Investing in Colorado's Retail Renaissance: Round Table's Expansion and the Post-Pandemic Opportunity

The post-pandemic retail landscape in the United States is marked by a delicate balance between resilience and reinvention. Nowhere is this more evident than in Colorado, where a confluence of demographic shifts, economic diversification, and strategic retail development is reshaping investment opportunities. The recent expansion of Round Table Pizza into Colorado Springs, a first for the brand, underscores the state's growing appeal as a retail destination. This move, driven by FAT Brands' franchising model, reflects broader trends in a market where constrained supply, rising rents, and evolving consumer preferences are creating fertile ground for investment.

Colorado's Retail Market: A Post-Pandemic Resilience

Colorado's retail sector has navigated the post-2020 economic landscape with notable adaptability. While vacancy rates in the state's retail market have declined to 7.5% in 2023, projections suggest a gradual rise to 10.4% by 2029 under a downside scenarioColorado 2025 Report - ASCE's 2025 Infrastructure Report Card^[1]. This dynamic is shaped by localized variations: Downtown Denver, for instance, faces a high vacancy rate of 11.8% but benefits from revitalization efforts like the 16th Street MallRetail Market Report | Denver, CO^[3]. In contrast, Central Denver and Cherry Creek submarkets exhibit low vacancy rates and rising rents, driven by proximity to healthcare and aerospace industries and an affluent, upscale demographicRetail Market Report | Denver, CO^[3]. These disparities highlight the importance of micro-location analysis in retail investment, where proximity to growth sectors and urban renewal projects can significantly enhance returns.

The state's economic fundamentals further bolster its retail appeal. Colorado's 2025 economic forecast anticipates 1.2% growth, fueled by job additions in education, health services, and constructionColorado’s economic forecast for 2025: Slower growth amid uncertainty^[4]. Population growth, though slower than in the 2010s, remains steady, driven by both natural increase and net migration. However, challenges such as labor shortages and housing affordability—exacerbated by high mortgage rates—pose risks to consumer spendingColorado’s economic forecast for 2025: Slower growth amid uncertainty^[4]. These factors necessitate tailored investment strategies that align with shifting demand patterns, particularly in experiential and convenience-driven retail formats.

Round Table's Expansion: A Strategic Bet on Colorado's Retail Resilience

FAT Brands' decision to open a Round Table Pizza location in Colorado Springs is emblematic of the state's strategic value. Operated by experienced franchisees Ron and Sandy Chadwick, the new restaurant leverages the brand's “Pizza Royalty™” experience to tap into Colorado's growing appetite for family-friendly diningColorado 2025 Report - ASCE's 2025 Infrastructure Report Card^[1]. This expansion aligns with FAT Brands' broader 2025 strategy, which includes over 100 new restaurant openings supported by a 1,000-store development pipelineRetail Market Report | Denver, CO^[3]. While the company faces financial headwinds—such as a negative Altman Z-Score and rising debt—its franchising model mitigates capital risk, enabling growth without direct operational burdensRetail Market Report | Denver, CO^[3].

The choice of Colorado Springs is particularly telling. As a dynamic market with a population projected to grow steadily, the city offers a blend of suburban accessibility and urban demand. This aligns with national retail trends emphasizing “retailtainment” and experiential consumption, where dining and entertainment converge to drive foot traffic2025 US Retail Industry Outlook | Deloitte Insights^[5]. For investors, Round Table's entry into Colorado Springs represents not just a new outlet but a signal of confidence in the state's ability to sustain discretionary spending.

Comparative Analysis: Colorado vs. Austin, Dallas, and Phoenix

To contextualize Colorado's retail investment potential, it is instructive to compare it with other high-growth U.S. markets like Austin, Dallas, and Phoenix. These cities are often cited for their robust population growth, infrastructure improvements, and economic diversification. For instance, Austin's retail market, with a 3.4% vacancy rate, thrives on a thriving tech sector and experiential retail demandTexas Retail Landscape Report^[2]. Dallas-Fort Worth, with a 4.8% vacancy rate, benefits from strong job growth and grocery-anchored centersTexas Retail Landscape Report^[2]. Phoenix, meanwhile, has emerged as a top-performing market due to its suburban expansion and strategic infrastructure investmentsTexas Retail Landscape Report^[2].

Retail cap rates in these cities provide further insight. As of 2025, Austin's retail cap rate stands at 5.69%, Dallas at 7.46%, and Phoenix at 6.59%Cap Rate for Top US Cities^[6]. While Colorado's cap rates are not explicitly stated, the state's constrained retail supply and rising rents suggest a similar or tighter investment environment. For example, Denver's Central and Cherry Creek submarkets command rents nearly double the market averageRetail Market Report | Denver, CO^[3], indicating strong pricing power for quality assets. This aligns with national trends where well-located, modern retail properties—particularly those anchored by essential services or experiential offerings—outperform the broader marketTexas Retail Landscape Report^[2].

Challenges and Opportunities in Colorado's Retail Sector

Despite its strengths, Colorado's retail market is not without challenges. Infrastructure pressures, including deteriorating roads and underfunded transit, pose risks to long-term growthColorado 2025 Report - ASCE's 2025 Infrastructure Report Card^[1]. The state's 2025 infrastructure report card—a C-—highlights vulnerabilities in energy and water systems, particularly in rapidly growing areasColorado 2025 Report - ASCE's 2025 Infrastructure Report Card^[1]. These issues could impact logistics and operational costs for retailers, necessitating partnerships with local governments or private developers to address gaps.

However, these challenges also present opportunities. For instance, the demand for grocery-anchored centers—resilient against e-commerce disruption—remains strong in Colorado, mirroring national trendsRetail Market Report | Denver, CO^[3]. Denver's strategic location as a logistics hub further enhances its appeal, offering efficient distribution networks that reduce costs for retailersColorado 2025 Report - ASCE's 2025 Infrastructure Report Card^[1]. Additionally, the anticipated easing of Federal Reserve interest rates in 2025 could spur investment in urban retail locations and value-add opportunities, particularly in unanchored strip centersColorado’s economic forecast for 2025: Slower growth amid uncertainty^[4].

Conclusion: A Compelling Case for Retail Investment in Colorado

Round Table's expansion into Colorado Springs is more than a single transaction; it is a microcosm of the state's broader retail renaissance. Colorado's diversified economy, resilient consumer base, and constrained retail supply create a compelling environment for investors seeking exposure to high-growth markets. While challenges like infrastructure strain and labor shortages persist, the state's strategic advantages—particularly in urban centers like Denver and emerging hubs like Colorado Springs—position it as a key player in the post-pandemic retail landscape.

For investors, the key lies in precision: targeting submarkets with low vacancy, strong absorption, and alignment with experiential retail trends. Round Table's foray into Colorado Springs exemplifies this approach, leveraging local demand and franchisee expertise to navigate a complex market. As the U.S. retail sector evolves, Colorado's blend of economic resilience and demographic dynamism will likely continue to attract capital, making it a standout destination for 2025 and beyond.