January 2015
CREATIVE CONCEPTS ❷ NEWS IN BRIEF ❸ BIBIBOP ASIAN GRILL ❻ BIBIGO ❽ BONMI ❿ XI’AN FAMOUS FOODS ⓬ WHERE ARE THEY ConcepTracNOW? TM ⓮ CREATIVE CONCEPTS
Asian Exploration: Operators Offer New Asian Options By Darren Tristano, Executive Vice President
Prior to the start of 2015, Technomic released its annual list of 10 trends to watch for this year, among them “There’s something about Asia.” Thanks to chains such as Panda Express and Benihana, Asian fare has become increasingly mainstream. But a new wave of Asian concepts is exposing customers to Asian cuisine beyond sushi and orange chicken. The four concepts profiled in this issue—Bibibop Asian Grill, Bibigo, BONMi and Xi’an Famous Foods—specialize in dishes such as Korean-style bibimbap, Vietnamese bánh mì sandwiches and biángbiáng noodles from China’s Shaanxi province.
These concepts spotlight secret family recipes and traditional ingredients to establish a level of authenticity and appeal to those seeking ethnic fare, while also highlighting American-friendly elements to make their restaurants approachable to a variety of customers. For example, most of our profiled chains are fast-casual concepts that use an assembly line-style ordering system; this not only allows patrons to customize their meals according to their flavor preferences, but also helps take away the mystery behind these dishes, allowing diners to see all the ingredients and preparation behind the meals. These Asian chains also attract health seekers by straying away from heavy sauces and fried items in favor of better-for-you ingredients like grilled proteins, steamed rice and herbs and spices.
From my perspective, we will see more concepts specializing in lesser-known Asian cuisines, including Korean and Vietnamese. Many customers, particularly Millennials, are more adventurous eaters and will seek out these Asian concepts for new flavors and menu items. For the next wave of Asian chains to succeed, establishing authenticity is crucial, but so is creating transparency. Both of these can be accomplished by telling the story—operators should explain their history and cuisine, making sure to point out ties to Asia, (do they use traditional Korean recipes? Are the owners from Vietnam?) as well as include information on sourcing and the quality of their ingredients. ConcepTracTM 2 NEWS IN BRIEF
100 Montaditos launched a unit in Washington, DC. Southern fare, opened a unit in Atlanta at Lenox The site opened in the city’s The Yards development Square mall. The concept operates three other in the Navy Yard area. The fast-casual chain operates locations in Atlanta. (Eater Atlanta 12/4/14) nearly 20 locations in the U.S., primarily in Florida. (Eater Washington DC 12/3/14) BGR The Burger Joint is set to launch a unit in Germantown, MD. The fast-casual burger chain also Amsterdam Falafelshop opened a Washington, DC, has a unit in the pipeline for Annapolis, MD. BGR The location. The unit is located in the South Food Court Burger Joint currently operates 17 locations in the in the L’Enfant Plaza Underground Promenade. South and Mid-Atlantic. (Facebook 12/9/14; Company Amsterdam Falafelshop, a fast-casual chain Website 12/9/14) specializing in falafel dishes, operates five other sites in the market. (Eater Washington DC 12/3/14) Bowl of Heaven signed a multi-unit franchise deal for the San Diego market. The fast-casual, health-minded chain—known for its açaí bowls, smoothies and juices—plans to open its first San Diego site in mid- 2015. It’s targeting locations in San Diego communities such as Carmel Valley and Scripps Ranch. Bowl of Heaven operates five California locations and one Idaho site, with units in the pipeline for California, Nevada and Utah. (FastCasual.com 12/2/14; Company Website 12/19/14)
California Tortilla is launching a Pennsylvania Arooga’s Grille House & Sports Bar, a casual-dining location. The chain is opening a unit in downtown Pennsylvania chain, plans to enter Illinois and Arizona. State College near the Penn State University campus. The concept signed an agreement with WingDoctor California Tortilla held a soft opening on December 8 LLC to launch a minimum of three locations by 2018. and plans to hold a grand opening January 22. That The company aims to open a site in Chicago as early day, the restaurant will offer free burritos and drinks as this summer, followed by locations in the to all customers and award a year’s worth of free Phoenix/Scottsdale area by 2017. Arooga’s also has burritos to the first 20 patrons. The fast-casual 15 sites in development for New England that are Mexican chain operates more than 40 units in seven slated to launch over the next five years. The chain states and Washington, DC. (Onward State 12/4/14) currently operates nine corporate-owned sites in Pennsylvania and plans to open its 10th location in Coconut’s Fish Cafe, a Hawaii-based, fast-casual February. (RestaurantNews.com 12/4/14) seafood chain, plans to expand in the mainland in 2015. The chain is targeting the South and West Aurelio’s Pizza plans to debut a unit in Arlington Coast regions. Coconut’s Fish Cafe recently signed a Heights, IL. The site, slated to open in early 2015, will multi-unit franchise agreement with a Texas operator, mark the chain’s first location in Chicago’s who opened a site in Dallas in December and plans to northwestern suburbs; Aurelio’s current sites are in open seven additional units between Dallas and Chicago, the city’s southern and western suburbs and Austin over the next 24 months. The chain also northwestern Indiana. The Arlington Heights received approval to franchise in California and plans restaurant will measure 5,100 square feet and offer to open units along the California coast this year. seating for 183 patrons along with an additional 25 Coconut’s currently operates one unit each in Hawaii, customers at a seasonal outdoor patio. (Daily Herald Arizona and Texas. (FastCasual.com 12/3/14; Online 12/3/14) Company Website 12/8/14; Eater Dallas 12/17/14)
Bantam + Biddy, a casual-dining chain specializing in Cowboy Chicken signed a multi-unit franchise all-natural rotisserie chicken and better-for-you agreement for Alabama. The agreement calls for five ConcepTracTM 3 locations in and around Birmingham, Tuscaloosa and the ground floor along with a rooftop bar and Huntsville, starting with a site in the Birmingham restaurant. (Eater Chicago 12/9/14) suburb of Hoover. Cowboy Chicken, a casual-dining chain specializing in rotisserie chicken, has about a dozen units in Texas. (FastCasual.com 12/2/14)
Cups Frozen Yogurt – That’s Hot is entering Texas. The quick-service frozen-yogurt chain signed a franchise agreement to open several locations throughout Houston, with the first site slated to launch in the spring. Cups operates about 25 units in California, Florida, New Jersey and New York. (Eater Houston 12/8/14; Company Website 12/9/14) Harold’s Chicken Shack opened a site in Lansing, IL. Fresh To Order opened a unit in Knoxville, TN, near The restaurant is one of the chain’s newer franchised the University of Tennessee campus. The fast-casual, units; Harold’s is currently moving away from licensed health-minded chain plans to open four to six agreements. (Chicago Tribune Online 12/1/14) additional sites in Knoxville and Nashville. It currently operates three units in the state along with 12 Ippudo, a Japanese ramen chain with two U.S. locations in North Carolina, South Carolina, Georgia locations in New York City, is receiving an investment and Florida. (Franchising.com 12/9/14) of as much as 2 billion yen (about $16.9 million USD) to expand in the U.S. and Europe. The investment is Glazed & Infused, a quick-service doughnut chain, coming from the Cool Japan Fund, financed primarily plans to open its sixth Chicago location in the spring. by the Japanese government to promote Japanese The site will open in the city’s downtown Loop area culture overseas. Ippudo plans to add side dishes and and will be the chain’s largest location yet, measuring sake to the menu at its U.S. locations to create a 1,000 square feet. It is set to open in the lobby of a more relaxed atmosphere where patrons would feel downtown building and will feature a lounge area, full comfortable lingering after finishing their ramen. coffee bar and charging stations. Glazed & Infused is (Eater 12/8/14; Company Website 12/9/14) also considering opening a unit next year in the city’s Andersonville neighborhood. (Eater Chicago 12/2/14) M Burger, a fast-casual burger chain, launched a unit in Chicago suburb Skokie, IL, marking its first location Good Times Burgers & Frozen Custard debuted a outside of the city. The drive-thru restaurant— new unit design. The chain's newest restaurant in another first for the chain—features a sundae bar Highlands Ranch, CO, features a more upscale look along with M Burger’s traditional menu of burgers, with whitewashed barn wood, stained concrete fries and shakes. M Burger, a Lettuce Entertain You floors, industrial metals and lighting, and natural Enterprises concept, operates four other locations, all woods. The chain plans to feature the new design in in downtown Chicago. (Eater Chicago 12/1/14) remodels and future locations. (QSRWeb.com 12/2/14) The Original Gino’s East of Chicago opened its first Texas site. The restaurant, located in The Woodlands, Great Wraps plans to open sites in Texas and serves the concept’s signature deep-dish pizza along Oklahoma. The fast-casual Atlanta-based chain signed with several items exclusive to that location, including a franchisee deal to open units in the Dallas-Fort a deep-dish barbecue brisket pizza and deep-dish Worth area and in Oklahoma City, marking its first nachos. Texas craft beer is also available. Gino’s East restaurant in Oklahoma. Great Wraps operates more plans to open its second Texas location in January, than 80 restaurants in 18 states. (Bizjournals.com followed by sites in San Antonio, Dallas and Fort 12/18/14) Worth. In addition to the Texas location, Gino’s East operates nine units in Illinois and one in Wisconsin. GRK Greek Kitchen, a Chicago-based fast-casual (Chron.com 12/4/14) concept, launched its third location in Chicago. The chain plans to open its fourth site, also in downtown Pie Five Pizza is expanding to new markets. The fast- Chicago, in the spring. That unit will feature GRK’s casual pizza chain signed a multi-unit franchise typical build-your-own Greek fare on agreement with Tripod Ventures LLC to open up to 30
ConcepTracTM 4 locations in Colorado, starting in mid-2015 with sites who is also the CEO of Dunkin’ Donuts in Lebanon. in the Denver market. Pie Five also plans to open its (New York Post Online 12/8/14) first Chicago-area unit in February and its first Twin Cities location in March. Pie Five, a subsidiary of Pizza Smallcakes Cupcakery opened a cobranded unit. The Inn Holdings, operates about 30 sites in 12 states. (PR chain’s location in Jacksonville, FL, is its first unit to Newswire 12/4/14; RestaurantNews.com 12/8/14; include Smallcakes Cupcakery and sister concept Company Website 12/19/14) Smallcakes Creamery under one roof. The menu includes 18 cupcake flavors and 15 cupcake-inspired Pieology, a fast-casual pizza chain, launched a site in ice cream flavors, along with fresh-baked cookies that Maple Grove, MN. The unit and two others in the can be used for ice cream sandwiches. state are operated by Minnesota Vikings offensive (RestaurantNews.com 12/10/14) lineman Matt Kalil. In addition to the Minnesota sites, Pieology operates about 40 units in eight states. (Facebook 12/9/14; Company Website 12/11/14)
Protein Bar opened its fourth Colorado location. The unit opened December 10 at the city’s 16th Street Mall. Protein Bar, a fast-casual chain specializing in energy-boosting dishes such as quinoa bowls and protein shakes, operates 13 units in the Chicago market and three sites in Washington, DC, in addition to its Colorado locations. (Eater Denver 12/8/14; Company Website 12/8/14)
RedBrick Pizza Cafe debuted a unit in Joplin, MO. The restaurant, located in Northpark Mall, features RedBrick Pizza’s new design, which includes wood paneling, Italian-style architecture and an open-flame Thundercloud Subs debuted its 30th location. The brick pizza oven. The site is the first of several quick-service sandwich chain opened a unit inside an RedBrick locations set to open in the area over the H-E-B grocery store in Bee Cave, TX. The restaurant next several years. (PizzaMarketplace.com 12/4/14) offers indoor and outdoor seating. ThunderCloud Subs’ locations are all in Texas. (Eater Austin 12/9/14) Russo’s New York Pizzeria opened its 20th Houston- area site. Parent Russo’s Restaurants aims to open 20 Uncle Maddio’s Pizza Joint launched its first Texas to 30 units under the Russo’s New York Pizzeria and location. The fast-casual, build-your-own pizza chain Russo’s Coal Fired Italian brands over the next three opened a unit in Austin and plans to launch four years. Russo’s Restaurants has more than 20 additional sites in Texas. Units are slated to open in locations in development in the U.S. and Waco and Dallas before the end of 2015. Uncle internationally. The company currently operates Maddio’s operates about 25 locations in 11 states about 40 sites under the two brands in six states and and has 225 sites in development. (Franchising.com the Middle East. (PR Newswire 12/3/14) 12/9/14; Company Website 12/11/14)
Semsom, a Lebanon-based fast-casual chain with Wahlburgers signed multi-unit franchise agreements about 40 locations in the Middle East, aims to open for Florida and New York. The fast-casual burger 200 units in the U.S. by 2020. Semsom is set to open concept—owned by celebrity brothers Mark and a flagship unit in New York City early this year, Donnie Wahlberg and chef Paul Wahlberg—inked a followed by four additional New York City locations deal with Davgar Holdings Group LLC to open 20 before the end of 2015. The concept is considering locations throughout Florida over the next few years. locations in or near Madison Square Park, the Wahlburgers also signed an agreement with Big Apple Garment Center and Times Square. Semsom is Burgers to open six units in Manhattan and one site developing a new menu for its New York locations, on Coney Island. The concept currently operates one but it will include the chain’s standard fare such as unit each in Hingham, MA, and Toronto and has kebabs, shawarma and falafel. Semsom is run by locations in the pipeline for the Boston market, sisters Carine Assouad and Christine Assouad Sfeir, Philadelphia and Las Vegas. (PR Newswire 12/4/14)
ConcepTracTM 5 Headquarters: Columbus, OH Website: Bibibop.com Segment: Fast Casual Parent: Gosh Enterprises Inc. Facebook: Bibibop Asian Grill Twitter: @BiBiBopGrill
Bibibop Asian Grill
Named for the way some Americans pronounce “bibimbap,” Bibibop Asian Grill offers a new take on Korean fare made with American-friendly ingredients. Patrons are offered a choice of customizable dishes in a modern setting. The concept—launched by Gosh Enterprises, which operates the Charley’s Grilled Subs and Charley’s Philly Steak brands—has been growing steadily since its debut in summer 2013 and aims to expand outside of the Columbus, OH, market this year.
BY THE Units Check Avg.* AUV (million)* Founded
NUMBERS 4 $9 $1.15 2013 *Technomic estimate
Bibibop Asian Grill boasts a commitment to improving customers’ well-being. This is evident in signage promoting the concept’s gluten-free grains, fresh-cut vegetables and vegan tofu; posters describing the health benefits of black beans and green tea; and the tagline “Take Care Always” featured throughout the restaurant. Additionally, Bibibop publishes its own quarterly magazine, “Well B-Ing,” with articles and recipes for healthy living. With a better-for-you focus, the concept is a popular spot for those looking for a fast, healthy meal. Patrons order assembly line-style then retrieve their condiments and beverages at self- serve sauce and drink stations. Adding to Bibibop’s fresh positioning, customers have a view of the open kitchen and preparation area as they make their way down the ordering line.
Additional Characteristics
• Inline and endcap units, one mall location • Industrial décor elements such as floor-to- • In shopping centers or plazas ceiling windows, exposed ductwork and wood flooring • Seat 30–60 customers • Tables and counters commonly topped with • Seating options including communal tables, vases of flowers traditional wood tables , window counters and enclosed booths • Dine-in and takeaway services • Outdoor seating at select units • Online ordering
ConcepTracTM 6 ConcepTracTM 7 Headquarters: Seoul, South Korea Website: US.Bibigo.com Segment: Fast Casual/Casual Dining Parent: CJ Foodville Corp. Facebook: Bibigo Twitter: @BibigoUSA Bibigo
Bibigo was established by a leading Korean foodservice company, CJ Foodville Corp., to bring healthy, authentic Korean fare to patrons around the world. The modern concept has locations in five countries—the U.S., U.K., China, Singapore and Japan—and plans on expanding to 20 countries by 2020. Currently all U.S. sites are company-owned, but CJ is considering franchising to further grow Bibigo in the U.S.
BY THE U.S. Units Check Avg.* AUV (million)* Founded NUMBERS 3 $10 $1.05 2010 *Technomic estimate
Bibigo’s service style varies among its U.S. locations; however, the concept identifies as fast casual. The site in Los Angeles’ Westfield Century City mall is a counter-service unit in a food court; the site in LA’s Westwood neighborhood features fast-casual service in which customers order at a counter and have their food delivered to their table; and the Beverly Hills restaurant offers full service. Despite the different models, each location provides a trendy, contemporary atmosphere. Décor elements include earth tones, with light-colored walls; light wood paneling, tables and chairs; cement floors; and green signage. Tables are often topped with vases of flowers, and wall art spotlights Korean ingredients. Meals are served in the concept’s signature hot stone bowls or real bowls and plates, adding to the upscale experience.
Additional Characteristics • Typically seat 65–70 patrons • Small bar area serving adult beverages at the • Outdoor seating available Beverly Hills restaurant • Food truck that travels around Los Angeles • Signature sauces, spices and frozen items such as dumplings and won tons can be purchased • Assembly line-style ordering at the Westwood online or at select retailers and Westfield Century City locations • Dine-in, takeaway and catering services • Self-serve condiment station featuring a variety of proprietary Korean sauces • Loyalty program
ConcepTracTM 8
ConcepTracTM 9 Headquarters: Washington, DC Website: EatBONMi.com Segment: Fast Casual Parent: Privately Held Facebook: BONMi Twitter: @EatBONMi BONMi
With locations from Utah to Washington, DC, BONMi aims to expose a variety of markets to one of Vietnam’s most signature dishes—bánh mì sandwiches. The concept specializes in customizable bánh mì featuring a range of proteins, freshly chopped vegetables and signature sauces, served quickly in a fast- casual setting. BONMi also offers other Vietnamese-style fare, such as noodle and rice bowls, to give customers a choice of various ethnic options.
BY THE Units Check Avg.* AUV (million)* Founded NUMBERS 3 $11 $1 2011 *Technomic estimate
BONMi has two types of units. Its original location in Washington, DC, is a traditional inline site, while the chain’s other units operate in university dining areas at San Francisco State University and the University of Utah in Salt Lake City. BONMi has contract agreements with Compass Group and Sodexo and aims to continue expanding with them to open additional university sites as well as other units in nontraditional locations such as airports, hospitals and office buildings. The concept has two more university sites in the pipeline—Rowan University in Glassboro, NJ, and Fordham University’s Fordham College at Lincoln Center in New York City—and is also seeking a flagship location in Washington, DC, or New York City. BONMi also tested a pop-up restaurant at the National Institutes of Health in Bethesda, MD, in December to see if the location would be suitable for the concept.
Additional Characteristics • In areas with heavy foot traffic • Assembly line-style ordering system • 1,300–2,000 square feet • Dine-in, takeaway and catering services • Typically seat 20–28 patrons • Online ordering • Décor includes a red and black color scheme, • Food truck in DC area; second DC food truck light woods and photos of Vietnamese farms expected to launch this year and food
ConcepTracTM 10 ConcepTracTM 11 Headquarters: New York City Website: XianFoods.com Segment: Quick Service Parent: Privately Held Facebook: Xi’an Famous Foods Twitter: @XianFoods
Xi’an Famous Foods
Xi’an Famous Foods is exposing Americans to a different type of Chinese fare. While many U.S. Chinese restaurants feature Hunan, Cantonese and Szechuan dishes, Xi’an Famous Foods specializes in authentic street food from the city of Xi’an, known for its spicy flavors, hand-ripped noodles and lamb “burgers” on flatbread. The concept attracts not only western Chinese immigrants familiar with Xi’an fare but also adventurous eaters seeking new dishes and flavors.
BY THE Units Check Avg.* AUV (thousand)* Founded NUMBERS 8 $8 $900 2005 *Technomic estimate
Xi’an Famous Foods is a no-frills operation. Inspired by traditional Chinese food stalls, units are small, typically offering seating for only about a dozen patrons at communal tables or counters. However, the concept encourages its customers to dine in; signage asks patrons to stay and enjoy the freshness of their noodles—or at least take a bite of them from the box before leaving—instead of taking them to go and compromising their freshness. Lines typically run out the door, but photos of each menu item hang on the wall and are marked by numbers for quick ordering. To keep up with demand, the concept has been on an expansion kick, opening several locations over the last year in New York City. Xi’an has additional New York locations in the pipeline and is considering expanding into neighboring New England.
Additional Characteristics • Urban locations • “Real-Time Store Traffic Meter” feature on • Inline sites, one food-court unit website shows how busy each location is, helps • 600–900 square feet patrons plan on best time to dine in restaurant • • Décor may include floor-to-ceiling windows, Dine-in and takeaway services white-painted brick walls, exposed ductwork • Catering available and framed press articles on the concept • Cash only
ConcepTracTM 12
ConcepTracTM 13 WHERE ARE THEY NOW?
In the December 2000 issue of ConcepTrac, Technomic profiled Jollibee, one of the leading quick-service chains in the Philippines. The concept had recently entered the U.S. where it was looking to make waves for its menu of Filipino-style pasta, burgers and chicken dishes—items typically not seen on THEN other QSR menus. At the time, all of Jollibee’s U.S. units were in California in areas with a large Asian-American population, and the concept had plans to 2000 continue expanding in the state. 2000 U.S. units: 5 2000 U.S. sales: $3.3 million
Jollibee continued expanding not only in California, but also in other states. The chain now has locations in Hawaii, Washington, Nevada, Texas, New York, New Jersey and Virginia. Jollibee’s growth in the U.S. has led to its ranking of 399 on Technomic’s list of top 500 restaurant chains by U.S. sales. Although the chain now operates in a variety of markets, and not just those with large Asian-American populations, Jollibee’s menu has remained largely the same, NOW still featuring its signature Filipino-style fare. Jollibee plans to continue increasing its presence in the U.S.—the chain said in July 2014 that it was 2015 looking to purchase a U.S. chain to grow its market share. 2013 U.S. units: 29 2013 U.S. sales: $55.6 million
ConcepTrac™ is prepared monthly by Technomic Inc. to keep foodservice executives informed about emerging chain concepts through constant monitoring of more than 100 publications, regular field visits, original research and data analysis. Annual subscriptions are available at technomic.com. We welcome your comments. Darren Tristano, Executive Vice President Lauren Hallow, Associate Editor, Concept Analysis Sarah Janssen, Assistant Editor Teri Schroeder, Senior Production Manager Claudia Martinez, Senior Production Coordinator Technomic Inc. believes that its sources of information are reliable but does not assume any responsibility for the accuracy or comprehensiveness of the information published. No part of this publication may be reprinted, redistributed or put into an electronic information retrieval system without prior written permission.