform them into high-performing locations while avoiding the time and cost burdens of new construction.
Golden Corral has already capitalized on this trend, leveraging its flexible “kit of parts” restaurant design to fit into spaces as small as 7,200 square feet which is significantly smaller than its former 11,000-square-foot prototype. This adaptability allows the brand to seize real estate opportunities that would have previously been overlooked, ensuring a strong presence in high-traffic retail corridors. Golden Corral’s national presence and highly sought-after value proposition make second-generation retail spaces a smart real estate play. They also help revitalize shopping centers by drawing customers back to these locations.
Second-generation retail space typically has existing slabs, storefront systems, roofing, contributing to cost and time savings. These spaces also significantly save time and site work due to the existing parking lots, landscaping, curb cuts, and drive lanes already in place. Golden Corral also prioritizes visibility and signage opportunities when evaluating conversion sites. Locations with strong street exposure enhance brand awareness and attract foot traffic, making them ideal candidates for restaurant conversions.
A Proactive and Aggressive Approach to Expansion
Of the brand’s 352 restaurants, 40 are conversions, including 8 former retail locations. While repurposing former restaurant spaces remains appealing, Golden Corral is increasingly exploring opportunities beyond traditional restaurant locations. With fewer closed buffet-style concepts available, retail conversions have become a key strategic focus to align with evolving market trends.
The company is closely monitoring retail closures to identify prime real estate opportunities. With a proactive approach to site selection, Golden Corral positions itself at the forefront of a significant industry shift and offers franchisees access to lower-cost, higher-visibility locations that drive profitability.
The Future of Retail-to-Restaurant Conversions
The trend of retail-to-restaurant conversions isn’t limited to a single region — it is a nationwide focus for many brands. As more retailers downsize or shutter locations, restaurant brands with adaptable models will have a unique opportunity to scale efficiently.
For Golden Corral, the ability to quickly retrofit and open new locations in these spaces is a game-changer. The company’s innovative real estate strategy and flexible footprint give it a competitive edge, allowing it to reduce costs, accelerate opening timelines and establish a presence in key markets.
Restaurant operators must think beyond traditional site selection and embrace the opportunity of second-generation conversions. Golden Corral is proving that with the right strategy, these spaces can become high-performing assets that drive brand growth and long term success.
— David Conklin is the chief development officer of Golden Corral, a grill & buffet restaurant chain based in Raleigh, North Carolina, with 352 restaurants.