8 Au Bon Pain

Au Bon Pain began selling croissants in Faneuil Hall Marketplace in 1978, but the Boston-based chain has moved far beyond France’s culinary borders.

In March 2008, Au Bon Pain introduced Portions, a line of 14 pre-made items with 200 calories or less, including cheddar, fruit, and crackers; hummus and cucumber; and a chicken pesto salad. “They skew heavily toward women, but they comprise up to 2 percent of our sales,” says Ed Frechette, vice president of marketing.

The chain experienced a leveraged buyout in February 2008. The new majority holder is LNK Partners, a White Plains, New York, private equity firm, which invested more than $100 million of fresh equity. “We have the same leadership that we’ve had for the past three years,” Frechette says. “We’re not going anywhere.”

Au Bon Pain in 2008 expanded primarily in existing markets, but also opened stores in Kuwait and Dubai. The chain plans about 10 new company-owned stores in 2009 and 10 franchised restaurants.

“We’re staying close to home and trying to control costs as much as we can,” says Frechette, citing long-term contract negotiations with vendors and vendor consolidation.

9 Taco Bueno

Last year was red hot for Taco Bueno, thanks to its expanded menu of flame-grilled selections. Customers can now request flame-grilled steak or chicken when ordering fajita tacos, burritos, and Gourmet Bowls. Not one to sit on the sidelines, Taco Bueno jumped on the eat-light wagon with new low-fat sides: black beans and cilantro-lime rice.

Taco Bueno might have turned 40 in 2007, but it’s hardly old hat. Last year, the chain teamed with Cellfire Inc. to offer mobile discount offers. There’s no paper and no clipping. Customers just subscribe to Cellfire’s mobile coupon service at Cellfire.com or text “bueno” to 22888.

Taco Bueno, owned since 2005 by Palladium Equity Partners, a private-equity firm based in New York, also added MasterCard PayPass, contactless payments, at 161 corporate stores. To use the service, customers tap the card on a PayPass reader to make a purchase. There’s no need to hand the card to the cashier.

Development agreements for Taco Bueno require five or more restaurants. As of fall 2008, Taco Bueno sold markets in its targeted areas. The company is now focusing on developing new markets for 2009.

10 Eat’n Park

Eat’n Park Restaurants, founded in 1949 as a family carhop, aims to provide high quality food for “an unexpectedly great value,” says Kevin O’Connell, senior vice president of marketing. Beef is Black Angus and most of the buns and breads are baked fresh in the restaurant.

Based in Homestead, Pennsylvania, Eat’n Park’s locations are within about a 200-mile radius that includes parts of West Virginia and Ohio. Despite its regional appeal, Eat’n Park won two awards at the 2008 National Hamburger Festival at Akron, Ohio, for its American Grill Burger and its Black Angus Superburger. A television ad campaign touting the awards followed.

Breakfast in 2008 experienced a strong surge, although O’Connell declined to give a growth statistic. The back of the menu now features healthy dishes that are low in calories, fat, and cholesterol. There are even gluten-free selections.

A remodeling effort has resulted in lower lighting, richer colors, and a sectioned dining room. The restaurant has also installed a raised counter with high stools. “It’s bringing back the old but in a new way,” O’Connell says. A retail section gives customers a chance to buy T-shirts and mugs with the signature Smiley character, based on its Smiley cookie. Tested in 2008, the retail area will roll out in 2009 in select stores—just in time for the 60th anniversary.

Apparently, Eat’n Park is on the right path. The chain hired Kansas City–based Service Management Group to measure guest satisfaction. “For the last two years in a row, we’ve seen consistent growth in satisfaction scores,” O’Connell says.