Front Burner Restaurants Inc., parent to the Twin Peaks chain, will announce later today that an investment group led by six former executives of competitor Hooters, including former CEO Coby Brooks, has signed a deal to develop as many as 35 units, sources close the company say.
Brooks, the new franchise group’s majority partner, is the son of late Hooters of America LLC owner Robert H. Brooks and until last month was chief executive of Atlanta-based Hooters. Twin Peaks, a 15-unit, casual-dining chain shares a so-called “breastaurant” service model similar to the all-female Hooters wait staff.
The franchise group will open Twin Peaks restaurants in Alabama, Florida, Georgia, North Carolina, Tennessee and South Carolina over the next 10 years, with two in the next 18 months and an option for more.
Brooks, who appeared on CBS’ “Undercover Boss” in February 2010 had continued as CEO at the 425-unit Hooters after the January completion of its sale by Robert Brooks’ estate to Chanticleer Holdings Inc.
Brooks leads an investment group that includes five other former Hooters executives:
• Joe Hummel, former executive vice president of operations and purchasing
• Roger Gondek, former vice president of company store operations
• Clay Mingus, former vice president and general counsel
• Jim Tessmer, former vice president and controller
• Patti Frederick, who served 17 years as business administrator to Robert Brooks, who owned Hooters from 1984 until his death in 2006, and for the past five years with the Brooks estate.
Hummel Gondek, Mingus and Tessmer resigned from Hooters last month.
Another former Hooters executive, Rick Akam, who served as president and chief executive of Hooters of America from 1995 to 2003, joined Twin Peaks as chief operating officer in May.
“I have great respect for Rick and his understanding of what it takes to build a national restaurant brand,” Brooks said in a statement to be released later today. “His decision to join the Twin Peaks management team made my decision to pursue this opportunity that much easier.”
Randy DeWitt, Twin Peaks co-founder and chief executive, said, “To have these proven industry pros recognize the potential of Twin Peaks and want to be a part of that growth speaks volumes about the foundation we have put in place.
“There is no doubt that this will have a major impact on our expansion plans,” DeWitt said.
Twin Peaks, which earned a Hot Concept award from Nation’s Restaurant News in 2010 has units in Kansas, Nebraska, New Mexico, Oklahoma and Texas. Six additional restaurants are scheduled to open later this year in the Texas cities of Houston, Odessa and San Antonio as well as Baton Rouge, La., Denver, Colo., and Scottsdale, Ariz.
DeWitt and partner Scott Gordon opened the first Twin Peaks in the Dallas suburb of Lewisville, Texas, in 2005.
Watch a video with Coby Brooks and Randy DeWitt on their plans for Twin Peaks
Contact Ron Ruggless at ronald.ruggless@penton.com.
Follow him on Twitter: @RonRuggless
Growing create-your-own stir-fry brands are setting their sights on new markets around the country, particularly the Southeast.
Midwestern stir-fry concepts, like bd’s Mongolian Grill, and Stir Crazy and Flat Top Stir Fry Grill from Chicago-based Flat Out Crazy Restaurant Group, are targeting growth markets in the Southeast because they are rich with the brands’ core customers, officials said.
Tom Ragan, vice president of franchising for Burnsville, Minn.-based bd’s, said the 34-unit chain’s reasons for looking to the South are more about demographics than geography.
“The Southeast is a great market,” Ragan said. “The population we go after is 16 to 40 years old — that’s the Southeast. We have inquiries in Atlanta right now, and it’s just an awareness issue. It’s a wide-open territory, and our competitors are helping us build awareness.”
Since opening a location in Hampton, Va., last December has opened up the whole Southeast and East Coast up to Philadelphia, Ragan said. But getting potential operators access to funding is slowing the pace of growth, he added.
bd’s will open three locations in the fourth quarter of 2011 and plans to open another nine over the next two years, Ragan said. The next franchised bd’s location to begin construction will be in Pittsburgh and the company looks to expand in Ohio and Louisville, Ky., Atlanta, and Florida in the near future.
Flat Out Crazy is on track to open eight restaurants in 2011, including two in Texas and single units in Alabama and Georgia, said president Greg Carey. The company expanded Stir Crazy this year to The Woodlands and Southlake, Texas, and Atlanta. A Flat Top Stir Fry Grill is slated to open soon in Alabama.
So far, Stir Crazy has performed well at its three South Florida locations, Carey said, but the rest of the Southeast also has opportunities for both Stir Crazy and Flat Top.
“When I ran Buckhead Life [Restaurant Group], I got to know the Atlanta market,” he said. “I’ve always wanted to bring a full-service Asian concept back to Atlanta. They love eating out and enjoy good food. The can be picky, but if you deliver food and service optimally, they’ll embrace that.”
The company just opened a Stir Crazy restaurant in the Brookhaven Center development in Atlanta, which is an “underserved” area with dense housing near the Buckhead neighborhood, he said. Flat Out Crazy also is anticipating a Flat Top location opening this month at The Summit lifestyle center in Birmingham, Ala., a piece of real estate Carey has wanted to develop for a while.
“It’s not so much driven by the desire to go to the Southeast as it is that we look at the project and surrounding demographics,” Carey said. “I’m comfortable that Asian is a crossover food. I don’t think there’s one area that doesn’t have the demographic profile we’d need for it to work, so I have no real regional concerns.”
Carey doesn’t worry about growing in markets competitors already have established in their backyard, such as in Texas, near Genghis Grill headquarters, or in Michigan, where bd’s was founded and has most of its restaurants.
“We feel like there’s room for all players,” he said. “They have their market share and have been around a long time, but we’re comfortable with how we execute and our style difference. There are lots of areas the big guys haven’t gotten to yet, and we look for those at the same time, but there’s something comforting about a market already proven for a create-your-own stir-fry concept. bd’s got people to understand in Michigan and got them comfortable with this way of dining.”
Dallas-based Genghis Grill has the most market share in the Southeast, with nearly 40 locations in Texas, seven units in Tennessee and three restaurants in Georgia. The chain also has two locations apiece in Florida, Virginia and North Carolina, as well as single units in Alabama, Arkansas and Louisiana.
Earlier this year, Flat Out Crazy opened a Flat Top in South Bend, Ind., and will open additional Flat Top units in Rochester Hills, Mich., in September and Noblesville, Ind., in October. A new Stir Crazy location is scheduled to debut at Minnesota’s Mall of America in October.
“We’ll continue to grow, and if there’s a change for 2012, it’s that we’ll be über-conservative with locations we finalize,” Carey said. “When we open a restaurant, we want to be real sure we open in a strong market, making sure real estate plays out appropriately. The goal to get to 100 restaurants is still very much in our sights.”
Contact Mark Brandau at mark.brandau@penton.com.
Follow him on Twitter: @Mark_from_NRN
Chef Anthony Russo, creator of the Russo’s New York Pizzeria and Russo’s Coal-Fired Italian Kitchen concepts, is building a small regional Italian empire in the South.
Russo, who opened the first Russo’s New York Pizzeria in Houston, Texas, in 1992, will open two more franchised stores in Arkansas and Florida this year, bringing the Italian chain to 29 units. The company currently has four company-owned pizzerias, 17 franchised New York Pizzeria units in Texas and Tennessee, and six franchised Coal-Fired Italian Kitchens, the first of which opened in 2008.
While most of Russo’s units are located in Texas, the openings this fall in Conway, Ark., and Pembroke, Fla., expand the brand’s footprint. His company is also seeking to franchise in Alabama, Arizona, Mississippi and Oklahoma.
Russo spoke with Nation’s Restaurant News about the concept and its growth plans.
What distinguishes your pizzeria and kitchen concepts from others in the Italian segment?
My background is as a chef, and I wanted to create some unique Italian dishes from my family recipes, like osso bucco and pappardelle with truffles. It’s a bit more upscale than a traditional Italian eatery. I use a coal-fired pizza oven to make our pizzas and also to cook Italian entrees.
What is the average check at each concept?
At the Kitchen, it is $24 to $25 per person. And the New York Pizzeria, it’s about $16 per person.
How do the two concepts differ in square footage and seating?
The Pizzeria is 1,500 square feet, to as large as 5,000 square feet. The smallest would be 44 seats and the largest 220 seats. For the Coal-Fired Italian Kitchen, the minimum is 2,600 square feet, and as large as 6,000 square feet. The two largest stores are in McAllen and Corpus Christi, Texas.
What’s attractive about staying in the South for development?
The demographics are very good. And it’s not saturated with Italian eateries like New York and New Jersey. There’s opportunity for us here.
Tell us about the menu.
It emphasizes fresh Italian food. We don’t have a commissary. We like to give folks a tour of the kitchen. It is all fresh ingredients.
What are the best-selling items?
Pizza, for sure. And then pasta. The Italian Works pizza is pretty popular. It’s made with prosciutto, homemade Italian sausage, and pepperoni and fresh mozzarella.
What percentage of sales is to-go?
For the Pizzeria brand, it’s about 50-50. For the Coal-Fired Italian Kitchen, it’s about 70 percent dine-in and 30 percent takeout.
What are the biggest challenges to growth in this economy?
Banks and funding. The financing is tough. Most of my franchisees are self-funded or raise capital through their family members.
What opportunities are you seeing in this market?
The real estate opportunities are great, especially in negotiating leases, getting better rental rates and negotiating build-out costs to our advantage. We still continue to find good pockets to fill in.
Is the Italian segment well-positioned to weather the economy?
Pizza and Italian together are at a good price point, and the quality is attractive to the consumer.
You are opening your first stand-alone Kitchen in Conway, Ark. What format are most of your other units?
Most are in strip centers and more suburban. The Coal-Fired Kitchens are located in more of the “lifestyle”-type centers.
What changes have you made to the concept recently?
We rebranded with a new logo and new menu design this year. We are also bringing all our own olive oil from Sicily. The chain uses Russo’s olive oil in everything from sauté to salad dressings. We are also bringing in cheeses from Italy.
You have some gluten-free pizzas. Are dietary concerns growing?
We have a lot of requests recently for gluten-free items on the menu, so we came up with a great crust that is gluten-free. It satisfies those customers with allergies. It had been a special for about six months, but we were selling quite a few, so we put it on the menu.
Contact Ron Ruggless at ronald.ruggless@penton.com.
Follow him on Twitter: @RonRuggless
Zoës Kitchen has opened two new restaurants in the past week, bringing the total unit count for the Mediterranean fast-casual concept to 52 locations.
Of those two units, one is a company store in Tuscaloosa, Ala., and the other is a franchised unit in Greenville, S.C. Under the leadership of its new president Kevin Miles, the Birmingham, Ala.-based chain began the year with just over 40 units, and plans to have 60 by the year’s end.
Miles, who joined Zoës in 2009 after working at Luby’s, Pollo Campero and Baja Fresh, succeeded Greg Dollarhyde as president in March. Miles said the concept, which was purchased in 2007 by Brentwood Associates, a Los Angeles-based private-equity firm, is ramping up its franchising program. Zoës has units in 12 states.
Miles spoke with Nation’s Restaurant News at a Plano, Texas, unit built in 2009 about changes at the company, which was founded in 1995 by Zoë Cassimus, a Greek immigrant who wanted to share her homeland’s cuisine.
Tell us about the first nontraditional unit you recently opened in Tuscaloosa.
Being a Birmingham, Ala.-based company, the university [of Alabama] approached us. We already have one store in Tuscaloosa. They did a new add-on to their stadium and were looking to add some local flair and flavor. The Zoës [location] faces outward from the stadium, so the public can use it day-to-day, as well as for those six or seven games a year. On game days we will offer party packs for tailgating needs.
How does this unit compare in size to traditional Zoës stores?
A traditional unit has anywhere from 2,500 to 2,800 square feet. This one is just under 2,000. It has a limited menu during game days and a full menu during other normal days. It has approximately 45 seats inside, and there’s a corridor area inside that we share with the administration.
You’ve been with Zoës since 2009. Can we expect any changes with your leadership?
It’s kind of “stay the course.” When I joined back with Greg [Dollarhyde] in ’09, it was to retool the concept for more dinner growth and make it a little more upscale fast casual, if you will, with plates, silverware, beer and wine. The only thing we are doing differently is looking at more franchising.
What is your split in daypart sales?
We have two. In the older stores, which we call our “vintage model,” it is about 70-30, lunch and dinner. Our new concept is more 60-40. We now have what we consider three dayparts. While the old concept had two — lunch and catering — we now have three, with lunch, catering and dinner.
What percentage of your sales is catering?
In our newer markets, it’s upward of 15 percent of sales.
What other changes are in the newer stores?
We tweaked the menu and kitchen in the newer concept, which can now support grilled items, like our grilled salmon, chicken kabobs and veggie kabobs. That allows the customer to come in and get a heartier dinner item that they may not have at lunch.
What is your franchise/company store ratio?
We have 11 franchised stores and the rest are company-owned [41]. All of our franchisees have two or more stores, and we’ll look at multi-unit franchisees in the future.
What makes you an appealing franchise concept?
I think we are on trend, and we are still a young company. Many franchisees are looking for opportunities with something that is growing successfully and that is not the big franchisor. There’s obviously risk and reward with that, but it’s a way to get in early with territories they really like.
What are Zoës’ best-selling menu items?
The chicken salad sandwich is still very popular, even though it’s not Mediterranean. The salmon and chicken and vegetable kabobs are up there.
Who makes up your demographics?
It includes a lot of females, especially moms on the go. We are seeing more and more men than in the earlier days of the concept. It’s people looking for an option where they can feel good about what they are eating and not feel stuffed or weighted down.
What is your check average?
We’re in that $9.50 range. All of our newer locations that allow it have beer and wine.
What areas are you looking for in expansion?
It’s the Southeast, which is a little broad for us. We just opened one in Phoenix. But our focus is from Dallas to D.C. through that Southeastern corridor. That’s our home base and a little more hub-and-spoke. We still have a lot of territory to penetrate to become a bigger regional brand.
What is the brand’s biggest challenge to growth?
Real estate. That’s especially for A-plus real estate. With the economy the way it was, developers stopped developing new dirt, so we are sitting here with not a lot of inventory. Those concepts that weathered the economic storm are entrenched in their markets, but there isn’t a whole lot of location-location-location as we look. We are turning over a lot of rocks. There’s a little bit of new stuff coming on, but not a lot.
Contact Ron Ruggless at ronald.ruggless@penton.com.
Follow him on Twitter: @RonRuggless
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Event: ServSafe Food Manager Certification Class When Friday, June 10, 2011 9:00am – Click on class for more information & register – All Ages Where Rock Hill/Fort Mill, SC – HRBAudit Training Center (map) Rock Hill/Fort Mill, SC Other InfoServSafe® delivers high-quality training options for every manager. From the classroom to online, and in a [...]
