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QSR Feature
10 Under 300

2 In-N-Out

 

UNIT COUNTS

2007: 213
2008: 233

UNIT COUNT
CHANGE:

9.39%

ANNUAL SALES:

$400 million*

AVERAGE SALES
PER UNIT:

$1.92 million*

The last time Irvine, California–based In-N-Out added a new product was 1995, and that was Dr Pepper. “Our menu of burgers, fries, and drinks has remained essentially the same since our inception in 1948,” says Carl Van Fleet, vice president.

Hamburgers are made from 100 percent pure beef, ground by company butchers. Lettuce is hand-torn to remove veins. Potatoes for french fries are hand-cut in the store. The American cheese is real, and buns are made from slow-rising sponge dough. Shakes contain real ice cream.

Marketing has primarily consisted of radio and outdoor advertising. But that’s not to say the products aren’t promoted. A pop-culture icon, In-N-Out stars in the cult film The Big Lebowski. Message boards describe the food as “addictive” and “awesome.” Web sites reveal a list of the “secret” burgers customers can order. Since In-N-Out will make burgers however customers like, it’s more about the fans’ in-the-know names for the combinations than the hush-hush factor. What is closely guarded, however, are the company’s financials

As with its products and marketing plan, the family-owned business’s growth strategy remains unchanged. “We grow slowly and will continue to do so as we move forward,” Van Fleet says. In-N-Out in 2008 opened its first Utah store in Washington City.

3 Fuddruckers

UNIT COUNTS

2007: 233
2008: 234

UNIT COUNT
CHANGE:

.4%

ANNUAL SALES:

$320 million

AVERAGE SALES
PER UNIT:

$1.45 million

In July 2008, visitors to Las Vegas noticed lines formed around a building in Las Vegas. The main attraction wasn’t Elvis. It was the opening of Fuddruckers’s first Las Vegas store, a 4,200-square-foot end cap. A second store in the city opened in November in the Orleans Casino. The chain also received notice when it opened stores in the Houston airport, in downtown Savannah, and in Orlando.

Perhaps that makes up for some negative press resulting from the 2007 closings of four Columbus, Ohio­–area restaurants—the second time in two decades that Fuddruckers has bolted central Ohio—and the closings of two other Ohio restaurants.

Fuddruckers, like many chains last year introduced health-oriented items, including fresh-baked cookies with zero trans fat and its Lighter Options Menu, which debuted in early 2008. The menu features salads, bunless burgers, and five core patties: ostrich, buffalo, turkey, veggie, and salmon.

Fuddruckers also lightened up its self-service topping bar with such health-friendly selections as seasonal fruit salad; low-fat ranch and Italian dressings; and Alpine Lace low-sodium, low-fat American cheese. While the healthy items have been popular, the standard burger still reigns.

The chain, which has taken it on the chin for not releasing its products' nutritional information, will provide info on the Lighter Options Menu upon request. Fuddruckers maintains that its policy is not unusual in the quick-serve industry.

4 Baja Fresh Mexican Grill

UNIT COUNTS

2007: 291
2008: 291

UNIT COUNT
CHANGE:

0%

ANNUAL SALES:

$315 million

AVERAGE SALES
PER UNIT:

$1.08 million

Like In-N-Out, Baja Fresh Mexican Grill is close-mouthed about its financials, its product development, and its strategy. In part that could come from its history. Founded in 1990, Baja Fresh was purchased in 2002 by Wendy’s for $275 million. In wake of slipping sales, Wendy’s decided to stick to the burger marketplace and sold Baja Fresh in 2006 for $31 million, a loss that raised analysts’ eyebrows.

New owner Fresh Enterprises—parent company of La Salsa Mexican Grill and The Sweet Factory—has been busy rebuilding the Baja Fresh brand.

Last year was a busy one for the Thousand Oaks, California–based quick-casual Mexican grill. It opened a new concept, Baja Fresh Express at LAX and on the campus of the University of Southern California. The new concept handles orders from start to finish in less than four minutes.

Fresh Enterprises also announced plans for accelerated franchised expansion for all three of its concepts in Atlanta. New York City and Boston are also on the target list.

Last year Baja Fresh also announced an agreement with Bluesun Corp., an international consumer products brokerage firm specializing in selling food and nonfood products to retailers. Initial product offerings are expected to be a Baja Fresh Salsa line.

The initiatives could indicate things are on the upswing for the 18-year-old chain.

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