Housing prices located within a 3-mile radius of a Cheesecake Factory store are about 27% higher compared to areas without a location, despite similar conditions, according to a recent analysis by Washington Line of real estate portal and U.S. Census Bureau data.
This indicates that contrary to the image of The Cheesecake Factory as a mainstream dining chain, it is concentrated in relatively affluent areas. At the same time, it is highly likely contributing to the rising home prices in those neighborhoods.
According to the analysis, home prices in areas where Cheesecake Factories are located were at a similar level to neighborhoods featuring sports apparel brand Lululemon, Chinese chain P.F. Chang’s, and The UPS Store. This phenomenon is closely related to the chain’s site selection strategy, as a significant number of stores are located in major shopping malls alongside high-end brands like the Apple Store.
However, experts point out that home prices also tend to be relatively high around standalone stores located outside of shopping malls, making it difficult to explain the trend solely through a “shopping mall effect.” Additionally, the fact that these businesses tend to open in areas with high housing prices and income levels can also be a contributing factor.
The Washington Line analysis also drew attention by including not only restaurants but also pilates chains, markets, and burger chains. Meanwhile, areas where home prices dropped heavily featured budget-oriented businesses such as Dollar General, Little Caesars, AutoZone, Zone, KFC, and Dollar Tree.
This analysis emerged in the wake of a political debate sparked on the 24th of last month when former President Barack Obama criticized President Donald Trump’s White House remodeling during an Ohio Democratic campaign rally. Obama mocked the White House decorated in gold accents, comparing it to “Saddam Hussein opening a Cheesecake Factory,” pointing to a somewhat upscale restaurant facility.
In response, the pro-Trump camp pushed back, claiming it was a derogatory remark dismissing restaurants favored by everyday working-class citizens. Treasury Secretary Scott Bessent directly visited the Washington, D.C. Cheesecake Factory for lunch to publicly defend the restaurant. Shortly after, the White House also posted photos of Cheesecake Factory menus on official social media to join the debate.
The Cheesecake Factory is famous for its flashy gold interior decorations and menu of around 250 items. Meanwhile, real estate experts explain that the home price difference does not mean that the opening of a Cheesecake Factory actually drove up home prices. Rather, it is the result of dining brands selectively opening locations in areas with high purchasing power and heavy pedestrian traffic, which naturally aligns with higher property values.
