Innovative restaurant brands and executives shaping the fast casual segment - sponsored by - Melt Shop Franchise
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2017 Executive Summary Although the past year has been a bit of a struggle for the restaurant sector overall, with several reports showing a downgrade in growth projections for the year, many fast casual concepts have continued to thrive by embracing innovation to improve the customer experience. This year’s list of Fast Casual Top 100 Movers & Shakers recognizes 76 brands and 24 industry executives who continue Cherryh Cansler Tom Harper Editorial director, President & CEO to push their teams and the segment forward despite setbacks. Networld Media Group tomh@networldmediagroup.com This year’s list not only recognizes growth and sales Kathy Doyle Executive vice president & publisher accomplishments, but also honors innovation in the use of technology to enhance the kathyd@networldmediagroup.com customer experience, and willingness to take risks in the name of brand elevation. Cherryh Cansler Choosing the Top 100 Editorial director Hundreds of brands nominated themselves by taking part in a survey about their business cherryhb@networldmediagroup.com practices. They nominated executives by completing a second survey that asked them to Brittany Warren identify individuals whom they believe best represent the industry. Custom content editor brittanyw@networldmediagroup.com Normally, the Top 100 is comprised of 75 brands and 25 executives. However, this year Paige Hobbs was especially challenging when it came to whittling down the list. The judges ultimately Custom content coordinator came to agreement on a selection of 76 brands and 24 executives. paigeh@networldmediagroup.com A variety of food genres and service styles were represented on this year’s list. Of the 76 ABOUT OUR SPONSOR: brands, 12 fell into the “healthful” category; 11 specialized in pizza; nine focused on Tex Taylor Company manufactures Mex or Hispanic cuisine; six represented the better-burger category; and five featured commercial foodservice equipment to chicken on the menu. The remainder comprised a variety of concepts covering everything serve frozen desserts, frozen beverages from coffee to global flavors. and grilled specialties. A division of Carrier Commercial Refrigeration Each winner was clearly differentiated from the other competitors. But all had important Inc., Taylor Company is part of UTC similarities, as well. For example, most invested heavily in employee training, sourced high- Climate, Controls & Security, a unit of quality ingredients, embraced technology upgrades, strived to live their brand culture and United Technologies Corp. For more demonstrated a passion for giving back to their communities. information, visit www.taylor-company. com or follow @TheTaylorCo on Twitter. Our list specifically recognizes brands and leaders for their contributions to the fast casual segment of the restaurant industry, but when it comes to creativity, progressiveness and The 2017 Fast Casual Top 100 Movers & sheer grit, these 100 are leading the restaurant industry as a whole. Shakers. ©2017 Networld Media Group LLC. 13100 East Point Park Blvd., Louisville, KY Sincerely, 40223. (502) 241-7545. All rights reserved. No part of this publication may be reproduced Cherryh Cansler without the express written approval of the publisher. Viewpoints of the columnists and Director of Editorial, Networld Media Group editors are their own and do not necessarily Editor, FastCasual represent the viewpoints of the publisher. Table of 4 Top 76 brands Contents 28 Top 24 executives 2017 3
Top 76 Brands #1 Blaze Fast-Fire'd Pizza In the crowded fast casual pizza space, it can be hard to stand • Addition of “brand- out, but Blaze Fast-Fire’d Pizza makes it look easy. The chain, building” locations at Walt founded five years ago by Rick Wetzel, has grown from two units Disney World in Florida, doing $3 million in systemwide sales to 175 locations reporting Universal Studios in $185 million in 2016. The chain, which signed a multiyear Hollywood and Staples endorsement deal last year with global icon and NBA All-Star Center in Los Angeles, LeBron James, opened 70 units in 2016 and is on target to open home of the NBA’s 80 in 2017. Lakers and Clippers and CEO and President Jim Mizes predicts that the chain will exceed the NHL’s Kings. $292 million by the end of the year and in another five years will • Removal of artificial surpass the $1 billion milestone. colors and flavors, “We spent our first five years in business refining our restaurant preservatives and high- model and building out the infrastructure and franchise network fructose corn syrup from all ingredients for pizzas to support our rapid growth,” Mizes said recently about the and salads. chain’s success. “We now have the people, processes and • Change to a plant-based straw so that all packaging is now systems in place to achieve our goal of becoming a billion-dollar 100 percent eco-friendly (recyclable, compostable or made brand by our 10th birthday.” from post-consumer content). Other highlights helping Team Blaze take our top spot this year • Growth in overall guest satisfaction, including a systemwide include the following: average 4.3 rating across online consumer review sites. • The launch of a mobile app in 2016, featuring online Blaze has big plans for the future, projecting systemwide sales of ordering, mobile pay and loyalty rewards. $417 million in 2018, with a total of 375 restaurants open at the • Menu innovations, including Aguas Frescas, two dessert end of 2018 and 855 restaurants open at the end of 2022. items and new salads. Photo: Blaze Pizza 2017 4
Top 76 Brands #2 Eatsa From its menu specializing in quirky ways to serve quinoa to its Always innovating, tech-savvy operations model, Eatsa has innovation covered. the chain recently upgraded its Bay Area menus to include a few non-quinoa The menu, for example, consists of a variety of quinoa bowls for dishes, such as noodle bowls, and a new way to order. $6.95 that include Japanese, Mexican, Mediterranean and other Customers start their orders online by entering their flavor international themes. preferences, for example, or “what they are in the mood for.” Because of its total reliance on technology for ordering and Eatsa also has added an automatic discount to customer orders payment, the California-based concept received a lot of attention — the more they visit, the higher the discount. when it opened its first units two years ago in San Francisco’s financial district. It quickly added units in Los Angeles and Berkeley, California. Instead of hiring employees to take orders, the chain has customers use in-store kiosks and mobile apps for ordering and paying. A few employees are on hand, however, to answer any questions. They also make the food, hidden behind the wall of electronic cubbies, where diners pick up their meals. On a mission to prove that it’s not just a gimmick or a California trend, the chain opened last year in Washington, D.C., and Manhattan. Co-owner Scott Drummond, who one day hopes to bring the bowls down to $5 each, said plans are in full swing for other units openings in those areas. Photo: Eatsa #3 Slapfish Although chef Andrew Gruel first launched Slapfish as a food- years. That agreement also truck concept in 2012 in Los Angeles, the concept now is grants the franchisee rights to driving sales across the world. Gruel, who is well on his way to develop Slapfish in the United accomplishing his goal of making Arab Emirates and Ireland. seafood sexy, has opened eight Gruel, who calls himself an brick-and-mortar units with “eco-seafood” chef, has plans to hit 15 by the end of the a goal of making sustainable seafood approachable in all the year. Signed deals are in place biggest food cities outside of southern California. to develop units in Utah, Idaho, “With our menu of seasonally rotating, gourmet dishes in a fast Colorado and Arizona, as well casual setting, guests experience the quality of fine dining with as South Korea. Also, the chain the cost and convenience of fast food,” Gruel recently said in an will begin serving its lobster fries interview with FastCasual. “Also setting us apart is the fact that and lobster grilled cheese this we only serve the freshest fish and shellfish sourced from well- year to Londoners, with plans for managed, responsible suppliers of sustainable seafood.” 25 units there over the next 10 Photo: Slapfish 2017 5
Top 76 Brands #4 BurgerFi In just five years, BurgerFi has gone from a single-unit restaurant BurgerFi, which plans to open 35 restaurants in 2017, including in south Florida to opening nearly 100 restaurants domestically its first airport location and its first locations in Panama and and internationally. The chain, known for its commitment to Kuwait, relies on environmentally sustainable best practices for sustainable practices and technology enhancements, serves all- build-outs. It boasts earth-friendly elements, such as chairs made natural, hormone-, steroid- and antibiotic-free beef. from recycled Coke bottles; tables made out of compressed, The chain, which recycled wood; energy-efficient lighting; wood panels made from implemented self-order renewable timber sources; and fans that use 66 percent less kiosks and digital menu electricity. Its restaurants also maintain a low carbon footprint with boards in 2016, has built strict recycling programs for oil, cardboard, bottles and cans. an innovative menu with Another differentiator that sets BurgerFi apart from its competitors specialty items, such is its commitment to upward mobility. To encourage and fuel long- as the VegeFi Burger term employment with the company, BurgerFi has established (made of quinoa) and a a Steps of Success program, in which hourly employees learn Breakfast All Day Burger additional skills, earn higher wages and gain access to a proven Photo: BurgerFi topped with syrup. It also path of promotions and management positions. has a variety of special toppings, including a candied bacon- tomato jam, a truffle aioli and its own BurgerFi sauce. #5 Luna Grill The 30-unit chain grew by 45 percent last year, opening nine units in 2016 and securing nearly $30 million in financing from CapitalSpring. Luna Grill will use that funding to open 15 units over the next 12 months. The brand with California and Texas locations reported a 19 percent increase in same-store sales, recently introduced “Luna 3.0,” a redesign that is a mix of vintage and modern elements combined with organic elements to create an overall look that is European or Scandinavian design, said Nicole Abraham, vice president of marketing for Luna Grill. Specific Photo: Luna Grill elements include bold patterns, modern pendant lamps paired While the brand has continued to evolve since its 2004 with vintage light bulbs and live edge wood tables representing inception, it hasn’t lost sight of its culture and commitment to the the look of a tree trunk. community. Luna Grill, for example, has participated in hundreds “It features gentle contours and playful accent colors,” Abraham of donations said. “Much like the entire Luna Grill experience, the new interior and events in its design honors the elements of nature and the needs of our communities. customers through form and function.” 2017 6
Top 76 Brands #6 Shake Shack The novelty of Shake Shack doesn’t seem to be waning. The premier locations, and building an even better team member and brand, known for its snaking lines of people happily waiting to guest experience that fosters the long-term strength of the Shake order, has seen steady growth over the last year. It opened 36 Shack brand for years to come.” units in 2016, bringing its total to 72 domestic and 45 international The year also saw the launch of the Chick’n Shack, an all-natural shacks. For the year, the chain reported total revenue increased and antibiotic-free chicken sandwich, the beginning stages of the 40.9 percent to $268.5 Shack App and the deployment of analytics software to boost million and shack sales supply chain efficiency and decision-making. increased 41.6 percent To help spread Shake Shack to even more people, Garutti and to $259.4 million. Mark Rosati, culinary director of Shake Shack, have created a “I’m especially pleased cookbook, “Shake Shack: Recipes & Stories,” which will be out given the challenging May 16, 2017. industry backdrop in retail and restaurants,” Photo: iStock.com CEO Randy Garutti said recently about the chain’s financial performance. “We achieved all of this while furthering our commitment to growing in #7 &pizza wage in Washington, D.C. For example, last year it raised wages in D.C. to Making great pizza is just one of the many goals at &pizza. CEO $11.75 an hour to surpass Michael Lastoria launched the Washington, D.C.-based brand the District of Columbia’s in 2012, with the following ethos: to celebrate oneness, make it minimum wage. In Maryland personal, keep it fresh and elevate everything. and Pennsylvania, &pizza That’s exactly what he did. opened its first Baltimore Photo: FastCasual.com and Philadelphia locations by opting for a starting hourly pay of True to its core values, &pizza is part of the urban fabric of the $10.50, above Maryland’s $8.25 minimum and Pennsylvania’s community. From the way it refers to employees as tribe members $7.25 minimum. to its charitable arm, &CHARITY, and the localized design of the stores, the brand embodies the communities in which it serves. Also, the chain’s Columbia Heights shop was where D.C. Mayor Muriel Bowser signed the Fair Shot Minimum Wage Amendment The chain, which landed a $25 million investment a few months Act of 2016. The bill would increase the hourly wages of more ago from Avalt, has grown to 20 units with a presence in than 100,000 D.C. workers. In November 2016, at its Chinatown Baltimore and Philadelphia and soon will open in New York City. shop, &pizza hosted a roundtable with U.S. Secretary of Labor The chain also is focused on being a leader in the movement for a Tom Perez and U.S. Deputy Secretary of Labor Chris Lu to fair wage. To &pizza, fair pay is a vital ingredient to the company’s discuss the benefits and necessity of raising the minimum wage success and culture and the well-being of its 490 tribe members. to a fair wage both in D.C. and nationwide. As a member of Business for a Fair Minimum Wage, the company has played a significant role in the fight to raise the minimum 2017 7
Top 76 Brands #8 Dickey's Barbecue Pit It was a busy but good year for Dickey’s Barbecue Pit. In 2016, While Dickey’s enhanced it not only opened 87 units but also launched a new menu and menu kept many of formed Dickey’s Capital Group to facilitate future growth. Roland the brand’s classics, it Dickey Jr., who had been serving as the restaurant’s CEO, is now also now incorporates running Dickey’s Capital Group, and the brand’s former CIO, Laura tacos, sliders and Smoke Rea Dickey, took over the CEO title. Renee Roozen, former vice Stacks, a combination of president of operations, was appointed as the first brand president. a side and a meat in one easy-to-carry container. The chain also implemented its “No B.S.” (Bad Stuff) campaign in 2016, after execs took a hard look at its proteins and made the The new menu, however, move to source ethically and responsibly. Beef brisket is humanely wasn’t a strain on owner/ Photo: Dickey's Barbecue Pit handled and sustainably raised with no additives. Chicken is operators, Laura Rea Dickey said. raised without antibiotics, is cage free and vegetarian fed, and It required them to add only one item to food orders. contains no added hormones. There are no nitrates or nitrites in Dickey’s, known in the industry as a leader in tech, is Dickey’s sausages experimenting with sensor and beaconing technology to help and no artificial colors stores operate more efficiently by reducing waste and ensuring or flavors in any of the operational standards. Beacon technology will enable curbside brand’s pork products, pickup of to-go orders without the guests ever leaving their for example. vehicles, Laura Rea Dickey said. #9 Which Wich Superior Sandwiches Dallas-based Which Wich Superior Sandwiches has created a sandwiches, a creative ordering system and personalized strategy to achieve tremendous growth both in terms of locations sandwich bags to enhance customer experience and satisfaction. and revenue in upcoming years. With a recent opening in London, The chain isn’t focused only on feeding the bottom line, however. the 511-unit brand, which Sinelli, who is passionate about feeding the homeless, created opened 54 locations in 2016, the chain’s systemwide community outreach program, Project plans to open 50 domestic PB&J. Under the program, for every PB&J sold in a Which Wich, and 20 international locations one PB&J is donated to a local charity and another is banked by the end of the year. for a global fund in case of natural disasters or any large need. Proving that it’s not just The chain also operates “Spreading Parties,” where people sign “another sandwich concept”, up to make as many PB&J sandwiches as possible in one hour. Which Wich differentiates Attendees of the 2017 Restaurant Franchising and Innovation itself, CEO Jeff Sinelli said, Summit, for example, made 10,201 sandwiches and donated by providing customizable them to homeless people in Dallas. Photo: FastCasual.com 2017 8
Top 76 Brands #10 By Chloe By Chloe may be only two years old, but the plant-based concept already has opened five units and reported $5.9 million in same-store sales in 2016. Samantha Wasser opened the flagship location in 2015, in the West Village in New York City, where it quickly became a local favorite. Since then, Wasser has opened two additional New York City locations and has expanded to Los Angeles and Boston, with six to 10 units planned for 2017. Wasser also opened a stand-alone bakery concept — Sweets by Chloe — as a brand extension that sells the restaurant’s baked goods. The restaurant not only is a destination for the thriving vegan customer base but also has drawn in non-vegans by offering items that satisfy picky eaters, Wasser said. A millennial favorite, By Chloe is focused not only on its in-store experience but also on delivery. It has developed a relationship with online delivery services, including Postmates, and created Photo: ByCHLOE its own app using Brandibble to implement an order-ahead system that guests can use to place and pay for orders before picking them up at the restaurant or having them delivered. #11 Mooyah and debuted an internal texting program to communicate better with restaurant When it comes to the menu, Mod is also all about growth, adding two in-house While Mooyah burst into the better-burger scene in 2007, 2016 marked a year of employees across the country. roasted seasonal vegetables each quarter. strategic changes for the brand, including Lastly, the chain, which plans to open The chain strives to source only high- an array of technology enhancements to 20 to 25 units this year, updated its menu, quality ingredients without unnecessary better serve guests and franchisees. adding 100 percent certified Angus beef, additives and is just as passionate about all-natural grilled and crispy chicken, a helping its communities. It has donated Externally, it launched an app-based more than $650,000 to community- line of premium toppings and a section rewards program allowing guests to earn based, nonprofit groups focused on of prebuilt burger, sandwich and hot reward points with every purchase. It also at-risk youth and families. dog options. created a mobile-responsive consumer CEO Scott Svenson said his business is website to better reflect the brand’s powered by its people-first culture — Mod personality. makes pizza so it can serve people. The Internally, the chain converted its entire system to one point-of-sale solution and #12 Mod Pizza company is committed to using pizza as a platform to do good for its people and one back-end analytics reporting tool, Saying 2016 was a year of growth for Mod communities, and is proof that a company streamlining data to allow for advanced Pizza is an understatement. The 200-unit can succeed while providing top wages analytics and improved restaurant fast casual pizza chain, which launched and benefits, employee empowerment economics and franchisee profitability. in 2008, opened half of its existing units in and plenty of first and second chances to the last year. It also expanded to the U.K., its people, he said. Mooyah, which has 97 locations signed nine multiunit franchise partners after opening 19 units in 2016, also As one Mod Squad member shared in and hit $150 million in funding from Perella made enhancements to its internal an anonymous employee survey, “My Weinberg Partners, Fidelity Investments communications hub, the Partner Site, employees and I come here and forget and other private investors. 2017 9
Top 76 Brands our problems at home, the news where to open 100 to 120 locations each year for everyone is disregarding human life over the next three to four years. very small differences, the outside world Lastly, Chang said the brand is dedicated who can ridicule and judge our lives. I to maintaining 30 percent of the chain as come to work and sling pizzas with my corporate locations to solidify the brand’s best friends every day, I have the best job long-term growth. in the world.” Photo: Starbucks SYNC 3 will be able to order on the go by saying, “Alexa, ask Starbucks to start #15 PizzaRev #13 Starbucks my order.” While most restaurants’ growth rates It has always been an industry leader, Starbucks also is focused on delivering remained flat, the opposite is true for but Starbucks has brewed up a lot of personalized offers to customers via many of the brands on our Top 100 list. buzz this year, from its frontman Howard the mobile app, including the rollout of PizzaRev was no exception. The brand Schultz trading in his CEO title to suggested selling and recommendations. opened its first international location in concentrate on growing the retail side of Total Starbucks Rewards member spend, Mexico and added a total of 15 units in the business to the chain announcing a for example, was up over 20 percent in 2016, compared with 10 in 2015. goal of creating more than 240,000 jobs. 2016 versus 2015, driven by member The chain didn’t focus solely on The coffee giant, which has averaged growth and higher spend per member. expansions, however. It also spent 2016 a growth rate of 23 percent over the building out its training, development and past five years and delivered record technology infrastructures to support revenues of $21.3 billion in 2016, not only the growing franchise system. The is dedicated to job creation, but also is #14 Pieology year also saw a substantial investment passionate about innovating the customer experience via its digital flywheel around Pizzeria in technology to make the PizzaRev dining experience more seamless and the globe. Ending 2016 with $1.5 million in same- convenient. store sales is just one reason Pieology Starbucks, for example, offers the largest Those technological advances included Pizzeria made this year’s Top 25. Although and most robust mobile ecosystem of any mobile and online ordering apps: Rosnet, Carl Chang founded the brand in 2011, retailer in the world, with more than 13 a fully integrated solution for tracking food this year he finalized a strategic minority million Starbucks Rewards members and inventory, labor and budgets; Reputology, about 9 million mobile paying customers, investment from Panda Restaurant which aggregates online restaurant reviews with one out of three now using Mobile Group to facilitate expansion of the to track customer sentiment per region and brand. Pieology also acquired one of its Order & Pay and more than $6 billion per store; SendGrid, an email marketing loaded onto prepaid Starbucks Cards in competitors, Project Pie. platform; and Smartsheet, a cloud- North America during 2016. While Chang said Pieology never wants based project management software to The chain is planning this year to expand to grow too fast, he admitted that PRG’s collaborate across the corporate staff and its Mobile Order & Pay platform to give unlimited resources are making it easier franchise system. The chain also uses customers more ordering options by to expand. From real estate and vendor Aloha POS, ADP for payroll and Snagajob’s leveraging its skill for Amazon Alexa relations to huge buying power, Pieology recruitment platform. announced in 2016. Now, with the has grown to be even stronger and more In keeping with the brand’s commitment planned integration of Amazon Alexa and efficient as an organization, Chang said. to innovation and customization, PizzaRev Ford vehicles later this year, Starbucks The chain, which has 133 units, opened launched a thick dough last year called customers with a Ford car equipped with 53 stores in 2016 and has commitments Double Dough. It now accounts for 20 percent of pizza sales. 2017 10
Top 76 Brands • A hybrid version with a full bar and up ovarian cancer research, ultimately helping #16 Burger 21 to 4,000 square feet Newk’s Eatery reach its $500,000 mark in Variety is a key component to Burger 21’s • An airport footprint only two years. success. The chain not only offers 21 The chain has restaurants under Newcomb is also passionate about chef-inspired burger-and-shake pairings development in Arizona, New York, technology, which is evident by the but also embraced change this year by Eatery Newk'sEatery Pennsylvania and Maryland. Target brand’s introduction of the Newk’s spicing up its service model and decor. markets for franchise opportunities Apple and Android ordering apps as well In May 2016, for example, the chain currently include Dallas, Houston, Miami, as Newk’s Online Academy, an e-learning opened a Florida restaurant with a patio Philadelphia and Raleigh, North Carolina. platform that educates both hourly and full-service bar. Several months later, employees and area directors about the it launched a redesign of all 22 existing culture, standards and core processes stores and also refreshed its logo. that drive the brand. “Burger 21’s previous interior, while originally modern, was more subdued, #17 Newk’s Through their computers or mobile it was not speaking to our guests,” said Eatery devices, Newk’s employees receive easy access to interactive and digital learning Arlene Johnston, co-founder and VP of Newk’s continues to be a leader and content, including training, coursework, concept development. “We knew we innovator in the next generation of fast tests and videos that nurture professional wanted something that would emphasize casual, having opened its 100th restaurant development. our high-quality ingredients and the in 2016 and reporting a 48 percent growth hand-crafted preparation of our food, rate. It opened 36 restaurants last year because those are the stars of the show. and entered 10 markets. By offering design options to fit a variety of urban and suburban settings, we can The brand’s commitment to made- from-scratch menu offerings, open #18 Muscle continue expanding into new markets and deliver on our unique brand promise with kitchens and fresh ingredients aligns Maker Grill with consumers’ increasing demands for Muscle Maker Grill, which operates a design to match. … This new look gives transparency and quality. more than 50 restaurants in a variety us an opportunity to tell our brand story in Growing the brand isn’t the only passion of locations — including on military a more modern and fun way.” of CEO Chris Newcomb, however. His bases, in stadiums and at universities Of course, with variety being so important — differentiates itself by catering to organization — Newk’s Cares — raises to Burger 21, franchisees may choose consumers who want to eat healthy money for the Ovarian Cancer Research among four models. Options include: foods. That includes fitness enthusiasts, Fund Alliance. In 2016, Newcomb • The original 3,000-square-foot model those starting the journey to a healthier rallied his restaurants to raise more than • A 2,000-square-foot space lifestyle and people trying to eat better $110,000 for the cause in honor of the while on the go. brand’s 100th restaurant opening and his wife, Lori Newcomb, who was diagnosed To make healthy eating even easier, with the disease in 2013. Muscle Maker Grill offers its nutritionally focused menu items to guests through During Newk’s third annual Ovarian Cycle a meal plan program, which allows pre- Jackson spin celebration in September orders of meals via phone, online or in 2016, Newk’s Cares united riders to raise store, available for pickup or delivered $159,395 for OCRFA. These efforts work right to their doors. in concert with Newk’s Cares’ year-round, in-restaurant campaign, which donates The company, which has 200 deals in Photo: Burger 21 10 cents from each water bottle sold to development, is expanding rapidly in 2017 11
Top 76 Brands new and existing markets domestically with high-quality ingredients, and the as well as internationally, lining up partners atmosphere and customer experience in Kuwait and throughout Middle East are built around custom artwork on the and Asia. walls, the music playing in all restaurants The chain, which plans to have 300 units and the employees’ involvement in local open by 2020, also is taking every chance communities. it can to encourage people to eat better Baseball is one of the communities and live healthier lifestyles. It was featured Photo: Nicoletta Amato Photography that Chronic Tacos takes seriously. It is on the CBS series “Undercover Boss,” returning for its fifth season as a vendor Each opening, for example, has been where it communicated that message to at the Angel Stadium of Anaheim, accompanied by significant press and a national viewing audience and rewarded for example. large crowds, which could be less some of its employees for their hard work “This five-year milestone is coming at about the burgers and more about fans and dedication. hoping to catch a glimpse of their favorite an exciting time for us,” Mohammed Founder Rod Silva even ran for president Wahlberg brother. Regardless of the said. “We’re gearing up for a variety of of the United States as an independent reasoning, consumers are keeping each events, both active and philanthropic. We candidate with the goal to “Make America location packed, inspiring executives to saw major turnouts last year at our new Healthy Again.” His platform was focused open 20 to 25 units in 2017. first-base location; so, we’re excited to on the biggest problem that Americans To keep up with that growth, the chain continue to offer our authentic food on are ignoring — their health — and the has upgraded its operations. It recently game days.” havoc it has caused on the health care implemented HotSchedules scheduling Chronic Tacos, founded in 2002 in system. He used the opportunity to software, POSitouch POS and web- Newport Beach, is opening additional educate people on simple substitutions based video training, for example, and is units in California in 2017, as well as that are better choices without sacrificing evaluating mobile apps/digital ordering in North Carolina, Alabama, Georgia, flavor. His candidacy was widely covered and other technologies for 2017. Washington, Hawaii, Florida and in the media and his campaign received Alberta, Canada. support from thousands of people nationwide — in addition to officially making the ballot as a presidential candidate in Colorado. #20 Chronic Tacos #21 Penn Station Chronic Tacos finished 2016 with 40 units, East Coast Subs a 50 percent growth rate in store counts. Penn Station East Coast Subs passed #19 Wahlburgers The California-based chain, which is on the 300-restaurant milestone in early Created by several members of the target to open 30 additional units by the 2016, opening 12 restaurants and closing Wahlberg family — including actors Donny end of 2017, also reported a 13 percent zero. The 30-year-old brand has grown and Mark and chef Paul — Wahlburgers increase in same-store sales, and the at a slow and steady pace, choosing to went from six units to 13 over the past average unit volume of its top 10 locations focus on helping its existing restaurants year and has more than 300 development totaled $998,090.40. succeed. It has only one company-owned agreements to cover over half the While the brand continues to grow, it is location, for example, doesn’t take rebates world. Brand buzz has remained high, committed to staying true to its roots from suppliers as income and grows in in part due to the chain’s reality show and won’t sacrifice quality in order to concentric circles from its home base of “Wahlburgers” on the A&E network, which grow, said Michael Mohammed, Chronic Cincinnati, said President Craig Dunaway. has helped demonstrate success and fan Tacos CEO and president. Its menu Always striving to keep controllable costs appeal of the brand. relies on third-generation recipes made down, it decreased food costs by more 2017 12
Top 76 Brands than a percentage point to less than 23 its Famous Tea, providing guests with percent in 2016. another noncarbonated beverage option. The chain’s Free Tea Day in 2016 was The chain, last year, also launched a a massive success, serving more than mobile app and a new level of franchisee 435,000 cups of tea, setting a brand support with a regional franchise record and also becoming the biggest consultant program. sales day of the year. Penn Station has continued to use In an effort to boost its customer technology to improve systems for experience, McAlister’s, which has 387 Photo: iStock.com franchisees and provide a better experience for customers, Dunaway said. units, upgraded its loyalty and online ordering apps, converting its former #23 Panera This includes creating a training and career path initiative called My Penn Path that visits-based loyalty app to a points-based Bread Company program. It now rewards guests who Panera Bread Company made headlines integrates into the company’s POS system. not only frequent the brand with high this year not only for its solid growth rate My Penn Path gives employees a regularity, but also spend more. The ability but also when it changed its status from clearly defined career path to show for guests to track their purchases and public to privately owned after selling to them how they can take an entry-level accumulate points to receive a designated JAB Holding Company for $7.5 billion. job and make it a career by outlining reward has helped increase usage, which personality traits and skills are according to the company. “In more than 25 years as a publicly needed to be promoted for each step. It traded company, Panera has created Late in 2016, the brand finalized above- provides greater clarity and strategy for significant shareholder value,” CEO Ron store payment within the ordering app that the employee and franchisee and has Shaich said. “Indeed, Panera has been enables guests to pay via the app prior to helped franchisees significantly with hiring the best-performing restaurant stock arriving at the restaurant. and retention. Because a restaurant’s of the past 20 years — up over 8,000 employees are its greatest asset, this has The chain’s deployment of menu boards percent. Today’s transaction is a direct made a positive impact on all parts of the in late Q3 had a massive impact on the reflection of those efforts and delivers business, Dunaway said. total guest experience and subsequently substantial additional value for our comparable sales performance for the shareholders.” remainder of the year, according to the Bakery-café sales were up 3 percent at chain. The menu board is a significant company-owned restaurants for fiscal Q4 aesthetic improvement and infuses the #22 McAlister’s brand with character and personality. 2016 and increased 6.6 percent on a two- year basis. Deli Additionally, the categorization of key The chain’s latest focuses are on McAlister’s Deli, known as the place to go products to improve the ease of ordering paired with some pricing adjustments completing the rollout of delivery and its for sweet tea and hospitality, upgraded improved wait times, overall satisfaction 2.0 digital initiative. both in 2016. It deployed Green Tea, for example, as an accompaniment to scores and profitability. Although delivery is available in 15 percent McAlister’s, which opened more than of stores, the chain is looking to increase 30 units last year, will continue the that to 30 to 40 percent of systemwide growth trend in 2017, targeting the upper bakery stores in 2017. Digital sales are up Midwest, Florida and Georgia, as well as 24 percent, due in part to the success of expansion in core markets from the mid- the MyPanera customer loyalty program, Atlantic, through the Southeast and the which reached 25 million users this year. Gulf Coast, and into Texas. Clean eating is another initiative important Photo: FastCasual.com to the brand as evidenced by the launch of its 100 percent clean menu. Panera’s 2017 13
Top 76 Brands products are now free from flavors, to open 25 units, doubling the number of nearly 100,000 chicken lovers Sept. 23-24 preservatives, sweeteners and colors franchise agreements made the previous in New Orleans. from artificial sources as defined by the year. Also, Fazoli’s marked a record- The festival, which brings food, music, company’s “No No List.” breaking 15 consecutive quarters of family and festivities together, donates a “We are proud of accomplishing this same-store sales growth, with franchisees portion of proceeds to local charities. feat, but we are even more proud of experiencing nearly three times the industry average growth rate and new Graves also co-founded Lemonade Day the potential impact we can have on in 2010, as a way to introduce children to the broader food industry,” said Sara franchised restaurants continually setting entrepreneurship through the experience Burnett, director of wellness. “We new systemwide records. of running their own small business: a continue to challenge our peers to make This year, the company will carry over lemonade stand. The free communitywide a comprehensive commitment to 100 the momentum with the unveiling of a effort is now in nearly two dozen states. percent clean ingredients.” modern interior redesign of its restaurants Participants are given free backpacks with featuring a Wi-Fi bar and a warm, friendly detailed workbooks that include marketing environment for its guests. Fazoli’s plans tips and advice to help them get started, to redesign 15 restaurants by year’s end. and they gain valuable experience by #24 Slim Chickens The chain also has committed to ditching setting goals and solving problems. With unique menu options, including all artificial ingredients by June 2017 The goal is to inspire kids to spend a little, Chicken & Waffles and seasonal jar and is rolling out an enhanced menu save a little and share a little, the last part desserts, Arkansas-based Slim Chickens with premium ingredients and offerings, by encouraging them to donate some of has created a strategy to achieve including table-side grated Parmesan, as their earnings to charity. tremendous growth both in terms of well as several new dishes. They include locations and revenue in upcoming years. Create Your Own Lasagna, Spicy Sausage The brand has seen rapid growth with 18 Rigatoni and Brownie Gelato Sundae. openings in 2016 and plans for international expansion to Kuwait in 2017. This year, the brand is projected to open 31 stores, surpassing the 50-store milestone. #26 Raising In an effort to become synonymous with “Life Changing Chicken,” the chain has Cane’s Founded by Todd Graves in 1996 in Baton implemented a stronger messaging of its Rouge, Raising Cane’s now has more Photo: FastCasual.com “Better life” platform to enrich the lives of than 300 restaurants in 23 states. Graves those touched by its restaurants in 2016. The brand, for example, recognizes “Life still has big plans for the brand, however, #27 Mad Greens including the goal of operating 600 units Mad Greens has been on the cutting edge Changers” within its communities who producing $1.5 billion in annual sales by of the better-for-you category for the past enrich, protect or save lives by offering the end of 2020. five years, almost doubling in size in 2016 them free dining events. This includes first Along with serving quality chicken from 15 to 27 restaurants and opening in responders, firefighters/EMTs, police and finger meals, the chain is known for its two new markets: Austin, Texas; and Salt active duty military. commitment to community involvement Lake City, Utah. The chain focuses on high-quality ingredients, scratch kitchens, — it has an entire website dedicated to freshly prepared fruits and vegetables, organizing charitable causes. The chain is salad dressings, marinades and all meats #25 Fazoli’s gearing up to help host the second annual Fried Chicken Festival, which will take up and proteins grilled fresh daily. Growth was the theme of 2016 for 520,000 square feet of space and host Another Mad Greens focus is speed Fazoli’s. It signed 11 franchise agreements of service. It strives to get customers 2017 14
Top 76 Brands Chi’Lantro opened two locations in 2016, through the line in 30 seconds and The technology also is being introduced to along with an additional opening in early relies on technology to meet that goal. numerous Chipotle suppliers. January 2017, marking the fifth location Digital menu displays, for example, “In late 2015, I made a promise to all of overall. In addition to its expansion, the help guests quickly choose their orders our customers that we would become an brand saw same-store sales increase by and also keep them updated on all the industry leader in food safety,” said Steve 25 percent from 2015 to 2016. happenings at Mad Greens from vendor Ells, founder, chairman and co-CEO of highlights to team member photos. To In April 2016, Chi’Lantro made the move Chipotle. “In keeping with that promise, make an already quick experience even to go completely cashless in all locations we’ve made advancements that have quicker, the chain recently opened its first after observing that most transactions are reinvented the way we manage our entire unit with a drive-thru. made by card and also in consideration supply chain and care for our customers in of safeguarding against theft and other Other technologies Mad Greens uses our restaurants, while remaining true to our safety issues. to offer speedy and accurate service commitment to serve fresh, delicious food include catering software; Brink POS’s made from ingredients raised with care.” online ordering platform to allow guests Although sales haven’t bounced back to order from their mobile devices, skip — comparable restaurant sales in 2016 the line and pick up at the register; and decreased 20.4 percent — the chain is #30 sweetgreen PlayerLync, which incorporates iPads gearing up for a comeback. Although sweetgreen was one of the first for training and streamlining recipes and fast casual bands to launch a mobile “Returning to our roots of what originally operational procedures. made Chipotle great has helped refocus app, it kicked off 2016 with an upgraded The chain, which has 31 units, is on all of our strategies toward the guest version featuring seamless integration and track to open 12 to 14 units by the end of experience,” Ells said. single sign-on for mobile ordering, mobile the year. payment and a rewards program. The chain will succeed, he said, by continuing to simplify and improve “When we started sweetgreen, it was all restaurant operations, use creative about bridging the gap between healthy marketing to rebuild the brand and further eating and convenience,” sweetgreen co- #28 Chipotle the rollout of digital sales efforts. founder Jonathan Neman said. “This new While Chipotle has seen better years app brings us one step closer by reducing — after dealing with reports of E. coli wait times.” outbreaks and a drug scandal involving The app focuses on innovation, its chief development officer — it has #29 Chi’Lantro sustainability and impact. Online ordering increased 80 percent in one year, and the become a mover and a shaker when it Although Chi’Lantro opened seven years comes to food safety. system increased accuracy and flow of ago as a food truck with one employee, the ordering process. The loyalty program Choosing to learn from its food-safety the Austin, Texas-based brand since has allows users to earn a $9 credit for every issues, the heavily brand-damaged grown to five brick-and-mortar locations $99 they spend. There are three loyalty Chipotle announced a few months with a full-service catering department levels — green, gold and black — with ago that it was installing “breakthrough and a homemade kimchi facility. different degrees of swag and perks, technology” throughout its 2,200 stores Part of that growth stems from founder including sweetlife festival tickets and that would “literally take pathogen sources Jae Kim’s 2016 appearance on ABC’s exclusive dinners. out of the air, off surfaces and out of “Shark Tank,” when he shared his vision ice before any food comes into contact Proving again that it’s ready to take of inspiring the way people eat and think with any of those three potential sources risks to improve operations, the 64-unit about Korean barbecue. That appearance of contamination in its restaurants,” brand recently announced that it is going also garnered a $600,000 investment according to a news release. cashless in states where the option is legal. from Barbara Corcoran, a business expert and one of the show’s sharks. The benefits of going cash-free are obvious; the chance of robbery goes 2017 15
Top 76 Brands down, and it also helps with hygiene issues since employees aren’t handling Additionally, the company has created a community marketing program that #33 Balance cash and then touching food. provides its franchise owners with the Pan-Asian Grille tools needed to create strong connections Balance Pan-Asian Grille offers a clean in the community to further build their and modern Asian-inspired menu that businesses. This activity has driven strong includes build-a-bowls, customized Asian #31 Chicken guest loyalty and community outreach in many markets. tacos and vegan and gluten-free options. If that’s not enough to get the tastebuds Salad Chick excited, it has bubble tea, too. Since launching in 2008, Chicken Salad Technology is at the forefront in all aspects Chick has grown from a single-unit of the Ohio-based brand’s day-to-day takeout restaurant to a 65-unit fast casual concept with locations across the #32 Holler & Dash operations. It uses social media marketing Southeast and 147 in development. Biscuit House with in-store display boards to encourage user content posts, and the store runs Founded by Stacy Brown, the company Holler & Dash Biscuit House takes the entirely on iPads with no receipt printers puts an edgy twist on a Southern classic, humble biscuit and uses it as a platform (except for customer requests). offering guests a “custom fit” chicken salad for new kinds of flavors and combinations. Balance relies on a cloud-based POS experience with more than 12 flavors. It While the Cracker Barrel-backed brand system with custom data reporting as also serves gourmet soups, flavorful side strives to deliver high-quality food, it well as operating software to manage salads and freshly baked desserts. also is focused on speedy service, employee productivity, and it has built blending old-fashioned hospitality with Over the past three years, the company an online training platform that it keeps technological innovations for a modern has reported $90 million in sales, an updated via a training manager and in- take on Southern traditions. increase of more than 6,000 percent. house videographer. Most recently, Chicken Salad Chick Apple iPads, for example, are key to the The brand recently launched a mobile ranked 37 on the Inc. 5000 List of brand’s operations. Using the PlayerLync app via LoyaltyPlant, which acts as a America’s Fastest-Growing Companies, system, iPads provide an ever-growing kiosk in customers’ pockets. The custom making it the fastest-growing franchise library of training materials and restaurant modules it has planned in the roadmap brand in the country. standards. If the line is too long at the will use Bluetooth low energy and counter, an employee can pick up an The Auburn-based brand plans to open geofencing to calculate customer flow iPad and take orders from guests waiting 23 restaurants in 2017, bringing the total and dwell time, as well as enable offering in line. A technology fan favorite is its number of locations to 88. It will expand of digital curbside pickup to replace digital jukebox system, called Rockbot, its presence throughout Mississippi, drive-thru in future growth. which allows guests to select the music Louisiana, Georgia, Florida, Tennessee, being played in the restaurant from their Texas and Alabama. mobile devices. While people and technology allow guests to have a fun experience, the #34 Bean Sprouts food consistently proves to be a “mover Bean Sprouts, based in Seattle, is and shaker” in the fast casual industry. dedicated to giving kids and families a Culinary director Brandon Frohne places a playful eating experience. Designed with premium on partnering with small, artisan young visitors in mind, the menu includes vendors to develop sophisticated dishes Crocamole and Flutter Bites. The menu is at each location. set up on a low counter, empowering kids Photo: Chicken Salad Chick 2017 16
Top 76 Brands Perhaps the greatest menu innovation in 2016, however, was the chain’s offering of five new street tacos. To coincide with the launch of the tacos, Cal Tort rolled out an online ordering platform with OLO to provide a better, more streamlined online ordering experience for guests. Photo: Bean Sprouts Photo: Starbird to make their own healthy choices. Adults Upon their arrival, guests hit “I’m here” on also have a variety of choices, including the app and their food is delivered within organic coffee and sustainable foods #36 The Halal five minutes to the table or a numbered served in compostable packaging. The six-unit chain, which will double Guys parking spot in the lot. Having grown from a street cart traveling Starbird, launched by Aaron Noveshen, its locations in 2017, also has plenty from midtown to Manhattan just a couple will open three units by the end of 2017. of choices for people with dietary years ago, The Halal Guys is now an “Our lives and our expectations have challenges, adhering to strict “always” and international restaurant brand with more changed dramatically since the advent “never” ingredient guidelines. than 350 locations either open or in of the original drive-thru,” Noveshen said. In an effort to bring its kid-friendly development. “With Starbird, we’re adapting to the new menus to families across the country, The brand, best known for its platter of needs of our tech-savvy and culinary- Bean Sprouts has entered into concept chicken and gyro meat with rice, opened conscious community. We’re changing the licensing agreements with several 21 new units in 2016, and is looking to traditional fast-food landscape with new partners, including Service Systems innovate technology in 2017. expectations, new standards and new Associates and Palace Entertainment ideals for quick-service dining.” to open in zoos, amusement parks and The creation of a mobile app and mobile water parks. ordering are in the works, which will build on the success of the loyalty program called The Halal Guys Rewards that began late last year. In the last seven #38 Rockfire Grill #35 California weeks of the year, more than 17,000 guests joined the loyalty program and Rockfire Grill has had a great year. Named one of Yelp’s Top 100 places Tortilla conducted nearly 50,000 rewards to eat, the burger brand also won the California Tortilla focused on improving transactions. Perfect Pitch contest at last year’s Fast operations in 2016. The brand’s loyalty Casual Executive Summit. During last mobile app, for example, made it year’s annual hour-long session, three easier for customers to locate nearby relatively new restaurant entrepreneurs restaurants, earn and redeem loyalty #37 Starbird took the stage to make their best five- points, find their account balances and minute “pitch.” Rockfire’s father-and-son Starbird, which centers around chicken place online orders at their favorite Cal team of Raj and Neil Syal won over the from a California organic, free-range Tort locations. In May, it launched an crowd, however. chicken farm called Petaluma, relies solely instant-win promotion, giving guests 10 on technology for ordering. Its mobile “Nothing compares to hot, fresh bread points when they downloaded the app. ordering app ditches the often-hated right out of the oven,” the elder Syal told The brand saw more than a 100 percent drive-thru line, allowing customers to the audience. “In India, we have a term increase in app downloads, and average place their orders whenever and wherever for this that means ‘hot and fresh, straight monthly check-ins more than doubled. they choose via smartphones or tablets. from the fire.’” 2017 17
Top 76 Brands Built around the idea that fresh-baked its partnership with Children’s Hunger crafted from fresh ingredients celebrating bread straight out of the oven is hard Fund in 2016, raising $341,380 last year, pioneers in rock history. to beat, the 2-year-old brand has two which resulted in providing 1.37 million With nearly 700 total units, 65 of which locations — Mission Viejo and Santa Ana, meals to children in need. opened in 2016, Moe’s plans to continue California — but already is planning for in 2017 with a brisk pace of expansion two more California locations. — into mature markets to strengthen its Rockfire recently added craft beers on tap. competitive advantage, and into emerging “It’s a great addition to our business markets to improve density — and will model, and all future locations will introduce the brand to select new markets. be designed to have a gastropub environment with an open kitchen floor plan as we had discussed in the Perfect Pitch presentation,” Raj Syal said. Photo: Moe's Southwest Grill #41 Naf Naf Grill Naf Naf Grill is on a mission to share #40 Moe’s fresh Middle Eastern food with the nation through a fast casual setting. Taking the #39 la Madeleine Southwest Grill Midwest and East Coast by storm, it has La Madeleine has been committed Moe’s Southwest Grill continues to be a built a loyal fan base via cutting-edge for more than 30 years to menu leader in providing a more engaging and technology. Its secret weapon: training its innovation in the fast casual French personal customer experience. In June team members to become the brand’s bakery-café segment. 2016, Moe’s Southwest Grill was named biggest ambassadors. the Best Mexican Fast Casual Restaurant The brand’s culture is centered around the Its made-from-scratch breakfast menu Brand by the 2016 Harris Poll, showing idea of Naf Love, a term used to describe expanded in 2016 with the introduction the largest equity increase (13 percent) the love and passion employees pour of customizable breakfast crepes and among all restaurants measured. into the food and commitment to making a new mimosa experience. Additionally, the brand introduced a take-and-bake Known for its out-of-the-box digital guests happy. Naf Naf’s design allows country French brunch for the 2016 strategy, the brand last year launched guests to experience Middle Eastern holiday season and launched a loyalty app a virtual Thanksgiving on Facebook cuisine on their own terms and in an with mobile pay, order-ahead and digital Live, augmented reality-enabled art in open environment. gift card features. restaurants and participated in the Burrito The centerpiece of every Naf Naf Grill is Man-nequin Challenge. It also received a its open kitchen and bakery. Guests are From a brand growth perspective, la ton of press after creating the “Rebound able to watch chefs bake fresh pitas and Madeleine has seen continued sales Burrito” campaign in February 2016. On prepare the shawarmas spinning over growth for six consecutive years and the day before Chipotle closed for food- an open flame. In addition to preparing is poised for significant development safety training, the campaign launched all of the food in full view, team members through corporate and franchising a New York media tour, a full-page ad in assemble guests’ bowls and pita expansion in 2017. It has announced an USA Today and targeted outreach to key sandwiches directly in front of them. extensive franchise growth initiative to media touting that, although Chipotle was increase its U.S. presence by more than In 2017, Naf Naf will open 12 units closed, Moe’s was open all day long and 50 cafés in the next few years. and expand into several markets, offering a BOGO deal. Also, its focus on community is stronger including Ohio. Other highlights of 2016 included the than ever. With its mission to help end rollout of the brand’s Rockin’ Rewards childhood hunger, la Madeleine continued loyalty app with an online-ordering feature and a store redesign featuring artwork 2017 18
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