QSR Magazine - The QSR 50 - August 2002 - 14

DYNAMOS | AMERICA’S HOTTEST CHAINS Dynamos T CHAIN Who says size matters? They have less than 300 locations, but these chains are clawing their way to the top. HEY’RE SMALL—LESS THAN 300 UNITS, to be exact—but they’ve got spunk and sales dollars. That’s why we call them “dynamos.” In a challenging year like 2001, being small can be a boon. Large companies often get more recognition, but they can be cumbersome and unwieldy in an uncertain and changing market. Smaller chains, on the other hand, are nimble and able to adapt quickly. That might explain why six of our dynamos also made The QSR 50, where they battled it out with the big boys for systemwide sales. Four won spots on our list of top twenty-five chains ranked by averageunit-volume growth. Last year’s winner, Panera Bread/St. Louis Bread Co., rapidly outgrew our dynamos list when it added 109 units to it is chain in 2001. Other dynamo graduates of years past include Cici’s Pizza, Panda Express and Steak ’n Shake. For bakery-cafe chain Panera, sales growth followed unit growth. The peddler of gourmet-style sandwiches and pastries accel- erated sales to $529.4 million, from $315 million a year ago, to land at No. 27 on the QSR Top 50. In 2001 El Pollo Loco flew to the top as Panera Bread made its exit. Headquartered in Irvine, California, the Mexican chicken chain Fried-chicken chain Bojangle’s, which ranked No. 2, is another that might outgrow our list in 2002. The Charlotte, North Carolina, company added 17 restaurants in 2001 for a total of 289. Systemwide sales climbed almost 10 percent to $323.4 million, from $294.1 million last year, and AUV growth increased 2.47 percent to $1.12 million. That put Bojangle’s at No. 23 in terms of sales per unit. Eighth-place winner Baja Fresh Mexican Grill posted the largest percentage gain in systemwide sales of all our dynamos. Sales at the Thousand Oaks, In a challenging year like 2001, being small can be a boon. expanded to 293 units, up 14 from last year. Meanwhile, systemwide sales grew 11.4 percent to $339.0 million, from $304.4 million last year. El Pollo Loco, best known for its marinated, flame-broiled chicken, has posted three consecutive years of record systemwide sales and a combined sales increase of nearly 20 percent for the three-year period. The company is now building on that momentum with a Hispanic advertising campaign. All those ingredients make El Pollo Loco ripe for graduation next year. California-based chain soared 61 percent to $172 million, from $107 million in 2000. The quick-casual restaurant, which Wendy’s International has purchased for $275 million in cash, added 55 units to end the year with 151. Wendy’s Chairman and Chief Executive said he expects to expand Baja Fresh over the next five years to a total range of six hundred to seven hundred locations. With the acquisition, Wendy’s will go head to head with McDonald’s in the Mexican fast-casual business. McDonald’s own sixth-place winner Chipotle Mexican Grill chain. Caribbean-influenced chicken chain Pollo Tropical, which ranked No. 16, with total sales of $97.3 million, came in first for highest sales per unit in 2001. Headquartered in Miami, Florida, the 54-unit chain averaged $1.92 million in sales per unit in 2001. Chicken giant KFC only generated $865,000 per unit. La Madeleine, an owner and operator of French bakery-cafes, ranked eleventh with systemwide sales of $125.2 million, up 3.1 percent from 2000. With average unit volume of $1.90 million, it came a close second to Pollo Tropical in sales per unit. The fastcasual chain, which twice has been named one of the top ten bakeries in the United States by Bon Appetit, closed one cafe to end 2001 with sixty-two. Other dynamos that closed locations during the year include Miami Subs, Papa Gino’s, Taco Bueno, Grandy’s, Nathan’s Famous, Taco Time and Koo Koo Roo. –CAL CHANG YOCUM 53 TOP 20 CHAINS WITH FEWER THAN 300 UNITS, RANKED BY SYSTEMWIDE SALES ESTIMATED 2001 SYSTEMWIDE SALES (MIL) NUMBER OF FRANCHISEE UNITS NUMBER OF CO. OPER. UNITS TOTAL UNITS 2001 SALES PER UNIT (000s) 2 3 4 5 6 7 8 9 Bojangle’s In-N-Out Burger Buffalo Wild Wings Au Bon Pain Chipotle Eat ’n Park Baja Fresh Mexican Grill Donatos $323.4 $260.0 $220.0 $215.0 $185.9 $184.1 $172.0 $158.9 $134.3 $125.2 $119.7 $113.4 $112.0 $99.3 $97.3 $88.4 $85.7 $71.2 $46.8 140 0 105 60 0 0 84 57 137 0 0 2 54 0 1 83 147 168 0 149 158 53 138 177 76 67 140 6 62 171 133 153 119 53 32 17 4 36 289 158 158 198 177 76 151 197 143 62 171 135 207 119 54 115 164 172 36 $1118.9 $1600.0 $1526.0 $1100.0 $1050.0 N/A $1550.0 $900.0 $939.5 $1900.0 $701.5 $875.0 $553.3 $834.0 $1920.0 $793.0 $522.3 $414.0 $1300.0 10 Miami Subs 11 la Madeleine 12 Papa Gino’s 13 Rubio’s 14 D’Angelo Sandwiches 15 Taco Bueno 16 Pollo Tropical 17 Grandy’s 18 Nathan’s Famous 19 Taco Time 20 Koo Koo Roo www.qsrmagazine.com | QSR AUGUST 2002 DYNAMOS 1 El Pollo Loco $339.0 157 136 293 $1157.0

QSR Magazine - The QSR 50 - August 2002

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