Southland fast food outlets feed on recession and grow.

And watch for the return of waitresses on roller skates 

Fast-food retailers -- selling everything from burgers and tacos to chicken and Chinese food -- appear to be untouched by Los Angeles' extended recession. Indeed, the area's prolonged economic doldrums seem to have spurred the sale of fast food because it's easy on the pocketbook. And the economic doldrums also have helped promote retailers' expansion plans by depressing the price of commercial land.

"The recession only created an advantage, because now the fast food outlets are able to locate in areas where land values were too high before," said Bradford Pearl, senior vice president in the Encino office of commercial brokerage firm Zugsmith-Thind Inc.

Several major fast-food chains are aggressively expanding their presence throughout the area, he said. Carl's Jr. announced plans to open seven to 10 stores in Southern California this year; Jack-in-the Box is looking to open a whopping 50 stores during 1994, and "McDonalds plans on doubling its sites through different venues, like universities, airports and at large retail tenants like Wal-Marts," Pearl said.

Irvine-based In-N-Out Burgers also is on the move, said Kevin Barry, a retail specialist with Grubb & Ellis Co.'s San Gabriel office. "They are starting to open larger stores with a single drive-through. What's ironic is that In-N-Out started the double drive-through, and now they are phasing that out, while McDonalds is going with tiny stores, in some cases (with) double drive-throughs," Barry said. "(McDonalds is) putting in little stores between the larger ones they already have out there," he said.

Not to be outdone, A&W has hired a brokerage firm to find sites to introduce an oldie-but-goodie concept -- the fast-food drive-in.

"They're coming back into the market with waitresses on roller skates who will roll up to the customers' car windows and take their orders," Barry said.

Rock-bottom land prices have put even the most desirable locations within the reach of fast-food outlets, which typically operate on thin profit margins.

Burger King recently opened an outlet on Ventura Boulevard in Encino, on land it purchased for $53 a square foot. "Two years ago, that same land was selling at a high of $100 to $120 a square foot," Zugsmith-Thind's Pearl recalled.

And if the retailers can't buy the land, they're leasing it.

"A lot of land owners know the value of their land is very depressed, and they really don't want to sell it at that price. So they are ground-leasing it and still maintaining ownership," explained Steve Boss, an associate at CB Commercial Real Estate Group's Sherman Oaks office.

He added that Tommy's Burgers, renowned for its massive chiliburgers, has done two deals so far this year -- one in Hollywood and another in West Los Angeles. And "they are looking fairly aggressively (to expand) in the Santa Clarita Valley," Boss said.

Not all burger chains are equally hot on the L.A. area. Wendy's, headquartered in Dublin, Ohio, has decided there's too much competition in the Los Angeles market, and "is trying to sell or close its corporate stores," said Grubb & Ellis' Barry. The company's franchise stores, however, will continue to the stand the heat.

Meanwhile, a couple of Asian fast-food chains are increasing market share. Yoshinoya Beef Bowl, based in Carson, is "doing a very methodical expansion program," said Barry. "They want a slow growth of five to 10 stores a year."

Panda Express also is aggressively looking to establish additional free-standing locations, in addition to locating within several more Vons Pavilions supermarkets.

Pecking their way into the fast-food market also are numerous new chicken chains, all inexplicably selling rotisserie chicken, according to Mark Einbund, a retail specialist with the West Los Angeles office of Grubb & Ellis. He ticked off several:

* Kenny Rogers Roasters, affiliated with the county-western singer of the same name, has opened its first L.A.-area outlet in Northridge. The Florida-based company is actively looking for free-standing sites all over Los Angeles.

* Koo Koo Roo, which has already opened several Westside locations of about 3,500 square feet each, began by selling barbecued chicken, but recently added rotisserie chicken and turkey, Einbund said.

* California Chicken Cafe, with outlets in Santa Monica and Hollywood, is expanding into Encino and Westwood. Started by local investors, the stores specialize in rotisserie chicken.

* Boston Chicken, with one store already open in Orange County, is now looking at possible locations in Los Angeles. Interestingly, Carl Karcher Enterprises of Anaheim, parent company of Carl's Jr., is the master franchisee in Southern California for Boston Chicken.

Not to be outdone, venerable Kentucky Fried Chicken has introduced its own brand of rotisserie chicken, and is looking for middle- to high-income areas to locate new outlets, according to Grubb & Ellis' Barry.

El Pollo Loco, on the other hand, is taking a back seat and not expanding at this juncture.

Only time will tell who will come out at the top of the pecking order.