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Who's our #1?(hint: It's a smash with consumers.)
The top restaurant chains, people, trends and technologies shaping the fast casual segment.
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Just as fast casuals change recipes from time to time, so do publishers. This year—our 7th of publishing the Fast Casual Top 100—we decided, as did many of our brands last year, to add some new flavors t0 our mix.
In the past, the Top 100 focused exclusively on concepts. In so doing, it omitted a range of important factors that contributed to the continued growth of this innovative and rich segment. For this edition, then, our rankings include not only the top brands, but also the people, trends and technologies that contributed most to fast casual.
Our first step was to request nominations from our readers. We received hundreds. Our panelists pored over the results and set about ranking them.
I am optimistic that the new method provides a better reflection of the segment as a whole. Just as in business, it takes a full view to understand where the segment has been and where it’s headed. We hope you believe that our top 100 provides such a view and will continue to do so as we move into another year filled with success.
Allow me to offer a special thanks to this year’s panelists: Linda Duke, founder of Duke Marketing; Darren Tristano, executive vice president of Technomic; and Kathleen Wood, founder of Kathleen Wood Partners LLC.
— Valerie Killifer
Top 100: A broader perspective
Table of Contents 4 Top 50 restaurants
16 Top 10 menu innovations
19 Top 20 people
24 Top 10 technology trends
27 Top 10 industry trends
30 Q & A with David Prokupek, chairman and CEO of Smashburger
Top 100 2012 ©2012 Networld Media Group LLC. 13100 East Point Park Blvd., Louisville, KY 40223. (502) 241-7545. All rights reserved. No part of this publication may be reproduced without the express written approval of the publisher. Viewpoints of the columnists and editors are their own and do not necessarily represent the viewpoints of the publisher.
Publisher
Tom HarperPresident, Networld Alliance
Editorial vice president,foodservice division
Valerie [email protected]
Executive editor
Joseph [email protected]
Contributors
Missy BaxterSuzanne CluckeyRichard Slawsky
Top 100 panel
Linda DukeDuke Marketing
Valerie [email protected]
Darren TristanoTechnomic
Kathleen WoodKathleen Wood Partners LLC
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When Smashburger opened its first unit in 2007, the better burger category was just beginning to emerge. Five years later, Smash-burger is an industry leader and has moved both the better burger and fast casual segments forward in major ways.
David Prokupek, the chain’s chairman and CEO, called 2011 a “capstone year.” Not only did Smashburger increase sales 72 percent over 2010, the company signed several international de-velopment deals and continued its US-based growth, opening in 12 new markets. If that wasn’t enough, the chain was ranked by Forbes magazine as America’s Most Promising Company, a testa-ment to the company and consumer culture company executives have worked hard to develop.
“Our strategy from day one has been to build the number one brand in the better burger business,” Prokupek said. “We wanted to get the company as near to national as possible, and we have really been accelerating growth during the recession. The restau-rants are full of energy and it’s been a good, winning strategy.”
In fact, while many restaurant chains were retracting during the recession, Smashburger, owned by private equity firm Consumer Capital Partners, showed no signs of slowing down. A testament
1 SmashburgerDenver / No. of units: 145
to the comfort-food cravings consumers displayed during the downturn.
“I do think Smashburger was able to hit the ball at the right time because customers are coming from other fast casual or casual dining restaurants. Given that hamburgers are a comfort food and a favorite food of Americans, it was a really good time to grow,” Prokupek said.
International growth is definitely on the company’s radar as it an-nounced several development deals in 2011 for Latin America, Canada and the Middle East.
“I think, just like in the states, burgers are a favorite food outside of the U.S. Also, just better fast food is not a U.S. trend,” Prokupek said. “What’s also exciting is the idea of fast casual is pretty popu-lar around the world … and no one has yet really gone after it.”
Its international locations will start to open later this year in ad-dition to the 50-70 new units stateside. Those U.S. openings in-clude 15 to 20 new corporate stores in existing and new markets such as Chicago, Houston, Dallas, Los Angeles, Minneapolis, San Francisco, Boston and Washington, D.C. Meanwhile, additional international territories include Western Europe, South America and Asia.
— Valerie Killifer
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Kevin Miles was promoted to president of Zoës Kitchen in March 2011. Since his appointment, the chain has shown no signs of slowing down. The company grew at a rate of almost 40 percent in 2011 and closed the year with 54 locations across 12 states. New restaurants are scheduled to open this year in the markets of Dallas-Fort Worth, Texas; Raleigh-Cary, N.C.; and Columbus, Georgia. Miles said he adheres to the growth philosophy established by former company president Greg Dollarhyde: Stay the course.
2 Zoës KitchenBirmingham, Ala. / No. of units: 54
In 2011, Firehouse Subs became the first national chain to announce the systemwide rollout of the Coca-Cola Freestyle beverage dispenser. Additionally, by April, the company had nine new franchise agreements in place, set to add 429 restaurants to the chain’s growing portfolio. The new agreements include development territories within Iowa, Louisiana, Massachusetts, Michigan, Minnesota, Nebraska, Ohio, Pennsylvania and Texas. “The signing of these agreements is a true testament to the strength of the Firehouse Subs brand and its growing popularity,” said Don Fox, CEO of Firehouse Subs. We agree.
3 Firehouse SubsJacksonville, Fla. / No. of units: 494
Zoup! had another winning year in 2011, adding 13 stores to its roster. If that weren’t enough, the chain increased its system-wide sales by 57 percent and ranked No. 300 on the 2012 Entrepreneur Top Franchise 500. The chain, led by co-founder Eric Ersher, is fueled by a powerful company culture, providing its ex-ecutive leadership with a “secret weapon” for identifying and training franchisees who will grow the brand in new and existing markets.
Zoup!Southfield, Mich. / No. of units: 43
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Lorton, Va. / No. of units: 900+
Five Guys Burgers and Fries7
Since purchasing the Freebirds restaurant chain in 2007, Tavistock Group has spent the past several years growing its presence in both California and Texas. In 2011, Freebirds opened the doors of its 50th Texas location and now has 54 throughout the state. It also has continued to grow in California. Last year, the company reached another milestone with the first of several planned restaurants opening in Oklahoma. Additionally, the company hired restaurant-industry veteran Jim Mizes to serve as chain president.
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Chipotle continued down its path of global growth in 2011, opening its second location in London. The chain also is looking to open in Paris and Germany, further extending its international footprint. While employment issues plagued the concept in 2011, co-CEO Monty Moran has used the experience to become an outspoken advocate for immigration reform. The company is expected to hire more than 100,000 employees over the next three years. Legislative issues aside, consumers are keeping the chain hotter than a habanero. Chipotle ended its fiscal 2011 year with a revenue increase of 23.6 percent, stemming from a same-store sales gain of 11 percent.
6 Chipotle Mexican GrillDenver / No. of units: 1,230
Five Guys (as it’s commonly called) was founded in 1986 by husband-and-wife team Janie and Jerry Murrell and their four sons. The concept saw minimal growth until the Murrell’s started to franchise nationwide in early 2003. From there, the restaurant chain gained widespread appeal and in just under 18 months had sold options to more than 300 units. The chain ranked No. 5 on Technomic’s 2011 Top 100 Fast Casual chain report, raking in annual sales upwards of $625 million.
Freebirds World BurritoEmeryville, Calif. / No. of units: 67
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Freshii headed into 2011 with its eye on customer health. In partnership with celebrity dietician Ashley Koff, the chain launched Freshii15. The program is a customizable eating plan designed to help customers keep their nutrition and health goals for the year. The Freshii15 program fits in well with the concept’s goal of serving healthy, great tasting food, something founder and CEO Matthew Corrin believes is essential to Freshii’s guests. Corrin was awarded the 2011 Ernst & Young Entrepreneur of the Year 2011 Award in Ontario, Canada, based on his vision and leadership for the restaurant chain. “Now that Freshii has spread across North America and the globe, I imagine giving even more guests energy, access to good meals and support in eating choices that make a difference in their dynamic lives,” he said at the time.
8 FreshiiToronto / No. of units: 60
Menu innovation is the key ingredient to Wildflower Bread Company’s success. That and the undeniable attention to detail found in almost every corner of the restaurant. Menu items such as the Lemon Ricotta Pancakes drive guest traffic in the morning while the new Chicken Pistachio Pomegranate salad bring diners back for lunch. And let’s not forget about the bread. Wildflower’s bread is at the heart of its success, and each loaf takes 16 to 24 hours to rise. Guests can choose from a variety of styles — from bagels and rolls to Pasilla Chili Rye to Rosemary Sea Salt — and the selection never gets old. From the menu to the travel-size bottles of lotion in the women’s restroom, Wildflower delivers on its mission to make it all about the guest.
9Wildflower
Bread CompanyScottsdale, Ariz. / No. of units: 12
Go Roma continues to tap into the underdeveloped Italian niche and lay the groundwork in 2011 to make the chain a household name. With its sights set on a new franchise initiative, the chain, owned by parent company Boudin Holdings Inc., has completed state franchise filings for 90 percent of the U.S. In 2011, the company signed on restaurant veteran P.J. Evans to serve as executive vice president of franchise development. “Go Roma will do well in virtually any city in America,” Evans said. Here’s hoping everyone in 2012 will want to Go Roma.
Go RomaChicago / No. of units: 6
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11 Raising Cane’s Baton Rouge / No. of units: 123
As a college student, Raising Cane’s found-er Todd Graves received the worst grade in class on his business plan for a chicken fingers restaurant. His professor told him that a concept based on that one item alone would never work. Banks weren’t impressed, either. Unable to get a loan, Todd worked unimaginable hours at dan-gerous jobs to raise money. The SBA was sufficiently impressed to loan him barely enough to turn his B- business plan into a reality in 1996. Today Raising Canes oper-ates 123 restaurants in 16 states and still sells just one entrée — chicken fingers.
12 MOOYAH Burgers, Fries & Shakes Frisco, Texas / No. of units: 27
Despite a dreadful economy, better burger concept Mooyah continued its franchise growth last year, expanding from 18 loca-tions to 27, and opened up new markets in California, Connecticut and Tennessee. Additional openings are imminent in new territories that include Alabama, Arkansas, Kansas, Oklahoma and Illinois. The com-pany maintains an aggressive growth plan, aiming for 450 additional units within the next 10 years, which it intends to reach by
focusing on franchise sales to multi-unit, multi-concept operators who can help the company to steady region-by-region growth.
13 Mama Fu's Asian House Austin, Texas / No. of units: 13
During 2011, Mama Fu’s continued its trip back from the brink under the determined leadership of president and CEO Randy Murphy. Once the chain’s largest franchi-sees, Murphy bought out the failing con-cept in 2008 and has since focused on re-engineering and rebuilding the brand from the inside out. In 2011, Mama Fu’s reworked its store prototype, reducing square foot-age and seating to improve unit-level economics and added efficiencies to both back- and front-of-house operations. The chain is holding steady at 13 current loca-tions and has development deals in process for 29 new units.
14 Qdoba Mexican Grill Wheat Ridge. Colo. / No. of units: 500+
Qdoba stepped into the street market in March 2011, capitalizing on the phenom-enal popularity of gourmet street fare with its new Mini Street Tacos. The two-month promotion took its inspiration from “antojitos Mexicanos” (“Mexican whims”) and featured three snack-size tacos and a side of Ancho Chile BBQ Beans. Qdoba began the year with the promotion of five executives in marketing, franchise devel-opment and menu innovation and keeps its eye on continued expansion. For both 2009 and 2010, unit growth was 15 percent, making CEO Gary Beisler’s dream of 2,000 locations all the more reachable.
15 Tom & Eddie's Chicago / No. of units: 4
Retired McDonald’s executives Ed Rensi and Tom Dentice pooled their 65 years of experience to found a gourmet burger restaurant that would “put good taste in everything we do.” The duo focused on high quality food and service, delivered in a family-friendly environment. Tom & Ed-die’s popularity is underscored by a strong community presence and monthly fund-raising “restaurant nights.” This has earned the concept an avid customer following, which has enabled it to grow to four units in the Chicago area and a fifth launching in late spring of 2012. Plans also are on the books for location No. 6, slated for Chica-go’s West Loop.
16 Mad Greens Denver / No. of units: 11
Founded on the forward-thinking objec-tive of helping people make healthy food choices, Mad Greens continues to pursue enlightened ideas. In 2011, Mad Greens added nutritional information to the menu even though the chain is not large enough
Mama Fu’s Asian House
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to fall under the federal mandate. In an-other progressive move for a company of its size, Mad Greens has embraced HR best practices and technology. The chain uses a talent management software platform that helps it acquire, empower and retain valuable employees through improved hir-ing practices and increased employee en-gagement.
17 Rubio's Fresh Mexican Grill Carlsbad, Calif. / No. of units: 203
Rubio’s hired a new CEO in April 2011, eight months after being acquired itself by pri-vate equity firm Mill Road Capital LP. Mark Simon, previously COO for the company, was named CEO upon the resignation of Daniel Pittard. The chain made menu changes as well, bringing back the hand-battered Original Fish Taco that Rubio’s first introduced to San Diego diners in 1983. The company kicked off 2012 with the in-
troduction of a Chef-Crafted Avocado Corn Fish Taco and Sesame Soy Fish Taco, and announced its plan to continue expanding the menu with sustainable seafood options throughout the year.
18 Boloco Boston / No. of units: 19
The “inspired burrito” chain added three lo-cations in 2011, increasing its reach in New England with units in Vermont and New Hampshire. The concept also increased green operations — and earned the Green Restaurant Association’s first two-star rat-ing — by reducing restaurant water usage and expanding its composting program. In keeping with its reputation for new and different flavor profiles, Boloco introduced Simple Curry and Tikka Masala burritos or bowls and a Mango Lassi smoothie. For Thanksgiving, Boloco reprised its version of the turkey leftover sandwich, the Late November, combining it with a promo-
tion that donated ten cents of every sale to prostate cancer-fighting organizations.
19 Jason’s Deli Beaumont, Texas / No. of units: 230+
Jason’s Deli received top honors in a 2011 Consumer Reports survey of fast casual and quick-service restaurants. The 35-year-old concept scored 7.8 on a 10-point scale for taste in the subs and sandwiches category and also received high marks for courte-ous and speedy service. The chain has been named in the past by Parents magazine as a healthy choice for kids, and it continues to pursue founder and CEO Joe Tortorice’s commitment to healthful dining options with a menu that includes organic ingredi-ents and gluten-free options and excludes trans-fats, MSG and, with the exception of four items, high-fructose corn syrup.
20 Panda Express Rosemead, Calif. / No. of units: 1500
Under the guidance of founder Andrew Cherng, who opened the first Panda Ex-press in 1983, the concept has achieved explosive growth, particularly in the last decade, as unit counts tripled from 500 to 1,500, blanketing 42 states. The company is just beginning to tap into the interna-tional market with the 2011 opening of its first Panda Express restaurant in Mexico City. The chain remains private and family owned, with no franchised locations, and annual revenues expected to exceed $1.5 billion in 2011. The company has returned $22 million to communities through its Panda Cares program, which helps meet the health and education needs of under-served children.Rubio’s Fresh Mexican Grill
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as one of the top 10 restaurants for kids. To help manage its growth, the company recently announced plans to integrate and streamline HR management for its 5,800-employee workforce using MuleSoft iON integration-as-a-platform-service and PeopleMatter Software-as-a-Service tal-ent management tool. And to please all those kids, the chain recently announced that it would be moving the Coke Freestyle beverage service system from limited test to nationwide rollout.
23 Corner Bakery Café Dallas / No. of units: 130
Following its sale last year to franchise-focused private equity firm Roark Capital Group, Corner Bakery launched an ag-gressive franchising push. The company brought hospitality industry veteran Jona-than Benjamin on board as vice president of franchise sales and nailed down multi-unit franchise deals that will double the concept’s growth rate this year and raise its unit count to 148. To help fuel growth, the chain has launched new calorie-conscious menu options that include “100 Under
600” combos and Power Panini Thins, and has also intro’d comfort food favorites with two Mac n’ Three Cheese dishes.
24 Wow Bao Chicago / No. of units: 4*
“Why the asterisk?” you ask. For the sim-ple reason that with its seasonal location at Chicago White Sox U.S. Cellular Field, a mobile food truck and Bao bicycle delivery, the hot Asian bun concept has created a much larger footprint in Chicagoland than its four traditional restaurant locations might suggest. And then there’s the social media imprint of this Lettuce Entertain You enterprise. Wow Bao maintains an active presence on Twitter, Facebook and Pinter-est, and offers ordering capability either on-line or via its iPhone app. The chain’s digital presence earned it a spot on SocialCoCo’s recently released list of the Top 20 Most So-cially Influential Restaurants in the U.S.
25 Stacked Torrance, Calif. / No. of units: 3
The co-founders of BJs Restaurants launched the first Stacked in May 2011 and followed up in short order with openings in San Diego and Cerritos. The tagline, “food well built” sums up the premise of Paul Mo-tenko and Jerry Hennessy’s new venture: Customers construct their own burgers, chicken or sausage sandwiches, pizzas, sal-ads or desserts from a menu of “stackable” ingredients. Diners can place their order in-store via iPad or the old-fashioned way, at the counter. Customers also can preorder online, receiving a 6-digit order number to enter on the iPad when they arrive at the restaurant.
21 Burger Lounge La Jolla, Calif. / No. of units: 6
Founder Dean Loring built his 6-year-old gourmet burger chain on the slogan “We do a common thing uncommonly well.” This might be an understatement. Every aspect of SoCal’s Burger Lounge is the epitome of über: -cool, -organic, -eco. Restaurant inte-riors are trendy and sleek, all-natural beef is sourced from a single tallgrass farm in Kansas, and restaurant operations are cer-tified green. Loring’s Rogue Restaurants management group has partnered with a Connecticut-based equity group to step up growth. The chain will open a seventh loca-tion in Hollywood this spring and plans to launch an eighth in Santa Monica soon.
22 Noodles and Company Broomfield, Co. / No. of units: 275
With president, chairman and CEO Kevin Reddy at the helm, Noodles & Company has grown to 257 restaurants from 100 six years ago. It didn’t hurt the chain to be named by Parents magazine in 2011
Burger Lounge
Corner Bakery Café
11
26 Wingstop Richardson, Texas / No. of units: 500+
“The Wing Experts” celebrated their 500th location last year in style with a one-day $5 special on a five-wing combo. The Roark Capital Group-owned chain had plenty more to celebrate in 2011: 34 new units, franchise agreements for 130 more loca-tions in the U.S. and 120 in Mexico, eight straight year-over-year increases in same store sales, the successful debut of a new Louisiana Rub flavor, and the test launch of a full-service concept, Wingstop Sports. The new concept features televised games, a comfortable atmosphere and a menu with the usual Wingstop fare plus appetiz-ers, salads, sandwiches, dessert, beer and wine.
27 Au Bon Pain Boston / No. of units: 321
The 33-year-old French bakery-inspired concept undertook a major makeover in 2011 with a brand overhaul and the imple-mentation of a store refresh and remodel program. Au Bon Pain also has initiated a franchising push, pursuing growth within its five preferred trade channels: city-cen-ter office buildings, transportation cen-ters, hospitals, universities and malls. The
chain’s expansion strategy is to fill in mar-kets in the East, Southeast and Midwest before opening markets west of the Rock-ies in five to seven years.
28 California Tortilla Rockville, Md. / No. of units: 35
After 17 years, this fresh-Mex concept has embarked on a branding and positioning overhaul that will highlight the fact that its guacamole, dressings, salsa and queso are made fresh and frequently throughout the day. Future locations will feature exhi-bition kitchens, and in existing units glass partitions will replace metal in burrito as-sembly areas. As part of the repositioning, the chain also will rebrand its five airport locations as Burrito Elito, the name of the concept’s loyalty program. The change re-sults from operational differences and the inability of airport locations to participate in many of the chain’s marketing promo-tions.
29 The Counter Custom Built Burgers Culver City, Calif. / No. of units: 34
“Anti-established” in 2003, The Counter now boasts 34 locations with an additional
six slated to open early in 2012 and three more on the boards for early 2013. In Janu-ary, the chain announced an international development agreement for 33 stores in England and the Middle East. The concept revolves around a dizzying 312,000+ burger combinations, all featuring hormone- and antibiotic-free natural Angus beef. Each lo-cation also features a different market se-lection of sustainably produced and locally sourced items, and offers a catered Burger Bar.
30 Bruegger’s Bagels Burlington, Vt. / No. of units: 300
Bruegger’s Bagels underwent a change of ownership in 2011 when it was pur-chased from Sun Capital Partners Inc. by the French Le Duff group, owner of La Madeleine in the U.S. and Del Arte and Bri-oche Dorée in France. The sale capped the turnaround of Bruegger’s, which struggled prior to the arrival of James Greco in 2003. As CEO for Brueggers, Greco led the company to 20 consecutive quarters of sales growth and the acquisition of more than a dozen smaller interests. After the sale, Greco served as co-CEO of Le Duff America before stepping down to become CEO of Sbarro.Au Bon Pain
Bruegger’s Bagels
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31 The Habit Burger Grill Irvine, Calif. / No. of units: 50
When Brent Reichard first started work-ing at The Habit in 1969, little did he know he would take on the restaurant’s owner-ship four years later. In 1973, Brent and his brother Bruce borrowed some money from their parents to purchase The Habit, and 43 years later, have grown the company to 50 locations. In addition to locations throughout California and three in Arizona, The Habit has deployed a state-of-the-art truck to cater parties and events for 100-500 people. The restaurant chain also paid homage to the sweet potato in 2011, launching sweet potato fries in December.
Fourteen years and 16 locations later, the Richards’ have turned their dream vacation into an everyday reality.
33 Tender Greens Los Angeles / No. of units: 7
Tender Greens was launched based on the idea of creating a conscious connection between what diners eat and the source of that sustenance. The majority of Tender Greens’ produce comes from Scarborough Farms in Oxnard, Calif. and is picked daily. Interiors are designed to reflect the natu-ral elements of the outdoors, creating an open, airy and comfortable ‘third place’ for guests to unwind. Each location also opens with its own executive chef, who is given room to explore his or her foodie passions. Tender Greens is the brainchild of Erik Oberholtzer, co-owner and chef, who plans to grow the chain from 7 locations to 30 over the next 10 years.
34 grahamwich Chicago / No. of units: 1
From Graham Elliot, a judge on Fox’s Mas-terChef, comes grahamwich, a sandwich
and gourmet popcorn eatery located in downtown Chicago. Elliot builds on his reputation as the chef/owner of Michelin-starred Graham Elliot to deliver an array of high-quality menu items. Homemade sodas on tap, popcorn topped with truffle oil and an herb blend and sandwiches such as the pastrami reuben are what makes this restaurant a success. And thanks to a partnership with Merlin Verrier, who serves as Elliot’s overseer of culinary operations, sandwiches never tasted so good.
35 Garbanzo Mediterranean Grill Denver / No. of units: 14
Alon Mor used his background as a Panera Bread franchisee to launch Garbanzo Med-iterranean Grill. Mor opened the first loca-tion in 2007 and has grown it to 14 units throughout the Denver region. Moving for-ward, Mor has plans to expand Garbanzo beyond Colorado, turning his focus to the East Coast. And he has the financial back-ing to do it. Garbanzo was co-founded by Panera Bread/St. Louis Bread founder Ken Rosenthal, and the company has formed a growth partnership with Gemini Investors, a private equity firm that provides equity capital to middle-market businesses. Ad-ditionally, the company’s first franchise market is expected to open later this year.
Taziki’s Mediterranean Grill
Tender Greens
grahamwich
32 Taziki’s Mediterranean Grill Birmingham, Ala. / No. of units: 16
When Keith and Amy Richards landed on the island of Greece in 1998, they were set to embark on the vacation of a life-time. However, that vacation turned into a business plan for success. As the couple explored the sites and cuisine of Greece, they wondered how they could bring the fresh flavors and healthy ingredients back to their hometown of Birmingham, Ala. The answer: Taziki’s Mediterranean Grill.
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36 Hot Head Burritos Kettering, Ohio / No. of units: 25
Hot Head Burritos is on fire. During its first year of franchising in 2011, the company doubled its size by adding 12 new restau-rants in the Dayton area. The goal for 2012: 50 new units, including more in Ohio and the first Indiana location. Hot Head also plans to blaze a trail into new territories that include Alabama, Florida, Michigan, North Carolina, Tennessee and Texas. Inno-vative menu items including the L’il Bowl, a smaller version of the Burrito Bowl, and the L’il Burrito, a mini burrito, appeal to calorie-counting consumers.
37 Genghis Grill: The Mongolian Stir Fry Dallas / No. of units: 83
Genghis Grill is conquering new markets with its build-your-own stir fry concept. In 2011, 27 new locations opened and the company is on track to open 30 more in 2012. The brand’s quest for a healthy im-age is also gaining momentum. The second year of its Health Kwest campaign is under-way, with dozens of contestants vying for $10,000 by pledging to eat Genghis Grill’s healthier meal options once daily and post-ing their progress online. Last year’s Health Kwest winner, Brandon Sanders of Mur-freesboro, Tenn., lost 60 pounds in 90 days.
38 Fazoli’s Lexington, Ky. / No. of units: 220
Industry veteran Fazoli’s has capitalized on its comeback, spearheaded by a 2010 remodeling program that included inno-vative menu changes. Fazoli’s wrapped up 2011 with record-setting sales increases, completing a 17-month streak in guest traf-fic and sales growth. For the 2011 fourth quarter, the chain posted its best quarter since 1999, thanks to the leadership of president and CEO Carl Howard. The in-creases, “shows guests and franchisees are embracing the big improvements we have made to our food, service and environ-ment,” Howard said. The company also is on target for at least eight new restaurants this year.
39 La Madeleine Country French Café Dallas / No. of units: 60
La Madeleine Country French Café has got-ten a makeover. Following the announce-ment of a new franchise offering last year, the brand unveiled a new theater-style de-sign inside NorthPark Center in Dallas that will serve as the prototype for future mall locations. The company also has created two other layouts for airports and sidewalk cafes, which will be rolling out in 2012 in Oklahoma, Maryland, Virginia and at Dal-las-Fort Worth International Airport.
40 Daphne’s California Greek Carlsbad, Calif. / No of units: 56
Established in 1991, this innovative Medi-terranean brand was acquired by Wreath Equity LLC in August 2010. Last year, as
part of a brand re-development campaign centered around healthy foods to fuel to-day’s active lifestyles, the company rolled out a new name and new menu items, and initiated a brand ambassador campaign beginning with world champion surfer Kelly Slater. Daphne’s guests can score free food with Pita Points, a loyalty program, and enjoy sounds of emerging artists who showcase their talents through an in-store and online music program.
41 Which Wich Superior Sandwiches Dallas / No. of units: 161
Ranked by Inc. magazine as one of 2011’s fastest growing, privately-owned compa-nies, Which Wich Superior Sandwiches is known for its customizable sandwiches, engaging ordering system and entertain-ing atmosphere. CEO and “Chief Vibe Offi-cer” Jeff Sinelli, recently named one of the top 25 American food entrepreneurs in the last 25 years by Gourmet Live, has another 50 restaurants in development.
Fazoli’s
Genghis Grill
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42 Cowboy Chicken Dallas / No. of units: 5
After 30 years of receiving rave reviews for serving fresh, natural, hormone-free rotis-serie chicken, Cowboy Chicken is about to fly the coup. The brand is seeking qualified restaurant developers and operators in se-lect U.S. markets. Founded in 1981 by Phil Sanders, the company currently has five Dallas-area locations that serve wood-fired rotisserie chicken, savory chicken enchi-ladas and legendary side dishes such as twice-baked potatoes.
43 UFood Grill Newton, Mass. / No. of units: 8
UFood Grill spent a majority of 2011 over-seeing the construction of several new units, including two at Salt Lake City In-ternational Airport and one at Aberdeen Proving Ground Military Base. Plus, the company announced a 26-unit, area-de-velopment agreement with a private in-vestment group of military veterans and a partnership with Euro Cafe for a co-brand-ed concept. George Naddaff, founder of UFood Grill and Boston Market, is known as the “guru of franchising,” and he’s got his eye on other airports, hospitals, military bases and health clubs for his new healthy concept.
44 XOCO Chicago / No. of units: 1
Celebrity chef and Frontera/Topolo found-er Rick Bayless is hosting a fiesta of flavor at his fast casual concept, XOCO, which opened in 2009 in downtown Chicago. By putting a contemporary twist on authentic Mexican street food, XOCO, which means
“little sister” in Mexican slang, is proving that big, bold flavors are the way of the future. The menu also features Mexican and local craft beers, along with wines se-lected by Frontera/Topolo sommelier Jill Gubesch. Another big plus: the restaurant’s environmentally-friendly design received LEED Gold certification.
45 Boudin Bakery San Francisco / No. of units: 7
Capitalizing on the industry trend of of-fering healthier children’s menus, Boudin SF has joined the Kids LiveWell initiative,
sponsored by the National Restaurant As-sociation and Health Dining. The concept also entertains children and other diners with its on-site bakeries, where diners can watch Boudin bakers mix, shape and bake sourdough French bread in the same man-ner it has been prepared for 160 years at San Francisco’s legendary Boudin Bakery.
46 Pei Wei Asian Diner Scottsdale, Ariz. / No. of units: 170
A member of the P.F. Chang family, Pei Wei Asian Diner connects with consumers through innovative marketing campaigns such as a loyalty program that invites fans to create a Pei Wei Passport and earn “passport stamps” for special deals. Last year, the company hosted a blogger con-test, which allowed a Pei Wei fan to join ex-ecutive chef Eric Justice in a global search for new culinary treasures. The company plans to open 12 to 16 new Pei Wei Asian Diner locations within the next year and to introduce a slightly-modified concept, Pei Wei Asian Market, to select markets.
Cowboy Chicken
Boudin Bakery
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47 Epic Burger Chicago / No of units: 6
Epic Burger owner David Friedman’s mis-sion is to help raise diners’ “food IQs” by in-creasing awareness about what people eat on a daily basis. In just a few short years, Epic Burger has made its mark on the “bet-ter burger” segment by serving all-natural burgers on fresh-baked, preservative- and additive-free buns, with toppings such as cage-free, organic fried eggs, nitrate-free bacon and all-natural Wisconsin cheeses. The brand also recently opened two new restaurants in the Windy City, including its first mall unit, and now offers breakfast at some locations.
48 OinkADoodle Moo Dayton, Ohio / No. of units: 4
OinkADoodle Moo, a Dayton area favorite, is on the move into more markets. Known for its award-winining BBQ, the company currently has four Ohio units, including one at Wright Patterson Air Force Base, and is eyeing Columbus, Toledo and Cincinnati for 2012 with a goal of 25 units by 2015. The brand is developing an area-repre-
sentative agreement to allow franchisees to purchase more than one unit at time. OinkADoodle Moo also recently inked a deal to serve ice cream from Young’s Jersey Dairy, a Ohio farm that attracts more than 1 million visitors each year.
49 Cosi Sandwich Bar Deerfield, Ill. / No. of units: 143
Change is underway at Cosi, Inc., the publically-traded company that just a few short years prior was threatened with a Nasdaq delisting. Now back in Nasdaq’s
good graces, and with an executive leader-ship team ready to take action, Cosi is once again back in business. While internal and external changes have made the industry take notice, fans can still count on the com-pany’s made-to-order sandwiches, distinc-tive sauces and signature flatbread to keep them happy and well fed.
50 I Dream of Falafel Chicago / No. of units: 3
Since opening its first location in Chicago’s Loop in 2009, I Dream of Falafel has carved a niche by focusing on fresh ingredients, including bread baked on site, and meats that are never frozen and are free of pre-servatives, hormones and additives. With the increasing popularity of Mediterranean food and vegetarian options, brothers Im-ran and Munaf Kasbati and their partners Shoib Aziz and Henry Nuguid are poised to tap into a growing market. The brand re-cently announced plans to begin exploring franchising options at a conservative pace, with about 15 locations projected for the Illinois market and others in Midwestern college towns.
OinkADoodle Moo
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Once seen only in health food stores, gluten-free foods began popping up on restaurant menus a few years ago, prompting industry insiders to wonder whether they were a passing fad or trend worth tracking. Most experts now agree that gluten-free seems here to stay and the statistics explain why. Approximately 18 million U.S. residents suffer from gluten sensitivity, according to University of Maryland School of Medicine’s Center for Celiac Research. Fast casual chains such as Zoup!, Mad Greens and Moe’s Southwest Grill are responding to the growing demand by refining gluten-free recipes to enhance their menus. According to Packaged Facts market research, sales of gluten-free products reached $2.6 billion in 2012 and are expected to top $3 billion by 2014.
1 Gluten-free Foods
A product of French colonialism in Indochina, banh mi sandwiches meld native Vietnamese ingredients such as grilled pork, pickled vegetables, hot peppers and cilantro with classic French cuisine such as pâté and mayonnaise, all stuffed into crispy baguettes. Introduced to America by Vietnamese immigrants, these tasty sandwiches are becoming a mainstream menu item in many urban areas. For instance, banh mi sandwiches are among the favorite items at the Star Ginger Asian Grill & Noodle Bar food truck, which Sodexo and celebrity chef Mai Pham opened in October on the University of California-Davis campus.
2 Banh Mi Sandwiches
Much like fashion, restaurant trends are often cyclical, as what was “in” way back then sometimes comes back into style. Case in point: made-from-scratch cooking is making a comeback. Mom-and-pop diners aren’t the only ones serving up dishes created the old-fashion way. Thanks to an increas-ing interest in healthy food options and more sustainable menu selections, back-to-scratch cooking has gained momentum within the restaurant industry and is well positioned for future popularity.
Back-to-Scratch Cooking3
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4 Heart Healthy
Fans of heart-healthy options are racing to restaurants such as Genghis Grill in an attempt to embrace nutritional meal op-tions. For the second year, Genghis Grill is promoting its heart healthy bowls through the Health Kwest campaign. The program challenges diners to dedicate themselves to health and fitness for 90 days by eat-ing Genghis Grill’s healthier meal options daily. Menu items promoting health and nutrition have risen in popularity due to consumers’ increasing focus on health and nutrition. And restaurants across all seg-ments of the industry have taken notice.
5 Veggie Burgers
For years, veggie burgers have gotten a bad rap due, in part, to the fact that restaurants often responded to vegetar-ian diners by microwaving a frozen patty made of soybean products. Fortunately, veggie burgers have come a long way with the help of the better burger movement. Many restaurants are applying the same new standards of freshness and quality
to veggie burgers. Since 2008, the veg-gie burger’s menu presence has grown 17 percent, according to Kathy Hayden, a foodservice analyst for Mintel Menu Insights. That should be making a lot of people happy. According to a study com-missioned by the Vegetarian Times, more than 7 million Americans follow a vegetar-ian-based diet.
6 Bagel Thin Sandwiches
Companies such as Manhattan Bagel and Einstein Bros. are catering to customers who want to cut calories, carbohydrates and fat by offering sandwiches served on thin bagels with healthy ingredients such as white Albacore tuna, lean turkey-ba-con. Some thin bagels offer half the calo-ries, and a fraction of the carbs and fats in typical bagels. Their popularity helped Colorado-based Einstein Noah Restaurant Group Inc. — parent company of Einstein Bros. Bagels, Noah’s New York Bagels and Manhattan Bagel brands — earn a reported revenue of $103.7 million in 2011.
7 Mini Street Tacos
Known for innovative menu offerings, Qdoba Mexican Grill has proven that good things come in small packages by introducing mini street tacos, which offer a fresh, flavorful spin on traditional Mexi-
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can street fare. Served in soft corn torti-llas, Qdoba’s mini tacos are filled with the guest’s choice of slow-roasted, pulled pork or seasoned shredded beef and topped with a fresh cilantro and red onion gar-nish. Not only are they a convenient size, the three-piece serving packs about 350 calories, which appeals to health conscious shoppers. Qdoba’s launch of their street tacos speaks to consumer demand for au-thentic flavors and menu items from re-gions throughout the world.
8 Burger in a Bowl
If you’ve ever layered so many toppings on a burger that it literally slipped off the bun, then you can probably appreciate the burger-in-a-bowl concept. The menu item has done phenomenally well at chains such as The Counter, which launched “Burgers in a Bowl” in 2010. The menu item, now fea-
tured on a variety of burger-chain menus, allows guests to select from a choice of several proteins and an array of cheeses, toppings, sauces and buns. The menu item lets even carb-conscious consumers enjoy a customizable burger made just the way they like it.
9 Sushi
Sushi lovers have united, just as the bum-per stickers urged. As a result, sushi has made a big splash in America during the past decade. The growing popularity is also spawning new concepts such as customiz-able sushi. Fast casual newcomers such as Texas-based How Do You Roll? and New York’s My Maki allow customers to pick in-gredients as they move through a queue, much like Subway and Chipotle.
10 Create-your-own Pizza
The design-your-own meal idea is also spreading to the pizza industry. Industry veterans such as Gatti’s Pizza are compet-ing alongside newcomers such as Top That! Pizza in hopes of perfecting a build-your-own system that has made other industry leaders incredibly profitable. It’s a fresh idea that could help revive stale sales for some pizzerias, especially in coming years as more diners discover the joys of building their own meals.
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3Founder, FreshiiMatthew Corrin
2 Steve EllsFounder and co-CEO, Chipotle
Start with some meatballs and a steel paddle (and a good smash), and you end up with not only a darn fine hamburger, but a business that Forbes magazine recently named the No. 1 among its top 100 most-promising companies. Sure, success takes more than sizzle, and whatever that is, Prokupek must have it: Revenue for the company soared by 72 percent from 2010 to 2011, from $69 million to $118.7 million, and contracts are in place to expand the chain’s footprint by more than 300 stores — to a total of 450 — by 2014. To the ambitious company president, however, that’s nothing. 20 years from now, he sees the concept with up to 3,000 locations. He’s going to need a lot more steel paddles.
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When Steve Ells opened the first Chipotle in Denver in 1993, his goals were modest: He “just wanted a place where you could eat delicious food made of the finest ingredients quickly and affordably.” Now, more than 900 restaurants later, Ells is not only one of Gourmet magazine’s top 25 food entrepreneurs of all time, he’s becoming a friend to the animals, an enemy of antibiotics and a champion of farmers. True, his company is going through some immigration trouble, but Chipotle is back in the news in a good way, all thanks to the man who put it there in the first place
Ask most fast casual execs what it takes to succeed in the industry and odds are you’ll hear a lot about financial backing, business experience and a background steeped in food service. Just don’t pose that question to Corrin, who founded the company when he was 29. Financial backing? Not until mom and dad wrote some checks. Biz experience? Nope. He was an intern for David Letterman’s show. Restaurant passion? Only if you can get it by punching a clock at a PR agency. So much for paradigms. In just seven years, he’s taken the concept to 50 locations and four countries. In 2011, he also received the Ernst & Young Entrepreneur of the Year 2011 Award.
Dave ProkupekPresident, Smashburger
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4 Betsy Craig Founder, MenuTrinfo
Once upon a Wendy’s commercial, a cur-mudgeonly old lady asked the now im-mortal question, “Where’s the beef?” Were she still with us, her new inquiry might be, “What’s IN the beef, and how good is it for me?” Answering that question is now sig-nificantly easier, thanks to Betsy Craig’s MenuTrinfo. We’re still trying to figure out what a “trinfo” is, but we’re pretty sure her services will continue to grow in demand:
reverse lookup for ingredients to create a nutrition manual for a restaurant, recipe documentation, consultation to create specialty menus for specific food sensitivi-ties, and a range of training and tools for chefs. And let’s not forget Kitchens with Confidence, Craig’s latest company de-signed to help foodservice operators main-tain the highest food safety and allergen-management standards.
5 Don Fox CEO, Firehouse Subs
Not everything was smoking for the silver-haired Fox in 2011. The chain lost a trade-mark suit with a Myrtle Beach, S.C., res-taurant called Calli Baker’s Firehouse Bar & Grill. But when you’ve just signed an agree-ment to double your base to more than 800 locations, including some in Puerto Rico, it’s hard to complain. When he’s not keep-ing the heat on operations, he serves on the Fast Casual Industry Council and is cur-rently next in line as council chair. He plays trumpet and keeps up his work as an ama-
teur historian. He’s even published a book, “Patton’s Vanguard,” about the United States Army Fourth Armored Division. But Fox wouldn’t be on the list if it weren’t for his dedication to Firehouse Subs and the segment it represents.
6 Louis Basile Founder of Wildflower Bread Company
Before we knew better, we thought “Au Bon Pain” meant something like “the good pain.” If that’s the case, Basile’s for-mer employer was in blissful agony after he took the company from 40 locations in 1987 to 125 in 1991. When he left in 1994, the count was 250. Not only does he have 13 Wildflower locations (the first opened in 1996), he runs a fresh dough commissary and a wholesale bread division. In his scant spare time, he supports the fast casual seg-ment as a founding member and chairman of the Fast Casual Industry Council. He also is a newly elected National Restaurant As-sociation board member.
Betsy Craig
Louis Basile
Don Fox
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7 Kevin Miles President and COO, Zoe’s Kitchen
When Miles first strode into Birmingham, Ala.-based Zoe’s Kitchen as vice president of operations in 2009, the company had only 26 units. In 2010, the number was up to 44. Now there are 56 locations in 13 states, which shows a 40-percent growth pace despite the recession. Add that to his background as vice president of operations for Aramark and for Baja Fresh Mexican Grill, and you have someone whose back-ground has provided Zoe’s with its secret for success.
8 Howard Schultz CEO, Starbucks
Since returning to his role as CEO in 2008, Schultz has worked through mass firings and store closures to get the chain back on track. In 2011, he led the company to a partnership with its largest competitor, Green Mountain Coffee Roasters. He also led Starbucks through the acquisition of Evolution Fresh, the producer of a no-heat juice product sold on the West Coast. He
also used 2011 to form the Create Jobs for USA program, which not only sparked rumors of a possible presidential bid, but has positioned Schultz as an industry ad-vocate for overall economic growth. The year ahead will shape up to be an interest-ing one for Schultz as his initiatives, new and old, continue to unfold.
9 Stacey Kane Vice president of marketing, California Tortilla
Kane joined California Tortilla in 2007 as the concept’s director of marketing. Since then, the company has launched innova-tive promotional campaigns such as its Secret Password Day, Burrito Bailout Pro-gram and its Rock, Paper, Scissors Tourna-ment, a guest favorite. Occupy Cal Tort Day sent proceeds to local food banks, and her Veg Me! catch phrase is new shorthand for switching proteins in orders to a mix that includes corn, red onions, zucchini, and red, green and yellow peppers, also with 50 cents for each such item sold going to local food banks for up to $5,000. We can’t wait to see what she comes up with next.
10 David Rutkauskas Founder, Beautiful Brands Intl.
Any baker will tell you that to get a great bun, you need a great oven. In the case of fast casual concepts, Beautiful Brands has proved quite the oven indeed. Rutkauskas and his wife, Camille, founded Camille’s Sidewalk Café in 1996, and since then have launched or helped franchise 11 additional brands with more on the way. In 2011, BBI sold a record 370 franchises and master franchise agreements. In 2011, Rutkaus-kas started his own blog about leadership and business issues, titled appropriately enough, “Life is Beautiful.” And in 2012, he has plans to launch his first book and his own talk show.
11 Bill Moreton President, Panera Bread
Looking at 2011’s numbers for the ubiqui-tous soup-and-sandwich lunch hangout, you’d have to say that Moreton is off to a good start as CEO, a role he assumed in May 2010. The former Pottbelly Sandwich Works and Baja Fresh officer saw 2011 numbers successfully kick the bread bowl out of 2010: revenue was up 18 percent, net income increased 20 percent, and fourth-quarter, year-over-year average checks rose 5.7 percent.
Stacey Kane
David Rutkauskas
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16 Al Bhakta CEO, Genghis Grill Concepts
Bhakta put in $4,200 in 1998 with a close friend to launch The Chalak Group, a Dallas-based investment firm that acquires and develops restaurant properties. In 2004, the group acquired Genghis Grill after he perceived the potential market for ethnic fare. Since then, the chain has grown to more than 80 units. Along the way, Bhak-ta’s group invested in a hotel chain in South Africa, a frozen yogurt concept, an Asian bistro and several Yum! Brands franchises. Not all of the investments have turned out well, but because of the strength of Geng-his Grill, we say who needs Genghis Kahn when we have Genghis Can.
14 Alan Hixon President, MOOYAH
Since being appointed in 2009, Hixon has watched his better-burger, fast casual concept make the Fast Casual Top 100 multiple times, from a No. 1 appearance in 2009 to the No. 4 spot in 2011. Though still small-ish in terms of chain size (24 lo-cations in Texas, three outside of Texas and another 18 in development), it’s nonethe-less emerged as a potentially strong com-petitor against the likes of In-and-Out, Smashburger and Five Guys. “Our new agreements are not just franchising for franchising’s sake. We are a brand that is quickly moving into the national spotlight with a clear purpose and better menu,” he told FastCasual.com. “It’s an exciting time to be in the burger business.”
be the only thing connected with Greece these days that doesn’t need a bailout. Bo-nus points are due for their contributions to good causes like West Virginia University, American Cancer Society and St. Jude’s Foundation.
12 Robbie Vitrano Founder, Naked Pizza
The “naked” refers to the organic nature of the brand’s offerings, but it also seems apt for a company so stripped of self-lim-itation that it starts in New Orleans and expands quickly to Dubai, as in the United Arab Emirates, where the word “naked” required some negotiations before it could be used on billboards. (It has to be spelled “N_K_D Pizza” in the heavily Muslim Mid-dle East/North Africa region.) Vitrano has even been asked to keynote several major conferences in the area, touching on topics such as social entrepreneurship, marketing and public health policy. Naked Pizza also recently got into the dough business and has signed up several groceries to distrib-ute its healthful product.
15 Paul Monteko CEO, Stacked
With descriptors like “stacked” and food that’s “well built,” you can’t accuse Moten-ko of romanticizing his food or franchise. Add that to the high-tech ordering sys-tem that employs table-based iPads, and you get an innovative concept that sees its main staple as much a matter of proper construction as it does a properly filling meal. Cool factor: The iPads will eventually incorporate contests and social media fea-tures. Stack that, competition!
13 Keith Richards Founder and pres, Taziki’s Med Café
A lot of conception can occur when a hus-band and wife take to a beautiful, sun-soaked island for a vacation. Typically, however, the result is swaddled in blan-kets, not spreadsheets. Tell that to Keith and Amy Richards, who turned a romantic trip to Greece into a plan to feed the unfed hunger in America for healthful, flavorful Mediterranean cuisine. Now with locations in Alabama, Arkansas, S. Carolina, Tennes-see and West Virginia, their chain might
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17 Kevin Reddy CEO and chairman, Noodles & Company
Make a quick search for Reddy at FastCa-sual.com and the results look more like a military campaign than a set of business stories: Noodles & Company growing in Virginia and expanding in Chicago, Utah, Iowa, Nashville and Knoxville. General Sherman didn’t blitz through as many plac-es when he took his famous stroll through
the South. No wonder Technomic named the chain one of the Top 10 fastest-grow-ing in the U.S. in 2011, and ditto for the fact that numerous trade publications have named him as an executive to watch and entrepreneur of the year.
18 Erik Oberholtzer Co-owner, Tender Greens
The aim of Tender Greens’ founders, Ober-holtzer said in an interview last year, was to “fill the gap between the expensive-restaurant world we worked in and the cheap-restaurant world we could afford.” Although it started with humble begin-nings, the company now has restaurants open in seven cities, with Oberholtzer be-coming a leader in using Pinterest to pro-mote his business. He says the hot social media tool is useful not only for reaching out to potential patrons, but also to gather inspiration on what meals to serve, how to display food and what art would look good in restaurants.
19 Geoff Alexander Vice president and managing partner, Wow Bao
Part of Chicago-based Lettuce Entertain You Enterprises, Wow Bao has emerged as one of the coolest, most addictive of the group’s 43 concepts. With the tagline “hot asian buns” (never mind, they’ve already heard the jokes), they offer a mixture of baos (dumplings of a sort), potstickers and bowls featuring multiple styles of chicken, beef and vegetables. Breakfast mixes are available in the morning, and if you’re stout of heart, try the homemade ginger ale. It’s definitely not the stuff from Canada. Alex-
Kevin Reddy
Erik Oberholtzer
ander himself also is becoming a big wig in the industry with his election to the Fast Casual Industry Council’s steering commit-tee.
20 Phil Friedman CEO, Salsarita’s
Former McAlister’s CEO Phil Friedman pur-chased Salsarita’s Fresh Cantina in 2011, bringing on board Larry Reinstein, the for-mer Fresh City president and CEO, as his operating partner. Salsarita’s has 80 stores open across 19 states, and Friedman hopes to make the same mark there he did at McAlister’s — growing the sandwich chain from 27 units to 300 before his 2010 depar-ture. After he left McAlister’s, he was in search of something new. Friedman found his calling in the form of the fresh-Mex chain that specializes in made-to-order burritos, tacos, enchiladas and salads, and he has spent the last six months on the road visiting the chain’s large franchisee base. In 2012, we expect Friedman will continue his quest to make Salsarita’s a success.
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Apps available for the Apple iPad make the tablet a must-have tool for tech-savvy res-taurant operators. More than that, though, the device’s intuitive interface is changing the point-of-sale system. A number of op-erators have introduced iPad-based order-ing solutions that increase kitchen efficien-cy and eliminate wasted paper. And when those tablets aren’t being used to enter a customer’s order, they are the perfect ve-hicle for displaying employee training ma-terials.
3 PeopleMatter HR platform
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PeopleMatter is transforming the way the service industry hires and trains employees. Delivered via Software-as-a-Service, the PeopleMatter system brings together HR software tools to hire, schedule, teach and engage the hourly workforce for res-taurant and C-stores, hospitality, retail and the foodservice industries from a single, integrated platform. Peoplematter’s Hire application allows candidates to apply for jobs from Internet-enabled devices and is optimized for touchscreens. And because the program is Inter-net-based, employers can access the information from any computer, anywhere in the world. All that’s needed is an Internet connection.
Coca-Cola Freestyle
2 Apple iPad
In the dark ages of restaurant beverage dispensers, restaurant owners were limited to the five or six offerings the typical fountain machine could handle. The technology behind the Coca-Cola Freestyle beverage dispenser, now gives operators the ability to provide 120-plus beverage choices. Fast casual concepts such as Moe’s Southwest Grill, Pei Wei Asian Diner and Schlotzsky’s have introduced the Coca-Cola Freestyle to guests, all to sales success. In addition to carbonated beverages, the Freestyle can serve a variety of bottled waters and energy drinks. The Firehouse Sub’s nationwide rollout of the Freestyle even included the chain’s own signature drink brand.
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4 newBrandAnalytics feedback tool
newBrandAnalytics is a Washington D.C.- based data analytics company with a local store focus, generating cutting edge per-formance insight from customers through social media feedback. The company’s software scours the Internet for references to specific brands, using location informa-tion to match those references to individu-al stores. The software then matches those references to a database of keywords, de-ciding what references require the operator to take action. IntelliSurvey, the company’s solicited guest feedback platform, lever-ages that information via customer surveys to ask open ended, content rich questions, instantly analyzing the feedback to inform the next set of questions. The result is meaningful store-specific feedback opera-tors can use to improve guest satisfaction.
5 Mad Greens Food Allergy App
About 150 people die in the United States from food allergies each year, according to the Johns Hopkins Children’s Center in Bal-timore. For many with food allergies, just a single bite can be deadly. To address con-cerns about food allergies, Denver-based MAD Greens rolled out a mobile web app that allows customers to select foods and ingredients that they may be allergic to or wish to avoid for various health reasons. The app is available on madgreens.com and instantly produces a customized list of menu choices categorized as: Menu items
suitable for eating; menu items that can be eaten with modifications and menu items that should be avoided. Customers can use the online tool before heading to a MAD Greens location or can use the app while at the restaurant.
6 SmartMenu
SmartMenu, an iPad-based integrated or- dering and selling solution created by Atlanta-based UsableHealth, allows users to customize meals based on dietary needs and taste preferences. Suggestions are based on various dietary requirements provided by the customer, including daily caloric intake, allergies, dietary needs as-sociated with high blood pressure, diabe-tes and more. The SmartMenu also utilizes suggestive selling for various add-ons. If someone orders a meal, for example, the SmartMenu will suggest a drink, dessert or an additional side as well. Restaurants using SmartMenu include Fresh to Order, with locations across Atlanta, and Taziki’s Mediterranean Café, with locations in Ala-bama, Arkansas and West Virginia.
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7 MenuTrinfo/Kitchens with Confidence
MenuTrinfo LLC, established in 2010, helps restaurateurs present accurate and cost-effective nutrition analysis on menus. The company’s services include a reverse-look-up tool for primary recipe ingredients, a recipe documentation service and consul-tations on how to create specialty menus for specific food sensitivities. The company formed the educational arm Kitchens with Confidence in 2011, based on the high demand of restaurant professionals look-ing to serve the fastest growing segment in the restaurant industry — diners who suffer from food allergies, gluten intoler-ances and Celiac disease. In November 2011, Kitchens with Confidence launched an online training program for restaurant operators, focused on gluten and allergy-free dining.
8 Facebook
Restaurant operators first began using the social-media platform Facebook as a sup- plement to their websites. Merely using
Facebook as a duplicate website isn’t enough, however. Savvy opera- tors are using Facebook as a way to engage customers and continue the conversation even when they’re not in the restaurant. Fast casual chain Smashburger, for ex-ample, holds trivia contests and offers coupons to its 67,000 Facebook followers, while brands including Dunklin Donuts and Quiznos are testing Facebook-based loy-alty programs.
9 Twitter
According to Web-monitoring firm Semio- cast, there were 107 million Twitter users in the United States as of January 2012. That
translates to roughly 35 percent of the pop-ulation tweeting about their favorite top-ics, and that statistic isn’t lost on restaurant operators. Dining out is a social activity, so it’s no surprise that social media applica-tions such as Twitter are a natural fit for the restaurant industry. Operators are using Twitter for offering exclusive daily deals to followers, holding contests and throw-ing “Tweetups;” invitation-only gatherings where followers can have the opportunity to meet other Tweeters.
10 Google Wallet
Nearly everyone today carries a mobile phone, and those devices are more and more of the “smart” variety. With the Google Wallet mobile app, smartphone users can make their phones their wallets. The app securely stores a customer’s credit card information and in-store offers on their phone, using near-field-communica-tion technology to make secure payments. When the customer checks out at a brick-and-mortar location that accepts Google Wallet, they can pay and redeem offers just by tapping their phone at the point of sale. Beginning early 2012, restaurant chains in-cluding Subway, Jamba Juice, Peet’s Coffee and Dairy Queen announced plans to ac-cept Google Wallet for payment.
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Following a year in which Forbes maga-zine named a “burger joint” as “Ameri-ca’s Most Promising Company,” the fast casual industry is poised for phenom-enal growth in 2012.
With $27 billion in annual sales, the fast casual segment now represents 14 percent of all quick-service restaurant sales, compared to five percent 10 years ago. Moving forward, sales are forecasted to compound eight per-cent annually over the next five years, according to Technomic. An increas-
ing number of restaurants — such as Denver-based Smashburger, the Forbes’ favor-ite — now rank among the fastest growing companies in the U.S., and many more are experiencing great success with international expansion. Those factors are why Inc. magazine recently pinpointed Fast Casual Dining as one of “The Best Industries for Starting a Business Right Now.”
Within the fast casual world, social media has proven an effective tool to influence diners, increase sales and improve brand loyalty. And its importance continues to grow. Experts say social media is now a dis-cipline that should be considered alongside mainstream concerns such as operations, marketing and real estate. Fortunately, events such as the 2011 Foodservice So-cial Media Universe conference are fuel-ing innovation in foodservice as chains of all sizes are implementing cutting-edge, social-media campaigns. Take for instance, Texas-based Bullritos, a regional chain with about 20 locations. The concept allows Facebook users to place orders, pay se-curely using a credit card and confirm time and date of pick-up.
3 Mobile ordering
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With researchers forecasting that more than 1 billion smart phones will be in use worldwide by 2015, restaurant operators are moving quickly to tap into the grow-ing audience of customers-on-the-go. An array of mobile ordering applications such as LevelUp, NEXTEP’s iOrderFast and ChowNow have entered the marketplace. Not only do mobile apps allow easy ordering, but they also provide real-time consumer insights and key metrics, which can be used to drive new business. Mobile apps offer an avenue for restaurants to promote new offers, deals and coupons. Some also allow restaurants to track purchases so that frequent customers can be rewarded with mobile loyalty cards. With more mobile apps rolling out almost daily, the future, it seems, is boundless.
Growth of fast casual 2 Social
media
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4 Local sourcing
As awareness grows about the environ-mental impacts of food production, the importance of strategic sourcing is moving to the forefront of the restaurant industry. Pioneers in corporate social responsibility such as Chipotle are proving that support-ing local farmers can pay off with increased sales, improved customer satisfaction and an enhanced image. Whether it’s featuring farm-to-fork menu items or supporting lo-cal community gardens, restaurant opera-tors are reaping big benefits by sourcing ingredients locally when possible.
5 Social responsibility
Since food production and consumption are closely linked to every dimension of sustainability, corporate social responsi-bility is especially important within the res-taurant industry. Consumers and watch- dog groups are looking more closely at how foodservice operators conduct business. So, it’s vital for restaurants to operate re-
sponsibly, adopt sustainable practices and embrace transparency. As the public mi-croscope continues to focus on issues such as farm worker’s rights and food safety, the restaurant industry continues to help ease consumer concern by incorporating social responsibility into every business decision.
6 The better burger segment
Unlike building a better mousetrap, build-ing a better burger doesn’t always require cheese, but non-frozen meat and fresh toppings are necessary ingredients. By serving burgers reminiscent of backyard barbeques, the better burger segment has grown by leaps and bounds. Frontrun-ners such as Five Guys Burgers and Fries, In-N-Out and Smashburger have carved a tasty niche, but they are joined by regional competitors ready to bring the heat. While MOOYAH continues to make strong ex-pansion strides, brothers Bob and Mark Johnston, founders of The Melting Pot, recently launched Burger 21. Joining them are The Counter, Tom & Eddie’s and Eleva-tion Burger. If consumers are craving com-fort, the better burger category is catering to those needs in a big way.
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7 Food trucks
As more cities revise regulations that previ-ously restricted food trucks, the number of meals being served on wheels is rapidly in-creasing. Fueled by consumer support, the popularity of food trucks is moving across cities large and small. While not all mu-nicipalities are treating food trucks equally, some existing restaurants — and the celeb-rity chefs within them — are capitalizing on the trend by rolling out food trucks as an extension of their brand. As policy mak-ers continue to iron out the details of food truck regulations, the trend continues to expand as more entrepreneurs hit the road.
8 Catering
Catering sales represent a potential $33 billion opportunity for the restaurant in-dustry. By expanding catering offerings, restaurant operators are leveraging their assets and paving a path to higher prof-its. To manage catering operations, many restaurant chains are installing software to assist with tasks such as order taking, production planning and marketing. If you don’t yet believe in catering’s profit po-
tential, just follow the earnings of Einstein Noah Restaurant Group. In the company’s 2011 third quarter, catering sales grew 20 percent. Other segment chains, such as Panera Bread, Boston Market and Wing-stop, are using catering platforms to drive product awareness and build holiday sales.
9 iPads
When Apple introduced its revolutionary iPad in 2010, the restaurant industry was abuzz with debate about whether the de-vice had a role in the restaurant industry. Just two years later, the 9.5-by-7.5-inch tablet computer has gained respect and acceptance among many fast casual and other industry leaders. And technology providers are supporting the trend in big
ways. NEXTEP and OrderTalk have intro-duced an array of ordering solutions that aid linebusting through iPad use. And in addition to installing enclosed iPads for ta-bletop ordering, restaurant operators are using the devices behind the scenes. With an abundance of useful iPad apps entering the market, including many that are free, restaurant operators can further stream-line operations and improve efficiency.
10 Flex casual
As the restaurant industry revamps to keep up with busy, budget-savvy consumers, a new dining category has emerged. “Flex casual,” a term trademarked by Randy Murphy to describe his business model at Mama Fu’s. Flex casual is defined as a hy-brid of fast casual and casual dining that offers counter service for lunch and full service during dinner, typically at the same price point. Along with Mama Fu’s, oth-ers such as Russo’s New York Pizzeria and Wolfgang Puck Bistro have discovered that flexible service formats can maximize re-turn on investment by luring diners seeking convenience in the day and relaxation in the evening. While the benefits of flex ca-sual are still being observed, its emergence in 2011 made it one trend worth watching.
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It’s been a capstone year for Denver-based Smashburger. The chain, known for its cooking style of ‘smashing’ burgers on the grill, was recognized by Forbes magazine as America’s Most Promising Company.
At Smashburger’s helm is David Prokupek, a Wisconsin native whose business roots are seeded in finance, investment banking and retail soil. As a self-proclaimed “serial entrepreneur,” Proku-pek has taken his business acumen and applied it to the foodser-vice industry as Smashburger’s leading man. He found out about the Forbes ranking sitting at one of the company’s restaurants for lunch.
“For the team, it was a nice validation of the work that’s been put in along the way,” he said. “The culture we’ve built is a strong one.”
Although Smashburger is privately owned, the company recently disclosed to analysts that 2011 sales reached $115.7 million, a 72 percent increase over 2010. While the chain’s ownership is mixed — 58 percent franchise owned and 42 percent company owned — Prokupek estimates that growth will come primarily from new franchisees.
Moving forward, the overall company strategy is to maintain its innovative focus, both in the quality of food it delivers and the customer experience diners have come to expect.
1. Smashburger had seven locations open in 2007 and has grown to 150 since then. To what do you attribute its success?
We have been one of the fastest growing concepts in history thanks to phenomenal consumer acceptance around our award
David Prokupek’s smashing success
Chairman and CEO David Prokupek founded Smashburger in 2007. In 2011, the company saw a 72 percent increase in sales over the previous year, and was named America’s Most Promising Company by Forbes magazine.
winning burgers and the good things that go with them, a fun and affordable dining experience, and a management team, capital and business model to pull it off. Smashburger brings a fresh approach to the $100B burger category and further “smashes convention” by partnering with highly experienced multi-unit franchise operators that collectively run over $1B in restaurant sales and operating under a “one Smashburger” model that lets us move quickly and effectively as one team. Our commitment to innovation will help us set the pace for years to come.
2. You mentioned in a separate interview that 2011 was really a capstone year for the restaurant chain. How so?
2011 was a phenomenal year for Smashburger. From being named America’s Most Promising Company by Forbes Magazine to continuing to win “best burger” awards in towns across Amer-ica, and expanding our social media and marketing prowess — it has been great to see our smashed fresh, served delicious burgers and our business model be recognized as some of the best. 2011 also marked tremendous growth for Smashburger as we collec-tively grew system-wide sales 3% to over $115.7M and opened 51 new units across the United States. In addition, we signed our first
Smashburger’s CEO and chairman is banking on better burgers.
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international agreements for restaurants in the Middle East, Can-ada and Latin America where we’ll open locations later this year.
3. How has the better burger category aided in Smashburger’s growth since the economic downturn in 2008?
With burgers being America’s favorite food — the burger industry was starved for innovation as consumers lacked a better dining option that paired fresh, made-to-order burgers with an experi-ence conducive to their busy lifestyles. The recession amplified our growth plugging into a long-term trend of providing great food, fast and affordable — stealing share from casual dining and quick service alike. Smashburger is a fresh approach to not just “better burgers” but to the fast casual segment as a whole. We will continue to set ourselves apart from the competition with not only award winning burgers but signature chicken sandwiches, black bean burgers and salads that are as great as our burgers — all for around $8-10 and 25-minute dining experience.
4. What’s your response to people who want to compare Smash- burger to some of the other successful national chains?
It’s only natural for people to compare Smashburger to other successful restaurants in our segment. From our perspective, it’s
great to see the impact our 4-year-old concept is having on not just ‘better burgers’ but the fast casual industry as a whole.
5. Last year, the company announced Smashburger’s interna-tional growth. How do you think the international markets are reacting to the better burger category?
We believe burgers are as big outside the United States as inside and the trends for great food fast are on the rise globally. We couldn’t be more excited to debut our smashed, fresh-served, delicious burgers to the international community. We have been fortunate to team up with some incredibly seasoned franchise partners who have a wealth of international experience and bring local knowledge and insight to the table. In working with them, we have discovered that there is a strong desire for premium western brands, and with Smashburger’s fresh, innovative menu and solid growth, we fit that bill.
6. Regionalized menu items have been well received for the chain. Why do you think consumers have responded so posi-tively to that menu positioning?
Smashburger’s localized menu items have really become a hall-mark of our brand that allow us to celebrate regional tastes and connect us to our guests in every community. I think customers really appreciate the effort we put in discovering the unique fla-vors of their area, and this allows us to set ourselves apart from other national chains.
7. What impact has the Forbes ranking had on the chain?
Being named America’s Most Promising Company by Forbes magazine was a huge honor that we were incredibly excited and humbled by. It has helped raise awareness of the Smashburger brand in consumers’ minds as well as the business community. Franchising continues to be a crucial piece of our growth strategy and a ranking like this helps tremendously as we look for partners with multi-unit experience to help us develop inside and outside the United States.
— Valerie Killifer
