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Who's Our #1? (Hint: It's a Smash with Consumers.)

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Who's Our #1? (Hint: It's a Smash with Consumers.) The top restaurant chains, people, trends and technologies shaping the fast casual segment. Who's our #1? (hint: It's a smash with consumers.) PRESENTED BY: SPONSORED BY: What does world-class frying innovation look like? You’re looking at it. When you’ve been making fryers for the world’s most well-known names in fast food since 1957, the recipe for success is simple. Never take it for granted. Our latest example of not resting on our reputation is the Evolution Elite® fryer series. Engineered to use 40% less oil while ensuring the highest food quality, it delivers the kind of efficiency we’re known for around the globe and savings you can drop straight to the bottom line. The EE is available in gas or electric versions from one to four wells in full- or split-vat configurations for maximum flexibility and menu variety. Want a closer look? Go to hennypennyevolution.com. Engineered to Last™ Learn more at hennypennyevolution.com or call 1-800-417-8417. Taj Ad [GrocHQ_9x10.875]_fin.indd 1 3/15/11 3:19 PM Top 100: A broader perspective Just as fast casuals change recipes from time to time, so do publishers. This year—our 7th of publishing the Fast Casual Top 100—we decided, as did many of our brands last year, to add some new flavors t0 our mix. In the past, the Top 100 focused exclusively on concepts. In so Publisher doing, it omitted a range of important factors that contributed Tom Harper to the continued growth of this innovative and rich segment. For this edition, then, our President, Networld Media Group rankings include not only the top brands, but also the people, trends and technologies [email protected] that contributed most to fast casual. Editorial vice president, Our first step was to request nominations from our readers. We received hundreds. Our foodservice division panelists pored over the results and set about ranking them. Valerie Killifer [email protected] I am optimistic that the new method provides a better reflection of the segment as a whole. Just as in business, it takes a full view to understand where the segment has been Executive editor and where it’s headed. We hope you believe that our top 100 provides such a view and will Joseph Grove continue to do so as we move into another year filled with success. [email protected] Allow me to offer a special thanks to this year’s panelists: Linda Duke, founder of Duke Contributors Marketing; Darren Tristano, executive vice president of Technomic; and Kathleen Wood, Missy Baxter founder of Kathleen Wood Partners LLC. Suzanne Cluckey Richard Slawsky — Valerie Killifer Top 100 panel Linda Duke Duke Marketing Valerie Killifer [email protected] Table of Contents Darren Tristano Technomic 4 Top 50 restaurants Kathleen Wood 16 Top 10 menu innovations Kathleen Wood Partners LLC 19 Top 20 people Top 100 2012 ©2012 Networld Media Group 24 Top 10 technology trends LLC. 13100 East Point Park Blvd., Louisville, KY 40223. (502) 241-7545. All rights reserved. No part of this publication may be reproduced without 27 Top 10 industry trends the express written approval of the publisher. Viewpoints of the columnists and editors are 30 Q & A with David Prokupek, their own and do not necessarily represent the viewpoints of the publisher. chairman and CEO of Smashburger 3 to the comfort-food cravings consumers displayed during the Smashburger downturn. 1 Denver / No. of units: 145 “I do think Smashburger was able to hit the ball at the right time because customers are coming from other fast casual or casual When Smashburger opened its first unit in 2007, the better burger dining restaurants. Given that hamburgers are a comfort food and category was just beginning to emerge. Five years later, Smash- a favorite food of Americans, it was a really good time to grow,” burger is an industry leader and has moved both the better burger Prokupek said. and fast casual segments forward in major ways. International growth is definitely on the company’s radar as it an- David Prokupek, the chain’s chairman and CEO, called 2011 a nounced several development deals in 2011 for Latin America, “capstone year.” Not only did Smashburger increase sales 72 Canada and the Middle East. percent over 2010, the company signed several international de- “I think, just like in the states, burgers are a favorite food outside velopment deals and continued its US-based growth, opening in of the U.S. Also, just better fast food is not a U.S. trend,” Prokupek 12 new markets. If that wasn’t enough, the chain was ranked by said. “What’s also exciting is the idea of fast casual is pretty popu- Forbes magazine as America’s Most Promising Company, a testa- lar around the world … and no one has yet really gone after it.” ment to the company and consumer culture company executives have worked hard to develop. Its international locations will start to open later this year in ad- dition to the 50-70 new units stateside. Those U.S. openings in- “Our strategy from day one has been to build the number one clude 15 to 20 new corporate stores in existing and new markets brand in the better burger business,” Prokupek said. “We wanted such as Chicago, Houston, Dallas, Los Angeles, Minneapolis, San to get the company as near to national as possible, and we have Francisco, Boston and Washington, D.C. Meanwhile, additional really been accelerating growth during the recession. The restau- international territories include Western Europe, South America rants are full of energy and it’s been a good, winning strategy.” and Asia. In fact, while many restaurant chains were retracting during the — Valerie Killifer recession, Smashburger, owned by private equity firm Consumer Capital Partners, showed no signs of slowing down. A testament 4 2 Zoës Kitchen Birmingham, Ala. / No. of units: 54 Kevin Miles was promoted to president of Zoës Kitchen in March 2011. Since his appointment, the chain has shown no signs of slowing down. The company grew at a rate of almost 40 percent in 2011 and closed the year with 54 locations across 12 states. New restaurants are scheduled to open this year in the markets of Dallas-Fort Worth, Texas; Raleigh-Cary, N.C.; and Columbus, Georgia. Miles said he adheres to the growth philosophy established by former company president Greg Dollarhyde: Stay the course. 3 Firehouse Subs Jacksonville, Fla. / No. of units: 494 In 2011, Firehouse Subs became the first national chain to announce the systemwide rollout of the Coca-Cola Freestyle beverage dispenser. Additionally, by April, the company had nine new franchise agreements in place, set to add 429 restaurants to the chain’s growing portfolio. The new agreements include development territories within Iowa, Louisiana, Massachusetts, Michigan, Minnesota, Nebraska, Ohio, Pennsylvania and Texas. “The signing of these agreements is a true testament to the strength of the Firehouse Subs brand and its growing popularity,” said Don Fox, CEO of Firehouse Subs. We agree. 4 Zoup! Southfield, Mich. / No. of units: 43 Zoup! had another winning year in 2011, adding 13 stores to its roster. If that weren’t enough, the chain increased its system-wide sales by 57 percent and ranked No. 300 on the 2012 Entrepreneur Top Franchise 500. The chain, led by co-founder Eric Ersher, is fueled by a powerful company culture, providing its ex- ecutive leadership with a “secret weapon” for identifying and training franchisees who will grow the brand in new and existing markets. 5 5 Freebirds World Burrito Emeryville, Calif. / No. of units: 67 Since purchasing the Freebirds restaurant chain in 2007, Tavistock Group has spent the past several years growing its presence in both California and Texas. In 2011, Freebirds opened the doors of its 50th Texas location and now has 54 throughout the state. It also has continued to grow in California. Last year, the company reached another milestone with the first of several planned restaurants opening in Oklahoma. Additionally, the company hired restaurant-industry veteran Jim Mizes to serve as chain president. 6 Chipotle Mexican Grill Denver / No. of units: 1,230 Chipotle continued down its path of global growth in 2011, opening its second location in London. The chain also is looking to open in Paris and Germany, further extending its international footprint. While employment issues plagued the concept in 2011, co-CEO Monty Moran has used the experience to become an outspoken advocate for immigration reform. The company is expected to hire more than 100,000 employees over the next three years. Legislative issues aside, consumers are keeping the chain hotter than a habanero. Chipotle ended its fiscal 2011 year with a revenue increase of 23.6 percent, stemming from a same-store sales gain of 11 percent. Five Guys 7 Burgers and Fries Lorton, Va. / No. of units: 900+ Five Guys (as it’s commonly called) was founded in 1986 by husband-and-wife team Janie and Jerry Murrell and their four sons. The concept saw minimal growth until the Murrell’s started to franchise nationwide in early 2003. From there, the restaurant chain gained widespread appeal and in just under 18 months had sold options to more than 300 units. The chain ranked No. 5 on Technomic’s 2011 Top 100 Fast Casual chain report, raking in annual sales upwards of $625 million. 6 8 Freshii Toronto / No. of units: 60 Freshii headed into 2011 with its eye on customer health. In partnership with celebrity dietician Ashley Koff, the chain launched Freshii15. The program is a customizable eating plan designed to help customers keep their nutrition and health goals for the year.
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