Trends and Insights from the Country's Biggest

SPECIAL REPORT: TRENDS AND INSIGHTS FROM THE COUNTRY’S BIGGEST RESTAURANT CHAINS P. 40

June 2017

TECHNOMIC’S 250 TOP-GROSSING CHAINS P. 5 6

RESTAURANTBUSINESSONLINE.COM HERE’S NO DENYING THAT 2016 WAS A ROUGH YEAR FOR CHAIN RESTAURANTS. Same-store sales slowed, hitting full service especially hard. Fast casual’s sales growth fell below 10% for the frst time in years. And major concepts lost ground to regional brands and independents. Still, over half of the industry’s $521.9 billion comes from the Top 500 chains—and nearly 94% of those dollars and 93% of those units are represented in the Top 250. Here, we dive into Technomic’s Top 500 Chain Restaurant Report with insights from the wins and losses of these giants.

BY SARA RUSH WIRTH / WITH DATA AND ANALYSIS BY TECHNOMIC

ILLUSTRATION BY JEFF ROGERS

40 RESTAURANT BUSINESS JUNE 2017 BIGGEST SALES GROWTH THE TOP 500 CHAINS saw a year-over-year sales boost 2017 SALES UNIT of 3.6% in 2016, down from 2015’s 5% gain and just under RANK CHAIN NAME CHANGE CHANGE 213 MOD Pizza 129.8% 103.3% the overall industry’s 3.9% growth. Unit buildup among the 461 Pie Five Pizza Co. 110.4% 63% Top 500 also slipped to 1.7% (though chains fared slightly 405 Mission BBQ 94.3% 110% better than the rest of the industry). “Large chains will 350 Slim Chickens 90.3% 93.3% 191 Blaze Pizza 82.1% 62.5% struggle for years,” says Darren Tristano, chief insights 229 Pieology Pizzeria 81.2% 66.7% ofcer for Technomic’s parent. But there is hope: “There are 463 Metro Diner 78.4% 93.3% 473 Modern Market 66.7% 45% opportunities, but today you have to be more diferentiated,” 334 Sweetgreen 58.5% 64.1% he adds. “Standing still is no longer an option.” 372 Rock & Brews 58.1% 50% 458 Snap Kitchen 55.6% 37.1% 478 PizzaRev 51.8% 37.5% 339 BonChon 49.4% 48.6% WHAT’S DRIVING GROWTH? 430 Smallcakes Cupcakery and Some operators are turning to technology and Creamery 47.5% 47.8% regionality to safeguard their brands. 311 Taziki’s Mediterranean Cafe 46.5% 44.2% Regionalization. Many of the biggest growth 411 Nando’s 44.8% 35.7% chains have a regional presence. “They know 130 Shake Shack 40% 44.9% their market. If they go outside their market, they 243 WaBa Grill 39.8% 39.1% DIY PIZZA will struggle,” says Tristano. But, he adds, they 333 Bareburger 37.5% 37% Fast-casual pizza are in a much better position to adapt quickly to isn’t slowing yet; a changing audience, whereas large chains will 464 Torchy’s Tacos 37% 28.9% four of this year’s continue to struggle as millennials, in particular, top 10 growth push back against national brands. chains are build- your-own pizza BIGGEST SALES DECLINE concepts. Now, Automation. Technology continues to reshape consolidation is the industry, in part due to labor issues. But 2017 SALES UNIT happening among RANK CHAIN NAME CHANGE CHANGE operators need to be cautious about how they the brands. spin their use of automation; many consumers 209 Ryan’s -34.4% -50% are likely to repel brands that say they are using 302 Coco’s Bakery Restaurant -31.4% -22.5% tech to cut labor costs. Instead, chains like 116 Old Country Domino’s and Panera are claiming the advances Bufet/HomeTown simply improve the experience, helping them Bufet -31% -51.9% customize, keep costs stable and improve 343 Elephant Bar accuracy—something tangible to diners. Restaurant -30.7% -60.7% 161 Quiznos -27.2% -20.5% Off-premise. Operators are rethinking their 301 Red Mango -22.1% -28.2% HEALTH business models to grow sales through takeout, 476 Blimpie America’s catering, delivery and other off-premise Sub Shop -19.2% -15.7% ON THE GO options—and consumers have grown to expect 417 Texas Land & Fast casuals the convenience. This boom has driven a lot of Cattle Steak House -17.9% -42.3% devoted to better- change, in areas such as restaurant layout and 445 Tony Roma’s -17.2% -26.7% for-you options that appeal to a design as well as stafng and throughput. Many 288 Fox & Hound range of eating operators are turning to the burgeoning third- Sports Tavern -16.9% -23.1% habits—and that party delivery market, though Tristano believes Source: Technomic’s Top 500 Chain Restaurant Report are takeout- that consolidation of the different partners is friendly—are imminent. Still, he says, there’s tech in place gaining success. today to make delivery easier than before, and operators will have to contend with paying fees if they don’t want an in-house feet.

42 RESTAURANT BUSINESS JUNE 2017 BIGGEST RANK JUMPERS LESSONS FROM LIST SHIFTERS 2017 RANK CHAIN NAME RANK DIFF. Operators can learn from those chains that jumped Pie Five Pizza Co. 461 309 in the ranks, as well as from those that plummeted. Metro Diner 463 227 Revise the better-for-you defnition…often. Mission BBQ 405 225 “We’re seeing the next generation of healthy Slim Chickens 350 194 HIGHS & LOWS concepts,” says Tristano. Consumers’ defnition Modern Market 473 194 The top list of health continues to evolve, and that means MOD Pizza 213 169 jumper in 2016 operators need to rethink buzzwords and menu is already living PizzaRev 478 153 callouts to hit on transparency, clean eating, a diferent story Snap Kitchen 458 145 this year; most meat-free options and humane treatment of an- Rock & Brews 372 128 recently in May imals to compete with chains like Snap Kitchen it closed almost and Modern Market that have built concepts Sweetgreen 334 123 15% of its units. around these “cleaner” points. One segment Pieology Pizzeria 229 116 that’s emerging in the better-for-you battle that Smallcakes also has an ethnic spin: Mediterranean, as seen Cupcakery and Creamery 430 105 with Verts, Taziki’s and others. “People perceive BonChon 339 102 it as healthy, fresher food,” says Kevin Schimpf, Verts Mediterranean Grill 750 99 manager of industry research for Technomic. Torchy’s Tacos 464 98 Taziki’s Mediterranean Cafe 311 92 Ofer up convenience. Convenience is still driv- Nando’s 412 91 ing occasions, and it’s evolving quickly. Much of Blaze Pizza 191 89 the growth has taken place around of-premise, as more brands rethink takeout with mobile or- Scotty’s Brewhouse 489 81 SHARP ARCS der-and-pay platforms, drive-thru and curbside Bareburger 333 77 Several chains— advances, bot-enabled ordering through social Native Foods Cafe, ZPizza, media and expanded delivery. But even the dine- Red Mango in experience is shifting; operators are retooling BIGGEST RANK SLIPPERS and others—all units, adding more outlets and USB charging grew quickly stations, and using more at-the-table ordering to 2017 RANK in a short time CHAIN NAME RANK DIFF. and then saw make dining in efcient. Sweetgreen and bever- age chain Argo Tea, for example, have gone cash- Elephant Bar Restaurant 344 -85 steep declines, in part due to less to speed the line for those who pay in-store, Coco’s Bakery Restaurant 302 -81 saturation. while many fast-casual pizza chains have driven Blimpie America’s Sub Shop 476 -81 a lot of business to their apps. On the horizon: Tony Roma’s 445 -78 Developments like drones and robots will pres- Texas Land & Cattle TENDER ent new challenges for operators, but they aren’t Steak House 417 -76 too far of, Tristano says, and early adopters will Red Mango 301 -59 CHICKEN beneft while others catch up. Fried chicken Ryan’s 209 -58 chains focused Dick’s Last Resort 434 -55 on tenders with Keep an eye toward other markets. The blur- Cheeburger Cheeburger 462 -55 dipping sauces ring of segment lines continued in 2016, with are winning; the El Chico Cafe 403 -54 grocery, c-store and noncommercial taking share hand-breaded, of the foodservice dollar. Prepared foods are get- Source: Technomic’s Top 500 Chain Restaurant Report housemade angle resonates ting upgraded, and employers such as Amazon with younger are launching in-house concepts like Amazon Go diners. that ofer convenient dining options to stafers. Now, new contenders like meal kit delivery concepts and delivery-only, dining room-free restaurants (aka headless restaurants) are aiming for the same consumers. Snap Kitchen, for example, is more of a hybrid restaurant-convenience store: All food is packaged to go, to be reheated in a mi- crowave, and the model is designed so that guests can order multiple meals for the week all at once.

43 RESTAURANT BUSINESS JUNE 2017 Chains that sprung onto the Top 500 list represent a wide swath of the industry. But most have one commonality: a marketing message and brand ethos pointed at today’s diners. This year, that comes in the form of DIY pizza NEWCOMERS places, better-for-you fast casuals or an unpretentious, approachable vibe Rank/Sales/Units wrapped in a full-service experience.

MODERN MARKET PAUL MARTIN’S SLIM CHICKENS SNAP KITCHEN TORCHY’S TACOS 473/$51.5M/29 AMERICAN GRILL 350/$76.1M/58 458/$54M/48 464/$52.6M/98 A name change from The chicken shack The grab-and-go-meal The chain that boasts Modmarket didn’t stop 498/$47.2M/11 blends Southern concept brought in a “damn good tacos” has growth for the fast The chain using hospitality and new CEO and other built a cult following casual, which focuses “seasonal and scratchmade food, execs, and focused on with its unusual on being a market for delicious” as its tagline with a focus on the unifying its packaging oferings, taco-of-the- the times with a “clean” goes against the convenience of takeout and building an app as month promos, not- menu at an afordable small-footprint trend and catering. Slim it grew. Still, Snap has so-secret secret menu price point. The chain by serving wine and Chickens spent much stuck to serving foods and variety of breakfast hits on a wide range of housemade fare in of 2016 growing the for a range of dietary options. Torchy’s dietary demands such large sites, all of which brand, and it has needs across mealparts, recently sold a minority as vegan, gluten-free boast its “never-settle extensive growth plans and is looking to expand interest to investment and carb-conscious. sourcing” philosophy. for the next decade. to grocery shelves. frm General Atlantic.

NANDO’S MISSION BBQ TUPELO HONEY CAFE PIE FIVE PIZZA CO. METRO DINER 412/$63.7M/38 405/$64.5M/42 491/$48M/12 461/$53.3M/88 463/$52.8M/29 The chicken chain The fast-casual While working toward The DIY fast casual One of the fastest- from South Africa, chain known for its a “revival of Southern saw sales jump growing brands, Metro slinging its signature Americana decor, food” in a laid-back, 110% in 2016, with Diner, a family-dining peri-peri sauce, spent patriotic theme and friendly environment, units up 63%. But concept, blends the the year expanding its mission to give back Tupelo Honey does in an oversaturated traditional diner look presence in its initial to soldiers, police, address modern trends landscape, it’s started with a menu that East Coast markets frefghters and frst as part of its concept, to scale back and includes an array of and in the Chicagoland responders managed including responsible shut stores in several Southern classics such area. Nando’s focuses to grow its sales 94% in sourcing, craft cocktails markets. It also snagged as breakfast Benedicts, on giving each store an 2016, while increasing and an emphasis on Smashburger exec Scott Charleston shrimp African vibe to tie the its unit count more than ofering enhanced Crane as CEO to turn and grits, chicken and chain back to its roots. 100%. employee benefts. sales around. wafes, and meatloaf.

44 RESTAURANT BUSINESS JUNE 2017 QUICK SERVICE LIMITED SERVICE 2017 2016 U.S. 2016 U.S. RANK CHAIN NAME SALES ($000) UNITS 1 McDonald’s 36,389,000 14,155 Over 80% of the limited-service 2 Starbucks 14,673,400* 13,172 segment’s sales comes from QSRs. While several menu categories performed 3 Subway 11,300,000 26,744 A NOD 4 Burger King 9,430,100* 7,161 well, cofee cafes saw sales grow 9.7%. By 5 Taco Bell 9,353,772 6,278 TO NICHES upgrading oferings, these cofee concepts 6 Wendy’s 8,963,600* 5,739 Many growing (all QSRs) are posing stif competition for 7 Dunkin’ Donuts 8,226,100 8,828 players have a big-name fast-casual players like Panera. certain niche 8 Chick-ﬁl-A 6,743,000* 2,062* Still, fast casual remains the strongest or specialty. It’s grower, with sales up 8% and units up 8.7%. 9 Pizza Hut 5,751,381 7,689 not about big 10 Domino’s 5,479,000* 5,371 brands serving 12 Sonic Drive-In 4,518,098 3,557 everything, but 13 KFC 4,483,315 4,167 rather those focused on a LIMITED-SERVICE SALES 17 Little Caesars 3,800,000* 4,388* particular type GROWTH BY SEGMENT 19 Arby’s 3,662,490 3,237 of food. 21 Dairy Queen/ Orange Julius 3,621,069 4,517 8% 22 Jack in the Box 3,461,540 2,255 Fast casual 24 Papa John’s 2,931,550* 3,331 26 Popeyes Louisiana Kitchen 2,870,000* 2,067 3.7% 32 Hardee’s 2,241,241 1,848 Quick service 34 Whataburger 2,181,348 806

4.4%Top 500 LSR sales SANDWICH FAST CASUAL SATURATION growth rate Smaller 2017 2016 U.S. 2016 U.S. RANK CHAIN NAME SALES ($000) UNITS sandwich chains once fed of falls 11 Panera Bread/ of Quiznos and FASTEST-GROWING Saint Louis Bread Co. 5,132,000 2,017 Subway, says LIMITED-SERVICE CHAINS 16 Chipotle Mexican Grill 3,822,200* 2,198 Tristano. “Now 25 Panda Express 2,903,041 1,893 we’ll see greater >$200M <$200M 33 Jimmy John’s saturation, and Gourmet Sandwiches 2,220,000* 2,620 a struggle for SHAKE SHACK MOD PIZZA 36 Zaxby’s 1,710,600* 825 growth.” 2016 SALES: $280M* 2016 SALES: $150M 41 Five Guys Burgers SALES CHANGE: 40% SALES CHANGE: 130% and Fries 1,436,922 1,284 UNIT CHANGE: 45% UNIT CHANGE: 103% 50 Wingstop 943,258 922 55 Jersey Mike’s Subs 825,000 1,187 RAISING CANE’S PIE FIVE PIZZA CO. 57 Qdoba Mexican Eats 805,000* 695 CHICKEN FINGERS 2016 SALES: $53M 63 Raising Cane’s SALES CHANGE: 110% Chicken Fingers 741,084* 306 2016 SALES: $741M* SALES CHANGE: UNIT CHANGE: 63% 66 Jason’s Deli 702,100* 260* 31% UNIT CHANGE: 23% 67 Moe’s Southwest Grill 698,000 680 THE CHIPOTLE 68 Firehouse Subs 683,537 1,037 MISSION BBQ IMPACT 2016 SALES: $65M* 71 Boston Market 633,400* 460* FREDDY’S Though Top 500 SALES CHANGE: 94% 74 McAlister’s Deli 592,800 387 fast-casual sales FROZEN CUSTARD UNIT CHANGE: 110% 77 Noodles & Company 559,008 530 growth was 8% & STEAKBURGERS 78 Dickey’s Barbecue Pit 557,600* 544 in 2016, that 2016 SALES: $340M number would 96 Pollo Tropical 403,736 182 SALES CHANGE: 28% balloon to 11.2% 97 Einstein Bros. Bagels 381,400* 395* UNIT CHANGE: 33% if Chipotle were 99 Corner Bakery Cafe 375,830 196 removed from Source: Technomic’s Top 500 Chain Restaurant Report; *Estimate the equation.

45 RESTAURANT BUSINESS JUNE 2017 CASUAL DINING FULL SERVICE 2017 2016 U.S. 2016 U.S. RANK CHAIN NAME SALES ($000) UNITS The decline of full-service chains 14 Applebee’s 4,418,600 1,857 is palpable. Three of the major casual- 15 Olive Garden 3,865,000 840 18 Bufalo Wild Wings 3,785,000* 1,187 dining players—TGI Fridays, Applebee’s 20 Chili’s Grill & Bar 3,635,000* 1,259 and Chili’s—were all down more than 2% 28 Outback Steakhouse 2,514,000 755 in sales. What do these brands have to 29 Red Lobster 2,380,000* 677 BAR BIZ do to regain some share? Scale back, says 30 Texas Roadhouse 2,336,200* 499 Tristano. Casual-dining operators should Value pricing is 35 The Cheesecake Factory 2,078,083 194 important for focus on smaller footprints, greater takeout 38 LongHorn Steakhouse 1,641,000 500 the full-service opportunities with dedicated curbside and 40 Red Robin Gourmet segment; carryout plans, and reviving the bar. Burgers and Brews 1,476,000* 533 operators make 42 TGI Fridays 1,367,000* 464 up sales with 46 Ruby Tuesday 1,116,700* 673 high-margin 48 BJ’s Restaurant adult beverages. FULL-SERVICE SALES & Brewhouse 993,052 189 “It’s an upgrade 51 P.F. Chang’s China Bistro 892,033 216 process,” GROWTH BY SEGMENT 53 Hooters 864,000* 338 Tristano says. 59 California Pizza Kitchen 762,500* 232 1.3% 62 Cheddar’s Scratch Kitchen 751,000* 165 Casual dining 65 Carrabba’s Italian Grill 707,000 244 NOT ALL BAD 72 Boneﬁsh Grill 630,000* 210 Fine dining and 75 Logan’s Roadhouse 587,000* 220 polished casual 1.1% are faring better Family style than the rest of the segment. One reason, says 1.4%Top 500 FSR sales FAMILY STYLE 4.9% Tristano, is the growth rate 2017 2016 U.S. 2016 U.S. Fine dining RANK CHAIN NAME SALES ($000) UNITS focus on afuent consumers 23 IHOP 3,222,400 1,631 and millennials 27 Denny’s 2,585,000* 1,610 willing to spend 31 Cracker Barrel on a “better” FASTEST-GROWING Old Country Store 2,323,200 640 experience. FULL-SERVICE CHAINS 44 Wafe House 1,246,900* 1,882 49 Bob Evans 951,200 527 >$200M <$200M 70 Perkins Restaurant & Bakery 635,000* 380 TEXAS DE BRAZIL METRO DINER 106 Village Inn 361,000* 212 2016 SALES: $248M* 2016 SALES: $53M* 122 Friendly’s 309,000* 250 SALES CHANGE: 23% SALES CHANGE: 78% 146 Huddle House 245,769 370 UNIT CHANGE: 23% UNIT CHANGE: 93% 148 Bill Miller Bar-B-Q 244,800* 73 START ANEW BAR LOUIE ROCK & BREWS 2016 SALES: $279M* 2016 SALES: $71M* To varying FINE DINING degrees of SALES CHANGE: 17% SALES CHANGE: 58% 2017 2016 U.S. 2016 U.S. success, some of UNIT CHANGE: 11% UNIT CHANGE: 50% RANK CHAIN NAME SALES ($000) UNITS the big CDRs— 69 Ruth’s Chris Steak House 668,000* 129 Cracker Barrel, BLACK BONCHON 93 The Capital Grille 413,000 56 Texas Roadhouse 2016 SALES: $81M* 127 Fleming’s Prime and Hooters— BEAR DINER Steakhouse & Wine Bar 285,000 68 are starting 2016 SALES: $205M SALES CHANGE: 49% 137 Morton’s The Steakhouse 258,700* 64 new growth SALES CHANGE: 15% UNIT CHANGE: 49% concepts instead 144 Texas de Brazil UNIT CHANGE: 16% Churrascaria 247,700* 43 of relying solely on their legacy 147 Fogo de Chao 245,381 32 chains. 173 Mastro’s Restaurants 201,800* 14 202 Del Frisco’s Double Eagle Steak House 166,885 12 263 The Palm Restaurant 115,800* 24 276 Smith & Wollensky 108,000* 10 Source: Technomic’s Top 500 Chain Restaurant Report; *Estimate

46 RESTAURANT BUSINESS JUNE 2017 FAMILY STYLE TOTAL SALES $14.3B 0.9% TOTAL UNITS 9,080 0.7% MENU CATEGORIES TO WATCH TOP 500 SHARE 33.9% 2017 2016 U.S. 2016 U.S. RANK CHAIN NAME SALES ($000) UNITS Two menu categories—seafood and family-casual bufets—saw sales 23 IHOP 3,222,400 1,631 declines in 2016. The bigger trend: Even more categories saw unit growth 27 Denny’s 2,585,000* 1,610 go into the negative, as many chains closed underperforming stores in order 31 Cracker Barrel to simply keep afoat. While the industry as a whole is hurting, some types Old Country Store 2,323,200 640 of concepts, and more specifcally innovators within those menu segments, 44 Wafe House 1,246,900* 1,882 have managed to stand out and drive trafc in the face of hard-to-come-by 49 Bob Evans 951,200 527 consumer trafc. Here’s a look at the categories with a growth story. 70 Perkins Restaurant & Bakery 635,000* 380 106 Village Inn 361,000* 212 122 Friendly’s 309,000* 250 146 Huddle House 245,769 370 BURGER 154 Big Boy 233,500* 186 TOTAL SALES $78B 2.7% 169 Shoney’s 210,100* 138 TOTAL UNITS 43,787 1% 171 Black Bear Diner 205,281 86 TOP 500 SHARE 95% 197 First Watch 174,500* 160* 2017 2016 U.S. 2016 U.S. BREAKFAST WINS 203 Eat’n Park 166,368 69 RANK CHAIN NAME SALES ($000) UNITS While some legacy brands 206 Shari’s Cafe 1 McDonald’s 36,389,000 14,155 saw declines, Tristano and Pies 160,400* 95 expects breakfast-and- 4 Burger King 9,430,100* 7,161 207 The Original lunch-only concepts to Pancake House 157,100* 133 6 Wendy’s 8,963,600* 5,739 keep growing. Up and 12 Sonic Drive-In 4,518,098 3,557 comers like First Watch 223 Country Pride grew sales and units more Restaurant 140,700* 145* 22 Jack in the Box 3,461,540 2,255 than 10%. 224 Marie Callender’s 32 Hardee’s 2,241,241 1,848 Restaurant & Bakery 139,800* 62 34 Whataburger 2,181,348 806 39 Carl’s Jr. 1,519,757 1,163 41 Five Guys Burgers and Fries 1,436,922 1,284 SPECIALTY LSR 43 Culver’s 1,301,378 605 TOTAL SALES $6.9B 8.6% 47 Steak ‘n Shake 1,075,000* 568 TOTAL UNITS 11,070 5.2% TOP 500 SHARE 52.4% 56 In-N-Out Burger 807,100* 325 QSRS UP THE GAME 76 White Castle 564,233 384 The top three burger 2017 2016 U.S. 2016 U.S. chains, all QSRs, own two- RANK CHAIN NAME SALES ($000) UNITS 82 Checkers Drive- thirds of the category’s 61 Krispy Kreme 758,000* 307 In Restaurants 532,400* 555* sales. But fast casuals have 92 Krystal Company 416,930 367 the largest growth and 78 Dickey’s have drawn burger chains Barbecue Pit 557,600* 544 111 Smashburger 344,000* 343 toward upgraded oferings. 79 Auntie Anne’s 547,885 1,298 112 Freddy’s Frozen 80 Jamba Juice 547,295* 828 Custard & Steakburgers 340,458 236 81 Captain D’s Seafood Kitchen 543,722 515 126 The Habit Burger Grill 298,119 172 86 Long John Silver’s 475,400* 950 130 Shake Shack 280,350* 71 121 Tropical Smoothie Cafe 314,239 535 132 Rally’s Hamburgers 272,500* 295* 128 Smoothie King 283,600* 759 151 Fuddruckers 239,200* 170 A NEW HEALTHY 129 Zoes Kitchen 280,356 204 163 A&W All- Among specialty chains, 152 Fazoli’s 237,061 212 American Food 223,000 632 those with a health 204 Cinnabon 162,664 836 216 BurgerFi 148,200* 106 halo but that don’t tout 210 Wetzel’s Pretzels 152,000* 284 221 Jack’s 143,400* 141 themselves as “health food restaurants” are 238 Great American 228 Farmer Boys 136,200* 88 making strides. Cookies 130,300* 345

47 RESTAURANT BUSINESS JUNE 2017 Source: Technomic’s Top 500 Chain Restaurant Report; *Estimate ®

PIZZA %W XLI REXMSR´W½VWX XYVOI] TOTAL SALES $24.9B 6.6% TOTAL UNITS 30,111 1.7% TOP 500 SHARE 61.7% TVSZMHIV XS FI VIGSKRM^IH F]

2017 2016 U.S. 2016 U.S. ™ RANK CHAIN NAME SALES ($000) UNITS XLI%QIVMGER,YQERI'IVXM½ IH SMALL SHARE 9 Pizza Hut 5,751,381 7,689 DIY pizza is again a 10 Domino’s 5,479,000* 5,371 TVSKVEQ[ILEZIEGSQQMXQIRX growth story, but still a 17 Little Caesars 3,800,000* 4,388* relatively small piece of 24 Papa John’s 2,931,550* 3,331 the pie (only Blaze Pizza XSVEMWMRKSYVXYVOI]W[MXLGEVI has hit the top 200). In 52 Papa Murphy’s Pizza 884,780* 1,537 the face of fast-casual 85 Marco’s Pizza 488,900 770 competition, the top 8LEX´W[L][IKMZIXLIQIRSYKL 89 Round Table Pizza 442,558 433 chains—Pizza Hut and Domino’s—continue to 91 Cicis 417,000* 440 roll out new innovations 95 Chuck E. Cheese’s 404,400* 540 WTEGIXSHSXLIXLMRKWXYVOI]WHS in convenience. 98 Hungry Howie’s Pizza 378,222 548 ;IQEOIWYVIXLI]VIGIMZITVSTIV 101 Jet’s Pizza 368,400* 404 135 Godfather’s Pizza 269,400* 448 EMV UYEPMX] ERH PMKLXMRK %RH [I 156 Pizza Ranch 231,791 199 185 Sbarro 190,000* 305 WII XS MX XLEX XLI]´VI XVIEXIH 186 Donatos Pizza 189,900* 157 191 Blaze Pizza 184,500 169 LYQERIP]-X´WFIGEYWI[IFIPMIZI COMPETING 213 MOD Pizza 149,800 187 WITH FCRS 225 Pizza Pro 139,500* 468 229 Pieology Pizzeria 130* MR HSMRK XLMRKW XLI VMKLX [E] XS A 10% growth in sales in 135,200* this category comes, in 231 Papa Gino’s Pizzeria 132,900* 155 part, from upping the 234 Mountain KMZI]SYTVSHYGXW]SYJIIPKSSH food game. Chains in Mike’s Pizza 130,700* 180 this category prove to be 244 Villa Fresh tough competitors for Italian Kitchen 126,000* 220 EFSYXWIVZMRK brands like Panera, says Tristano, as they focus 245 Rosati’s Pizza 125,100* 195 on more premium menu items—and for more than just breakfast. COFFEE CAFE TOTAL SALES $24.8B 9.7% For the TOTAL UNITS 24,391 4.8% rankings TOP 500 SHARE 87.1% of the Top 250 chains by all other 2017 2016 U.S. 2016 U.S. menu categories, visit RANK CHAIN NAME SALES ($000) UNITS RestaurantBusiness Online.com/ 2 Starbucks 14,673,400* 13,172 Top500 7 Dunkin’ Donuts 8,226,100 8,828 60 Tim Hortons 760,000* 683 134 Peet’s Cofee & Tea 271,900* 241

Source: Technomic’s Top 500 Chain Restaurant Report; *Estimate JUNE 2017 RESTAURANT BUSINESS 48

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) YEAR YEAR - - $000 ( ) $ ( $000 ( OVER OVER Chain Name - - Headquarters RANK 2016 U.S.SALES YEAR SALES CHANGE 2016 U.S. UNITS YEAR UNIT CHANGE 2016 AUV AVERAGECHECK 2016 % FRANCHISED MENU SEGMENT | THE BUZZ McDonald’s 36,389,000 1.5% 14,155 -0.7% 2,560* 6.05 92% The world’s largest chain by sales Oak Brook, Ill. has been making “clean” menu 1 tweaks, revamping signatures and increasing its digital eforts

Starbucks 14,673,400* 11.3% 13,172 5.2% 1,140* 5.80 40.2% The tech-forward cofeehouse Seattle is driving business with new 2 prototypes, Instagram-friendly drinks and its much-lauded app

Subway 11,300,000 -1.7% 26,744 -1.3% 420* 7.80 100% The create-your-own sandwich Milford, Conn. chain maintains a strong foothold 3 as the largest chain by unit count

Burger King 9,430,100* 2.6% 7,161 0.5% 1,320* 6.60 99.3% The burger giant spent the year Miami recreating new iterations of its 4 popular Chicken Fries LTO

Taco Bell 9,353,772 6% 6,278 2.6% 1,509 7.05 86% The QSR that “thinks outside Irvine, Calif. the bun” rolled out several new 5 prototypes

Wendy’s 8,963,600* 0.6% 5,739 0.3% 1,565 6.80 94.2% The chain vowed in 2016 to cut Dublin, Ohio energy use and take a back-to- 6 basics menu approach

Dunkin’ Donuts 8,226,100 7.9% 8,828 4.7% 953 4.45 100% The cofee and pastry concept 7 Canton, Mass. expanded its test of delivery Chick-ﬁl-A 6,743,000* 7.2% 2,062* 4.8% 3,345* 8.40 98.5% Perennially one of consumers’ Atlanta favorite chains, the chicken brand 8 launched an ordering app and continued its clean menu push

Pizza Hut 5,751,381 0.8% 7,689 -1.7% 742 8.75 95.9% Yum Brands’ pizza chain rolled out 9 Plano, Texas bot ordering on social media Domino’s 5,479,000* 14.1% 5,371 3.3% 1,037* 8.30 92.7% The tech-focused pizza chain had Ann Arbor, Mich. the strongest year-over-year sales 10 gain of the top 20 chains

Source: Technomic’s Top 500 Chain Restaurant Report; *Estimate

The top spot Quick-serve #1 The burger giant #5 #10 success is investing Domino’s moved heavily in digital up the ranks this eforts, adding a year, marking new generation the ﬁrst time all of self-order Top 10 concepts kiosks to stores are QSRs. and working on app-based tech.

MENU For the complete

, this list of the 250 leading OGERS

ranking of 500 R SEGMENT 2016 U.S. SALES Top 500 Chain ASIAN ASIAN/ BAKERY BURGER CHICKEN COFFEE FAMILY FAMILY FROZEN chains, go to KEY NOODLE CAFE CAFE CASUAL STYLE DESSERTS JEFF www.technomic. RANKED BY BY com/top500 fers a snapshot of Technomic’s chains o , providing a big-picture view of the ON

Restaurant Report ITALIAN/ MEXICAN PIZZA SANDWICH SEAFOOD SPECIALTY SPECIALTY SPORTS STEAK VARIED PIZZA FSR LSR BAR MENU

industry and a dive into the concepts setting its pace. I ILLUSTRAT

)

Panera Bread/Saint 5,132,000 5.8% 2,017 3.2% 2,584 10.85 55.3% In April 2017, JAB Holdings 11 Louis Bread Co. agreed to buy the clean- St. Louis ingredient bakery-cafe chain Sonic Drive-In 4,518,098 3.5% 3,557 0.9% 1,276* 6.50 90.3% The drive-in chain known for its Oklahoma City drink specials recently completed 12 a refranchising program

KFC 4,483,315 3.6% 4,167 -2.4% 1,063 6.60 95.2% Diners deem the chicken chain’s Louisville, Ky. quirky Colonel Sanders ads 13 among the most memorable

Applebee’s 4,418,600 -6.2% 1,857 -1.1% 2,366 14.95 100% The struggling casual-dining chain Glendale, Calif. is focusing on better food and 14 value in its turnaround eforts

Olive Garden 3,865,000 3.3% 840 -0.1% 4,600 17.80 0.5% Darden’s deal-conscious Italian Orlando, Fla. chain touts a retooled lunch 15 menu among its recent successes

Chipotle 3,822,200* -13.5% 2,198 10.6% 1,868* 11.90 0% The fast-casual icon is climbing 16 Mexican Grill back from a series of food safety Denver ﬁascos that crippled sales Little Caesars 3,800,000* 7.8% 4,388* 3.1% 875* 8.40 89.6% Alfredo sauce and pulled pork are Detroit among the new toppings in test at 17 the value pizza chain

Bufalo Wild Wings 3,785,000* 3.7% 1,187 3.7% 3,245* 14.50 48.9% The sports-themed FSR will test Minneapolis small-format stores focused on 18 delivery and takeout in Q3

Arby’s 3,662,490 6.1% 3,237 0.7% 1,135 9.05 67.7% The turnaround brand’s CEO Atlanta was Restaurant Business’ 2017 19 Restaurant Leader of the Year

Chili’s Grill & Bar 3,635,000* -2.2% 1,259 0% 2,890* 14.80 25.6% The Brinker casual-dining brand Dallas is eyeing third-party and curbside 20 delivery for a trafc boost

Dairy Queen/ 3,621,069 2.5% 4,517 0.1% 802 5.90 100% Dairy Queen and DQ Grill & Chill 21 Orange Julius expanded the $5 Buck Lunch deal Minneapolis to all day Jack in the Box 3,461,540 2% 2,255 0.3% 1,530 7.38 81.5% In September, the chain took on San Diego McDonald’s by launching an all- 22 day “Brunchfast” menu

IHOP 3,222,400 -0.2% 1,631 2.1% 1,996 9.85 99.4% The breakfast giant ofered a Glendale, Calif. stack of deals in 2016, including 23 kids eat free and $1 pancakes

Papa John’s 2,931,550* 4.3% 3,331 1.2% 885* 8.30 78.9% The chain launched an Apple TV Louisville, Ky. ordering app and is testing a fee 24 for faster pizza orders

Panda Express 2,903,041 13.8% 1,893 5.8% 1,576 12.00 5% A new LA prototype, Panda + Rosemead, Calif. Tea, adds a tea bar, smoothies and 25 lemonades

Source: Technomic’s Top 500 Chain Restaurant Report; *Estimate

The numbers #11 Panera’s #14 #23 $7.5 billion purchase is the second-priciest restaurant acquisition, topped by BK’s Tim Hortons buy.

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) YEAR YEAR - - $000 ( ) $ ( $000 ( OVER OVER Chain Name - - Headquarters RANK 2016 U.S.SALES YEAR SALES CHANGE 2016 U.S. UNITS YEAR UNIT CHANGE 2016 AUV AVERAGECHECK 2016 % FRANCHISED MENU SEGMENT | THE BUZZ Popeyes 2,870,000* 6.8% 2,067 4.9% 1,420* 7.85 97.3% Burger King’s parent company 26 Louisiana Kitchen will buy the fried-chicken giant, Atlanta lending its global resources Denny’s 2,585,000* 1.5% 1,610 0.7% 1,610* 10.05 89.5% The 24-hour diner rolled out its 27 Spartanburg, S.C. “hand-mixed to order” pancakes Outback 2,514,000 -2% 755 0% 3,354 22.00 13.9% The Aussie-themed chain aims to 28 Steakhouse court customers with twists on its Tampa, Fla. signature Bloomin’ Onion Red Lobster 2,380,000* -0.8% 677 -0.3% 3,515* 20.85 0% The seafood chain’s private Orlando, Fla. equity ﬁrm parent has focused on 29 growing it internationally

Texas Roadhouse 2,336,200* 8.8% 499 5.3% 4,802 16.68 17.2% The steak chain is one of the few 30 Louisville, Ky. outperformers in casual dining Cracker Barrel 2,323,200 2.4% 640 0.5% 3,640 10.63 0% Much industry buzz has been 31 Old Country Store directed toward the company’s Lebanon, Tenn. fast-casual spinof, Holler & Dash Hardee’s 2,241,241 3.5% 1,848 2.4% 1,227 6.85 93.8% The sister to Carl’s Jr. rolled out St. Louis new breakfast items, adding to its 32 Thickburger menu

Jimmy John’s 2,220,000* 12.2% 2,620 8.8% 885* 10.05 97.7% Roark Capital Group bought a 33 Gourmet majority stake in the “freaky fast” Sandwiches sandwich brand last fall Champaign, Ill. Whataburger 2,181,348 9% 806 1.9% 2,483 7.40 15.1% The family-owned burger chain San Antonio operates two drive-thrus at Texas 34 H-E-B grocery stores

The Cheesecake 2,078,083 8.6% 194 3.7% 10,700 21.40 0% The polished casual with a big 35 Factory menu opened its ﬁrst New York Calabasas Hills, Calif. City location in 2016 Zaxby’s 1,710,600* 15.7% 825 10.3% 2,175* 9.80 81.2% Fried pickles are a popular Athens, Ga. recurring LTO addition to the 36 made-to-order wings and sauces

Golden 1,695,641 -2.6% 482 -0.4% 3,529 10.92 84.6% Limited-time menu items and 37 Corral theme-night promos are a go-to Raleigh, N.C. for the leading bufet chain LongHorn 1,641,000 4.5% 500 1.2% 3,300 20.70 3% Darden’s Western concept 38 Steakhouse was named one of consumers’ Orlando, Fla. favorite steakhouses in 2016 Carl’s Jr. 1,519,757 1.6% 1,163 0.9% 1,312 6.95 89.5% The Hardee’s sibling recently 39 Carpinteria, Calif. abandoned its bikini babe ads Red Robin Gourmet 1,476,000* 1.8% 533 4.5% 2,830* 13.05 16.1% It will slow development over 40 Burgers and Brews the next two years to focus on Greenwood Village, Colo. meeting guests where they are

Source: Technomic’s Top 500 Chain Restaurant Report; *Estimate

Fast casual is out #29 #36 #40 The chain scrapped most of its Red Robin’s Burger Works fast casual, rebranding a few as Red Robin Express units.

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) YEAR YEAR - - $000 ( ) $ ( $000 ( OVER OVER Chain Name - - Headquarters RANK 2016 U.S.SALES YEAR SALES CHANGE 2016 U.S. UNITS YEAR UNIT CHANGE 2016 AUV AVERAGECHECK 2016 % FRANCHISED MENU SEGMENT | THE BUZZ Five Guys 1,436,922 8.9% 1,284 5.7% 1,150 16.77 65.3% The fast casual is widely cited 41 Burgers and Fries as the model for better-burger Lorton, Va. concepts TGI Fridays 1,367,000* -8.3% 464 -3.7% 2,890* 15.05 100% Fridays made its popular Endless Carrollton, Texas Apps LTO a permanent menu 42 addition to drive bar trafc

Culver’s 1,301,378 8.8% 605 8.2% 2,252 10.02 98.7% A new CEO took the helm Prairie du Sac, Wis. January 1, following the death of 43 Phil Keiser

Wafe House 1,246,900* 6.5% 1,882 2.3% 670* 8.65 23% The concept added gift cards for 44 Norcross, Ga. the ﬁrst time at the end of 2016 Bojangles’ Famous 1,229,478* 6.9% 713 8.2% 1,818 7.30 56.7% The chain launched its Biscuit 45 Chicken ‘N Biscuits Theater prototype to emphasize Charlotte, N.C. its scratch-made philosophy Ruby Tuesday 1,116,700* -3% 673 -2% 1,642 14.20 4% It announced in January that Maryville, Tenn. it will roll out its Garden Bar 46 systemwide

Steak ‘n Shake 1,075,000* 4.9% 568 2.5% 1,920* 7.25 26.9% The burger chain is expanding its 47 San Antonio footprint in airport locations BJ’s Restaurant & 993,052 8% 189 9.9% 5,500* 14.50 0% The beer-focused concept 48 Brewhouse partnered with third-party Huntington Beach, Calif. services to begin delivery Bob Evans 951,200 -1.9% 527 -3.8% 1,770 9.61 0% The midscale chain revamped its New Albany, Ohio lunch menu that calls out value 49 items and build-your-own dishes

Wingstop 943,258 18.7% 922 17.3% 1,105 16.61 97.7% The aviation-themed chain Dallas launched voice ordering through 50 Amazon’s Alexa platform

P.F. Chang’s China 892,033 -0% 216 0.5% 4,084 19.45 1.9% The contemporary Asian concept 51 Bistro added a happy hour with $6 small Scottsdale, Ariz. plates and $5 dim sum Papa Murphy’s Pizza 884,780* 0.5% 1,537 2.7% 586* 7.40 89.1% The take-and-bake pizza chain Vancouver, Wash. started testing third-party 52 delivery through Amazon

Hooters 864,000* 1.1% 338 0.3% 2,560* 16.20 42.6% The male-friendly chain launched Atlanta a fast-casual hybrid ofshoot 53 called Hoots

Church’s Chicken 835,000* -0.6% 1,163 -0.2% 715* 8.40 78.1% Its updated loyalty app includes a Atlanta music-streaming feature, photo 54 ﬁlters and photo sticker tools

Jersey Mike’s Subs 825,000 22.2% 1,187 13.3% 738* 10.10 95.5% The chain announced plans to 55 Manasquan, N.J. expand onto college campuses Source: Technomic’s Top 500 Chain Restaurant Report; *Estimate

Refranchising #45 #52 Papa Murphy’s is #53 one of the many chains in this year’s ranking that announced plans to sell corporate units to its franchisees.

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) YEAR YEAR - - $000 ( ) $ ( $000 ( OVER OVER Chain Name - - Headquarters RANK 2016 U.S.SALES YEAR SALES CHANGE 2016 U.S. UNITS YEAR UNIT CHANGE 2016 AUV AVERAGECHECK 2016 % FRANCHISED MENU SEGMENT | THE BUZZ In-N-Out Burger 807,100* 7.3% 325 3.8% 2,530* 7.45 0% Named one of the 10 most Irvine, Calif. craveable burger chains by 56 Restaurant Business

Qdoba 805,000* 6.6% 695 2.7% 1,175* 11.75 47.2% Expanded its full-service bar 57 Mexican Eats program with cocktails and craft Lakewood, Colo. beer on tap in Lakewood, Colo. El Pollo Loco 795,441 5.6% 460 6.2% 1,780 8.80 56.3% The better-for-you chicken Costa Mesa, Calif. concept added a mobile app and 58 online ordering capabilities

California Pizza 762,500* 3.4% 232 1.8% 3,315* 16.10 0% The pizza chain rolled out a pay- 59 Kitchen at-the-table feature for dine-in Playa Vista, Calif. guests through its app Tim Hortons 760,000* 7.3% 683 5.1% 1,140* 4.10 100% Parent Restaurant Brands Oakville, Ontario International adopted an 60 antibiotic-free policy this January

Krispy Kreme 758,000* 6.8% 307 3.4% 2,510* 4.85 60.9% The chain sold to JAB Holdings 61 Winston-Salem, N.C. for $1.35 billion

Cheddar’s Scratch 751,000* 5.2% 165 1.9% 4,595* 13.50 15.8% Darden completed its purchase 62 Kitchen of the chain this May for $780 Irving, Texas million Raising Cane’s 741,084* 30.6% 306 22.9% 2,670 10.25 27.1% Its made-to-order chicken 63 Chicken Fingers tenders are popular with the Baton Rouge, La. younger demographic Del Taco 738,080 5.4% 551 1.3% 1,348 7.15 43.7% The chain revamped its original 64 Lake Forest, Calif. The Del Taco signature menu item

Carrabba’s 707,000 -3% 244 -1.2% 2,880 21.00 0.8% Parent Bloomin’ Brands rolled 65 Italian Grill out a loyalty program across its Tampa, Fla. concepts Jason’s Deli 702,100* 7.3% 260* -0.8% 2,690* 11.05 42.3% The sandwich chain features Beaumont, Texas a self-serve salad bar, which 66 includes several organic items

Moe’s 698,000 9.4% 680 6.8% 1,060* 9.90 99.3% Opened its ﬁrst co-branded unit 67 Southwest Grill with Focus Brands’ sister concept Atlanta Schlotzsky’s in Wyoming Firehouse Subs 683,537 5.4% 1,037 10% 690 9.70 96.9% The chain recently launched a Jacksonville, Fla. small-size sub to increase snack 68 sales

Ruth’s Chris 668,000* 6% 129 1.6% 5,220* 81.00 47.3% The steakhouse concept 69 Steak House introduced a dozen new menu Winter Park, Fla. items in 2016 Perkins Restaurant 635,000* -1.4% 380 -1.6% 1,705* 9.90 64.5% The 24-hour chain is known for 70 & Bakery its all-day breakfast and in-house Memphis, Tenn. bakery

Source: Technomic’s Top 500 Chain Restaurant Report; *Estimate

Outside the units #57 #61 The doughnut chain #62 is expanding its retail arm by selling packaged snacks such as honey buns in convenience stores.

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) YEAR YEAR - - $000 ( ) $ ( $000 ( OVER OVER Chain Name - - Headquarters RANK 2016 U.S.SALES YEAR SALES CHANGE 2016 U.S. UNITS YEAR UNIT CHANGE 2016 AUV AVERAGECHECK 2016 % FRANCHISED MENU SEGMENT | THE BUZZ Boston Market 633,400* 2.8% 460* 0.4% 1,380* 9.25 1.5% It began sourcing antibiotic-free 71 Golden, Colo. chicken earlier this year

Boneﬁsh Grill 630,000* -0.8% 210 -2.3% 3,007 25.00 2.9% The seafood concept from Tampa, Fla. Bloomin’ Brands is testing 72 delivery via UberEats

Baskin-Robbins 603,600 1.5% 2,538 0.4% 238 5.05 100% The chain rolled out a mobile app Canton, Mass. and started testing third-party 73 delivery in 2016

McAlister’s Deli 592,800 8.2% 387 7.2% 1,585* 10.60 91.7% Focus Brands’ sandwich shop Ridgeland, Miss. revamped its menu boards with a 74 chalkboard-inspired design

Logan’s Roadhouse 587,000* -11% 220 -6.4% 2,580* 15.30 4.5% The chain both ﬁled for and Nashville emerged from bankruptcy in 75 2016

White Castle 564,233 3% 384 -1.5% 1,435 8.08 0.5% It ran several LTOs, including Columbus, Ohio Nibblers, pretzel chicken rings 76 and ghost-pepper cheese sliders

Noodles & Company 559,008 8% 530 7.9% 1,095 8.70 14.2% The chain kicked of this year by Broomﬁeld, Colo. closing 55 stores and tapping new 77 capital for store-level initiatives

Dickey’s 557,600* 16.5% 544 7.1% 1,060* 13.25 98.7% The concept partnered with a 78 Barbecue Pit new delivery service and updated Dallas its online ordering platform Auntie Anne’s 547,885 4.9% 1,298 4% 430 5.30 98.6% It got so much digital trafc on Lancaster, Pa. National Pretzel Day in 2017 that 79 its app temporarily crashed

Jamba Juice 547,295* 1.5% 828 1.2% 665* 6.10 91.7% The smoothie chain tested drive- Frisco, Texas thrus and a juice bar concept and 80 closed its self-serve operation

Captain D’s Seafood 543,722 2.3% 515 1% 1,060* 7.25 43.9% The hand-breaded seafood chain 81 Kitchen has been rolling out a new look Nashville with a warm, coastal vibe Checkers Drive-In 532,400* 4.7% 555* 3.4% 985* 7.08 69.4% With twin concept Rally’s, it sold 82 Restaurants to Oak Hill Capital Partners this Tampa, Fla. March for $525 million Yard House 524,000 10.7% 65 6.6% 8,320 31.70 0% The Darden brewpub known for Irvine, Calif. its 100-plus beers on tap lost its 83 CEO in early 2016

O’Charley’s 502,500 -4.4% 213 0.5% 2,350 13.10 3.8% American food with a Southern 84 Nashville twist served at a value price

Marco’s Pizza 488,900 17% 770 15.4% 698 7.80 100% The pizza chain brought in two 85 Toledo, Ohio new C-suite executives in 2017

Source: Technomic’s Top 500 Chain Restaurant Report; *Estimate

PE purchases #72 #78 #82 A number of private-equity ﬁrms have been growing their portfolios by investing in restaurant brands.

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) YEAR YEAR - - $000 ( ) $ ( $000 ( OVER OVER Chain Name - -

Headquarters 2016 U.S.SALES YEAR SALES CHANGE 2016 U.S. UNITS YEAR UNIT CHANGE 2016 AUV AVERAGECHECK 2016 % FRANCHISED RANK MENU SEGMENT | THE BUZZ Long John Silver’s 475,400* -7.7% 950* -7.9% 480* 8.15 95.8% The seafood QSR added a $5 Louisville, Ky. value meal and launched a 86 sustainability-focused campaign

Dave & Buster’s 450,000* 10.9% 87 8.8% 5,390* 16.95 0% The adult-focused arcade-and-bar Dallas concept rolled out a “New is what 87 we do” slogan over the summer

Potbelly Sandwich 445,900* 11.8% 454 11.3% 1,035* 7.96 9.5% The sandwich shop is recasting its 88 Shop kitchens to boost throughput and Chicago capitalize on of-premise demand Round Table Pizza 442,558 4.4% 433 -0.9% 1,020 8.20 83.8% A Knights of the Round Table- Concord, Calif. themed chain proclaiming to 89 make “the last honest pizza”

Famous Dave’s 424,000* -6.4% 173 -1.7% 2,430* 17.05 78.6% After naming a new CEO in Minnetonka, Minn. October, it announced plans mid- 90 2017 to sell all company-owned units to franchisees

Cicis 417,000* -1.2% 440 -1.1% 945* 16.80 96.6% It is known for its bottomless 91 Coppell, Texas pizza, pasta and salad bufet Krystal 416,930 -0.9% 367 2.8% 1,136 7.90 34.3% The fast-food concept known Dunwoody, Ga. for its square burgers began 92 modernizing units in 2016

The Capital Grille 413,000 4% 56 3.7% 7,510 7.30 0% Darden’s ﬁne-dining steakhouse 93 Orlando, Fla. caters to the professional crowd Maggiano’s Little 411,800 2.7% 52 2% 8,000 78.20 0% The Italian chain from Brinker 94 Italy debuted brunch this March Dallas Chuck E. Cheese’s 404,400* 3.2% 540 -2.4% 740* 28.05 5.4% The kid-focused eatertainment Irving, Texas chain tested game cards and new 95 menu items throughout 2016

Pollo Tropical 403,736 9.7% 182 13.8% 2,354 8.90 2.7% The chicken chain known for its Miami tropical ﬂavors closed a number 96 of units over the last year

Einstein Bros. 381,400* -7.2% 395* -3.2% 950* 10.94 16.5% A bagel chain designed to look 97 Bagels like a neighborhood cofee shop Lakewood, Colo. Hungry 378,222 7.4% 548 0% 690 7.30 94.5% The takeout-focused pizza chain 98 Howie’s Pizza is known for its customizable Madison Heights, Mich. ﬂavored crusts Corner Bakery Cafe 375,830 -1.3% 196 -0.5% 2,160 8.55 42.9% Roark Capital’s chain expanded Dallas its menu with grilled ﬂatbreads 99 and a Pick Any Two menu

Joe’s Crab Shack 370,000* -10.7% 113 -13.1% 3,045 10.67 0% Parent Ignite Restaurant Group Houston has been struggling to regain 100 ﬁnancial footing with the chain

Source: Technomic’s Top 500 Chain Restaurant Report; *Estimate Steak sells #88 #93 Fine dining #97 makes up just 5% of full-service sales, but it showed 4.9% growth, better than the overall 1.4% FSR boost.

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) YEAR YEAR - - $000 ( ) $ ( $000 ( OVER OVER Chain Name - - Headquarters RANK 2016 U.S.SALES YEAR SALES CHANGE 2016 U.S. UNITS YEAR UNIT CHANGE 2016 AUV AVERAGECHECK 2016 % FRANCHISED MENU SEGMENT | THE BUZZ Jet’s Pizza 368,400* 8.5% 404 5.2% 935* 26.55 91.3% The chain is known for its square- 101 Sterling Heights, Mich. shaped pizza and ﬂavored crusts Pei Wei 365,594 4.4% 214 0.5% 1,712 8.05 4.7% Along with appointing a new 102 Asian Diner CEO, the sister of P.F. Chang’s Scottsdale, Ariz. expanded its menu Taco John’s 362,930 1.1% 391 1.3% 935 8.85 97.4% It serves made-to-order meals for 103 Cheyenne, Wyo. breakfast, lunch and dinner Charleys 362,510 8.5% 482 3.7% 766 8.87 88.8% It’s known for signature Philly 104 Philly Steaks steak sandwiches, gourmet fries Columbus, Ohio and grilled-to-order subs Cold Stone Creamery 361,700* -0.9% 905* -2.3% 395* 10.09 98.9% Hand-mixed ice cream creations 105 Scottsdale, Ariz. are made on marble slabs Village Inn 361,000* 0.6% 212 -0.5% 1,700* 6.60 41% A chain serving up American 106 Denver comfort food and signature pies Miller’s Ale House 360,000* 6.4% 78 8.3% 4,800* 10.65 0% It serves gastropub fare and over 107 Jupiter, Fla. 75 beers in a tavern-like setting On The Border 356,300* -1.3% 142* -0.7% 2,500* 17.60 11.3% The chain is known for Tex-Mex 108 Mexican cuisine served in a friendly and Grill & Cantina energized atmosphere Irving, Texas Au Bon Pain 351,781 -3.2% 207 0% 1,700 16.30 36.2% A European-inspired fast casual Boston serving a variety of artisanal 109 sandwiches and baked goods

Mellow 350,600* 9.7% 192 6.1% 1,880* 6.06 98.4% The psychedelic-themed pizza 110 Mushroom chain recently launched a Atlanta “skinny” menu Smashburger 344,000* 12.2% 343 4.6% 1,025* 9.30 41.7% The chain recently appointed 111 Denver co-founder Tom Ryan as CEO Freddy’s Frozen 340,458 27.5% 236 33.3% 1,645 7.75 93.2% A fast-food chain serving 112 Custard & cooked-to-order steakburgers Steakburgers and its signature custard desserts Wichita, Kan. Schlotzsky’s 338,000 5.7% 362 3.4% 950* 10.30 93.1% The deli chain launched a spinof Austin, Texas concept called Schlotzsky’s Aus- 113 tin Eatery aimed at millennials

Twin Peaks 332,900* 11% 79 8.2% 4,380* 16.95 62% A lodge-themed chain spe- Dallas cializing in bar fare served by 114 midrif-bearing female servers

Chuy’s 330,613 15.2% 82 17.1% 4,350* 14.60 0% It serves Tex-Mex fare in a 115 Austin, Texas retro-themed setting Old Country Bufet/ 328,800* -31% 77 -51.9% 2,775* 10.25 0% The bufet-style chain serves up a 116 HomeTown Bufet large range of American fare at a Eagan, Minn. low price point Braum’s Ice Cream 328,000* 2.8% 283 1.1% 1,165* 6.75 0% It touts that it is the only major 117 & Dairy Stores ice cream chain in the country to Oklahoma City milk its own cows Pappadeaux 325,000* 4.9% 38 5.6% 8,780* 34.20 0% The chain serves fresh-caught, 118 Seafood Kitchen Louisiana-style seafood in an Houston energetic atmosphere

Source: Technomic’s Top 500 Chain Restaurant Report; *Estimate

)

) YEAR YEAR - - $000 ( ) $ ( $000 ( OVER OVER Chain Name - - Headquarters RANK 2016 U.S.SALES YEAR SALES CHANGE 2016 U.S. UNITS YEAR UNIT CHANGE 2016 AUV AVERAGECHECK 2016 % FRANCHISED MENU SEGMENT | THE BUZZ Taco Cabana 321,220 -3.1% 173 3% 1,894 8.90 4% Parent Fiesta Restaurant Group Addison, Texas brought in a ﬁne-dining veteran 119 as the new CEO of the chain

Benihana 320,000* 2.2% 73 0% 4,380* 31.00 12.3% A Japanese steakhouse known for 120 Doral, Fla. its exhibition-style cooking Tropical 314,239 20.2% 535 20% 640 6.90 99.8% The latest store revamp includes 121 Smoothie Cafe warm colors, an open kitchen, an Destin, Fla. updated logo and a smoothie bar Friendly’s 309,000* -7.4% 250 -5.7% 1,200* 9.85 52% An old-fashioned ice cream shop Wilbraham, Mass. serving burgers, soups, sandwich- 122 es and more for all dayparts

Portillo’s 304,500* 10.6% 46 12.2% 7,000* 12.95 0% A fast casual known for Chicago- 123 Oak Brook, Ill. style hot dogs and Italian beef Ninety Nine 304,000 3.6% 106 1% 2,880 14.80 0% A Northeast-based chain serving 124 Restaurants American fare in a neighborhood Woburn, Mass. pub atmosphere Hard Rock Cafe 302,300* 0.6% 46 -2.1% 6,500* 19.80 0% The rock music-themed chain is 125 Orlando, Fla. known for its nostalgic decor The Habit 298,119 26.3% 172 21.1% 1,917 12.05 5.8% The chain known for its char- 126 Burger Grill broiled burgers opened its ﬁrst Irvine, Calif. international location in Dubai Fleming’s Prime 285,000 1.8% 68 3% 4,277 74.00 0% A ﬁne-dining chain that serves 127 Steakhouse & USDA prime steaks and 100 Wine Bar wines by the glass Tampa, Fla. Smoothie King 283,600* 13.4% 759 15.2% 400* 6.95 96% Its smoothies are fresh-made Metairie, La. with fruit, juice and a selection of 128 protein powders and vitamins

Zoes Kitchen 280,356 21.3% 204 22.9% 1,541 12.20 1.5% The Mediterranean fast casual 129 Plano, Texas began testing third-party delivery Shake Shack 280,350* 40% 71 44.9% 4,981 12.65 9.9% The concept from Union Square New York City Hospitality Group recently re- 130 leased a pay-ahead mobile app

Bar Louie 279,400* 16.5% 120 11.1% 2,450* 22.85 25% The chain serves bar fare with an 131 Addison, Texas emphasis on innovative cocktails Rally’s Hamburgers 272,500* 1.9% 295* 1% 905* 7.08 49.2% The double-drive-thru chain Tampa, Fla. agreed to be purchased by pri- 132 vate-equity ﬁrm Oak Hill Capital

Souplantation & 272,000* -8.7% 105* -16% 2,370* 10.30 0% The chain sold to private- 133 Sweet Tomatoes equity ﬁrm Cerberus Capital San Diego Management Peet’s Cofee & Tea 271,900* 3.7% 241 2.1% 1,140* 5.05 0% It’s testing a “slow bar” cofee Emeryville, Calif. counter using French press, pour- 134 over and siphon brewing methods

Godfather’s Pizza 269,400* -10% 448 -18.7% 540* 7.10 96.9% Named after “The Godfather” Omaha, Neb. movies, this chain specializes in 135 pizzas with piled-on toppings

Romano’s 268,200* -10.1% 130 -10.3% 1,950* 17.85 3.8% The concept from Tony Romano 136 Macaroni Grill serves up traditional Italian- Dallas inspired fare in a casual setting

Source: Technomic’s Top 500 Chain Restaurant Report; *Estimate

)

) YEAR YEAR - - $000 ( ) $ ( $000 ( OVER OVER Chain Name - - Headquarters RANK 2016 U.S.SALES YEAR SALES CHANGE 2016 U.S. UNITS YEAR UNIT CHANGE 2016 AUV AVERAGECHECK 2016 % FRANCHISED MENU SEGMENT | THE BUZZ Morton’s 258,700* -3.6% 64 -4.5% 3,950* 105.00 0% Landry’s ﬁne-dining brand serves 137 The Steakhouse up USDA prime steaks, fresh Houston seafood and rich desserts Brio Tuscan Grille 256,800 -1.9% 67 6.3% 3,951 26.36 0% The Italian chain added third- 138 Columbus, Ohio party delivery late last year Old Chicago 255,100* 2.3% 105 2.9% 2,465* 16.40 41% The Chicago-style pizza chain is 139 Pizza & Taproom remodeling all of its current units Chattanooga, Tenn. by the third quarter of 2017 Caribou Cofee 255,000* 0.4% 405* 1.3% 635* 5.10 32.1% Handcrafted cofees are served 140 Minneapolis in a lodge-inspired atmosphere Wienerschnitzel 253,500* 5% 320 -0.3% 795* 6.95 100% The family-owned hot dog chain 141 Irvine, Calif. recently added chicken schnitzel

Uno Pizzeria & Grill 251,600* -10.3% 116 -8.7% 2,070* 14.30 37.1% This casual chain specializes in 142 Boston Chicago-style deep-dish pizza Saltgrass 249,100* 7% 60 11.1% 4,370* 26.80 0% The roadhouse-themed chain 143 Steak House serving Southwest favorites touts Houston its focus on hospitality Texas de Brazil 247,700* 22.9% 43 22.9% 6,350* 52.30 0% The chain ofers a prix-ﬁxe menu 144 Churrascaria of Brazilian fare with a Texas Dallas inﬂuence that is carved tableside Seasons 52 247,000 1.3% 40 -4.8% 6,025 45.00 0% The Darden chain focuses on low Orlando, Fla. calorie counts for its rotating 145 seasonal dishes

Huddle House 245,769 3.7% 370 0.5% 665 7.46 96.8% It plans to launch 100 additional 146 Atlanta units in the next ﬁve years Fogo de Chao 245,381 8.1% 32 6.7% 7,915 55.25 0% This churrascaria is remodeling 147 Dallas units and added small plates Bill Miller Bar-B-Q 244,800* 6.1% 73 2.8% 3,400* 11.30 0% It ofers barbecued meats cooked 148 San Antonio over Hill Country Oak wood Which Wich 242,200* 13% 405* 12.8% 630* 10.55 99.3% The chain recently broke into the 149 Superior grocery segment, opening units Sandwiches in 15 Crossroads IGA locations Dallas Sizzler 240,349* 0.9% 123 -1.6% 1,938 14.15 87.8% A family-focused bufet chain 150 Mission Viejo, Calif. known for its unlimited salad bar Fuddruckers 239,200* -1.3% 170 -1.7% 1,375* 10.05 55.9% The burger chain with a custom- Houston izable DIY toppings bar opened a 151 unit with self-ordering kiosks

Fazoli’s 237,061 0.9% 212 0% 1,118 8.10 42.5% This family-friendly chain is 152 Lexington, Ky. increasing catering eforts Source: Technomic’s Top 500 Chain Restaurant Report; *Estimate

New look #141 #145 #151 A new prototype from a franchisee includes more seating, a lounge area and a larger DIY toppings bar.

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) YEAR YEAR - - $000 ( ) $ ( $000 ( OVER OVER Chain Name - - Headquarters RANK 2016 U.S.SALES YEAR SALES CHANGE 2016 U.S. UNITS YEAR UNIT CHANGE 2016 AUV AVERAGECHECK 2016 % FRANCHISED MENU SEGMENT | THE BUZZ Sonny’s BBQ 236,300* -5.1% 115 -5.7% 1,995* 12.60 91.3% The chain ofers generous por- Winter Park, Fla. tions of slow-smoked barbecue 153 fare

Big Boy 233,500* -9.2% 186 -7% 1,210* 9.40 46.2% It touts itself as the “Home of the 154 Warren, Mich. original double-decker” burger

Newk’s Eatery 232,900* 27.1% 112 17.9% 2,250* 11.60 73.2% This fast casual ofers fresh-made 155 Jackson, Miss. dishes and grab-and-go options

Pizza Ranch 231,791 1.4% 199 3.6% 1,255* 8.40 96.5% This Western-themed pizza chain Orange City, Iowa ofers a daily bufet and other 156 customizable pizza options

Rubio’s 231,700* 4.4% 191 -0.5% 1,210* 12.85 2.1% The chain is known for its Baja-in- 157 Carlsbad, Calif. spired ﬁsh tacos

McCormick 231,400* -6.3% 56 -6.7% 3,990* 45.00 0% An upscale chain that prints its 158 & Schmick’s menu twice daily to highlight Houston fresh, seasonal seafood dishes Luby’s 229,880 1.3% 92 -1.1% 2,485* 10.30 0% The family-friendly chain ofers 159 Houston Texas-inspired fare on its bufet

Claim Jumper 227,500* 3.9% 44 2.3% 5,230* 26.40 0% The restaurant and bar from Houston parent Landry’s features a varied 160 menu of housemade dishes

Quiznos 227,500* -27.2% 530* -20.5% 380* 9.10 98.7% The made-to-order sub chain is 161 Denver known for its toasted sandwiches

Mimi’s Cafe 224,100* -5.6% 95 -6.9% 2,275* 13.80 0% The menu is inspired by French 162 Dallas and New Orleans bistros

A&W All-American 223,000 2.3% 632 -0.9% 350* 9.14 99.4% A burger chain known for its 163 Food signature A&W Root Beer ﬂoats Lexington, Ky. and nostalgic atmosphere Buca di Beppo 220,000* -5.9% 90 -12.6% 2,280* 28.90 0% It serves up generous portions of 164 Orlando, Fla. Italian fare family-style

Bahama Breeze 219,000 7.5% 36 0% 6,085 27.80 0% The chain serves Caribbean 165 Island Grille cuisine made in-house in a festive Orlando, Fla. setting Rainforest Cafe 216,000* -1.7% 22 -4.3% 9,600* 19.80 0% Restaurants feature animatronic Houston animals, live plants and other 166 nods to nature

Legal Sea Foods 215,100* 1.6% 35 0% 6,145* 33.40 0% The chain is launching a fast-ca- Boston sual spinof with build-your-own 167 bowls

Bubba Gump Shrimp 214,300* 1.2% 29 0% 7,390* 24.60 0% It serves seafood and Southern- 168 Co. Restaurant style dishes inﬂuenced by the & Market movie “Forrest Gump” Houston Shoney’s 210,100* -4.2% 138 -4.2% 1,490* 10.05 63.8% The family-oriented chain serves 169 Nashville homestyle favorites at low prices

Johnny Rockets 207,400* 1.3% 205 7.9% 1,050* 16.40 87.3% A retro-inspired diner ofering 170 Aliso Viejo, Calif. burgers and other American fare

Source: Technomic’s Top 500 Chain Restaurant Report; *Estimate

)

) YEAR YEAR - - $000 ( ) $ ( $000 ( OVER OVER Chain Name - - Headquarters RANK 2016 U.S.SALES YEAR SALES CHANGE 2016 U.S. UNITS YEAR UNIT CHANGE 2016 AUV AVERAGECHECK 2016 % FRANCHISED MENU SEGMENT | THE BUZZ Black Bear Diner 205,281 15.3% 86 16.2% 2,566 12.45 66.3% The chain strives to have a mom- 171 Redding, Calif. and-pop feel Beef ‘O’ Brady’s 203,900* -3.8% 185 -5.6% 1,070* 14.95 94.6% A traditional pub concept that Tampa, Fla. features a sports theme in a live- 172 ly, family-friendly atmosphere

Mastro’s 201,800* 10.2% 14 7.7% 14,945* 135.00 0% It operates under the Mastro’s 173 Restaurants Steakhouse and Mastro’s Ocean Houston Club banners Le Pain Quotidien 200,300* 9.6% 92* 4.5% 2,225* 11.85 0% A European-style fast casual that 174 New York City uses organic ingredients Sarku Japan 200,100* -4.8% 225* -4.3% 870* 9.90 22.2% It ofers made-to-order teriyaki New York City dishes that are prepared 175 teppanyaki-style, as well as sushi

The Cofee 199,100* -0.9% 310* -0.6% 640* 5.05 43.5% It is adding solar-powered USB 176 Bean & Tea Leaf charging stations to its Los Los Angeles Angeles locations Penn Station East 198,800* 7.2% 310 4.4% 655 10.65 98.4% A fast-casual sandwich chain 177 Coast Subs specializing in fresh-made grilled Milford, Ohio subs, fries and lemonade Dutch Bros. Cofee 198,500* 9.5% 262 1.9% 765* 4.30 92.4% The drive-thru cofee chain 178 Grant Pass, Ore. specializes in speedy service Houlihan’s 198,497 -5.5% 70 -5.4% 2,836 13.65 54.3% The contemporary chain serves 179 Leawood, Kan. scratch-made American fare Bruegger’s Bagels 196,500* -3.2% 260* -4.1% 740* 7.05 34.6% Parent Le Duf America appoint- Burlington, Vt. ed a new CEO to help grow 180 Bruegger’s and its sister concepts

Cafe Rio 192,078 8.9% 97 11.5% 2,222 9.65 0% The menu is inﬂuenced by 181 Mexican Grill Southern Texas, New Mexico and Salt Lake City Mexico’s Rio Grande region Taco Bueno 190,800* 3.1% 180 2.9% 1,075* 9.00 13.9% It is looking to open drive-thru 182 Farmers Branch, Texas units in travel centers Jimmy Bufett’s 190,400* 8.3% 19 11.8% 10,580* 26.65 0% Launched by singer Jimmy 183 Margaritaville Bufett, it ofers a Caribbean-in- Laguna Niguel, Calif. spired menu and many margaritas The Melting Pot 190,200* -3.1% 119 -6.3% 1,540* 18.70 98.3% An upscale-casual chain ofering 184 Tampa, Fla. multicourse fondue meals Sbarro 190,000* -10.6% 305 -8.4% 595* 7.50 34.4% Its pizza, pasta and other Italian 185 Melville, N.Y. classics are served cafeteria-style Donatos Pizza 189,900* 3.4% 157 2.6% 1,225* 8.70 65% This family-owned chain is known 186 Columbus, Ohio for its pizzas and stromboli Smokey Bones 188,100* 2.9% 66 0% 2,850* 16.40 0% A lodge-themed eatery 187 Bar & Fire Grill specializing in hickory-smoked Orlando, Fla. barbecue Cooper’s Hawk 185,379 25.4% 25 25% 8,469 29.80 0% The contemporary concept Winery & ofers modern American dishes 188 and barrel-aged wines made Restaurants in-house Countryside, Ill.

Source: Technomic’s Top 500 Chain Restaurant Report; *Estimate

)

) YEAR YEAR - - $000 ( ) $ ( $000 ( OVER OVER Chain Name - - Headquarters RANK 2016 U.S.SALES YEAR SALES CHANGE 2016 U.S. UNITS YEAR UNIT CHANGE 2016 AUV AVERAGECHECK 2016 % FRANCHISED MENU SEGMENT | THE BUZZ la Madeleine 184,700* 11.7% 86 13.2% 2,280* 11.65 0% The chain specializes in French 189 Country fare and baked goods for break- French Cafe fast, lunch and dinner Dallas Baja Fresh 184,500* -8.9% 150* -6.3% 1,190* 9.45 93.3% A Mexican chain ofering made- 190 Mexican Grill to-order Mexican fare Irvine, Calif. Blaze Pizza 184,500 82.1% 169 62.5% 1,440 13.00 96.4% It launched new simple salads and Pasadena, Calif. salad pizza oferings and removed 191 artiﬁcial additives from its menu

Bertucci’s 184,200* -4% 83 -3.5% 2,180* 17.10 0% The Italian chain is known for its 192 Northborough, Mass. pizzas and brick-oven specialties Menchie’s Frozen 182,400* 16.5% 415 5.1% 450* 5.75 99.8% A healthful dessert chain ofering 193 Yogurt nonfat, low-carb and sugar-free Encino, Calif. varieties of frozen yogurt Tilted Kilt 180,600* -3.7% 80 -13% 2,100* 17.30 100% The high-energy concept strives 194 Pub & Eatery for a British-Irish pub vibe Tempe, Ariz. Pret a Manger 177,800* 18% 76 18.8% 2,540* 10.80 0% The chain from the U.K. serves New York City grab-and-go fare made fresh with 195 preservative-free ingredients

J. Alexander’s 177,481* -0.5% 31 0% 5,725 30.41 0% The upscale-casual concept is Nashville known for its chef-prepared, 196 wood-ﬁred dishes

First Watch 174,500* 10.2% 160* 16.8% 1,175* 12.10 34.4% The family-friendly breakfast- University Park, Fla. and-lunch chain markets itself as 197 “the daytime cafe”

Islands Fine 170,500* 2.4% 55 0% 3,100* 17.60 0% The concept features tropical- 198 Burgers & Drinks inspired fare in a beach-themed Carlsbad, Calif. atmosphere Uncle Julio’s 170,500* 14% 27 12.5% 6,685* 23.10 0% The chain is known for its Irving, Texas signature marinated and 199 mesquite-grilled meats

Kona Grill 169,523 18.5% 45 21.6% 4,500 26.00 0% This contemporary Asian-fusion Scottsdale, Ariz. concept ofers a menu of eclec- 200 tic dishes with an upscale twist

Yogurtland 168,100* 0.3% 270* 0.7% 625* 5.15 92.6% The DIY chain ofers customiz- 201 Irvine, Calif. able yogurt and toppings Del Frisco’s Double 166,885 3.1% 12 0% 13,907 115.00 0% A ﬁne-dining chain serving 202 Eagle Steak House upscale steaks and fresh seafood Southlake, Texas in an elegant environment

Source: Technomic’s Top 500 Chain Restaurant Report; *Estimate

DIY pizza #190 #191 The only build- #197 your-own pizza concept to break the top 200 has pushed into new markets and nontraditional stadium units.

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) YEAR YEAR - - $000 ( ) $ ( $000 ( OVER OVER Chain Name - - Headquarters RANK 2016 U.S.SALES YEAR SALES CHANGE 2016 U.S. UNITS YEAR UNIT CHANGE 2016 AUV AVERAGECHECK 2016 % FRANCHISED MENU SEGMENT | THE BUZZ Eat’n Park 166,368 -0.7% 69 0% 2,429 8.95 0% The all-day concept added a 203 Homestead, Pa. cofee counter to newer units Cinnabon 162,664 13.7% 836 11.9% 206 6.35 99.8% Focus Brands’ snack chain is Atlanta known for its fresh-baked cinna- 204 mon rolls and specialty cofees

Pappasito’s Cantina 160,900* 5.2% 24 4.3% 6,845* 25.30 0% The Pappas Restaurants’ brand is 205 Houston known for its lively atmosphere Shari’s Cafe and Pies 160,400* -0.1% 95 -1% 1,680* 10.85 0% It serves signature pies and fami- 206 Beaverton, Ore. ly-style cuisine 24 hours a day The Original 157,100* 5.8% 133 1.5% 1,190* 12.90 99.2% Breakfast and lunch fare is served 207 Pancake House in a farmhouse-style setting Portland, Ore. Black Angus 154,100* 2.6% 46 0% 3,350* 27.30 0% This chain ofers the steakhouse 208 Steakhouse experience at an afordable price Los Altos, Calif. Ryan’s 153,600* -34.4% 45 -50% 2,275* 10.40 0% The steakhouse and bufet chain 209 Eagan, Minn. cooks over an open flame Wetzel’s Pretzels 152,000* 16% 284 4.4% 545* 6.25 97.2% It was acquired by private-equity 210 Pasadena, Calif. firm CenterOak Partners Freebirds World 151,800* -10% 89 -6.3% 1,650* 11.10 11.2% It’s popular among young adults 211 Burrito for its energetic vibe and cus- Austin, Texas tomizable menu Bravo Cucina 151,400 -5.7% 51 -1.9% 2,940 21.40 0% The sister concept of Brio Tuscan 212 Italiana Grille serves Italian-inspired fare Columbus, Ohio from its exhibition kitchen MOD Pizza 149,800 129.8% 187 103.3% 1,090* 12.85 17.1% Guests custom-build pizzas with 213 Bellevue, Wash. unlimited toppings for one price Lucille’s Smokehouse 149,600* 8.8% 22 0% 6,800* 17.80 0% This chain recently introduced a 214 Bar-B-Que brunch menu at two locations Signal Hill, Calif. LaRosa’s Pizzeria 149,403 2.7% 65 -1.5% 2,300* 9.80 80% The chain has both full-service 215 Cincinnati and limited-service operations BurgerFi 148,200* 34.4% 106 37.7% 1,620* 12.95 82.1% The better-burger chain plans to 216 North Palm Beach, Fla. open its first college campus site Golden Chick 147,900* 11.7% 166 9.2% 930* 9.75 94% It’s often found in gas stations 217 Richardson, Texas and convenience stores Johnny Carino’s 146,600* -10.6% 60 -23.1% 2,125* 14.80 41.7% Parent Fired Up Inc. filed for 218 Austin, Texas bankruptcy mid-2016

Source: Technomic’s Top 500 Chain Restaurant Report; *Estimate

Retail sales #204 The snack chain #207 #214 continues to expand its sales by co- branding with other chains and rolling out grocery products.

) )

) YEAR YEAR ) YEAR YEAR - - - - $000 $000 ( ( ) ) $ $ ( ( $000 $000 ( OVER OVER ( OVER OVER Chain Name - - Chain Name - - Headquarters Headquarters RANK 2016 U.S.SALES YEAR SALES CHANGE 2016 U.S. UNITS YEAR UNIT CHANGE 2016 AUV AVERAGECHECK 2016 % FRANCHISED MENU SEGMENT | THE BUZZ RANK 2016 U.S.SALES YEAR SALES CHANGE 2016 U.S. UNITS YEAR UNIT CHANGE 2016 AUV AVERAGECHECK 2016 % FRANCHISED MENU SEGMENT | THE BUZZ Togo’s Sandwiches 145,640 -2.9% 244 -2.4% 590 9.80 95.1% It ofers made-to-order sand- Farmer Boys 136,200* 10.9% 88 12.8% 1,640* 11.75 88.6% A chain known for its farm-to- San Jose, Calif. wiches on housemade bread Riverside, Calif. table burgers and breakfast in a 219 228 farmhouse-style setting

Firebirds Wood 144,000 5.9% 42 10.5% 3,669 26.64 0% This lodge-themed casual-dining Pieology Pizzeria 135,200* 81.2% 130* 66.7% 1,300* 12.60 69.2% A fast-casual pizza chain serving Fired Grill chain ofers a varied menu of custom pizzas cooked in less than 220 wood-ﬁred cuisine 229 Rancho Santa Charlotte, N.C. Margarita, Calif. ﬁve minutes

Jack’s 143,400* 7.7% 141 6.8% 1,050* 7.55 7.1% The QSR burger chain strives for 134,400* 8.2% 13 8.3% 10,750* 21.50 0% This contemporary chain from an independent vibe Grand Lux Cafe 221 Birmingham, Ala. Calabasas, Calif. The Cheesecake Factory serves 230 American fare with a global twist 142,800* 27.9% 120 42.9% 1,400* 12.25 91.7% It serves Baja-style Mexican fare Fuzzy’s Taco Shop 132,900* -8.1% 155 -4.9% 870* 8.00 3.2% Its specialty pizzas are hand- Fort Worth, Texas in an upbeat atmosphere Papa Gino’s Pizzeria 222 231 Dedham, Mass. stretched to order Country Pride 140,700* -1.8% 145* -2% 960* 11.30 6.9% The chain serves homestyle meals and all-day breakfast Quaker 132,500 -11.5% 50 -7.4% 2,548 18.23 80% An auto-themed chain known 223 Restaurant for its specialty Bufalo wings Westlake, Ohio targeted at travelers 232 Steak & Lube Sharon, Pa. available with 20 sauces Marie Callender’s 139,800* -5.7% 62 -8.8% 2,150* 14.75 43.5% The brand caters to senior and family-oriented crowds with its Roosters 132,000* 8.2% 36 5.9% 3,770* 13.85 58.3% Serves jumbo chicken wings in a 224 Restaurant & Bakery Dublin, Ohio sports-themed atmosphere Mission Viejo, Calif. American fare and signature pies 233

139,500* 3.1% 468 1.3% 300* 7.00 100% Its hand-tossed pizzas are ofered Mountain Mike’s 130,700* 7.1% 180 9.8% 760* 7.85 100% This build-your-own pizza chain Pizza Pro uses fresh ingredients on its 225 Cabot, Ark. at moderate prices 234 Pizza Hayward, Calif. signature ﬂufy pizza crust 139,200* -2.3% 645* -0.8% 215* 4.65 100% The chain serves Italian ice made Rita’s Ice 130,665 -13.3% 83 -10.8% 1,495 11.25 97.6% The dual-branded chain serves Trevose, Pa. fresh in-house with real fruit Ponderosa/Bonanza 226 Plano, Texas steak, chicken and seafood dishes 235 along with sides on a bufet Granite City 136,600* 7.7% 35 2.9% 3,960* 18.10 0% Generous portions of American 227 Food & Brewery cuisine accompany handcrafted Source: Technomic’s Top 500 Chain Restaurant Report; *Estimate Minneapolis beers made at on-site breweries KEY | QUICK SERVICE | FAST CASUAL | CASUAL DINING | MIDSCALE | FINE DINING

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) YEAR YEAR - - $000 ( ) $ ( $000 ( OVER OVER Chain Name - - Headquarters RANK 2016 U.S.SALES YEAR SALES CHANGE 2016 U.S. UNITS YEAR UNIT CHANGE 2016 AUV AVERAGECHECK 2016 % FRANCHISED MENU SEGMENT | THE BUZZ Cantina Laredo 130,600* 8.6% 37 8.8% 3,680* 20.60 18.9% A contemporary chain serving Dallas margaritas and authentic 236 Mexican cuisine with a twist

PDQ 130,500* 30% 54 8% 2,510* 9.80 0% Its hand-battered chicken Tampa, Fla. tenders are served in a 237 1980s-themed setting

Great American 130,300* 4.5% 345 1.2% 380* 5.40 100% This chain serves freshly baked 238 Cookies cookies and other baked goods in Norcross, Ga. a friendly, fun atmosphere Biggby Cofee 130,000* 22.3% 260 6.1% 515* 4.95 100% A community-focused chain 239 East Lansing, Mich. serving cofee and baked goods Dufy’s Sports Grill 129,500 13.6% 33 10% 4,103 19.80 0% The bar and grill concept serves a 240 Lake Worth, Fla. varied menu of American fare Tijuana Flats 129,300* 7.8% 120 4.3% 1,100* 9.70 16.7% This fast casual known for its Altamonte Springs, Fla. self-serve hot sauce bar opened 241 an energy-efcient unit

El Torito 128,700* -10.1% 45 -16.7% 2,600* 22.80 0% A concept serving authentic, Cypress, Calif. freshly prepared Mexican food in 242 an energetic atmosphere

WaBa Grill 127,900* 39.8% 160 39.1% 930* 9.30 96.9% The health-forward chain is City of Industry, Calif. known for its teriyaki dishes 243 made with all-natural ingredients

Villa Fresh 126,000* 4.2% 220 0.9% 575* 8.65 20.9% It serves Italian fare made with 244 Italian Kitchen housemade sauces, fresh pro- Morristown, N.J. duce and never-frozen dough Rosati’s Pizza 125,100* 5.9% 195 2.6% 650* 7.90 100% The chain ofers moderately Warrenville, Ill. priced Chicago-style pizza and 245 Italian fare made in-house

Houston’s 124,100* -9% 16 -11.1% 7,300* 31.00 0% An upscale casual-dining chain 246 Beverly Hills, Calif. focused on local ingredients Wild Wing Cafe 124,000* 10.2% 44 10% 2,950* 16.10 65.9% The chicken concept is known for 247 Charlotte, N.C. its wings with housemade sauces Abuelo’s 123,200* 0.9% 39 0% 3,160* 22.10 0% Its Tex-Mex menu pairs with an 248 Lubbock, Texas upbeat setting and murals Anthony’s 123,100* 16.7% 62 19.2% 2,160* 16.85 0% The concept is known for 249 Coal Fired Pizza signature pizzas prepared in an Pompano Beach, Fla. 800-degree anthracite oven Chart House 122,000* -2.7% 28 -3.4% 4,280* 43.75 0% The chain serves local ﬂavors in 250 Houston waterfront locations

Source: Technomic’s Top 500 Chain Restaurant Report; *Estimate

The Top 500 Chain Restaurant Report is a measure of the largest restaurant concepts by U.S. systemwide METHODOLOGY sales, based on results from the 2016 calendar year. Relevant information is accrued using a combination of public company fnancial flings, direct operator surveying, franchise disclosure documents and proprietary valuation algorithms. Technomic Inc. believes that its sources of information are reliable but does not assume any liability for the accuracy or comprehensiveness of the information published.

For the complete Top 500 data, including each chain's 2015 and 2016 sales, units and YOY change, as well as Technomic's analysis, growth forecast and more: Get the full report at www.technomic.com/top500