THE CHAIN - DataSsential

OCTOBER 2015
FoodBytes
THE
CHAIN
GAME
DATASSENTIAL SEEKS OUT THE
EXPANDING LOCAL AND
REGIONAL CHAINS THAT
COULD BREAK OUT AND
BECOME THE NEXT
BIG THING
A TOPICAL TREND REPORT FROM
TRENDSPOTTING CHAINS
ACROSS THE U.S.
OCTOBER 2015
FoodBytes
Los Angeles-based Lemonade is a 15-unit chain that describes itself as a
modern marketplace serving California’s best, seasonal bounty. The chain has
recently expanded into the Bay Area, moving into former La Boulange stores.
KEEP AN EYE ON THESE BOOMING AND
EXPANDING RESTAURANT CHAINS
At Datassential, one of our most frequently asked questions is, “What’s next?” What might become the next sriracha? Or what upand-coming chain might become the next McDonald’s or Chipotle? To keep you updated on the latest trends, this issue of FoodBytes
takes you around the country to showcase emerging chains with concepts that really resonate with customers. These are the
businesses that succeeded in their home city and are now opening locations in neighboring states and strategizing on how to further
expand their company footprint.
At Ohio-based emerging chain Piada Italian Street Food, it’s all about introducing consumers to Italian street food in a tried-and-true
fast-casual setting. QSR Magazine called Piada a chain “to watch” and likened the concept to Chipotle – customers start with a format
(a piada Italian flatbread, pasta bowl, or salad) and move down a line to add toppings, sauces, and proteins. Similar to a burrito or
pita, the company’s namesake piada starts with a thin-crust dough that is then filled with various ingredients (even pasta) and handrolled. The company-owned chain has expanded into Indiana and Michigan, and founder and CEO Chris Doody told QSR the brand
was designed to go national: “We are penetrating markets strategically, but five years from now Piada could be a national brand with
more than 100 locations.”
For some companies, expansion goals have to balance with a mission to still stay true to its hometown roots. When Pittsburgh, PA
sandwich chain Primanti Bros. was acquired by a private-equity firm, some fans were worried the historic Pittsburgh chain would
stray too far from its roots. So while a coast-to-coast expansion is not currently planned, CEO David Head told TribLive that the brand
would expand into neighboring markets such as Western Pennsylvania and northern West Virginia. Similarly, Lincoln, NE-based
Runza (whose namesake product is a European sandwich pocket filled with cabbage and meats), continues to expand throughout its
home region, choosing to remain close to its Midwestern roots.
Dig into this issue now to find out more about emerging chains that could break out into the “next big thing.” And discover the
operators who have stayed close to their home locations while also gaining national recognition for craveable foods like the “animal
style” burgers from the West Coast’s In-N-Out Burger. To pinpoint the country’s hottest chains, we leveraged Datassential’s Firefly
tool, a comprehensive database covering every foodservice location in the country, including more than 8,500 distinct chains. With
Firefly, users can make sense of massive markets like New York (more than 12,000 chain units) and Los Angeles (15,000) to find the
next regional chain looking to expand across the country, or dive deep into smaller suburban areas or towns to find the perfect target
for customers and prospects. For even more chain coverage and more info on Firefly, contact Datassential at 312-219-6435.
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TRENDSPOTTING
CHAINS IN THE
EAST
OCTOBER 2015
FoodBytes
Many restaurant chains are born on the East Coast, and with large markets such as New York and Washington, D.C., the
East Coast is also one of the first markets many international chains choose to expand to when entering the U.S. for the
first time. Nando’s, a flame-grilled chicken chain from South Africa, opened nearly 20 locations in the D.C. metro area
before expanding to Chicago earlier this year. The East Coast is also the birthplace of many chains that have garnered
national attention, such as Shake Shack (individual stores have been valued at $40 million each), and Wawa, the
Pennsylvania convenience store chain with more than 500 locations.
B.GOOD
XI’AN FAMOUS FOODS
B.good, a Boston-based fast-casual concept, was founded by two best
friends, Jon Olinto and Anthony Ackil, who realized that, though they
loved fast food, they didn’t like the way they felt after eating it. At B.good
it’s all about making “real food” such as kale and quinoa bowls, seasonal
salads, and smoothies. While B.good started as a burgers-and-fries chain,
last year the company decided to shift its menu to include healthier fare
to differentiate itself in an already saturated burger market. According to
Boston Business Journal, the company hopes to add 10 to 15 new
locations this year.
Xi’an Famous Foods began as a food stall in Flushing,
NY and now has 10 New York City locations. The
restaurant features the cuisine of Xi’an, a city in
northwestern China. Menu items include lamb and
pork “burgers” sandwiched between flatbread, and a
variety of hand-pulled noodle options. According to
the Wall Street Journal, the company is not looking to
franchise, but wants to expand outside of New York,
eventually to the West Coast.
BOSTON, MA
NEW YORK, NY
SWEETGREEN
WASHINGTON, D.C.
Sweetgreen is a Washington, D.C.-based chain
first opened in 2007 by three Georgetown
University friends. The menu focuses on
sustainable, healthy foods, with a “create-yourown” model that has been compared to Chipotle.
Customers can choose from seasonal offerings
such as a curry cauliflower and quinoa bowl, or
make-your-own bowl options. Sweetgreen’s
current locations are mostly found on the East
Coast, but the chain has recently expanded to the
Los Angeles area.
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TRENDSPOTTING
CHAINS IN THE
WEST
OCTOBER 2015
FoodBytes
Chains have an extensive presence on the West Coast – in fact, according to Datassential’s Firefly tool, Los Angeles has
the largest number of chain restaurants of any metro area in the country. You’ll find more than 15,000 chain locations in
Los Angeles, including homegrown companies such as Mexican taco chain Loteria Grill; and 800 Degrees, a fast-fired pizza
concept from the group behind Umami Burger. There are also a number of larger chains with national recognition whose
locations are still concentrated mainly where they started, such as California’s Jack in Box, with 70% of its 2,000-plus
locations in the West, and In-N-Out Burger, with 91% of its locations in the West. (Ask about Datassential’s
BrandFingerprints for insights on top chains like In-N-Out and Jack in the Box.)
THE ROCK, WOOD FIRED KITCHEN | PUYALLUP, WA
The Rock, Wood Fired Kitchen is a Tacoma-area headquartered casual dining concept focused on
wood-fired pizza. The Rock’s menu is fully rock music-themed, with pizzas like the Bad to the Bone, a
white sauce pizza with pepperoni, peppered bacon, ham, and peppercorn ranch dressing; or Stairway
to Heaven, a garlic butter-brushed dough topped with arugula, tomatoes, and prosciutto. After
opening in 1995, the company has grown to more than 20 locations in five states throughout the
Pacific Northwest. The Rock plans to develop 40 stores before 2020.
THE COUNTER CUSTOM BUILT BURGERS | CULVER CITY, CA
There’s plenty of growth in store for California-based The Counter Custom Built Burgers. The fullservice, build-your-own burger concept opened in 2003, and now has more than 40 locations. A large
list of ingredients capitalizes on the customization trend, allowing customers to make burgers, salads,
or grilled cheese sandwiches, in more than a million different ways. The company’s fast-casual
version, Built, opened in 2013, and both concepts are expanding. The Counter will add international
units in Russia and Japan, while domestic expansion is also underway for Built.
THE KEBAB SHOP | SAN DIEGO, CA
The Kebab Shop specializes in doner kebabs, a Turkish creation of spit-grilled meat wrapped in
flatbread. Doner kebabs have become an extremely popular street food in Europe and Germany, and
a few U.S. fast-casual brands have adopted the doner, including The Kebab Shop, which has eight
California locations. Customers choose a style – doner kebab (wrapped in flatbread), shawarma
(sandwich-style), or doner box (with fries or rice) – and then choose from a variety of fillings. The
company recently expanded its headquarters to Poway, CA, making way for further growth.
UMAMI BURGER | LOS ANGELES, CA
After reading about the flavor profile of umami, CEO Adam Fleischman (a fan of In-N-Out burgers)
decided to open an umami-centric burger chain. The concept is centered on this “fifth taste,” with its
namesake Umami Burger including shiitake, parmesan, and Umami house ketchup. There are now
more than 20 Umami Burgers, and though most are in California, the chain opened its first Chicago
location in 2014 and will add a second in 2016. This may only be the very beginning of a massive
expansion: In 2013, Fleischman told the LA Times he aimed to open 150 locations worldwide by 2018.
CREAM | MILLBRAE, CA
It’s all about ice cream sandwiches at California-based CREAM, which opened in 2010. There are now
more than 20 locations in California and Nevada, with many more on the way – Chief Operating
Officer Jim Ryan told QSR Magazine in April that 30 to 40 more units would open in 2015, with the
possibility of having as many as 150 stores open by the end of 2016. CREAM, which stands for Cookies
Rule Everything Around Me, offers about 10 different varieties of cookies, plus 20 flavors of ice cream
and 15 toppings, giving customers an endless amount of combinations.
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TRENDSPOTTING
CHAINS IN THE
MIDWEST
OCTOBER 2015
FoodBytes
The Midwest is home to a variety of chains, and many of those specialize in offering the hearty, “meat and potatoes”-type
of fare the region is known for. According to Datassential’s Firefly, most Midwestern operators focus on American,
sandwich/deli, or pizza menus. Chains like Wendy’s and Domino’s Pizza were both founded in the Midwest, and even
larger chains that have expanded outside of the area remain well-known for their Midwestern roots. Among companies
that expanded from the Midwest include 300-plus unit, Chicago sandwich shop Potbelly’s, and Culver’s, a Wisconsin chain
known for frozen custard and ButterBurgers.
RUSTY BUCKET
PORTILLO’S
COLUMBUS, OH
OAK BROOK, IL
Rusty Bucket was named one of Nation’s Restaurant
News’ Breakout Brands of 2014, and currently has a
plan to open 50 more locations over the next five
years. The 19-unit upscale-casual has a friendly
sports bar vibe catering to both families and sports
fans. FSR Magazine named Rusty Bucket one of the
country’s top fastest-growing chains (based on
increased sales from 2013-2014), and the company
plans to expand to a new market every year.
Portillo’s is very much a homegrown name in the Chicago area, having
opened initially as a hot dog stand in 1963. The chain is known for its
Chicago-style food, namely its Chicago-style hotdogs and Italian beef
sandwiches. Other signature dishes include the chopped salad with
chopped romaine and iceberg lettuce, chicken, pasta, and bacon, with
house vinaigrette; and its chocolate cake shake made with a full slice of
chocolate cake. Most of the chain’s units are located in Illinois, with the
exception of two locations in California and two in Arizona. Portillo’s will
open its first Florida location in 2016 and plans to expand to Wisconsin.
TOM + CHEE
CINCINNATI, OH
Tom + Chee, so named after its two main products,
tomato soup and grilled cheese, is a rapidly-expanding
chain with 30 units and counting. Tom + Chee offers
more than 25 different sandwiches, along with salads
and tomato soups, all using house-made ingredients. In
addition to “fancy” grilled cheese varieties such as the
Armagoetta, made with Cincinnati specialty goetta (a
meat and grain sausage), Tom + Chee also offers grilled
cheese donuts, like the Blueberry Blue with
mascarpone and blue cheese. The franchise is
continuing to expand after appearing on ABC’s “Shark
Tank” – after the show aired, the business received
more than 20,000 franchising inquiries.
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TRENDSPOTTING
CHAINS IN THE
SOUTH
OCTOBER 2015
FoodBytes
The Southern U.S. is also home to a vast number of homegrown chains whose locations are mostly found in the South.
Bojangles’ Famous Chicken ‘n Biscuits has more than 600 locations, but 99% of locations are in the Southern U.S. Other
chains like Zaxby’s, a Georgia-based chicken chain, slider concept Krystal, Texas’ Whataburger, and iconic breakfast chain
Waffle House, are just some examples of larger Southern chains that are found mostly in the South. You’ll find many of
these on various “Chains that should go national” lists from publications like Zagat and USA Today.
EEGEE’S | TUCSON, AZ
Eegee’s started in a used vending truck in 1971 and has now grown to a 23-unit restaurant chain
based in Tucson, AZ. The original lemon eegee frozen fruit drink is still available, along with
sandwiches, fries, and salads. In August, the chain released an on-trend Flamin’ Hot Chicken Sub,
made with buffalo ranch, jalapeno cream cheese, and Flamin’ Hot Cheetos. The sandwich followed up
on an April Fools Day prank where the chain teased customers with a Flamin’ Hot Cheetos Eegee. The
company expanded outside of Tucson in 2009 and has plans to grow in Phoenix and El Paso, TX.
VERTS KEBAP | AUSTIN, TX
Verts Kebap is a doner kebap (also spelled kebab) concept headquartered in Austin, TX that was
recently named a “Hot Concept” by Nation’s Restaurant News. Founders Michael Heyne and Dominik
Stein brought the idea with them from their native Germany, where the doner kebap is a staple street
food. At Verts, rotisserie beef and lamb, chicken, and falafel are available served in a tortilla, on
lettuce, or on its signature kebap bread. There are currently 24 units in Texas, with six more locations
already in the works.
R TACO | DALLAS, TX
Up until September, R Taco was called Rusty Taco, but in a plan to broaden its appeal and gear up for
expansion, Rusty Taco was shortened to just R Taco. R Taco offers 13 varieties of handmade tacos,
such as the namesake Rusty Taco with achiote pork, pineapple, onion, and cilantro; as well as several
kinds of breakfast tacos and sides like guacamole. The Dallas-based fast casual made news in August
2014 when it drew majority investment from Buffalo Wild Wings. There are currently 10 units, and
under the expertise of Buffalo Wild Wings, the brand hopes to continue expanding.
CHICKEN SALAD CHICK | AUBURN, AL
Chicken Salad Chick started as a booming business in Stacy Brown’s kitchen. Brown had spent years
crafting a recipe for the perfect chicken salad, but once business took off, Brown hit a slight road block
– the health department shut down the operation, citing food sales regulations. That only fueled
Brown to go all-in with a full-fledged business, and now, Chicken Salad Chick has expanded to
locations in six states. The franchised brand offers 15 varieties of chicken salad, such as Jalapeno Holly
with diced jalapenos or Sassy Scotty with ranch, bacon, and cheddar cheese. Chicken Salad Chick
started franchising in 2011 and is looking to expand in markets throughout the Southeastern U.S.
MARLOW’S TAVERN | ATLANTA, GA
With 15 locations in Georgia and 4 more in Florida, Marlow’s Tavern showcases the “Best of the Best”
in American tavern fare. The chain’s take on bar food includes traditional dishes such as buffalo wings
as well as a shrimp and crab “nacho” plate with rock shrimp, crab, and pepper jack cheese, along with
Southern favorites like shrimp and grits with a white cheddar grit cake and roasted tomato beurre
blanc. The Atlanta-based concept entered its second Florida market, Tampa, in August, filling a 4,000plus-square feet space with 180 seats.
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TRENDSPOTTING
A FEW MORE GROWING CHAINS
Just Salad | New York-based chain that has expanded to Chicago and overseas.
Primanti Bros., a sandwich chain based in Pittsburgh, PA.
OCTOBER 2015
FoodBytes
Cheese Runza, bestseller from Lincoln, NE-based Runza.
Cincinnati, OH-based Graeter’s is expanding outside the Tri-State area.
Garbanzo Fresh Mediterranean’s president wants to add 10 stores a year outside
of its home market of Denver, CO.
Columbus, OH’s Piada Italian Street Food is expanding
throughout the Midwest.
FOR MORE CHAIN COVERAGE
See our April issue of Dine Around for more info on New York-based Bareburger, a 25-unit chain with plans to expand to California
and Chicago. The “better burger” chain offers a variety of organic and all-natural meats and toppings. n Last November, we checked in
on creative ice cream parlor Salt + Straw in Dine Around: Portland. Flavors like candy corn and black olive brittle and goat cheese can
also be found at its Los Angeles location. n Local fast-fired pizza chain &pizza was covered in Dine Around: Washington, D.C. The
concept has expanded to more than a dozen locations, along with units outside of its original market of D.C. proper, and earlier this
year the brand announced it had received a $10 million investment for more growth. n The first location of Snarf’s Sandwiches opened
in 1996, and is now called “The Shack” as the sandwich shop has grown to more than 20 locations. Snarf’s is expanding throughout
Boulder, Chicago, and Austin. Read more on Snarf’s in Dine Around: Boulder. n We’ve covered many more chains – contact us for
more information!
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OCTOBER 2015
FoodBytes
TOPICS COVERED IN LAST MONTH’S
TRENDSPOTTING REPORTS
ON THE MENU
DINE AROUND:
MILWAUKEE
In our September issue of On The
Menu we covered tea two ways –
rooibos tea as well as tea-smoking
meats and vegetables. We also
looked at hearty vegetables like
kohlrabi and horseradish, and
discovered the ways operators are
using savory jams and churros. In
our coverage of LTOs and new
items at top U.S. chains, we
explored the beginning of a new
season with new fall menus.
In this issue of Dine Around, we
traveled to Milwaukee, WI, also
known as Brew City. Like so many
Midwestern cities, Milwaukee is
revamping its traditional cuisine
with modern techniques and local
ingredients from a new generation
of farmers and artisans. We looked
at how operators are putting a
new spin on tried-and-true foods
like pretzels, Friday fish fries,
German wursts, and much more.
UPCOMING: In this month’s issue,
we’ll cover everything from absinthe
to miso.
UPCOMING: Next month, we
travel to Cleveland, Ohio.
INTERNATIONAL
CONCEPTS: SPAIN
CREATIVE CONCEPTS:
COMMUNITY-SUPPORTED
RESTAURANTS
In International Concepts, we took
you to Spain, a country with a very
different eating culture than the
U.S. While breakfast has been a
bright spot in the states, in Spain
the biggest meal of the day is
lunch. Dinners are a social affair,
with restaurants doubling as bars,
offering everything from tapas
(small bites) and wine or cider to
mini-sandwiches
known
as
montaditos.
In Creative Concepts, we looked
at a new spin on the communitysupported agriculture (CSA)
model that has been used to fund
full restaurants. We chronicled
community-supported
restaurants (CSRs) that rely on
investments from community
members and looked at other
community-supported food
projects on sites like Kickstarter.
UPCOMING: In November, we’re
bringing you to Argentina.
UPCOMING: Next month we
report on fast-casual Asian
operators.
NEVER MISS OUT ON A TREND!
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Contact Mike Kostyo at 312-219-6435 to subscribe to
Datassential’s entire TrendSpotting Report series.
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STAY IN-THE-KNOW ON THE LATEST TRENDS WITH
REPORTS FROM
Datassential’s TrendSpotting Reports combine the art of spotting food trends with the science of market research,
so you are always up-to-date on the trends that matter to your business, from ideation to marketing to
competitive analysis. And, by subscribing to the full TrendSpotting package, you’ll put it all into context by
understanding the overall trend landscape, from sauces to spices, carriers to proteins, beverages to desserts.
ON THE MENU analyzes flavor
and ingredient trends from
across the trend cycle, from
consumer awareness and
interest to menu examples
that put trends into context.
Plus, we gather and examine
important LTOs and new
menu items from chains
across the country.
CREATIVE CONCEPTS makes it
easy to understand how hot
flavors, ingredients, and
concepts fit into overall industry
trends. Each month takes you
across the country and into the
establishments that are defining
the industry.
INTERNATIONAL CONCEPTS, our
newest TrendSpotting Report,
highlights chain activity around
the world – these are the indemand, up-and-coming flavors,
concepts, and trends that are
often adapted for the U.S. market.
DINE AROUND takes you on a
TrendSpotting tour of a city or
neighborhood, so you are always inthe-know on local food trends and
how they fit into the overall food
landscape, all combined with
Datassential’s industry-leading
market research tools, including
MenuTrends and Firefly.
WORLD BITES brings you
authentic dishes and
ingredients from around the
globe, each one packed with
consumer survey data and U.S.
menu examples – a must for
product ideation, menu
development, and marketing.
To begin your TrendSpotting subscription, contact Datassential Publications
Manager Mike Kostyo at 312-219-6435 or [email protected].
datassential.com
:
SOMETHING FOR EVERY IDEATION
AND MARKETING NEED.
A MAJORITY OF CONSUMERS SAY
THEIR TASTES ARE SHAPED BY
THEIR RESTAURANT EXPERIENCES
What’s happening on the menu today can
be a leading indicator of tomorrow’s food
trends.
Datassential MenuTrends is the industry’s largest
menu data set with the longest historic trend
record, plus the ability to search millions of dishes
from over 100,000 menus. Because the database is
designed to mirror the US restaurant census by
segment, region, and menu type, MenuTrends is the
only system that offers true projectable data. All
segments and cuisine types are tracked extensively
– from food trucks to fine dining.
MenuTrends INSIDER is also updated every month
with Limited Time Offers (LTOs) and other new
menu activity, with product photos that bring the
listings to life. And with thousands of ready-to-use
reports and simple trend detection tools, you can
jump right into the database, identifying,
measuring, and predicting the food and flavor
trends that matter to your business.
Call us today to begin using the food industry’s
authoritative resource for flavor trends.
Call Jana Mann at 312-655-0595 or
email [email protected].
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