Chicken wars heat up in Geelong
A Waurn Ponds KFC site has sold for more than $3m as El Jannah moves in to Geelong. Marrybrown has also been revealed as the new tenant at Westfield Geelong’s food court.
Putting the age-old debate of whether it’s Colonel Sanders’ secret herbs and spices, or the way it’s cooked to one side, it’s clear that KFC has its rewards. But there’s growing competition in the market.
A freehold to a new KFC outlet in Geelong’s south was snapped up at auction for more than $3m recently, as 15 registered bidders lined up to secure the Princes Highway property.
The key was the 1485sq m freestanding pad, in comparison to the KFC outlet in Geelong’s Westfield shopping centre, which recently departed the CBD food court and is about to be replaced with a Marrybrown spicy Malaysian fried chicken – or ayam goreng – outlet.
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Marrybrown has been expanding since opening its first Australian franchise in Sydney in 2023.
It’s not the only chicken-related property news, with El Jannah charcoal chicken confirming to the Advertiser it was setting up shop in Belmont in 2025.
El Jannah is advertising for positions, including for full-time assistant restaurant managers and casual crew members.
It’s speculated the former Hungry Jack’s and Daniel’s Donuts High St site will be its new location after construction fencing was erected around the freestanding restaurant, with drive-through.
The property sold to a Melbourne investor recently for $4.5m in April and Daniel’s Donuts closed up.
KFC Waurn Ponds site has sold for $3.12m.
The KFC Waurn Ponds pad site also has drive-through but offered investors a sought-after, but rarely seen, ground lease where the tenant retains ownership of the improvements – ie, the building – along with responsibility for all the outgoings, including structural repairs, maintenance, replacement and land tax.
The restaurant received strong bidding activity at Stonebridge Property Group’s recent national portfolio auction, which demonstrated growing confidence in freestanding investment opportunities.
The freehold to KFC’s Waurn Ponds outlet sold for $3.12m, scoring a 3.54 per cent yield.
Stonebridge partner Tom Moreland said the “smart money” began seeking commercial investments earlier this year as buyers realised rate cuts were on the horizon.
El Jannah charcoal chicken is opening at Belmont.
Malaysian fried chicken outlet Marrybrown is opening at Westfield Geelong.
“The RBA Governor’s dialogue has now shifted to welcome further rate cuts in the short term, as financial markets predict a further three reductions by February 2026,” Mr Moreland said.
“There is no doubt this will have a positive impact on commercial property valuations and increase buyer depth throughout 2025.”
Stonebridge partner Kevin Tong said investors from Victoria, New South Wales and Queensland contested the property. It took 41 bids to decide the buyer.
The tenant is the Hosking Group, which operates a string of KFC outlets across the region, and pays a $115,000 annual rent, plus GST, with 3 per cent annual increases in a new 10-year lease with options to 2064.
But not all the drive-through outlets on the Waurn Ponds property have found a buyer, with new freestanding retail sites for Starbucks and Guzman Y Gomez listed for immediate sale.
Also up sold at the portfolio auction was the Reject Shop at Ocean Grove.
A 5.42 per cent yield showed the investor confidence in the Bellarine Peninsula shopping centre as the asset sold for $3.45m.
There were eight registered bidders for the property.
