Nation`s Restaurant News - July 22, 2013

Transcription

Appetizer appeal pg. 84 • Embracing private equity pg. 86 • Restaurants harness online retail sales pg. 88
WWW.NRN.COM
JULY 22, 2013
A PENTON PUBLICATION
Measured success in sales, growth
Restaurant brands in this Top 100 companion report
challenged by heightened competition
Latest chain rankings, page 18
OSegment insights, page 44
OCompany results, page 70
O
BY ALAN J. LIDDLE
F
oodservice chains in the 2013
Nation’s Restaurant News Second 100 saw aggregate U.S.
systemwide sales and store counts
grow significantly in their latest
completed fiscal years, but could
not match the pace of improvement set by larger Top 100 rivals.
Squeezed by both bigger and
smaller competitors, the chains
ranked Nos. 101 through 200 in
the second leg of NRN’s annual
Top 200 census had aggregate
Latest-Year domestic system
sales of $22.7 billion. That total
represented a 2.9-percent in-
crease from the roster’s sales tally for the Preceding Year, which
had risen about 2 percent compared with the Prior Year.
In comparison, the Top 100
chains chronicled in the June 24
issue of NRN and online at NRN.
com, with aggregate system sales
of $213.7 billion, realized LatestYear sales growth of 5.3 percent
and Preceding-Year improvement
of 4.6 percent.
Second 100 chains, by virtue of
their size, faced unrelenting pressure from above — Top 100 chains
had average Latest-Year system
sales of $2.1 billion versus the Second 100’s average of $226.5 million
research analyst at Jefferies &
Co. Inc.
“You have large advertising budgets and
promotional calendars and innovation
from the big guys,
and then you have
some of the smaller
chains outside the
Second 100 that
are growing in various categories, like
fast casual, and that
points to a maturing industry with market share
battles,” he said. “Some
— and below, as well as continuing challenges from
the crawling economic
recovery.
“The [sales] pie,
overall, is really
the same size or
maybe even a little
smaller, so even
though we’ve been
seeing some better
macroeconomic
data, they really
are not translating
into a big rebound for
restaurant sales,” noted
Andrew Barish, managing director and senior equity
CONTINUED ON PAGE 15
Flatbreads on the rise
BY ERIN DOSTAL
F
The flatbreads at Maggiano’s Little Italy are tied with calamari as the
chain’s most popular appetizer.
latbread, a food item prepared
since ancient times, is showing
up on an increasing number of
trendy restaurant menus as operators recognize its customizability,
healthful perception, modest cost
and ability to be shared by guests.
While most flatbread recipes
call for only three ingredients —
flour, water and salt — the simple
bread, which was introduced in
the Middle East thousands of
years ago, lends itself to a variety
of inventive options and preparations.
Menu makers at casual-dining
chains like Chili’s Grill & Bar,
Maggiano’s Little Italy, Seasons 52
and Boston’s Restaurant & Sports
Bar are showcasing flatbreads on
their menus. Meanwhile, Pizza
Hut, which added flatbreads in
June, also is trying to tap into the
trend.
CONTINUED ON PAGE 8
OPPORTUNITY COMES IN
MANY FLAVORS
Exclusive territories are available.
Call (248) 414-3300 or log on to
franchising.hungryhowies.com
SEE US IN THE
Second 100
CHAIN RESULTS
16
18
20
22
24
26
29
CHAIN RESULTS
Chain analysis
Chain U.S. systemwide foodservice sales
Top 10 newcomers
Growth in U.S. systemwide sales
Total number of U.S. units
Growth in total number of U.S. units
Growth in U.S. franchise units
UNIT-LEVEL TRENDS
UNIT-LEVEL TRENDS
Estimated sales per unit analysis
Estimated sales per unit data
Growth in estimated sales per unit
Segment insights: Estimated sales per unit
30
32
32
34
Market share analysis
Segment share of sales
Segment share of units
Segment insights: Share of sales
A companion report to Top 100,
analyzing sales and growth trends
of the largest U.S. restaurant brands
of the Second 100 chains will grow their way out of
it, and others will innovate to compete, but some
will get stuck in the middle of those scissors.”
Consumers who continue to be spending sensitive also fuel the market share rumbles, said Malcolm Knapp, president of Malcolm M. Knapp Inc.,
which produces the Knapp-Track report of business trends in casual dining.
He pointed to hourly wage earners — a “fairly big chunk of the economy” — who are being
forced to prioritize their monthly spending as
slowly rising incomes are challenged by rising or
fluctuating costs of such essential expenditures as
rents, utilities, health insurance premiums, gasoline and “must-have” items such as smartphones.
“It really does explain why we have a kind of
volatility” in restaurant spending, Knapp said.
Among 2013 Second 100 chains, the average rate of growth in U.S. systemwide sales fell
slightly to 4.1 percent in the Latest Year from 4.2
percent in the Preceding Year. Within the roster, 69 chains showed growth in Latest-Year system sales, one was flat, and 30 suffered erosion,
while in the Preceding Year 72 grew sales, one was
CONTINUED ON PAGE 16
Casual Dining
Limited Service
Limited Service/Specialty
Family Dining
Pizza
Beverage-Snack
Bakery-Cafe
44
48
52
56
60
64
66
COMPANY RESULTS
Company analysis
Company U.S. foodservice revenue
Growth in U.S. foodservice revenue
70
72
74
APPENDIX
Methodology
Frequently asked questions
Explanation of terms
Company footnotes
Company index
Chain index
76
76
78
78
79
80
APPENDIX
Get more Top 200 online at NRN.com, including sortable data tables for
both Top 100 and Second 100 chains, galleries of top growth chains and
newcomers, and additional content. Go to: NRN.com/second-100-2013
SEGMENT ANALYSIS
COMPANY RESULTS
CONTINUED FROM PAGE 1
38
39
39
40
SEGMENTS
Sales squeeze
MARKET SHARE TRENDS
MARKET SHARE TRENDS
Alan J. Liddle, managing editor of special projects, is senior data analyst and database
manager for the NRN market data products.
NATION’S RESTAURANT NEWS
WWW.NRN.COM
JULY 22, 2013 •
15
CHAIN RESULTS
SECOND 100
CHAIN ANALYSIS
CONTINUED FROM PAGE 15
flat, and 27 had declining estimated or
reported top lines.
Of the 69 Second 100 chains that grew
sales in the Latest Year, the average rate of
growth was 9.3 percent, versus an average
growth rate of 8.4 percent among the 72
chains that boosted sales in the Preceding Year.
On an aggregate net-domestic-units
basis, Second 100 chains managed
1.8-percent growth in the Latest Year to
19,194 total locations, which compares
to the Preceding Year’s growth of 0.2 percent. The base of company-operated restaurants increased by 0.8 percent in the
Latest Year to 8,981 sites after two years of
declining counts, while the rate of growth
in total franchised outlets was a more robust 2.7 percent, with Second 100 chains
ending the Latest Year with 10,213 franchised stores. That compares to franchise
store growth of 1.2 percent in the Preceding Year.
The average rate of net new store
growth among all Second 100 chains in
the Latest Year was 2.5 percent, versus 1.6
percent in the Preceding Year. Among
the 46 chains that grew their net domestic store counts in the Latest Year, the
average rate of growth was 10.9 percent,
which compares to the Preceding Year’s
average improvement of 6.7 percent
among 38 growth chains.
But such improving rates of growth
can’t hide the fact that more than half of
the Second 100 chains had flat or declining net store counts in both the Latest and
Preceding years.
Among Top 100 chains in the Latest
Year, 72 added locations, three had flat
store counts, and 25 experienced net declines, ending the period up 1.9 percent
over the Preceding Year in aggregate units
to 184,595 U.S. sites, or nearly 10 times
BY THE NUMBERS Highlights of Second 100 chain performance
Total U.S. sales
of Second 100 chains
$22.7
billion
The top five
Second 100 chains
had average system
sales growth of:
38.4%
Sales of No. 101 rank:
$363 million
UP
2.9%
Sales of No. 200 rank:
$134.4 million
from a
year ago
Total Second 100 locations:
Preceding-Year units:
19,194 18,860
Second 100 chains’ LatestYear sales represent 3.6% of
the projected $631.8 billion*
in 2012 foodservice sales. Top
100 chains, meanwhile, make
up 33.8% of that total.
Change in
total locations
since last
year:
UP
1.8%
Growth trends:
4.1% 2.5%
Second
100
Average sales growth rate
for all Second 100 chains
Average unit growth rate
for all Second 100 chains
Worstperforming
segment in
sales growth:
Bestperforming
segment in
sales growth:
Top
100
-13.3%
Buffet
13.7%
LSR/Specialty
* SOURCE: NATIONAL RESTAURANT ASSOCIATION
SEGMENT SHARE OF SECOND 100 SALES
CASUAL DINING
38.3%
OTHER*
9.2%
* INCLUDES IN-STORE, C-STORE, GRILL-BUFFET/SALAD BAR, CHICKEN AND CAFETERIA CHAINS
16
• JULY 22, 2013
(Percent share of $22.7 billion Latest-Year sales total)
LSR/SPECIALTY**
FAMILY DINING
PIZZA
8.0%
7.0%
6.8%
** INCLUDES LIMITED-SERVICE BARBECUE, HOT DOG, NOODLE, JAPANESE, ITALIAN AND CHINESE CHAINS
WWW.NRN.COM
SALES AND UNIT GROWTH BY SEGMENT
(Year-over-year percentage change)
SALES GROWTH
LSR/SPECIALTY**
LSR/SANDWICH
BAKERY-CAFE
the Second 100’s base of domestic outlets.
“It is much tougher to get real estate
[these days], and the big guys have better
credit ratings when dealing with developers, more personnel, site-selection models
with years of refinements and networks
of brokers,” consultant Knapp said of the
advantages large chains have over smaller
competitors in finding and securing good
locations. “And they have the cash to act.”
The good news for Second 100 chains is
that even if they must battle larger chains
for locations, the number or quality of such
sites appears to be on the rise.
“Malls are being redone even if there are
not a lot of big, brand-new centers coming
out of the ground, and there is certainly
more refurbishment of older real estate
than we saw in the recession,” Barish of Jefferies & Co. said.
Such mall revitalization projects are benefiting Second 100 chains, including Buca di
Beppo, the Italian casual-dining chain that
increased its net domestic unit count by
seven, or 8.1 percent, to 93 locations in its
PIZZA
BEVERAGE-SNACK
LSR/BURGER
OTHER*
CASUAL DINING
bined total of 48 full-service chains with an
average ESPU of $3.7 million, compared to
the Top 100’s 35 full-service chains with an
average ESPU of $3.2 million.
As a group, Second 100 chains saw their
average rate of growth in ESPU slow to 2.2
percent in the Latest Year
from 3.1 percent in the
Preceding Year. The average rate of growth among
the 78 chains that increased their ESPU in the
Latest Year, 4.1 percent,
represented a retreat
from the Preceding-Year
average boost of 4.7 percent among 80 growth
chains.
— Andrew Barish, Jefferies & Co. Inc.
The Second 100’s top
chain ranked by LatestYear U.S. systemwide sales, No. 101 Round
qualifying chains, the Second 100, with a
Table Pizza with $363 million in sales, reLatest-Year average of $2.4 million, clearly
bounded with higher ESPU following a
outperformed the Top 100 and its $1.9 milPreceding-Year bankruptcy and reorganilion average. Much of the difference rezation that ultimately saw it close or sell to
sulted from the Second 100 having a com-
Latest Year. Most of those net new locations
resulted from a deal between Buca di Beppo
and General Growth Properties Inc. to open
restaurants in 10 GGP-portfolio malls.
When it came to the average estimated sales per unit, or ESPU, across all 100
“The [sales] pie, overall, is really
the same size or maybe even a little
smaller, so even though we’ve been
seeing some better macroeconomic
data, they really are not translating
into a big rebound for restaurant sales.”
LSR/SANDWICH
LSR/BURGER
LSR/MEXICAN
BEVERAGE-SNACK
6.2%
5.8%
5.6%
4.9%
LSR/MEXICAN
FAMILY DINING
-0.9%
-13.3%
-2.1%
-2.1%
-4.5%
-0.4%
-0.7%
1.7%
0.1%
3.0%
-0.2%
5.1%
1.3%
5.3%
2.1%
6.3%
3.6%
8.0%
5.9%
10.9%
15.4%
13.7%
UNIT GROWTH
BUFFET
franchisees about one-third of the restaurants previously operated by parent Round
Table Franchise Corp.
Runner-up Noodles & Company
jumped 12 spots up the roster to No. 102
by increasing Latest-Year sales 19.7 percent compared with the Preceding Year to
$355.5 million. It achieved that increase
through a combination of 5.6-percent
growth in ESPU and 15.1 percent more
year-end locations.
The top five Second 100 chains ranked
by growth in Latest-Year U.S. systemwide
sales — Dickey’s Barbecue Pit, Smashburger, Marco’s Pizza, Chuy’s and Raising Cane’s
Chicken Fingers — had an average growth
rate of 38.4 percent.
On average, Dickey’s, Seasons 52,
Smashburger, Bar Louie and Quaker Steak
& Lube — the Second 100’s top five chains
ranked by Latest-Year growth in net new
U.S. units — increased their domestic system store bases by 38 percent. Q
alan.liddle@penton.com
BUFFET
4.5%
BAKERY-CAFE
3.7%
NOTE: MAY NOT ADD TO 100% BECAUSE OF ROUNDING
WWW.NRN.COM
JULY 22, 2013 •
17
CHAIN RESULTS
SECOND 100
LATESTYEAR
RANK
CHAIN U.S. SYSTEMWIDE FOODSERVICE SALES
PREC.YEAR
RANK CHAIN
CONCEPT
PARENT COMPANY
FISCAL
YEAREND
U.S. SYSTEMWIDE FOODSERVICE SALES
(BY FISCAL YEAR, IN MILLIONS)
LATEST
PRECEDING
PRIOR
101
103
Round Table Pizza
Pizza
Round Table Franchise Corp.
Dec. ’12
$363.0
$357.0
$377.7
102
114
Noodles & Company
LSR/Noodle
Noodles & Company*
Dec. ’12
355.5
296.9
261.3
103
100
Cold Stone Creamery
Beverage-Snack
Kahala Corp.
Dec. ’12
354.3
365.5
385.7
104
99
Mimi’s Cafe
Casual Dining
Groupe Le Duff S.A.
April ’13
351.0
366.0
386.0
105
106
Au Bon Pain
Bakery-Cafe
LNK Partners LLC
Aug. ’12
338.8
317.2
301.8
106
125
Jersey Mike’s Subs
LSR/Sandwich
Jersey Mike’s Franchise Systems Inc.
Dec. ’12
334.1
266.6
218.8
107
112
The Capital Grille
Casual Dining
Darden Restaurants Inc.*
May ’13
332.0
308.0
277.0
108
111
Taco John’s
LSR/Mexican
Taco John’s International Inc.
Dec. ’12
324.2
309.7
296.0
109
127
Yard House
Casual Dining
Dec. ’12
324.0
262.4
212.9
110
109
Pei Wei Asian Diner
LSR/Chinese
Centerbridge Partners L.P.
Dec. ’12
317.2
311.9
310.1
111
105
Village Inn
Family Dining
Fidelity National Financial Inc.*
March ’13
317.0
323.0
321.6
112
104
Shoney’s
Family Dining
Royal Capital Corp.
Oct. ’12
308.0
333.0
361.0
113
110
Uno Chicago Grill/Pizzeria Uno
Casual Dining
Twin Haven Capital Partners LLC
Sept. ’12
301.1
309.9
325.0
114
107
Barnes & Noble Cafe
In-Store
Barnes & Noble Inc.*
April ’13
298.0
315.0
312.0
115
128
Corner Bakery Cafe
Bakery-Cafe
Roark Capital Group
Dec. ’12
296.4
260.9
247.0
116
123
Dave & Buster’s
Casual Dining
Oak Hill Capital Partners
Jan. ’13
293.0
267.2
262.3
117
108
HomeTown Buffet
Buffet
Buffets Restaurants Holdings Inc.
June ’13
291.0
313.0
348.0
118
123
Hungry Howie’s Pizza
Pizza
Hungry Howie’s Pizza & Subs Inc.
Dec. ’12
290.8
267.2
249.9
119
121
Taco Cabana
LSR/Mexican
Fiesta Restaurant Group Inc.*
Dec. ’12
288.2
271.3
257.2
120
125
Sam’s Cafe
In-Store
Wal-Mart Stores Inc.*
Jan. ’13
279.0
266.6
253.0
121
120
Ninety Nine Restaurant & Pub
Casual Dining
Dec. ’12
278.4
272.3
273.3
122
132
Schlotzsky’s Deli
LSR/Sandwich
Roark Capital Group
Dec. ’12
276.0
249.0
241.2
123
101
Ryan’s Grill, Buffet & Bakery
Buffet
June ’13
275.6
359.3
431.6
124
152
Raising Cane’s Chicken Fingers
Chicken
Raising Cane’s Restaurants LLC
Dec. ’12
274.0
210.0
174.6
125
131
Caribou Coffee
Beverage-Snack
Joh. A. Benckiser
Dec. ’12
273.0
251.0
234.5
126
129
Benihana of Tokyo
Casual Dining
Angelo, Gordon & Co.
March ’13
267.6
259.3
242.2
127
142
Potbelly Sandwich Works/Shop
LSR/Sandwich
Potbelly Corp.
Dec. ’12
261.6
231.0
223.0
128
119
Carino’s Italian
Casual Dining
Fired Up Inc.
June ’13
260.5
273.7
263.0
129
178
Dickey’s Barbecue Pit
LSR/Barbecue
Dickey’s Barbecue Restaurants Inc.
May ’13
259.0
165.0
143.8
130
137
Fleming’s Prime Steakhouse & Wine Bar
Casual Dining
Bain Capital LLC (Bloomin’ Brands Inc.*)
Dec. ’12
252.0
239.0
223.0
131
130
Fuddruckers
LSR/Burger
Luby’s Inc.*
Sept. ’12
249.9
252.0
276.0
132
136
Rally’s Hamburgers
LSR/Burger
Wellspring Capital Management LLC
Dec. ’12
249.5
239.1
235.2
133
122
Sizzler
Grill-Buffet/Salad Bar
Sizzler USA Acquisition Inc.
April ’13
248.5
270.1
264.5
134
134
Sonny’s Real Pit Bar-B-Q
Family Dining
Sonny’s Franchise Co.
Dec. ’12
248.1
243.0
238.0
135
115
McCormick & Schmick’s
Casual Dining
Fertitta Entertainment Inc. (Landry’s Inc.)
Dec. ’12
247.0
289.2
296.0
135
113
Old Country Buffet
Buffet
June ’13
247.0
302.0
358.0
137
135
Buca di Beppo
Casual Dining
Planet Hollywood International Inc.
Dec. ’12
246.0
240.0
230.0
138
137
Godfather’s Pizza
Pizza
Godfather’s Pizza Inc.
May ’13
243.0
239.0
234.0
139
160
Brio Tuscan Grille
Casual Dining
Bravo Brio Restaurant Group Inc.*
Dec. ’12
241.0
202.8
181.8
140
116
Baja Fresh Mexican Grill
LSR/Mexican
B.F. Operations Holdings LLC
Dec. ’12
240.2
289.0
292.0
141
118
Morton’s, the Steakhouse
Casual Dining
Dec. ’12
238.3
279.0
272.0
142
141
Huddle House
Family Dining
Sentinel Capital Partners
April ’13
237.2
231.5
220.5
143
133
Houlihan’s
Casual Dining
Goldner Hawn Johnson & Morrison
Sept. ’12
234.3
248.3
256.4
144
144
Braum’s Ice Cream and Dairy Stores
LSR/Burger
W.H. Braum Inc.
Dec. ’12
232.1
223.3
218.1
145
140
Old Chicago Pizza & Tap Room
Casual Dining
Dec. ’12
231.7
232.0
234.0
146
150
Pollo Tropical Chicken on the Grill
Chicken
Fiesta Restaurant Group Inc.*
Dec. ’12
231.2
211.5
189.1
147
146
Charley’s Grilled Subs
LSR/Sandwich
Gosh Enterprises Inc.
Dec. ’12
231.0
218.1
203.5
148
139
Luby’s Cafeteria
Cafeteria
Luby’s Inc.*
Aug. ’12
228.6
232.3
226.1
149
154
Fazoli’s
LSR/Italian
Sun Capital Partners Inc.
March ’13
225.0
206.7
206.9
150
151
Portillo’s Hot Dogs
LSR/Hot Dog
The Portillo Restaurant Group
July ’12
224.8
211.1
194.3
*PUBLICLY HELD U.S. COMPANY
18 • JULY 22, 2013
SOURCE: NRN RESEARCH
WWW.NRN.COM
LATEST- PREC.YEAR
YEAR
RANK
RANK
CHAIN
CONCEPT
PARENT COMPANY
FISCAL
YEAREND
U.S. SYSTEMWIDE FOODSERVICE SALES
LATEST
PRECEDING
PRIOR
151
143
The Melting Pot
Casual Dining
The Melting Pot Restaurants Inc.
Dec. ’12
$224.7
$227.6
$221.6
152
147
Wienerschnitzel
LSR/Hot Dog
Galardi Group Inc.
Dec. ’12
220.8
218.0
213.2
153
148
Rainforest Cafe
Casual Dining
Dec. ’12
217.2
216.0
214.0
154
149
Johnny Rockets
LSR/Burger
April ’13
215.3
212.7
213.0
155
152
Legal Sea Foods
Casual Dining
Legal Sea Foods Inc.
Dec. ’12
214.2
210.0
202.0
156
145
Champps Americana
Casual Dining
F&H Acquisition Corp.
June ’13
211.2
218.7
212.0
157
156
Bruegger’s Bagel Bakery
Bakery-Cafe
Groupe Le Duff S.A.
Dec. ’12
210.9
205.2
203.4
158
155
Taco Bueno
LSR/Mexican
Palladium Equity Partners LLC
Dec. ’12
208.9
206.5
206.1
159
159
Sweet Tomatoes
Buffet
Sept. ’12
208.1
203.5
196.0
160
164
Beef ‘O’ Brady’s Family Sports Pub
Casual Dining
Family Sports Concepts Inc.
Dec. ’12
207.0
193.6
197.0
161
167
Stripes
C-Store
Susser Holdings Corp.*
Dec. ’12
206.6
186.5
148.4
162
169
Sarku Japan/Sushi Bar/Teriyaki & Sushi Express
LSR/Japanese
Edjar International Inc.
Dec. ’12
204.6
179.1
159.9
163
158
Bertucci’s Italian Restaurant
Casual Dining
Jacobson Partners
Dec. ’12
202.0
204.2
200.0
164
166
Saltgrass Steak House
Casual Dining
Dec. ’12
201.8
187.5
165.0
165
165
Rubio’s Fresh Mexican Grill
LSR/Mexican
Mill Road Capital L.P.
Dec. ’12
198.5
188.1
189.5
166
161
A&W All American Food
LSR/Burger
A Great American Brand LLC (A&W Restaurants Inc.)
Dec. ’12
197.0
200.0
200.0
166
189
Marco’s Pizza
Pizza
Marco’s Franchising LLC
Dec. ’12
197.0
148.7
115.4
168
168
Hard Rock Cafe
Casual Dining
Seminole Tribe of Florida
Dec. ’12
186.4
183.0
177.9
169
172
Ponderosa Steakhouse
Homestyle Dining LLC
Dec. ’12
180.0
175.0
201.0
169
182
Smoothie King
Beverage-Snack
SK Systems Inc. (Smoothie King Franchises Inc.)
Dec. ’12
180.0
159.9
151.0
171
163
Lone Star Steakhouse & Saloon
Casual Dining
Lone Star Funds
Dec. ’12
179.0
196.0
223.3
172
171
Smokey Bones Bar & Fire Grill
Casual Dining
May ’13
176.2
176.0
174.7
173
187
Bahama Breeze
Casual Dining
May ’13
174.5
155.0
138.0
174
176
Houston’s
Casual Dining
Hillstone Restaurant Group Inc.
Dec. ’12
174.3
168.0
169.9
175
199
Chuy’s
Casual Dining
Chuy’s Holdings Inc.*
Dec. ’12
172.6
130.6
94.9
176
188
Bubba Gump Shrimp Co.
Casual Dining
Dec. ’12
172.5
154.0
143.0
177
174
Eat’n Park
Family Dining
Eat’n Park Hospitality Group
Dec. ’12
172.1
171.3
171.0
178
170
Elephant Bar Restaurant
Casual Dining
KarpReilly LLC
Dec. ’12
172.0
177.0
178.0
179
162
Marie Callender’s Restaurant & Bakery
Casual Dining
Wayzata Investment Partners LLC
Dec. ’12
167.2
196.6
248.5
180
173
Claim Jumper
Casual Dining
Dec. ’12
166.3
171.7
219.0
181
177
Donatos Pizza/Pizzeria
Pizza
Donatos Pizzeria LLC
Dec. ’12
166.0
166.0
161.0
182
180
183
—
Bravo! Cucina Italiana
Casual Dining
Bravo Brio Restaurant Group Inc.*
Dec. ’12
165.9
161.5
156.6
Seasons 52
Casual Dining
May ’13
165.0
127.0
83.0
184
185
Peet’s Coffee & Tea
Beverage-Snack
Joh. A. Benckiser
Dec. ’12
163.0
155.7
147.3
185
184
J. Alexander’s
Casual Dining
186
—
Smashburger
LSR/Burger
Dec. ’12
162.5
157.2
149.0
Consumer Capital Partners
Dec. ’12
162.0
115.7
69.0
187
186
Shari’s Restaurants
Family Dining
Shari’s Management Corp.
Dec. ’12
158.8
155.4
152.5
188
157
Chevys Fresh Mex
Casual Dining
RM Opco LLC
Dec. ’12
156.0
205.0
216.0
189
183
Così
LSR/Sandwich
190
197
Bar Louie
Casual Dining
Così Inc.*
Dec. ’12
154.0
158.1
157.8
Dec. ’12
151.0
132.0
125.0
191
198
Tropical Smoothie Café
Beverage-Snack
Buckhead Investment Partners Inc. (Tropical Smoothie Cafe LLC)
Dec. ’12
149.6
131.5
124.6
192
190
Papa Gino’s
Pizza
Bunker Hill Capital L.P.
Feb. ’13
193
179
Coco’s
Family Dining
Zensho Co. Ltd. (Catalina Restaurant Group Inc.)
Dec. ’12
147.8
147.3
145.3
144.0
161.6
160.7
194
—
Quaker Steak & Lube
Casual Dining
Quaker Steak & Lube Franchising Corp.
Dec. ’12
143.1
127.5
108.8
195
194
Black Angus Steakhouse
Casual Dining
Versa Capital Management Inc.
Dec. ’12
143.0
135.5
122.8
195
181
Piccadilly Cafeteria
Cafeteria
Yucaipa Cos.
Dec. ’12
143.0
161.0
183.0
197
193
Togo’s Eatery/Sandwiches
LSR/Sandwich
Mainsail Partners
Dec. ’12
139.3
135.6
128.3
198
200
LaRosa’s Pizzeria
Pizza
LaRosa’s Inc.
Dec. ’12
138.0
129.0
116.0
199
195
Grand Lux Cafe
Casual Dining
The Cheesecake Factory Inc.*
Dec. ’12
136.0
134.8
132.7
200
196
Max & Erma’s
Casual Dining
March ’13
134.4
134.1
TOTALS:
*PUBLICLY HELD U.S. COMPANY
142.2
$22,650.0
$22,009.4
$21,569.2
(Latest Year)
(Preceding Year)
(Prior Year)
WWW.NRN.COM
JULY 22, 2013 • 19
CHAIN RESULTS
SECOND 100
TOP 10 NEWCOMERS
hese newcomers to the 2013 Second 100 roster reflect a broad range of segments, cuisines, price points and growth strategies. While some changes to the census proved beneficial
in opening spots for upwardly mobile brands — this year, hotel chains were removed from the ranking — robust sales or unit growth, and sometimes both, boosted these 10 newcomers into the Second 100 echelon. Among them are four casual-dining concepts, two pizza players, two beverage-snack brands, one better-burger purveyor and one convenience-store
concept offering fresh Tex-Mex fare at low prices. Each is poised to race up the list in coming years. They are ranked here by Latest-Year U.S. systemwide sales, in millions.
T
1
2
3
4
5
STRIPES
$206.6M
C-Store
Stripes debuted high up the Second 100 roster, given
a growing store base and rising sales from its Laredo
Taco Company in-store restaurant concept, which
offers beef fajita tacos for $1.99 and plated foods
with two sides for $3.99.
Latest-Year sales growth: V10.8%
Second 100 sales rank: 161
U.S. unit count: 559 (V3.3%)
ESPU: $375,600 (V5%)
Latest-Year sales growth: V40%
U.S. unit count: 186 (V31%)
ESPU: $987,800 (V0.3%)
MARCO’S PIZZA
$197M
Pizza
Marco’s Pizza boosted its system sales by 32.5 percent in the Latest Year with a sales growth strategy
that balanced specialties like South Philly Cheese
Steak pizza with promotions such as the Big Square
Deal combo to counter those of bigger rivals.
BAR LOUIE
$151M
Casual Dining
Using a strategy that relies on conversions for expansion, Bar Louie has managed double-digit new
store growth in both of its past two completed fiscal years. Scratch cooking, signature cocktails and
specialty beers are also key to the concept.
• JULY 22, 2013
7
ESPU: $645,900 (V7.1%)
ESPU: $2.5 million (W6.6%)
SMOOTHIE KING
$180M
Beverage-Snack
Smoothie King’s focus on “nutritious smoothie
meals” with 7 to 45 grams of protein per 20-ounce
serving is striking a chord with consumers, helping
the brand grow its estimated sales per unit by lowdouble-digit rates in its Latest and Preceding years.
TROPICAL SMOOTHIE CAFÉ
$149.6M
Beverage-Snack
Tropical Smoothie Café offers a substantial menu
of sandwiches, salads, wraps and smoothie options
like Kale Lemonade. The entirely franchised chain
grew its way into the Second 100 with a balanced
mix of growth in units and estimated sales per unit.
8
ESPU: $344,500 (V10.1%)
ESPU: $471,900 (V7%)
CHUY’S
$172.6M
Casual Dining
Chuy’s, which went public in 2012 and operates
high-volume Tex-Mex restaurants, plans to build its
store count by about 23 percent in 2013 after growing by 25.8 percent and 34.8 percent in the Latest
and Preceding years, respectively.
QUAKER STEAK & LUBE
$143.1M
Casual Dining
Quaker Steak & Lube takes fan appreciation to a
new level, recently asking supporters to help pick
the location of the next restaurant. The brand, which
offers a broad menu, is developing both companyowned and franchise stores.
9
ESPU: $4.9 million (V2%)
SEASONS 52
$165M
Casual Dining
Aggressive unit expansion and estimated sales per
unit, or ESPU, of $6.1 million moved Seasons 52 into
the Second 100. Though ESPU dipped slightly in the
Latest Year, it reflected high new unit growth that affected systemwide average sales per unit, not comps.
LAROSA’S PIZZERIA
$138M
Pizza
LaRosa’s Pizzeria has more than 40 pizzas, sandwiches, salads, wings, pastas and desserts. It also
offers online ordering, catering, and bundled and
single-pie promotions, such as two hoagie sandwiches and a large two-topping pizza for $21.
20
6
SMASHBURGER
$162M
LSR/Burger
Although a better-burger player, Smashburger’s
menu offers chicken, salads and side dishes. LatestYear growth in U.S. systemwide sales and domestic units of 40 percent and 31 percent, respectively,
slowed significantly from the Preceding Year.
10
Latest-Year sales growth: V7%
U.S. unit count: 65 (no change)
ESPU: $2.1 million (V6.2%)
WWW.NRN.COM
CHAIN RESULTS
SECOND 100
R
GROWTH IN U.S. SYSTEMWIDE SALES
emodels, menu initiatives and store
closures were among the factors
that pumped up or pulled down U.S.
systemwide sales among the Second 100
chains, and in turn rearranged their LatestYear sales growth rankings. Smashburger,
whose Preceding-Year growth rate of 67.7
percent earned it the No. 1 ranking, fell to
No. 2 in the Latest Year with a 40-percent
performance that could not keep up with
the increase at Dickey’s Barbecue Pit.
A number of other chains, like Fazoli’s,
Beef ‘O’ Brady’s Family Sports Pub and
Ponderosa Steakhouse, saw significant
improvements in their sales growth rankings. Limited-Service concepts edged out
Casual-Dining players among top 10 growth
chains five to four, with the Pizza segment’s
Marco’s Pizza rounding out the group.
rose 52 spots from its PrecedingYear rank, growing sales by 6.9
percent in the Latest Year after
contraction of 1.7 percent in the
Preceding Year. The brand made
its first international push in 2012,
signing a franchise agreement for
units in Saudi Arabia and Bahrain.
After a disappointing Preceding
Year in which the chain posted a
sales decline of 12.9 percent, Ponderosa Steakhouse rebounded with
2.9-percent growth in the Latest
Year, moving it up 50 spots to the
No. 46 position. In 2012 Ponderosa
opened its first new domestic unit
since emerging from Chapter 11
bankruptcy in 2009.
Buffet chain Sizzler, which had
sales of $248.5 million in the Latest
Year, couldn’t keep pace with
Preceding-Year growth of 2.1 percent, falling to 90th place in this
year’s Second 100 sales growth
rankings. The chain changed hands
in a management buyout in mid2011.
22 • JULY 22, 2013
LATESTYEAR
RANK
PREC.YEAR
RANK
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89
90
91
92
93
94
94
96
97
98
99
100
10
1
4
3
8
2
7
6
12
16
31
14
32
30
43
13
27
9
21
44
5
59
15
74
26
25
18
11
17
82
36
20
34
22
19
78
22
28
38
35
60
52
81
33
24
96
65
29
46
39
37
42
76
58
56
41
48
67
89
54
53
75
70
61
64
72
62
90
66
47
79
92
56
50
73
49
69
70
77
85
88
100
45
87
40
63
84
93
91
55
95
68
94
83
51
99
80
97
98
86
CHAIN
Smashburger
Marco’s Pizza
Chuy’s
Seasons 52
Yard House
Noodles & Company
Brio Tuscan Grille
Bar Louie
Corner Bakery Cafe
Bahama Breeze
Smoothie King
Quaker Steak & Lube
Schlotzsky’s Deli
Stripes
Dave & Buster’s
Fazoli’s
Caribou Coffee
The Capital Grille
LaRosa’s Pizzeria
Au Bon Pain
Taco Cabana
Taco John’s
Sam’s Cafe
Houston’s
J. Alexander’s
Benihana of Tokyo
Buca di Beppo
Huddle House
Sweet Tomatoes
Legal Sea Foods
Hard Rock Cafe
Pei Wei Asian Diner
Round Table Pizza
Godfather’s Pizza
Wienerschnitzel
Johnny Rockets
Taco Bueno
Grand Lux Cafe
Rainforest Cafe
Eat’n Park
Papa Gino’s
Max & Erma’s
Fuddruckers
The Melting Pot
Luby’s Cafeteria
Village Inn
Così
Cold Stone Creamery
Claim Jumper
Champps Americana
Mimi’s Cafe
Carino’s Italian
Barnes & Noble Cafe
Houlihan’s
HomeTown Buffet
Shoney’s
Sizzler
Coco’s
Old Country Buffet
Chevys Fresh Mex
AVERAGES:
WWW.NRN.COM
% CHANGE,
LATEST VS.
PRECEDING
% CHANGE,
PRECEDING
VS. PRIOR
56.97%
40.02
32.48
32.16
30.48
29.92
25.32
23.48
19.74
18.84
14.39
14.24
13.76
13.61
13.25
12.58
12.57
12.24
12.01
10.84
10.78
9.66
9.33
8.85
8.83
8.76
7.79
7.63
6.98
6.92
6.81
6.49
6.23
5.91
5.54
5.53
5.44
4.69
4.68
4.65
4.35
3.94
3.75
3.37
3.20
2.86
2.78
2.73
2.72
2.50
2.46
2.26
2.24
2.19
2.10
2.00
1.86
1.70
1.68
1.67
1.28
1.22
1.16
0.89
0.56
0.47
0.34
0.22
0.11
0.00
-0.13
-0.83
-1.08
-1.27
-1.50
-1.59
-1.86
-2.59
-2.82
-2.84
-3.06
-3.15
-3.43
-4.10
-4.82
-5.40
-5.64
-7.03
-7.51
-8.00
-8.67
-10.89
-11.18
-14.59
-14.59
-14.95
-16.89
-18.21
-23.30
-23.90
4.13%
14.74%
67.68
28.86
37.62
20.27
53.01
21.85
23.25
13.62
11.55
5.60
12.01
5.54
5.63
3.59
12.32
5.89
17.19
7.69
3.23
25.67
1.87
11.85
-0.10
6.92
7.04
11.19
13.64
11.21
-1.73
5.10
8.65
5.48
7.17
10.34
-0.74
7.17
5.70
4.63
5.38
1.66
2.38
-1.12
5.50
7.06
-12.94
0.88
5.69
3.13
4.35
4.99
3.83
-0.37
1.90
2.10
3.96
2.87
0.58
-5.48
2.14
2.25
-0.14
0.19
1.58
0.93
0.18
1.38
-5.70
0.74
3.11
-0.85
-8.70
2.10
2.71
0.00
2.74
0.44
0.19
-0.56
-4.65
-5.24
-21.60
3.16
-5.18
4.07
0.96
-3.16
-10.06
-7.76
2.12
-12.23
0.56
-12.02
-2.30
2.57
-20.89
-1.03
-15.64
-16.75
-5.09
4.23%
Potbelly Sandwich Works/Shop’s 13.3percent growth in estimated Latest-Year
systemwide sales to $261.6 million
was more than triple its Preceding-Year
growth of 3.6 percent, helping the LSR/
Sandwich chain move 28 positions
higher up the ranking ladder to No. 15.
Fazoli’s rebounded from a 0.1-percent
decrease in Preceding-Year systemwide sales to post an increase of 8.9
percent in the Latest Year, moving it
from a 74th-place finish to the No. 24
spot. The chain said earlier that a systemwide remodel and menu initiatives
were driving positive same-store sales.
The only chain in this year’s Second 100
to post flat Latest-Year sales, Donatos
Pizza/Pizzeria slipped from 47th place
in Preceding-Year rankings to No. 70 in
the Latest Year with systemwide sales of
$166 million in both periods.
Sales growth at Carino’s Italian turned
negative in the Latest Year after a
4.1-percent improvement in the Preceding Year. The No. 128 chain in terms
of systemwide sales came in 85th in
the Second 100 sales growth rankings
on a decline of 4.8 percent tied to the
loss of a net 15 units in the Latest Year.
With a sales decline of 14.6 percent in
the Latest Year, Morton’s, the Steakhouse, which was acquired in February
2012 by multiconcept operator Landry’s
Inc., sank 43 positions on this year’s
chart to No. 94 in terms of growth. The
chain clocked a 10-percent decline in
unit counts in the Latest Year.
CHAIN RESULTS
SECOND 100
LATESTYEAR
RANK
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
32
34
35
36
37
38
39
40
41
42
43
44
44
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
60
62
62
64
65
66
67
68
69
70
71
72
73
74
74
74
77
78
79
80
81
82
83
84
84
86
87
88
89
90
91
92
93
93
95
95
97
98
99
100
TOTAL NUMBER OF U.S. UNITS
PREC.YEAR
RANK CHAIN
FISCAL
YEAR-END
TOTAL
1
2
3
4
5
9
7
6
8
10
11
13
12
14
26
15
22
17
20
16
19
18
21
25
24
32
28
27
31
23
30
34
29
35
33
44
38
37
36
40
39
42
41
51
54
43
48
45
49
46
52
46
50
53
55
57
58
59
63
65
60
62
61
68
56
65
67
64
70
72
73
80
75
77
76
69
81
74
79
71
87
78
85
82
82
82
85
88
90
93
89
91
95
92
93
97
97
96
99
100
Dec. ’12
Dec. ’12
April ’13
May ’13
Jan. ’13
Dec. ’12
Dec. ’12
Dec. ’12
Dec. ’12
Dec. ’12
Dec. ’12
Dec. ’12
Dec. ’12
April ’13
May ’13
Dec. ’12
Dec. ’12
Dec. ’12
Dec. ’12
Dec. ’12
Dec. ’12
Dec. ’12
Dec. ’12
Dec. ’12
Dec. ’12
Dec. ’12
March ’13
April ’13
Dec. ’12
Dec. ’12
March ’13
Dec. ’12
Oct. ’12
Aug. ’12
Dec. ’12
Dec. ’12
Dec. ’12
Sept. ’12
Dec. ’12
Dec. ’12
Feb. ’13
Dec. ’12
April ’13
Dec. ’12
Dec. ’12
April ’13
Dec. ’12
Sept. ’12
June ’13
Dec. ’12
Dec. ’12
June ’13
Dec. ’12
Dec. ’12
June ’13
Dec. ’12
Dec. ’12
Dec. ’12
Dec. ’12
Dec. ’12
June ’13
Dec. ’12
Aug. ’12
Sept. ’12
Dec. ’12
Sept. ’12
Dec. ’12
Dec. ’12
March ’13
Dec. ’12
March ’13
Dec. ’12
May ’13
Dec. ’12
Dec. ’12
Dec. ’12
Dec. ’12
Dec. ’12
Jan. ’13
Dec. ’12
Dec. ’12
June ’13
May ’13
Dec. ’12
Dec. ’12
Dec. ’12
Dec. ’12
Dec. ’12
Dec. ’12
Dec. ’12
Dec. ’12
July ’12
May ’13
Dec. ’12
Dec. ’12
May ’13
Dec. ’12
Dec. ’12
Dec. ’12
Dec. ’12
1,031
740
677
616
609
584
559
548
533
527
437
414
401
396
389
340
334
329
327
324
291
288
284
257
243
232
216
214
213
211
206
199
199
197
196
186
185
176
175
168
160
157
152
147
147
145
136
133
130
127
126
123
122
120
111
105
100
95
94
93
93
92
92
88
83
81
78
73
72
71
70
68
66
65
65
65
64
63
60
58
54
52
49
48
48
46
45
43
42
39
38
35
33
33
31
31
27
25
20
14
19,194
Cold Stone Creamery
A&W All American Food*
Barnes & Noble Cafe
Godfather’s Pizza
Sam’s Cafe
Stripes
Smoothie King
Caribou Coffee
Round Table Pizza
Taco John’s
Huddle House
Schlotzsky’s Deli
Marco’s Pizza
Noodles & Company
Wienerschnitzel
Fazoli’s
Johnny Rockets
Village Inn
Shoney’s
Au Bon Pain
Smashburger
Pei Wei Asian Diner
Fuddruckers
Taco Bueno
Taco Cabana
Papa Gino’s
Sizzler
Corner Bakery Cafe
Mimi’s Cafe
The Melting Pot
Carino’s Italian
Così
Coco’s
HomeTown Buffet
Buca di Beppo
Old Country Buffet
Luby’s Cafeteria
Sweet Tomatoes
Houlihan’s
Max & Erma’s
Eat’n Park
Benihana of Tokyo
Bar Louie
LaRosa’s Pizzeria
Quaker Steak & Lube
Dave & Buster’s
Chevys Fresh Mex
Brio Tuscan Grille
Champps Americana
The Capital Grille
Hard Rock Cafe
Yard House
Chuy’s
Claim Jumper
Bahama Breeze
J. Alexander’s
Legal Sea Foods
Seasons 52
Rainforest Cafe
Houston’s
Grand Lux Cafe
TOTALS:
LATEST
COMPANY
FRANCHISED
TOTAL
PRECEDING
COMPANY
FRANCHISED
TOTAL
997
740
0
594
0
566
0
529
528
112
355
371
392
384
381
299
334
329
51
324
103
141
0
5
239
73
90
185
206
194
86
0
148
70
3
104
5
118
20
8
4
105
134
38
37
0
131
45
0
102
116
69
47
15
0
0
0
37
3
0
1
0
0
0
0
47
34
0
20
0
9
10
0
0
49
0
52
0
0
16
0
8
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
10,213
1,086
773
691
619
600
507
541
546
512
486
444
397
414
394
235
337
276
305
284
334
292
300
279
237
241
203
218
223
210
244
213
196
214
192
200
142
172
175
184
163
164
156
159
129
119
145
137
140
135
138
127
138
132
121
113
105
103
99
94
86
97
95
96
81
106
86
83
90
75
72
71
52
66
64
65
77
50
70
57
74
45
59
46
47
47
47
46
43
35
31
37
34
30
33
31
23
23
25
19
13
18,860
37
0
691
23
600
24
541
20
1
412
104
38
10
17
8
40
0
4
239
0
188
127
279
233
4
147
127
26
3
27
129
196
51
126
197
59
170
58
161
158
160
51
23
103
89
145
4
90
135
29
10
68
80
106
111
105
103
62
91
86
96
95
96
81
106
34
48
90
53
72
61
42
66
64
18
77
10
70
57
50
45
45
46
47
47
47
46
43
35
31
37
34
30
33
31
23
23
25
19
13
8,912
1,049
773
0
596
0
483
0
526
511
74
340
359
404
377
227
297
276
301
45
334
104
173
0
4
237
56
91
197
207
217
84
0
163
66
3
83
2
117
23
5
4
105
136
26
30
0
133
50
0
109
117
70
52
15
2
0
0
37
3
0
1
0
0
0
0
52
35
0
22
0
10
10
0
0
47
0
40
0
0
24
0
14
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
9,948
1,122
795
703
627
599
452
502
558
510
466
478
372
418
395
142
334
217
291
255
335
298
300
277
217
241
191
224
218
219
253
216
192
235
180
203
93
168
181
187
159
164
176
165
118
96
145
141
145
206
162
128
139
138
123
137
106
104
98
94
87
143
94
96
77
114
89
125
101
74
73
75
46
68
64
64
79
45
70
56
88
38
60
44
47
44
47
46
44
29
23
37
34
26
33
31
17
22
25
21
13
18,817
34
0
677
22
609
18
559
19
5
415
82
43
9
12
8
41
0
0
276
0
188
147
284
252
4
159
126
29
7
17
120
199
51
127
193
82
180
58
155
160
156
52
18
109
110
145
5
88
130
25
10
54
75
105
111
105
100
58
91
93
92
92
92
88
83
34
44
73
52
71
61
58
66
65
16
65
12
63
60
42
54
44
49
48
48
46
45
43
42
39
38
35
33
33
31
31
27
25
20
14
8,981
* BECAUSE OF DIFFERENT REPORTING STYLES FOR NUMBER OF U.S. UNITS BY CURRENT AND PREVIOUS OWNERS, INCLUDING THE METHOD FOR HANDLING MULTIBRAND LOCATIONS,
A&W PRIOR-YEAR NUMBER IS AN NRN ESTIMATE BASED ON PRECEDING-YEAR NUMBER REPORTED BY CURRENT OWNER, ADJUSTED BY CHANGES IN NET NUMBER OF UNITS REPORTED BY PREVIOUS OWNER.
24 • JULY 22, 2013
WWW.NRN.COM
PRIOR
COMPANY
22
0
703
24
599
22
502
20
1
410
128
35
9
19
8
29
0
2
212
0
191
129
277
217
3
141
127
30
4
28
130
192
51
125
200
41
168
56
162
155
160
65
29
101
74
145
5
90
206
33
10
68
83
105
134
106
104
62
91
87
141
94
96
77
110
35
89
101
51
73
62
36
68
64
18
79
9
70
56
65
38
46
44
47
44
47
46
44
29
23
37
34
26
33
31
17
22
25
21
13
8,991
FRANCHISED
1,100
795
0
603
0
430
0
538
509
56
350
337
409
376
134
305
217
289
43
335
107
171
0
0
238
50
97
188
215
225
86
0
184
55
3
52
0
125
25
4
4
111
136
17
22
0
136
55
0
129
118
71
55
18
3
0
0
36
3
0
2
0
0
0
4
54
36
0
23
0
13
10
0
0
46
0
36
0
0
23
0
14
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
9,826
CHAIN RESULTS
SECOND 100
L
ike their Top 100 counterparts, the Second 100 chains
as a group continued to
accelerate domestic unit growth,
opening a combined net 334 company and franchised U.S. locations
in the Latest Year for a total of
19,194 branches. That represents
a growth rate of 1.8 percent for
the period. By comparison, Second
100 chains in the Preceding Year
posted a net gain in domestic units
of slightly more than 0.2 percent.
A large share of the Latest-Year
unit expansion can be attributed
to stepped up franchise growth
within the Second 100 universe.
Chains in the census saw the addition of a combined net 265 franchised units in the Latest Year, an
increase of nearly 2.7 percent over
the Preceding Year, during which
operators added 122 net U.S. locations for an increase of more than
1.2 percent.
In the Latest Year 46 Second
100 chains had a net increase in
outlets, while nine were flat and
45 closed locations.
Caribou Coffee, the coffee
specialist at No. 18, added
a net 41 domestic locations
in the Latest Year, boosting its growth rate to more
than 8.4 percent in the
period — nearly double the
4.3 percent booked in the
Preceding Year. Of those new
units, 38 were franchised
and three were company
owned. Recently, Caribou
inked a co-branding agreement with Bruegger’s Bagel
Bakery that could fuel future
growth for both brands.
While 1,031-unit Cold Stone
Creamery is by far the largest chain in terms of total
number of U.S. units in the
Second 100 census, it ranks
only No. 87 on the growth in
U.S. units table, after having shed 55 locations in the
Latest Year. That reflects a
decline in its unit growth
rate of slightly more than 5
percent.
GROWTH IN TOTAL NUMBER OF U.S. UNITS
LATESTYEAR
RANK
PREC.YEAR
RANK
1
2
3
4
5
6
7
8
9
9
11
12
13
14
15
16
17
18
18
20
21
22
23
24
25
25
27
28
29
30
31
32
33
34
34
36
37
38
39
40
41
42
43
44
45
46
47
47
47
47
47
47
47
47
47
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
77
79
79
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
100
1
3
2
10
13
4
6
5
8
7
23
11
12
20
14
9
21
25
15
63
22
39
27
23
30
92
18
37
16
26
39
39
19
39
17
36
39
29
38
86
35
39
94
81
56
73
74
39
31
39
39
60
39
39
79
72
64
78
59
69
76
65
88
90
97
67
71
39
39
39
61
57
62
33
66
100
32
39
28
34
98
39
77
85
68
83
80
82
99
91
87
95
39
58
70
84
75
93
96
89
% CHANGE,
LATEST VS.
PRECEDING
CHAIN
Seasons 52
Smashburger
Bar Louie
Quaker Steak & Lube
Chuy’s
Marco’s Pizza
Brio Tuscan Grille
Yard House
Noodles & Company
Corner Bakery Cafe
Bahama Breeze
Sweet Tomatoes
Caribou Coffee
Buca di Beppo
Grand Lux Cafe
Pei Wei Asian Diner
The Capital Grille
Dave & Buster’s
Houston’s
Smoothie King
Stripes
Taco Cabana
Claim Jumper
Au Bon Pain
Sam’s Cafe
Schlotzsky’s Deli
Fuddruckers
Huddle House
Hard Rock Cafe
J. Alexander’s
LaRosa’s Pizzeria
Legal Sea Foods
Mimi’s Cafe
Rainforest Cafe
Godfather’s Pizza
The Melting Pot
Coco’s
Fazoli’s
Eat’n Park
Benihana of Tokyo
Round Table Pizza
HomeTown Buffet
Barnes & Noble Cafe
Papa Gino’s
Wienerschnitzel
Taco John’s
Village Inn
Max & Erma’s
Johnny Rockets
Old Country Buffet
Luby’s Cafeteria
Sizzler
Taco Bueno
Cold Stone Creamery
Houlihan’s
Shoney’s
Così
Carino’s Italian
Champps Americana
Chevys Fresh Mex
AVERAGES:
65.53%
34.78
30.99
30.77
28.00
25.81
23.53
21.01
20.00
20.00
17.39
15.19
15.14
14.29
13.95
10.00
8.64
8.44
8.44
8.14
7.87
7.69
7.56
6.52
5.26
5.26
4.28
4.10
3.33
3.07
2.94
2.70
2.60
2.13
2.13
1.79
1.56
1.53
1.50
1.43
0.89
0.83
0.64
0.57
0.51
0.37
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
-0.34
-0.48
-0.73
-0.79
-0.83
-0.92
-1.39
-1.41
-1.58
-1.77
-2.00
-2.03
-2.13
-2.17
-2.44
-2.91
-2.99
-3.14
-3.16
-3.29
-3.70
-4.00
-4.00
-4.04
-4.04
-4.12
-4.17
-4.27
-4.40
-4.89
-5.00
-5.06
-5.81
-6.02
-7.01
-7.58
-7.97
-10.00
-10.87
-11.86
-13.52
-15.58
-18.89
-21.62
-21.70
2.52%
% CHANGE,
NET CHANGE,
PRECEDING VS. LATEST VS.
PRIOR
PRECEDING
65.49%
35.29
52.69
13.04
11.11
34.78
23.96
27.19
18.42
20.69
4.55
12.17
11.37
6.28
9.32
15.38
5.19
4.29
9.22
-1.15
4.81
0.00
2.38
4.55
1.79
-9.52
6.72
0.39
7.77
2.52
0.00
0.00
6.67
0.00
6.82
0.72
0.00
2.08
0.17
-4.11
0.90
0.00
-11.36
-3.31
-0.25
-2.15
-2.27
0.00
1.56
0.00
0.00
-0.94
0.00
0.00
-2.94
-2.01
-1.28
-2.84
-0.78
-1.63
-2.68
-1.37
-5.33
-7.11
-17.52
-1.48
-1.71
0.00
0.00
0.00
-0.96
-0.30
-0.96
1.06
-1.39
-34.47
1.35
0.00
2.29
1.02
-32.17
0.00
-2.77
-3.64
-1.60
-3.45
-3.21
-3.37
-33.60
-8.94
-4.35
-14.81
0.00
-0.72
-1.67
-3.56
-2.53
-10.89
-15.91
-7.02
1.60%
154
8
44
16
14
8
28
58
9
7
4
77
43
29
18
3
7
41
20
7
24
1
13
3
3
1
17
21
18
5
1
1
5
1
1
5
1
3
9
3
3
2
1
1
2
2
0
0
0
0
0
0
0
0
0
-1
-3
-1
-1
-1
-2
-1
-1
-7
-2
-4
-14
-1
-1
-4
-3
-10
-13
-3
-7
-5
-3
-12
-9
-4
-4
-4
-33
-7
-9
-7
-55
-5
-5
-15
-10
-11
-7
-15
-7
-33
-12
-17
-16
-23
3
LSR/Burger chain Smashburger continued to drive expansion in the Latest Year, with
a net 44 new U.S. locations
opening for a vigorous growth
rate of nearly 31 percent. Of
that total, 21 were franchised
stores, reflecting a 25.3-percent franchised-store growth
rate. While the 186-unit chain
registered healthy growth —
it ranks No. 3 in growth in the
total number of U.S. units in
the Latest Year — Smashburger did cool off a bit from
its torrid pace of 52.7 percent
in the Preceding Year.
LSR/Sandwich chain Jersey
Mike’s Subs, No. 12 in terms of
unit growth rate, kept the accelerator down in the Latest Year,
adding a net 77 U.S. locations
in a 15.2-percent increase over
the Preceding Year. The chain
finished the Latest Year with a
total of 584 units, 18 of which
were company owned and 566
franchised. The addition of a net
83 franchised units in the Latest
Year — partially offset by the
sale, closure or refranchising
of six company stores — was
behind the net gain in locations
that helped the chain better its
Preceding-Year growth of 12.2
percent.
continued to contract in the
Latest Year, closing 23 locations
and bringing its total number of
domestic units to 83. Over the
past three years, the casualdining steakhouse chain —
which ranks No. 100 on the
growth in units chart — has
seen its unit count contract by
27.2 percent. All of the chain’s
current units are company
owned.
26 • JULY 22, 2013
WWW.NRN.COM
SECOND 100
LATESTYEAR
RANK
PREC.YEAR
RANK
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
26
26
26
26
26
26
26
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
51
53
53
55
56
57
58
59
60
—
1
7
5
3
10
11
2
—
4
6
9
14
16
8
41
18
12
20
36
21
50
29
37
35
22
55
47
17
58
22
22
22
31
44
30
40
49
33
22
34
39
32
28
38
46
13
54
45
53
48
43
56
52
42
51
19
15
22
57
GROWTH IN U.S. FRANCHISE UNITS
CHAIN
Pei Wei Asian Diner
Taco Cabana
Caribou Coffee
Corner Bakery Cafe
Quaker Steak & Lube
Smashburger
Marco’s Pizza
Noodles & Company
Au Bon Pain
Round Table Pizza
LaRosa’s Pizzeria
Smoothie King
Village Inn
Huddle House
Fuddruckers
Schlotzsky’s Deli
Bar Louie
Coco’s
Old Country Buffet
Papa Gino’s
Godfather’s Pizza
Fazoli’s
Carino’s Italian
Sizzler
The Melting Pot
Taco John’s
Wienerschnitzel
Cold Stone Creamery
Johnny Rockets
Max & Erma’s
Shoney’s
Così
Houlihan’s
Benihana of Tokyo
Taco Bueno
Chevys Fresh Mex
Champps Americana
HomeTown Buffet
AVERAGES:
% CHANGE,
LATEST VS.
PRECEDING
% CHANGE,
PRECEDING
VS. PRIOR
150.00%
67.84
60.00
51.35
46.15
30.36
30.00
25.30
25.00
23.33
21.01
17.18
13.33
9.30
6.06
4.41
4.26
3.34
3.33
2.38
1.86
0.85
0.84
0.67
0.57
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
-0.34
-0.48
-0.85
-0.96
-1.10
-1.43
-1.47
-1.50
-2.86
-2.97
-2.99
-4.27
-4.96
-6.09
-6.42
-9.09
-9.20
-9.62
-9.62
-10.00
-10.00
-10.60
-13.04
-18.50
-33.33
-42.86
-100.00
4.74%
—%
69.40
25.00
32.14
52.94
12.00
11.11
59.62
—
36.36
27.19
12.33
4.65
4.15
20.00
-2.86
2.17
6.53
0.39
-2.33
0.27
-6.40
-0.42
-2.62
-2.23
0.00
-16.67
-5.41
2.78
-50.00
0.00
0.00
0.00
-1.16
-3.72
-0.85
-2.80
-6.19
-1.41
0.00
-2.21
-2.78
-1.22
-0.30
-2.77
-4.64
4.79
-15.50
-4.35
-11.41
-5.45
-3.70
-23.08
-9.09
-3.56
-8.00
1.17
4.35
0.00
-33.33
2.64%
NET CHANGE,
LATEST VS.
PRECEDING
3
154
3
38
12
17
12
21
1
7
58
83
6
28
4
15
2
12
17
2
7
1
2
2
3
0
0
0
0
0
0
0
0
-2
-1
-1
-1
-1
-1
-2
-2
-1
-12
-10
-33
-52
-12
-7
-2
-15
-5
-5
-1
-5
-23
-3
-32
-8
-6
-2
4
G R E A T T A S T E . A N D V A R I E T Y.
Make serving exceptional
seafood easy on yourself.
Just look for our name.
NOTE: THE TWO CHAINS WITHOUT A GROWTH RATE IN THE PRECEDING VS. PRIOR COLUMN DID NOT FRANCHISE IN THE PRIOR YEAR.
THE 40 SECOND 100 CHAINS NOT REPRESENTED ON THIS TABLE DO NOT FRANCHISE.
JULY 22, 2013 •
outt
29
SECOND 100
UNIT-LEVEL TRENDS
UNIT-LEVEL TRENDS
ESTIMATED SALES PER UNIT
LATESTYEAR
RANK
PREC.YEAR
RANK
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
100
1
3
2
4
5
7
5
9
8
10
14
12
13
11
15
16
17
20
22
23
19
18
24
21
25
26
27
30
31
35
36
28
29
32
40
37
34
38
39
33
41
42
43
45
44
49
47
46
48
52
51
50
54
53
55
57
56
59
58
60
61
64
63
62
66
67
69
68
65
72
73
70
71
75
74
76
80
77
79
78
81
83
82
84
85
86
90
87
89
88
91
92
95
94
93
96
97
99
98
100
CHAIN
Grand Lux Cafe
Houston’s
Rainforest Cafe
Yard House
The Capital Grille
Legal Sea Foods
Seasons 52
Bahama Breeze
Dave & Buster’s
Chuy’s
J. Alexander’s
Brio Tuscan Grille
Claim Jumper
Hard Rock Cafe
Champps Americana
Benihana of Tokyo
Houlihan’s
Buca di Beppo
Old Country Buffet
HomeTown Buffet
Bar Louie
Quaker Steak & Lube
Sweet Tomatoes
Luby’s Cafeteria
Mimi’s Cafe
Eat’n Park
Chevys Fresh Mex
Corner Bakery Cafe
LaRosa’s Pizzeria
Carino’s Italian
Max & Erma’s
Pei Wei Asian Diner
Au Bon Pain
Taco Cabana
The Melting Pot
Sizzler
Village Inn
Shoney’s
Fuddruckers
Così
Coco’s
Taco Bueno
Noodles & Company
Fazoli’s
Smashburger
Johnny Rockets
Papa Gino’s
Round Table Pizza
Schlotzsky’s Deli
Taco John’s
Wienerschnitzel
Marco’s Pizza
Huddle House
Caribou Coffee
Sam’s Cafe
Barnes & Noble Cafe
Godfather’s Pizza
Stripes
Smoothie King
Cold Stone Creamery
AVERAGES:
FISCAL
YEAREND
Dec. ’12
Dec. ’12
Dec. ’12
Dec. ’12
May ’13
Dec. ’12
Dec. ’12
July ’12
May ’13
May ’13
Jan. ’13
Dec. ’12
Dec. ’12
Dec. ’12
Dec. ’12
Dec. ’12
Dec. ’12
Dec. ’12
June ’13
March ’13
Dec. ’12
Dec. ’12
Dec. ’12
Dec. ’12
Dec. ’12
Sept. ’12
Dec. ’12
May ’13
Dec. ’12
June ’13
June ’13
Dec. ’12
Dec. ’12
Sept. ’12
Dec. ’12
Aug. ’12
April ’13
Dec. ’12
Dec. ’12
Dec. ’12
Sept. ’12
Dec. ’12
Dec. ’12
Dec. ’12
June ’13
Dec. ’12
Dec. ’12
June ’13
Dec. ’12
Dec. ’12
March ’13
Dec. ’12
Dec. ’12
Aug. ’12
Dec. ’12
Dec. ’12
April ’13
Dec. ’12
March ’13
Oct. ’12
Sept. ’12
Dec. ’12
Dec. ’12
Dec. ’12
Dec. ’12
Dec. ’12
Dec. ’12
Dec. ’12
Dec. ’12
March ’13
Dec. ’12
Dec. ’12
April ’13
Dec. ’12
Dec. ’12
Feb. ’13
Dec. ’12
May ’13
Dec. ’12
Dec. ’12
Dec. ’12
Dec. ’12
Dec. ’12
Dec. ’12
Dec. ’12
Dec. ’12
Dec. ’12
April ’13
Dec. ’12
Dec. ’12
Dec. ’12
Dec. ’12
Dec. ’12
Jan. ’13
April ’13
May ’13
Dec. ’12
Dec. ’12
Dec. ’12
Dec. ’12
GROWTH IN ESTIMATED SALES PER UNIT
(BY FISCAL YEAR, IN THOUSANDS)
LATEST
PRECEDING
PRIOR
$10,074.1
8,938.5
8,688.0
8,415.6
6,989.5
6,909.7
6,900.0
6,515.9
6,111.1
5,539.7
5,008.5
4,931.4
4,924.2
4,868.7
4,434.7
4,334.9
4,248.4
3,907.0
3,805.4
3,795.7
3,698.9
3,583.5
3,492.6
3,478.9
3,142.9
2,806.0
2,748.6
2,669.7
2,651.4
2,600.0
2,598.2
2,516.7
2,510.5
2,462.7
2,459.9
2,431.9
2,420.7
2,407.0
2,388.7
2,363.6
2,205.9
2,160.4
2,147.8
2,123.1
2,080.0
2,077.0
2,060.2
1,996.2
1,961.3
1,894.2
1,828.6
1,777.0
1,754.6
1,741.9
1,741.4
1,646.2
1,598.1
1,564.5
1,513.1
1,491.5
1,423.9
1,358.5
1,212.6
1,195.0
1,163.8
1,163.7
1,060.7
1,059.1
1,055.8
1,036.9
1,002.5
987.8
985.4
978.7
940.7
912.3
848.6
830.1
825.3
824.5
824.1
815.4
795.6
723.5
671.1
645.9
612.5
600.5
575.6
569.7
539.0
531.6
471.9
461.5
435.7
393.5
375.6
344.5
334.7
260.4
$2,439.8
$10,369.2
8,400.0
8,640.0
8,200.0
6,844.4
6,774.2
6,844.4
6,208.8
6,350.0
5,535.7
4,729.2
4,837.0
4,763.6
4,886.7
4,640.5
4,206.9
4,120.9
3,734.4
3,675.6
3,552.1
3,766.0
3,985.7
3,436.2
3,707.7
2,945.7
2,837.7
2,774.6
2,626.9
2,581.0
2,516.7
2,504.0
2,693.9
2,684.2
2,575.9
2,250.0
2,419.8
2,524.1
2,362.8
2,355.3
2,530.9
2,174.7
2,160.8
2,112.6
2,000.0
2,107.3
1,890.4
1,953.5
1,976.2
1,905.9
1,781.8
1,800.0
1,834.7
1,685.9
1,705.4
1,685.1
1,637.4
1,667.3
1,501.4
1,505.8
1,483.3
1,415.7
1,166.7
1,171.1
1,324.6
1,113.2
1,101.7
1,000.0
1,017.6
1,163.0
935.3
933.5
984.7
964.6
902.6
909.1
898.2
797.0
875.3
802.6
803.2
774.4
742.2
744.5
695.6
651.7
603.2
556.0
586.8
562.7
567.2
527.3
484.1
441.3
444.7
451.9
383.6
357.6
312.9
331.1
255.1
$2,407.2
$10,207.7
6,662.7
8,560.0
7,885.2
6,595.2
6,623.0
6,500.0
5,714.7
5,928.6
5,411.8
4,769.1
4,745.0
4,515.2
4,980.8
5,277.1
4,089.7
3,750.0
3,484.4
3,563.0
3,251.0
3,787.2
3,885.7
3,404.3
3,794.9
2,669.6
2,727.7
2,659.0
2,550.4
2,462.2
2,469.0
2,485.7
2,659.6
2,653.7
2,578.9
2,011.7
2,103.3
2,652.9
2,295.3
2,363.6
2,400.0
1,975.7
2,139.0
2,120.2
1,841.3
2,035.8
1,956.7
1,887.6
1,933.8
1,852.1
1,751.4
1,672.9
1,856.9
1,759.6
1,695.5
1,612.5
1,566.1
1,565.1
1,466.3
1,471.9
1,455.6
1,376.6
1,172.0
1,131.2
1,379.4
1,105.1
1,079.8
904.5
1,037.2
1,147.3
891.8
945.1
1,014.7
963.8
843.7
885.9
877.9
771.1
1,178.7
767.2
787.4
778.0
712.6
709.8
686.0
629.8
561.6
508.2
549.2
531.3
559.8
504.8
446.6
438.0
423.4
444.1
370.3
319.5
289.3
332.5
248.6
$2,330.5
LATESTYEAR
RANK
PREC.YEAR
RANK
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
17
19
20
21
22
23
24
25
26
27
28
29
30
30
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
100
85
27
9
14
95
35
13
4
19
90
16
76
27
10
6
44
1
85
66
12
5
88
60
42
3
11
17
78
54
97
91
68
26
77
40
45
51
23
32
63
8
49
43
48
30
29
61
37
39
20
22
33
80
79
38
52
58
62
47
83
74
46
15
56
7
82
84
59
25
50
74
64
31
2
55
70
94
57
73
91
34
36
41
87
67
89
65
18
98
21
81
99
100
93
72
71
24
69
96
53
% CHANGE, % CHANGE,
LATEST VS. PRECEDING
PRECEDING VS. PRIOR
CHAIN
Fazoli’s
Smoothie King
Schlotzsky’s Deli
Marco’s Pizza
Taco John’s
Benihana of Tokyo
Houston’s
Round Table Pizza
LaRosa’s Pizzeria
Dave & Buster’s
Noodles & Company
Stripes
Taco Bueno
Sam’s Cafe
HomeTown Buffet
Così
Champps Americana
J. Alexander’s
Taco Cabana
Old Country Buffet
Hard Rock Cafe
Wienerschnitzel
Yard House
Godfather’s Pizza
Huddle House
Caribou Coffee
Johnny Rockets
Au Bon Pain
The Capital Grille
Legal Sea Foods
Chuy’s
Eat’n Park
Corner Bakery Cafe
Max & Erma’s
Papa Gino’s
Cold Stone Creamery
Carino’s Italian
Fuddruckers
Rainforest Cafe
Shoney’s
The Melting Pot
Luby’s Cafeteria
Village Inn
Smashburger
Bahama Breeze
Brio Tuscan Grille
Buca di Beppo
Houlihan’s
Grand Lux Cafe
Pei Wei Asian Diner
Barnes & Noble Cafe
Seasons 52
Mimi’s Cafe
Sizzler
Sweet Tomatoes
Claim Jumper
Quaker Steak & Lube
Bar Louie
Chevys Fresh Mex
Coco’s
AVERAGES:
16.44%
10.86
10.16
10.09
9.87
9.86
9.83
9.33
8.44
7.39
7.07
6.95
6.87
6.86
6.69
6.48
6.41
6.41
6.31
6.15
6.07
5.91
5.63
5.46
5.04
4.95
4.62
4.54
4.20
4.08
4.08
4.01
3.79
3.76
3.54
3.53
3.47
3.37
3.34
3.31
3.10
3.04
2.98
2.91
2.83
2.73
2.65
2.63
2.58
2.33
2.30
2.22
2.15
2.14
2.12
2.08
2.00
1.95
1.87
1.67
1.64
1.63
1.59
1.58
1.43
1.42
1.10
1.01
0.81
0.58
0.56
0.55
0.53
0.50
0.48
0.43
0.32
0.07
-0.02
-0.37
-0.94
-1.12
-1.30
-1.78
-2.85
-3.14
-3.60
-3.76
-4.10
-4.15
-4.40
-4.44
-5.16
-6.17
-6.47
-6.58
-6.61
-9.21
-9.78
-10.09
2.24%
-0.46%
4.88
9.39
8.17
-3.39
4.16
8.38
11.85
6.98
-1.23
7.42
0.76
4.88
9.26
10.34
3.35
26.07
-0.46
1.74
8.62
10.56
-0.84
2.03
3.49
11.94
8.65
7.17
0.73
2.39
-4.19
-1.89
1.40
5.02
0.74
3.53
3.16
2.63
5.50
4.50
1.93
9.89
2.87
3.47
2.90
4.61
4.83
2.02
3.99
3.61
6.85
5.91
4.45
0.09
0.58
3.78
2.61
2.28
1.94
2.94
-0.36
0.93
3.00
7.59
2.30
10.08
-0.35
-0.43
2.19
5.30
2.85
0.93
1.90
4.55
15.05
2.31
1.32
-2.96
2.29
1.02
-1.89
4.35
4.03
3.51
-0.56
1.58
-1.19
1.76
7.11
-4.85
6.53
-0.12
-12.06
-25.74
-2.30
1.15
1.29
5.45
1.36
-3.97
2.57
3.06%
32
• JULY 22, 2013
WWW.NRN.COM
SECOND 100
BY MARK BRANDAU
S
SEGMENT: BEVERAGE-SNACK
ave for Cold Stone Creamery,
all of the chains in the Beverage-Snack segment of the
Second 100 report registered
domestic sales and new unit growth for
2012, with many crediting popular food
platforms for driving further expansion.
Caribou Coffee led all Second 100
Beverage-Snack chains in store-count
growth in the Latest Year, as its system
size increased 8.4 percent, nearly doubling its 4.3-percent growth rate in the
Preceding Year.
However, that number does not
account for the Minneapolis-based
brand’s more recent decision to close 80
underperforming locations and convert
another 88 units to Peet’s Coffee & Tea
stores — another Second 100 chain that
became Caribou’s sibling brand with
Caribou’s December 2012 acquisition
by German holding company Joh. A.
Benckiser Group.
Many of the converted Peet’s locations will be in markets like Chicago;
BEVERAGE-SNACK
ESPU, in the Latest Year by 7 percent to
$471,900 by promoting itself as a food
destination, chief executive Mike Rotondo said.
“The challenge for somebody in this
category is, if you’re a smoothie concept, what else do you have besides muffins and granola?” Rotondo said. “We’ve
succeeded by having credible food and
fitting into the better-for-you food category. But the beauty of it is as we’ve
focused on food, smoothie sales have
grown right along with it.”
One of Tropical Smoothie Café’s
most on-trend beverages, a spinach and
kale smoothie, is “the No. 1 seller with a
bullet,” he added.
Rotondo also said restaurants opened
last year are producing average unit volumes 25 percent above the typical Tropical Smoothie Café, which he owed to
“homing in on the right locations, with
great franchisees, at the right time.”
Half of the Destin, Fla.-based brand’s
franchise growth is coming from existing franchisees, he said.
Tom O’Keefe, president and chief
operating officer of Smoothie King, is
targeting similar growth from
the New Orleans-based chain’s
franchisee base.
“We have more single-unit operators now, and I want to make
those existing single-unit guys
multiunit operators, while recruiting more multiunit people to
the brand,” O’Keefe said. “We’ve
got prospects in places like Connecticut or St. Louis now, so we’re seeing the brand can penetrate climates
that had not been seen as favorable for
the model before. But given the results
we’re seeing, we think we have tremendous upside.”
Several factors contributed to
Smoothie King’s 10.1-percent increase
in ESPU and 4.1-percent growth in units
in the Latest Year, O’Keefe said. They
include very warm weather, enthusiasm and growth capital from new CEO
Wan Kim, and a successful launch of
the Lean1 smoothie. But the biggest advantage both in the present and over the
long term would be the country’s move
toward more healthful lifestyles, he said.
“The drive toward healthier lifestyles is here to stay; there’s so much
awareness being brought to the issue,”
O’Keefe said. “As that continues and
people act on it, we think we’re positioned perfectly to act on that and grow
in that niche.” Q
Many Second 100 BeverageSnack chains credited popular
food platforms with driving
domestic sales and new unit
growth in the Latest Year.
Washington, D.C.; Ohio; and Michigan.
Alfredo Martel, Caribou’s senior vice
president of marketing, described the
moves as “pruning before the blooming” that the company said will benefit
both brands.
“The conversions will give Peet’s a
foothold in non-San Francisco markets,
and we’ll aggressively put our innovation engine on full throttle to really
elevate our average unit volumes,” he
said. “We’ll continue to open stores in
our regions of influence: Minnesota, the
Dakotas, Iowa, Wisconsin and Denver.
We’ll develop units in a fill-in mode
where we know we have leverage and
brand dominance.”
According to Caribou, much of the
product innovation the chain has in
mind would continue to center on its
baked-foods platform, which includes
grilled cheese sandwiches, breakfast
sandwiches and quiches, which were introduced in June.
Similarly, Tropical Smoothie Café
grew its estimated sales per unit, or
64
• JULY 22, 2013
BY THE NUMBERS Beverage-Snack segment highlights
Total U.S. sales of Second
100 Beverage-Snack chains
Segment sales leader:
$354.3 million
$1.11
billion
Segment share of Second 100 sales:
UP
5.3%
from
4.9%
$1.06
billion
a year ago
Total units:
UP
from
2,619 1.3% 2,585
a year ago
ESTIMATED SALES PER UNIT:
Highest:
$825,300
Largest
sales
increase:
13.8%
Tropical Smoothie
Café
Chains’ average sales
growth rate:
Average:
$503,100
Lowest:
$334,700
7.3%
Largest
sales
decline:
3.1%
Cold Stone
Creamery
4
Preceding-Year rank of first-place sales growth finisher
Tropical Smoothie Café, which, with help from Smoothie
King, knocked former No. 1 Caribou Coffee to No. 3.
mark.brandau@penton.com
WWW.NRN.COM
BEVERAGE-SNACK
U.S. SYSTEMWIDE SALES
LATEST- PREC.YEAR YEAR
RANK RANK
1
2
3
4
5
1
2
3
4
5
CHAIN
Cold Stone Creamery
Caribou Coffee
Smoothie King
TOTALS:
GROWTH IN U.S. SYSTEMWIDE SALES
FISCAL
YEAREND
Dec. ’12
Dec. ’12
Dec. ’12
Dec. ’12
Dec. ’12
U.S. SYSTEMWIDE SALES
LATEST
PRECEDING
PRIOR
$354.3
273.0
180.0
163.0
149.6
$1,119.9
$365.5
251.0
159.9
155.7
131.5
$1,063.6
$385.7
234.5
151.0
147.3
124.6
$1,043.1
NUMBER OF U.S. UNITS
LATEST- PREC.YEAR
YEAR
RANK RANK
1
2
3
4
5
1
2
3
4
5
CHAIN
Cold Stone Creamery
Smoothie King
Caribou Coffee
TOTALS:
PREC.YEAR
RANK
1
2
3
4
5
1
2
3
5
4
CHAIN
Caribou Coffee
Smoothie King
Cold Stone Creamery
AVERAGES:
PREC.YEAR
RANK
1
2
3
4
5
4
2
1
3
5
FISCAL
YEAREND
CHAIN
Smoothie King
Caribou Coffee
Cold Stone Creamery
AVERAGES:
Dec. ’12
Dec. ’12
Dec. ’12
Dec. ’12
Dec. ’12
% CHANGE,
LATEST VS.
PRECEDING
% CHANGE,
PRECEDING
VS. PRIOR
13.76%
12.57
8.76
4.69
-3.06
7.34%
5.54%
5.89
7.04
5.70
-5.24
3.79%
FISCAL
YEAREND
% CHANGE,
LATEST VS.
PRECEDING
% CHANGE,
PRECEDING
VS. PRIOR
Dec. ’12
Dec. ’12
Dec. ’12
Dec. ’12
Dec. ’12
8.44%
7.87
4.10
1.53
-5.06
3.38%
4.29%
4.81
0.39
2.08
-3.21
1.67%
FISCAL
YEAREND
% CHANGE,
LATEST VS.
PRECEDING
% CHANGE,
PRECEDING
VS. PRIOR
Dec. ’12
Dec. ’12
Dec. ’12
Dec. ’12
Dec. ’12
10.09%
6.95
2.83
2.22
1.10
4.64%
8.17%
0.76
4.61
4.45
-0.43
3.51%
GROWTH IN NUMBER OF U.S. UNITS
FISCAL
YEAREND
Dec. ’12
Dec. ’12
Dec. ’12
Dec. ’12
Dec. ’12
YEAR-END NUMBER OF UNITS
LATEST
PRECEDING
PRIOR
1,031
533
527
329
199
2,619
1,086
512
486
305
196
2,585
1,122
510
466
291
192
2,581
LATESTYEAR
RANK
LATESTYEAR
RANK
LATESTYEAR
RANK
PREC.YEAR
RANK
1
2
3
4
5
2
1
4
3
5
CHAIN
Caribou Coffee
Smoothie King
Cold Stone Creamery
AVERAGES:
GROWTH IN ESTIMATED SALES PER UNIT
FISCAL
YEAREND
Dec. ’12
Dec. ’12
Dec. ’12
Dec. ’12
Dec. ’12
(BY FISCAL YEAR, IN THOUSANDS)
LATEST
PRECEDING
PRIOR
$825.3
539.0
471.9
344.5
334.7
$503.1
$802.6
527.3
441.3
312.9
331.1
$483.0
$767.2
504.8
438.0
289.3
332.5
$466.4
LATESTYEAR
RANK
PREC.YEAR
RANK
1
2
3
4
5
1
4
2
3
5
CHAIN
Smoothie King
Caribou Coffee
Cold Stone Creamery
AVERAGES:
WWW.NRN.COM
JULY 22, 2013 •
65
APPENDIX
SECOND 100
CHAIN INDEX
CHAIN
HEADQUARTERS
PARENT COMPANY
CONCEPT
Au Bon Pain
Bahama Breeze
Bar Louie
Barnes & Noble Cafe
Benihana of Tokyo
Brio Tuscan Grille
Buca di Beppo
The Capital Grille
Caribou Coffee
Carino’s Italian
Champps Americana
Chevys Fresh Mex
Chuy’s
Claim Jumper
Coco’s
Cold Stone Creamery
Corner Bakery Cafe
Così
Dave & Buster’s
Eat’n Park
Fazoli’s
Fuddruckers
Godfather’s Pizza
Grand Lux Cafe
Hard Rock Cafe
HomeTown Buffet
Houlihan’s
Houston’s
Huddle House
J. Alexander’s
Johnny Rockets
LaRosa’s Pizzeria
Legal Sea Foods
Luby’s Cafeteria
Marco’s Pizza
Max & Erma’s
The Melting Pot
Mimi’s Cafe
Noodles & Company
Old Chicago
Old Country Buffet
Papa Gino’s
Pei Wei Asian Diner
Quaker Steak & Lube
Rainforest Cafe
Round Table Pizza
Sam’s Cafe
Schlotzsky’s Deli
Seasons 52
Shoney’s
Sizzler
Smashburger
Smoothie King
Stripes
Sweet Tomatoes
Taco Bueno
Taco Cabana
Taco John’s
Village Inn
Wienerschnitzel
Yard House
Lexington, Ky.
Boston
Orlando, Fla.
Irvine, Calif.
Addison, Texas
New York
Tampa, Fla.
Miami
Northborough, Mass.
Los Altos, Calif.
Oklahoma City
Columbus, Ohio
Columbus, Ohio
Burlington, Vt.
Houston
Orlando, Fla.
Orlando, Fla.
Brooklyn Center, Minn.
Austin, Texas
Wichita, Kan.
Columbus, Ohio
Cypress, Calif.
Austin, Texas
Houston
Carlsbad, Calif.
Scottsdale, Ariz.
Dallas
Deerfield, Ill.
Dallas
Dallas
Columbus, Ohio
Homestead, Pa.
Costa Mesa, Calif.
Lexington, Ky.
Tampa, Fla.
Houston
Omaha, Neb.
Calabasas Hills, Calif.
Orlando, Fla.
Eagan, Minn.
Leawood, Kan.
Beverly Hills, Calif.
Atlanta
Madison Heights, Mich.
Nashville, Tenn.
Manasquan, N.J.
Aliso Viejo, Calif.
Cincinnati
Boston
Wichita, Kan.
Houston
Toledo, Ohio
Memphis, Tenn.
Columbus, Ohio
Houston
Tampa, Fla.
Irvine, Calif.
Houston
Woburn, Mass.
Broomfield, Colo.
Louisville, Colo.
Eagan, Minn.
Dedham, Mass.
Emeryville, Calif.
Scottsdale, Ariz.
Baton Rouge, La.
Miami
Plano, Texas
Oak Brook, Ill.
Chicago
Sharon, Pa.
Houston
Baton Rouge, La.
Tampa, Fla.
Concord, Calif.
Carlsbad, Calif.
Greer, S.C.
Houston
Bentonville, Ark.
Markham, Ontario
Austin, Texas
Orlando, Fla.
Beaverton, Ore.
Nashville, Tenn.
Culver City, Calif.
Denver
Orlando, Fla.
Covington, La.
Maitland, Fla.
Corpus Christi, Texas
San Diego
Farmers Branch, Texas
San Antonio
Cheyenne, Wyo.
Campbell, Calif.
Atlanta
Boston
Denver
Newport Beach, Calif.
Irvine, Calif.
A Great American Brand LLC (A&W Restaurants Inc.)
LNK Partners LLC
Darden Restaurants Inc.
B.F. Operations Holdings LLC
Barnes & Noble Inc.
Family Sports Concepts Inc.
Angelo, Gordon & Co.
Jacobson Partners
Versa Capital Management Inc.
W.H. Braum Inc.
Bravo Brio Restaurant Group Inc.
Bravo Brio Restaurant Group Inc.
Groupe Le Duff S.A.
Planet Hollywood International Inc.
Joh. A. Benckiser
Fired Up Inc.
F&H Acquisition Corp.
Gosh Enterprises Inc.
RM Opco LLC
Chuy’s Holdings Inc.
Zensho Co. Ltd. (Catalina Restaurant Group Inc.)
Kahala Corp.
Roark Capital Group
Così Inc.
Oak Hill Capital Partners
Dickey’s Barbecue Restaurants Inc.
Donatos Pizzeria LLC
Eat’n Park Hospitality Group
KarpReilly LLC
Bain Capital LLC (Bloomin’ Brands Inc.)
Luby’s Inc.
Godfather’s Pizza Inc.
The Cheesecake Factory Inc.
Seminole Tribe of Florida
Goldner Hawn Johnson & Morrison
Hillstone Restaurant Group Inc.
Sentinel Capital Partners
Hungry Howie’s Pizza & Subs Inc.
Fidelity National Financial Inc.
Jersey Mike’s Franchise Systems Inc.
LaRosa’s Inc.
Legal Sea Foods Inc.
Lone Star Funds
Luby’s Inc.
Marco’s Franchising LLC
Wayzata Investment Partners LLC
The Melting Pot Restaurants Inc.
Groupe Le Duff S.A.
Noodles & Company
Bunker Hill Capital L.P.
Joh. A. Benckiser
Yucaipa Cos.
Fiesta Restaurant Group Inc.
Homestyle Dining LLC
The Portillo Restaurant Group
Potbelly Corp.
Quaker Steak & Lube Franchising Corp.
Raising Cane’s Restaurants LLC
Wellspring Capital Management LLC
Round Table Franchise Corp.
Mill Road Capital L.P.
Wal-Mart Stores Inc.
Edjar International Inc.
Roark Capital Group
Shari’s Management Corp.
Royal Capital Corp.
Sizzler USA Acquisition Inc.
Consumer Capital Partners
SK Systems Inc. (Smoothie King Franchises Inc.)
Sonny’s Franchise Co.
Susser Holdings Corp.
Palladium Equity Partners LLC
Fiesta Restaurant Group Inc.
Taco John’s International Inc.
Mainsail Partners
Buckhead Investment Partners Inc. (Tropical Smoothie Cafe LLC)
Twin Haven Capital Partners LLC
Galardi Group Inc.
LSR/Burger
Bakery-Cafe
Casual Dining
LSR/Mexican
Casual Dining
In-Store
Casual Dining
Casual Dining
Casual Dining
Casual Dining
LSR/Burger
Casual Dining
Casual Dining
Bakery-Cafe
Casual Dining
Casual Dining
Casual Dining
Beverage-Snack
Casual Dining
Casual Dining
LSR/Sandwich
Casual Dining
Casual Dining
Casual Dining
Family Dining
Beverage-Snack
Bakery-Cafe
LSR/Sandwich
Casual Dining
LSR/Barbecue
Pizza
Family Dining
Casual Dining
LSR/Italian
Casual Dining
LSR/Burger
Pizza
Casual Dining
Casual Dining
Buffet
Casual Dining
Casual Dining
Family Dining
Pizza
Casual Dining
LSR/Sandwich
LSR/Burger
Pizza
Casual Dining
Casual Dining
Cafeteria
Pizza
Casual Dining
Casual Dining
Casual Dining
Casual Dining
Casual Dining
Casual Dining
Casual Dining
LSR/Noodle
Casual Dining
Buffet
Pizza
Beverage-Snack
LSR/Chinese
Cafeteria
Chicken
LSR/Hot Dog
LSR/Sandwich
Casual Dining
Casual Dining
Chicken
LSR/Burger
Pizza
LSR/Mexican
Buffet
Casual Dining
In-Store
LSR/Japanese
LSR/Sandwich
Casual Dining
Family Dining
Family Dining
LSR/Burger
Casual Dining
Beverage-Snack
Family Dining
C-Store
Buffet
LSR/Mexican
LSR/Mexican
LSR/Mexican
LSR/Sandwich
Beverage-Snack
Casual Dining
Family Dining
LSR/Hot Dog
Casual Dining
NOTE: THE 40 CHAINS NOT RANKED BY GROWTH IN FRANCHISE UNITS DO NOT FRANCHISE.
80
• JULY 22, 2013
LATEST-YEAR RANKINGS
SYSTEM- % GROWTH,
% GROWTH, % GROWTH, SALES % GROWTH,
WIDE
SYSTEM
NO.
NO. OF NO. FRAN. PER
SALES
SALES
SALES OF UNITS UNITS
UNITS
UNIT
PER UNIT
pgs. 18-19 pg. 22
pg. 24
pg. 26
pg. 29
pg. 32
pg. 32
166
105
173
140
190
114
160
126
163
195
144
182
139
157
176
137
107
125
128
156
147
188
175
180
193
103
115
189
116
129
181
177
178
149
130
131
138
199
168
117
143
174
142
118
185
106
154
198
155
171
148
166
179
200
135
151
104
141
121
102
145
135
192
184
110
195
146
169
150
127
194
153
124
132
101
165
123
164
120
162
122
183
187
112
133
186
172
169
134
161
159
158
119
108
197
191
113
111
152
109
75
31
16
97
11
86
30
45
73
35
42
49
10
47
19
50
27
26
85
83
34
100
4
82
92
81
14
78
22
1
70
66
79
24
37
72
60
64
57
88
87
43
51
25
44
7
62
29
56
91
76
3
96
68
94
74
84
94
53
9
71
98
67
38
58
93
23
46
32
15
18
65
5
41
59
36
99
28
40
12
20
6
54
89
90
2
69
17
55
21
52
63
33
39
48
13
80
77
61
8
2
34
93
30
72
3
29
71
62
87
23
84
81
21
97
60
83
10
52
82
12
80
90
91
54
1
44
53
79
15
42
70
86
27
74
38
4
100
88
55
66
99
14
8
93
6
28
74
95
65
62
17
67
69
74
47
46
78
56
19
58
60
41
32
37
68
59
50
92
24
77
98
44
22
11
35
49
84
5
26
16
95
57
32
43
36
73
9
51
7
64
39
40
13
25
18
48
31
20
89
83
33
16
96
4
67
40
63
74
69
36
34
9
56
11
20
24
18
94
95
27
99
6
32
60
87
15
91
25
1
43
62
68
61
37
44
57
22
47
65
88
25
45
46
47
12
79
47
47
100
82
8
89
77
97
58
47
93
47
13
79
81
70
38
23
98
47
92
31
18
5
47
7
77
64
66
76
34
39
14
41
2
71
90
84
3
47
28
59
29
17
85
30
73
42
21
86
75
72
9
45
15
—
55
26
—
35
53
—
—
—
—
—
37
—
—
—
4
39
59
18
58
—
—
26
46
5
51
—
2
26
—
—
38
—
22
34
—
—
60
51
—
21
25
—
12
47
17
—
—
—
11
42
49
—
41
—
—
—
13
26
26
26
—
1
—
26
48
—
9
7
—
10
57
16
26
—
—
—
6
24
—
—
50
40
8
—
19
36
—
—
56
3
43
23
14
53
20
44
—
100
54
10
69
32
95
74
20
42
25
80
23
14
84
7
27
5
91
48
19
90
40
12
15
64
99
43
63
11
78
67
38
21
70
18
61
96
1
16
31
26
2
88
92
13
87
73
44
6
50
36
86
46
51
24
56
37
22
29
66
39
30
76
79
52
53
35
62
8
68
33
3
47
77
81
71
45
17
94
75
82
9
58
60
57
72
28
98
49
97
34
65
55
83
89
93
41
59
85
4
56
54
78
98
96
87
9
14
79
15
47
61
80
32
69
81
55
52
68
36
76
97
58
92
99
67
60
35
22
93
21
59
84
2
27
70
49
85
42
34
82
17
50
7
38
3
53
20
57
19
74
11
5
63
94
73
89
100
46
23
66
40
64
45
86
30
8
1
26
30
95
71
24
16
17
10
83
41
33
37
6
88
29
72
90
77
62
4
44
25
91
28
39
13
51
12
65
75
43
48
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Nation`s Restaurant News - July 22, 2013

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