Trouble in NNN land?

300 Pizza Huts are closing after a giant franchisee goes bankrupt…trouble brewing in NNN land? For some landlords the fact that a tenant owned more than one franchise location was a plus. More locations, efficiencies and experience often meant more stability in a tenant. “NPC International, which filed for Chapter 11 in July, announced an agreement Monday with Pizza Hut’s owner Yum! Brands (YUM)to close roughly a quarter of its restaurants and sell the remaining locations…A perfect storm of coronavirus-related shutdowns, a massive debt burden of nearly $1 billion and rising labor and food costs tipped NPC into bankruptcy….The chain has been shifting away from opening and operating restaurants with dining rooms. Instead, it is encouraging customers to order pick-up through its website or third-party apps.” Is this the new wave of the future for fast food locations? Will dining rooms become a relic of the past? How long will it take for indoor dining to thrive again? Until these questions are answered the businesses which are allowed to pivot quickly to online and takeout offerings will prosper more than those old fashioned dine in analog businesses. Something to consider as a landlord is do you have the stomach and the wallet to withstand a bankruptcy by your single NNN tenant?