QSR 312 February 2024 by WTWH Media LLC

EVOLVING QUICK SERVICE FOR THE FUTURE F EBRUA RY 2024 / NO. 312

PLUS:

Fast Casual at the Drive-Thru P. 42

California’s New Fast-Food Law Makes Impact P. 48

THE

40 40 2 0 2 4

LIST

This group of emerging chains is ready to hit another gear. CASSIE GHAFFAR (LEFT ) AND SANDY NGUYEN MADE IT BIG WITH RISING VIETNAMESE CONCEPT, SAIGON HUSTLE .

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EVOLVING QUICK SERVICE FOR THE FUTURE F EBRUA RY 2024 / NO. 312

PLUS:

Fast Casual at the Drive-Thru P. 42

California’s New Fast-Food Law Makes Impact P. 48

THE

40 40 2 0 2 4

LIST

This group of emerging chains is ready to hit another gear. CASSIE GHAFFAR (LEFT ) AND SANDY NGUYEN MADE IT BIG WITH RISING VIETNAMESE CONCEPT, SAIGON HUSTLE .

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February +

TABLE OF CONTENTS

P. 55

FEBRUARY 2024 #312

Q SR / LIMITE D -SE RVICE , U NLIMITE D POSSIBILITIES

DEPARTMENTS

F E AT U R E S

N E W S

16 FRANCHISE FORWARD

Swimming with Sharks

‘Shark Tank’ alums recount their experience on the award-winning show. BY SATYNE DONER

THE

40 40

50 INNOVATE

Burgers and Blockbusters

BurgerFi finds a new venue to grow sales. BY SAM DANLEY I N S I G H T

2 0 2 4

11 FRESH IDEAS

International Innovation

LIST

Global flavors are gaining popularity among U.S. consumers. BY SAM DANLEY

14 ONES TO WATCH SAIGON HUSTLE, BLACK SEED BAGELS, TIKI TACO

Angry Chickz

BY QSR STAFF

This group of fast casuals is ready to take on whatever comes next in the post-pandemic era.

48 OPERATIONS

The West Coast Wage Frontier

California lawmakers toss a legislative wrench into the plans of quick-service restaurateurs. BY SATYNE DONER

The 40/40 List

A chicken chain embarks on a franchising journey. BY SATYNE DONER

Fast Casuals Wheel into Drive-Thru Competition

54 START TO FINISH

Tracy Kim

BY SAM DANLEY

The CEO of DIG describes the brand’s true mission.

The off-premises channel is becoming a bigger focal point of innovation.

O N

2 BRANDED CONTENT

4 EDITOR’S LETTER

7 SHORT ORDER

80 ADVERTISER INDEX

QSR is a registered trademark of WTWH Media, LLC. QSR is copyright © 2024 WTWH Media, LLC. All rights reserved. The opinions of columnists are their own. Publication of their writing does not imply endorsement by WTWH Media, LLC. Subscriptions (919) 945-0704. www.qsrmagazine.com/subscribe. QSR is provided without charge upon request to individuals residing in the U.S. meeting subscription criteria as set forth by the publisher. AAM member. All rights reserved. No part of this magazine may be reproduced in any fashion without the express written consent of WTWH Media, LLC. QSR (ISSN 1093-7994) is published monthly by WTWH Media, LLC, 1111 Superior Avenue Suite 2600, Cleveland, OH 44114. Periodicals postage paid at Cleveland, OH and at additional mailing offices. POSTMASTER: Send address changes to QSR, 101 Europa Drive, Suite 150, Chapel Hill, NC 27517-2380.

T H E

C O V E R

Saigon Hustle founders Cassie Ghaffar (left) and Sandy Nguyen make Vietnamese cuisine available to the masses. PHOTOGRAPHY: SAIGON HUSTLE

www.qsrmagazine.com | QSR | FEBRUARY 2024

BRANDED CONTENT EDITORIAL

BRAND STORIES FROM QSR

EDITOR I A L DIR ECTOR

Danny Klein

dklein@wtwhmedia.com

QSR EDITOR

IN THIS ISSUE

Ben Coley

bcoley@wtwhmedia.com

FSR EDITOR

Callie Evergreen

cevergreen@wtwhmedia.com

AS SOCI ATE EDITOR

Sam Danley

sdanley@wtwhmedia.com BRANDED CONTENT STUDIO

QSR’s RESTAURANT FRANCHISING / FEBRUARY 2024 These brands are looking for franchisees with which to grow their footprint in 2024 and beyond.

DIR ECTOR OF THE BR A NDED CONTENT S T UDIO, FOOD A ND HOSPITA LIT Y

Peggy Carouthers

pcarouthers@wtwhmedia.com

BR A NDED CONTENT AS SIS TA NT EDITOR

Ya’el McLoud

ymcloud@wtwhmedia.com FEBRUARY / 2024

ADOBE STOCK / ANON

The last few years have been a roller coaster for the franchising industry as a whole, but restaurants have bounced back

from supply chain issues and labor shortages. Now, franchise brands of all types are demonstrating massive successes and are looking for enterprising new owners and operators to help them expand their national footprints. Learn more about a few of these growing brands here.

ANOTHER BROKEN EGG

BR A NDED CONTENT AS SIS TA NT EDITOR

PEACH COBBLER FACTORY

bb.q CHICKEN

PEPPER LUNCH

BONCHON

SAVVY SLIDERS

CICIS

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THE HUMAN BEAN

SLIM CHICKENS

IHOP

VITALITY BOWLS

RESTAURANT FRANCHISING | FEBRUARY 2024

Another Broken Egg Cafe is Elevating Southern-Inspired Breakfast, Brunch, and Lunch Nationwide

Award-winning ‘NextGen Casual’ brand approaches 100 units with new openings and development deals. SPONSORED BY ANOTHER BROKEN EGG

bb.q Chicken Supports Franchisees Amidst Rapid National Expansion

Popular Korean fried chicken franchise invests in franchisee growth and success. SPONSORED BY bb.q CHICKEN

Bonchon’s Global Success Story: From Busan, South Korea to International Franchise Powerhouse

Innovative growth and authentic flavors fuel Bonchon’s dynamic expansion. SPONSORED BY BONCHON

Cicis® Pizza Unlocks More Growth with The Best Pizza Value Anywhere

Cicis redefines the pizza industry with customer connection, LTOs, and game rooms. SPONSORED BY CICIS PIZZA

64 55

How ‘The Human Bean’ Touch Continues to Grow the Brand

Olivia Schuster

Aggressive Franchisor is Offering 4% Interest Rates on Equipment Packages

Take time, make human connections — customer care principles extend to franchise partners.

Savvy Sliders encourages expansion while stabilizing costs with financial Support.

SPONSORED BY YBC PLUS

A family tradition of franchise success continues.

FEBRUARY 2024 | QSR | www.qsrmagazine.com

The YGS Group 800-290-5460 FAX: 717-825-2150 qsrmagazine@theygsgroup.com www.qsrmagazine.com/reprints Sponsored content in this magazine is provided to the represented company for a fee. Such content is written to be informational and non-promotional. Comments welcomed at sponsoredcontent@qsrmagazine.com. WTWH MEDIA LLC RETAIL, HOSPITALITY, AND FOOD GROUP

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Better Performance Made Possible

EDITOR’S LETTER

Making it Big in a Ruthless Business Rising fast casuals have challenges, but operators remain resilient.

BCOLEY@WTWHMEDIA.COM QSR MAGAZINE

FEBRUARY 2024 | QSR | www.qsrmagazine.com

perating a restaurant isn’t easy. You have to be a certain type of person to take on that responsibility and manage to handle it with a smile every day. Of course, I don’t say this from firsthand experience, but I have spent the past four years talking to hundreds of folks within the restaurant industry. It’s hard. Margins are thin, customers are fickle, and social media has opened the marketplace for so much competition. One misplaced pickle could be the difference between a guest walking down the street for their next visit. And this was all before any of us even knew what COVID was. Now, restaurateurs are faced with commodity inflation, tougher labor scheduling, and a technological arms race. I say all this to put our annual 40/40 list into perspective. This annual report compiles 40 fast casuals under 40 units that deserve their proper shine. It’s one thing to operate in this current environment with massive resources like a McDonald’s or Starbucks, but it’s a whole other issue trying to combat permitting delays and supply chain issues as a bootstraps concept solely focusing on that next restaurant opening. This is the seventh edition of the list—and no one repeats—meaning we’ve covered 280 unique brands since 2017. To be transparent, all of those 280 concepts haven’t been a success story in the years following their appearance on the 40/40. There have been bankruptcies and failures along the way, but that’s the true beastly nature of this sector. It can be unforgiving, especially if an operator is unable to adapt or respond to customers’ changing needs. But on the other hand, there have

been plenty of thriving chains. One good example is Honeygrow, a stir fry and salad fast casual based in Pennsylvania. The brand was part of the inaugural report in 2017 with 16 restaurants. In early December, the chain announced the opening of its 39th store systemwide and the 19th location in Pennsylvania. According to the company’s press release, it has “no plans to slow down anytime

soon.” Another one is Taco Bamba, a Mexican fast casual in the DMV market. Led by former fine-dining chef Victor Albisu, the brand opened its first unit in North Carolina in 2023. There are chains set up for the future on this year’s list as well. We shine the biggest light on Saigon Hustle, an independent restaurant bringing Vietnamese food to the Houston market, but in an approachable manner. You don’t have to take my word for it that this brand is going down the right path—other prominent operators feel the same way. Saigon Hustle was the winner of Savory Fund’s Million Dollar Restaurant Launch, aimed at helping operators scale further. More power to all the entrepreneurs who are part of the 2024 edition—and in years past—who set out to create differentiation in the U.S. There’s a certain beauty in this pursuit, and all should be praised for pushing forward, no matter the obstacle. That’s the American Dream, after all. Ben Coley, Editor

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SHORT ORDER

The Chillers were available for a limited time in December.

Taco Bell on Ice

TACO BELL / FOODBEAST

The fast-food giant tests a new menu category.

TACO BELL INTRODUCED COFFEE CHILLERS and Churro Chillers in December, marking its first venture into frozen coffee and shakes. The products were exclusively available at two Southern California locations in Mission Viejo and Irvine, California. The Coffee Chiller, served in a 16-ounce cup, featured blended iced coffee with a cold foam topping and was available in Mexican Chocolate, Caramel Churro, and Spiced Vanilla flavors. Meanwhile, the Churro Chiller, also served in a 16-ounce cup, combines a sweet shake with cold foam and churro crumbles, offered in Mexican Chocolate, Dulce de Leche Coffee, Wild Strawberry, and Sweet Vanilla, with the Sweet Vanilla Churro Chiller adding a visually captivating purple tint. These frozen delights were priced at $4.19. “We’re always pushing the boundaries to deliver bold and craveable Mexican-inspired flavors our fans have come to expect from us and these frozen drinks showcase how far our innovation goes,” Taco Bell U.S. CMO Taylor Montgomery said in a statement.

www.qsrmagazine.com | QSR | FEBRUARY 2024

SHORT ORDER

Affordable Seating analyzed more than 26.3 million Instagram posts featuring restaurant-specific hashtags to find which brands are the most Instagram-worthy. Here’s what the research found:

The Top 5:

What Other Chains Made The List?

• The study identified McDonald’s—the country’s largest restaurant chain in terms of U.S. systemwide sales—as the most Instagrammable concept, with 8.8 million posts.

• Taco Bell was in sixth place with 1.5 million posts. According to Affordable Seating, the fast-food giant “often uses bold and playful colors such as purple, pink, and yellow to create a fun and energetic atmosphere.”

• Following the Golden Arches was KFC with 4.2 million posts. Affordable Seating attributed the chicken chain’s placement to its well-known red and white color scheme and popular Colonel Sanders mascot.

• In seventh place was Chick-fil-A with 1.4 million posts because of a decor “crafted to promote a welcoming vibe, as they use a mix of booths and tables to accommodate individuals or groups of large sizes,” Affordable Seating said.

• Burger King came in third with 2.2 million posts by showcasing its flame-grilled branding. Affordable Seating also noted, “Burger King typically provides booths and tables that are designed for comfort and convenience.”

• Then it’s In-N-Out Burger taking eighth place with 1.1 million posts. Affordable Seating commented that the cult-favorite brand “embraces a vintage and retro aesthetic, giving the restaurant a timeless and classic feel—this contributes to a nostalgic atmosphere that customers love to share online.”

• In fourth place was Pizza Hut, also with roughly 2.2 million posts. Affordable Seating said the company’s “lighting is usually well-distributed around the restaurant, creating a warm atmosphere for customers—and flattering lighting for pictures—as well as comfortable booths.” • Chipotle rounded out the top five with 1.7 million posts thanks to its relaxing color palette and earthy tones, which makes for good social media backgrounds, Affordable Seating explained.

2 3

• Chuck E. Cheese came in ninth place with 764,000 hashtags through its adoption of “a playful theme throughout their interior to convey a kid-friendly atmosphere,” according to Affordable Seating.

• In 10th place was Five Guys with 645,000 posts. The fast-casual burger chain features an open kitchen where guests can see the cooking process and better understand the freshness of ingredients. This fact “proves popular with foodies online,” said Affordable Seating.

7 8 9 10

“ Analyzing the top fast-food chains through Instagram hashtags offers a valuable glimpse into the relationship between restaurants and social media influence,” said Zach Kanoff, Affordable Seating’s SVP of chain accounts, in a statement. “It’s not surprising that these top chains are popular on Instagram. Social media, especially platforms like Instagram, thrive on visually-appealing content, and these restaurants often invest in creating eye-catching dishes and aesthetically pleasing dining experiences.”

FEBRUARY 2024 | QSR | www.qsrmagazine.com

LARGE INSTAGRAM ICON 3D: ADOBE STOCK / BACKGROUND PHOTO, MEGAPHONE WITH HASHTAGS: ADOBE STOCK / ACCOGLIENTE, HASHTAG 3D ICON: ADOBE STOCL / 3D ICON, McDONALD’S, KFC, BURGER KING, PIZZA HUT, CHIPOTLE, TACO BELL, CHICK-FIL-A, IN-N-OUT BURGER, C HUCK E. CHEESE, FIVE GUYS

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fresh ideas | M E N U

T R E N D S |

International Innovation When it comes to global flavors, brands are striking a balance between authenticity and approachability. BY SAM DANLEY

Guests’ palate are a lot more diverse in today’s time.

ADOBE STOCK / VAASEENAA

rom the rise of K-pop sensations like Blackpink and BTS to the surge in popularity of K-films and K-dramas, consumers around the world have shown an insatiable appetite for Korean art and culture in recent years. “Everything Korean is cool and interesting right now,” says Suzie Tsai, CEO of Bonchon, a Korean-style fried chicken franchise. “For a growing number of people, we’ve become the place you go to get that food.” Bonchon’s menu features a variety of Korean fare, but the undisputed star is its double-fried chicken. The hand-battered and extra-crispy product has been served with either a signature spicy sauce or a signature soy garlic sauce since the brand landed stateside in 2006. It added a new flavor profile to the mix for the first time last year with the introduction of a traditional sweet and spicy yangnyeom sauce.

Tsai says Bonchon experimented with multiple options before landing on something that “captures the essence” of Korean cuisine. The trial and error yielded a valuable insight that is shaping the brand’s approach to new product development going forward. “We played around with some flavors that were more Asian fusion or even Chinese,” she says. “We thought maybe an orange chicken sauce or something like that would be approachable for our guests. Those types of things just didn’t stick at all. I think guests felt like they could get that somewhere else. So, we learned our lesson and realized there’s no need to fill a gap that doesn’t exist. People want something that’s unique to us or unique Korean cuisine.” Some items at Bonchon come with an American twist, like Loaded Bulgogi Fries and Korean Donuts. It also is testing a chicken sandwich made with its flagship product. Still, the menu is mostly populated by traditional offerings like bibimbap, a Korean rice dish, www.qsrmagazine.com | QSR | FEBRUARY 2024

fresh ideas

T R E N D S |

and japchae, a Korean glass noodle dish. capital territory in the North. There’s also tteokbokki, a classic street food “I think there’s room to grow on a lot of consisting of chewy rice cakes cooked in these menu sections,” Kapoor says. “I’ve a spicy red broth. probably called our chef seven times in Interest in those more traditional the last three days with different ideas. No offerings is growing alongside the overmatter what we do, we’re going to have all awareness and affinity for all things fun with it, and we’re going to stay away Korean. Younger guests in particular are from the boring, more traditional kind of more adventurous with their choices, so Indian menus.” Bonchon doesn’t want to send a mesEl Pollo Loco is no stranger to menu sage that it’s altering its food to appeal innovation, either. The brand launched a to a wider swath of consumers. limited-edition carnitas menu and a slew “We’ve heard loud and clear that they of new salads last year. It also added a don’t want us to turn down the flavor,” line of Loco Burritos Grillers made with Tsai says. “If it’s meant to be spicy, they Sonoran-style flour tortillas. want it that way. If it’s meant to be a big The culinary team has traveled throughportion that’s shareable, they want it that out Mexico to scope out new sources of way. We’ve gotten a lot of feedback from inspiration, and its headquarters isn’t far our guests that they want to experience from Los Angeles, where there’s been an the real thing.” explosion of all different kinds of regional Restaurants that specialize in internaMexican restaurants in recent years, says tional cuisine often look for a middle ground Heather Gardea, VP of R&D at the firebetween authenticity and approachability grilled chicken chain. when introducing lesser-known dishes, fla“Sometimes, you’ll fall in love with an vors, or ingredients. That’s a balancing act ingredient and try to figure out where you Curry Up Now has perfected. The Indian can put it, or maybe you’ll see the explostreet food concept brings traditional flasion of a new form that’s really taking off,” vors into new formats with playful mashups she says. “You try to follow those trends like tikka masala burritos, tandoori fried and see when it’s the right time to strike.” chicken sandwiches, and deconstructed The timing of a launch can make or samosas. break a new product, especially when it “We’re not a traditional Indian eatery, features a trending dish, new flavor, or but we’re not a fusion restaurant, either,” novel ingredient. Gardea points to El Pollo says founder and CEO Akash Kapoor. Loco’s wildly successful Shredded Beef “We’ve taken everything from burritos Birria platform as an example. It was the and pizza to raviolo and poutine and made first quick-service restaurant to add the them Indian, but the bottom line is that stew to its menu back in 2022, right as it the flavor of the food has to be authenwas catching on with consumers. tic. That’s always been part of our DNA, “That was a big trend that we were and that’s always been the premise for watching for a couple of years,” she says. new product development.” “You have to work with the marketing Kapoor says demand for fresh takes department to see when those things will on international fare has steadily risen be ready. Is it going to explode, or will it throughout the brand’s 15-year history, die out before it’s mainstream enough for thanks in large part to what he calls the us to put it on our menu?” “globalization of the American pantry.” The brand is keeping an eye on salsa BONCHON (TOP), CURRY UP NOW (MIDDLE) AND EL POLLO LOCO ARE CAPITALIZING ON THE MOMENTUM OF Now, the ongoing popularity of internamacha, a spicy topping made with pepINTERNATIONAL FLAVORS. tional food and the rapid spread of trends pers, nuts, and oil. Like all new additions, online is driving interest in region-specific flavors. it’ll be incorporated into the menu in a way that promotes “safe Curry Up Now is leaning into regionality with newer items exploration.” that draw on India’s diverse culinary traditions. Last year saw the “Someone coming through the drive-thru has to be willing to take launch of Punjabi 69, a “naughty take” on the classic South Indian a chance on something they may have never seen before, so you Chicken 65, along with Hakka Noodles, an Indian-Chinese dish have to route it in a way that’s familiar to them,” Gardea says. that hails from East India. Other recent additions, like Chole Bhature and West Delhi Biryani, take inspiration from the country’s Sam Danley is the associate editor of QSR. He can be reached at sdanley@wthwmedia.com. 12

FEBRUARY 2024 | QSR | www.qsrmagazine.com

FROM TOP DOWN: BONCHON (2), CURRY UP NOW (2), EL POLLO LOCO

| M E N U

DEPARTMENT

ONES TO WATCH

Angry Chickz A quiet success story is about to be dialed up across the country. BY SAT YNE DONE R

HEADQUARTERS: Sherman Oaks, California YEAR STARTED: 2018 TOTAL UNITS: 25

DAVID MKHITARYAN WAS HOOKED THE MOMENT he tried Nashville hot chicken. As a spicy food fanatic since childhood, Mkhitaryan took his experience from working in his family’s restaurant and set out to popularize the dish along the West Coast. Mkhitaryan was inspired in particular by Prince’s Hot Chicken, a recipe crafted over 100 years ago by a scorned lover who wanted to make her beau’s taste buds see stars. After a year of obsessively creating his own twist on the classic, he teamed up with his wife and best friend in 2018 to open 14

FEBRUARY 2024 | QSR | www.qsrmagazine.com

a 900-square-foot storefront in L.A.’s East Hollywood neighborhood. The Angry Chickz menu includes chicken sliders and tenders of varying heats. The apex is the “angry” option, where guests sign a liability waiver. The brand also has a track record of partnering with local organizations to host events that benefit the community. Since 2018, Angry Chickz has grown to 25-plus locations across California, Nevada, and Arizona. Now, it stands on the cusp of franchising and, in October, appointed Mike LaRue as vice president of franchise development. LaRue came in with a 20-year career, launching franchise systems for multiple brands, including JINYA Ramen Bar and The Halal Guys. He’s been watching the

Nashville hot chicken segment scale for the last few years and recognized Angry Chickz’s potential. “A lot of people are trying to make Nashville hot chicken work, but not too many are doing it at scale,” LaRue says. “Angry Chickz has been hiding behind the scenes, growing without anyone noticing.” Originally, Mkhitaryan’s humble beginnings and backstory drew LaRue to the brand. He saw Mkhitaryan grow Angry Chickz to 25 units, 270,000 Instagram followers, and 400 employees in five years with no corporate infrastructure. He feels Mkhitaryan’s passion for what he does led him to advisers who want to help for the right reasons. LaRue credits the concept’s growth to its fundamentals, which he calls “the DNA of Angry Chickz,” starting with a people-first culture that drove growth with no formal backings. “[ Mkhitaryan] got to this point by focusing on the culture, his people, and the quality of the food,” LaRue shares. “[Growth] can be difficult, but we want it to be a fun environment, and creating an experience for guests has helped sustain Angry Chickz.” While the brand has already solidified itself within a surging category, LaRue knows the addition of a franchise program will dial up attention. “We feel like we’re on an 80-mile-perhour freight train we can’t stop,” LaRue laughs. “We’re growing our small executive team, and so far, it’s incredible.” In addition to LaRue, three industry veterans joined the Angry Chickz senior leadership circle: John Scott, CFO; Steve Brown, VP of human resources; and William Lopez, director of operations. The trio brings experience from Wendy’s, Raising Cane’s, IHOP, and BJ’s restaurants. The chain touts system AUVs [CONTINUED ON PAGE 53] of $2.783 million.

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FRANCHISE FORWARD

Swimming with Sharks The hit TV show continues to provide major growth potential, if your brand is ready.

Things didn’t feel real for the Windons until they were sent plane tickets and a filming date. They knew their Latin-inspired meals on fries was a unique concept, but they still felt shellshocked by the mix of emotions on filming day. “It really was a dream we didn’t even think was possible,” Johanna says. “Our experience was exhilarating, shocking, and a whole lot of drama all packed into one day. But mostly it was an honor.” Entrepreneur and “Shark” Robert Herjavec took an interest in Buena Papa Fry Bar’s potential as a fast-casual restaurant. He offered the couple a $400,000 investment with a 19 percent stake in the business, which they eagerly took. The “Shark Tank effect” caught James and Johanna by surprise, with thousands of franchising inquiries coming down the pipe and sales picking up by “20 to 30 percent.” However, they’ve been careful about rollin g too far, too fast. “Even though we’re getting more inquiries, we’re sticking to a structured pace to build our Buena Papa Fry Bar and foundation stronger and handle this incoming Fat Shack both gained popularity on ABC’s weight,” James adds. “We’re being very selec‘Shark Tank.’ tive… [the Sharks] told us the franchise business is a people business, and it really stuck with us.” fter the pandemic shuttered their cleaning business, James With Herjavec’s expertise, Buena Papa Fry Bar is moving into and Johanna Windon were out of options. Stuck at home, a season of accelerated franchise expansion. By October 2023, the Johanna made a spinoff of bandeja paisa, a traditional brand had nine franchise deals inked throughout the Southeast, Colombian snack of chorizo, fried pork belly, beans, and fries. which will open in their respective cities in 2024. These partnerSurprised by the result, Johanna and James knew they were onto ships will add to their existing stores and push toward a goal of 10 something. to 15 new units by the end of this year. The husband-and-wife duo founded Buena Papa Fry Bar in “It was an honor to stand in front of so much knowledge and 2021 in Raleigh, North Carolina, with the idea of bringing com- wisdom,” Johanna says. “Anything they said, we’re putting in our munities together to experience fresh cultures and cuisines. It wasn’t pocket to use … It was a wonderful experience.” long before the brand was a local hit, growing at what James conBuena Papa Fry Bar isn’t the only brand to walk away with a siders a moderate pace. deal from “Shark Tank.” Fat Shack, a quick serve known for its After seeing guests’ reactions to the food, they wanted to expand “Fat Sandwiches,” burgers, and deep-fried desserts, stood on the reach. The two auditioned for Season 15 of ABC’s hit show “Shark stage in 2019’s Season 10. Tank,” which aired in 2023. James thought the appearance would Business partners Tom Armenti and Kevin Gabauer joked about provide a vehicle for nationwide growth. going on “Shark Tank” as they sat on their couch and watched it “We had our whole family on the audition, putting our hearts with Tom’s cousin. Following eight years and 11 Fat Shack locaout there,” James says. “We talked about what the business meant tions, they noticed an open casting call in nearby Denver and to us and how it represents who we are … We wanted to give our decided to audition. baby the platform it deserves and bring it to a different level.” “It was totally a last-minute thing, and [CONTINUED ON PAGE 53]

FEBRUARY 2024 | QSR | www.qsrmagazine.com

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FAT Brands

FRANCHISEES

Inefficiency is officially “86’d” When you operate a restaurant, you never run out of things to do. That’s why FAT Brands works with equipment dealers who help their franchisees save time, energy, and money. The California Foodservice Instant Rebates Program eliminates the hurdles of receiving equipment rebates. It’s easy. You save right on the spot without the hassle of paperwork or waiting for your rebate check, and that means you can spend more time focusing on other decisions on your “to-do” list. With the California Foodservice Instant Rebates Program, you could save on high-efficiency equipment for your business. Choose from a variety of qualifying products and get valuable Instant Rebates as a discount on your invoice—no paperwork, no waiting. Start saving today. Scan the QR code for more information and a full list of eligible products and participating dealers at caenergywise.com/instant-rebates

Estimated lifetime savings calculated using deemed lifetime energy savings values published by the California Technical Forum and posted to the CAeTRM (caetrm.com) and 2021/22 EIA energy pricing for California: https://www.eia.gov/beta/states/states/ca/data. Actual savings may vary.

Estimated energy equivalencies are based solely on the CAeTRM deemed lifetime energy savings values and are calculated using data from the EPA: https://www.epa.gov/energy/greenhouse-gasequivalencies-calculator. Actual savings and environmental benefits may vary.

This program is funded by California utility customers under the auspices of the California Public Utilities Commission. © 2024 Energy Solutions. The trademarks used herein are the property of their respective owners. All rights reserved. Some materials used under license, with all rights reserved by licensor.

$13,400 TOTAL REBATES

$116,279 APPROXIMATE LIFETIME ENERGY SAVINGS1

6,672 EQUIVALENT TREES PLANTED2

The 40/40 List 18

This group of fast casuals is ready to take on whatever comes next in the postpandemic era. /

B Y Q S R S TA F F

From the integration of cutting-edge technology and sustainable practices to menu innovations that cater to evolving tastes and dietary preferences, the fast-casual segment continues to not only survive, but thrive in a fiercely competitive market. Although the pandemic was officially declared over last year, the industry is still facing residuals from COVID’s impact, like permitting delays and commodity inflation. But that’s the thing about the restaurateurs— they’re quite resilient. Now in its eighth iteration, our annual 40/40 List spotlights 40 brands with fewer than 40 locations that we believe hold the potential to become the next big success stories. This group has weathered the storm and is poised to thrive in what is undeniably the most dynamic operating environment in recent memory.

FEBRUARY 2024 | QSR | www.qsrmagazine.com

➼

Saigon Hustle HE ADQUARTERS:

Houston, Texas

UNITS:

Long before becoming “mompreneurs,” best friends Cassie Ghaffar

and Sandy Nguyen met at the University of Houston. At the time, Nguyen ran a small Vietnamese restaurant, and Ghaffar had just entered the bar industry. Sharing a love for travel, eating well, and hustling to make something of themselves, the two became inseparable. Twenty years, a brief stint in both wealth management and franchising, multiple different cafes, and seven kids later, Ghaffar and Nguyen realized they needed to align their future goals together to have a balance of everything they wanted in life: a legacy for their children. “We wanted to be at soccer games but also build a brand,” Ghaffar says. “We took our combined experiences, put our heads together, and came up with a few concepts, Saigon Hustle being one of them.” Both Ghaffar and Nguyen hail from a Vietnamese background and knew they wanted to infuse fresh, flavorful recipes from home with the convenience of a drive-thru. As a brand, Saigon Hustle puts an approachable twist to traditional Vietnamese dishes with its simplicity and ease of ordering. Menu items include gluten-free Crispy Tofu Spring Rolls, ABC Beef Soup (pho), and the Vietnamese Sandwich (banh mi). The concept is supposed to be “the Chipotle of Vietnamese restaurants,” where guests choose from a list of different proteins and build their own noodle bowls or sandwiches. “People won’t be apprehensive about the food because it is familiar in the sense that it’s salad, it’s noodles, it’s chicken. It’s not too far off,” Nguyen adds. “Our flavor profile adds a bit of fun [to tradition].” While Houston is known for its rich Asian restaurant scene, it became clear Nguyen and Ghaffar wanted to bring something different to the table with Saigon Hustle. By sticking to authentic Vietnamese flavors and moving away from fusion-inspired menu items, the pair of entrepreneurs say they are introducing a mom-and-pop flair to the city in a way that is attractive to guests from all backgrounds. “Getting good Vietnamese food in Houston is intimidating for the mainstream audience because you have to go

■ CASSIE GHAFFAR (LEFT) AND SANDY NGUYEN HAIL FROM A VIETNAMESE BACKGROUND.

The 40/40 List



THE

40 40 LIST

www.qsrmagazine.com | QSR | FEBRUARY 2024

SAIGON HUSTLE / AL TORRES

SAIGON HUSTLE

2 0 2 4

The 40/40 List 20

to Chinatown where you can’t quite say the name of the restaurant or read the menu,” Ghaffar explains. “We created this comfortable space where we Americanized the concept, but not the flavors.” As Ghaffar and Nguyen came closer to bringing their menu and concept to life, they battled with the stigma that opening a restaurant would be seen as a step back in their career. They came from an old school family, where restaurant operators had no experience in layering management or rallying for the support of private equity firms. But they knew the foundation of Sai- “ …they called and gon Hustle was always to asked if we were expand, and they had the interested in higher education and drive joining the to do so. They just needed million-dollar to align themselves with competition. the right set of partners. At first, we said In 2021, investment sure, why not? company Savory Fund creWe thought it ated the Million Dollar was going to Restaurant Launch to probe like ‘Top Chef’ vide operational support on TV.” through industry-veteran lead guidance in finances, real estate, development, technology, construction, and more. On top of this, Savory Fund would invest $1 million in the winning concept. According to the company, over 240 U.S. restaurant concepts entered the contest, one of which was Saigon Hustle. After a close friend recommended Savory to Nguyen and Ghaffar, they decided to stop by the private equity firm’s headquarters while on a snowboarding trip to Utah. At the time, they were running a cloud kitchen for Saigon Hustle and signed a lease, but the restaurant had not officially opened. “We toured Savory’s office and loved them so much just on the initial encounter,” Nguyen says. “A month later, they called and asked if we were interested in joining the million-dollar competition. At first, we said sure, why not? We thought it was going to be like ‘Top Chef’ on TV.” A few months later, Nguyen and Ghaffar were presented with the $1 million check and partnership with Savory. They remember praying for the win and their hearts wrenching in happiness when they received the news. According to the pair, their dynamic with Savory has always been light-hearted yet down to business, even at the initial meeting in Salt Lake City. Ghaffar says the chemistry between everyone felt more like a friendship than a partnership. Earning the support of Savory unlocked the ability to grow faster than they ever would have organically, even with Ghaffar and Nguyen’s experience and expertise in getting concepts off the ground. “I only have two hands and two feet, and [Sandy and I] have a lot of kids,” Ghaffar jokes. “We can work really, really hard, but Savory brought a whole new aspect to Saigon Hustle.” The first brick-and-mortar location opened in Garden

FEBRUARY 2024 | QSR | www.qsrmagazine.com

■ SANDY NGUYEN (LEFT) AND CASSIE GHAFFAR HOLD THEIR WINNING CHECK FROM SAVORY FUND.

Oaks, Houston, featuring a state-of-the-art drive-thru and locally sourced menu with gluten-free and vegan options. Additionally, the concept is working to develop a catering program.

Midwest, where Savory has ample experience. After working with Savory’s managing partner, a franchise program is coming down the pipeline. As the fast casual expands, the pair are adamant about making an impact through education, social media, and community

The 40/40 List

Once Saigon Hustle trends positively enough in Houston, Ghaffar and Nguyen eye a growth path through Texas and into the

outreach. Both Ghaffar and Nguyen believe this will be the key to introducing themselves in markets where Vietnamese food is unfamiliar. “As we move into new markets, we want to increase our grass-

SAIGON HUSTLE

SAIGON HUSTLE / JHANE HOANG

roots marketing and actually talk to people, really resonate with

SAIGON HUSTLE

each city,” Nguyen says. “We’ve been involved in farmers markets for quite some time, and we want to do more things like that.” A second Saigon Hustle is in the works for the Spring Branch, Houston area, next to Ghaffar and Nguyen’s neighborhood. They have already imprinted their brand in the community by sponsoring local soccer fields and are looking forward to breaking into San Antonio and Dallas next.

SAIGON HUSTLE

“We aren’t intimidated [by the growth of Saigon Hustle], we’re excited,” Ghaffar says. “We never left entrepreneurship. Sandy and I have always run businesses, and when we had our kids, it only made us want to get together and dream a little bit bigger.”

www.qsrmagazine.com | QSR | FEBRUARY 2024

Latino-led brands that create

taken over former locations of other

opportunities for people of color to

restaurant chains, such as Chipotle

build wealth within the industry.

and Baja Fresh, demonstrating its

HE ADQUARTERS:

Rather than starting a new res-

adaptability.

taurant from scratch, Rowe and

The franchising strategy

Pitbull decided to join forces with

involves streamlining the menu,

Cilantro Taco Grill, a brand that

optimizing kitchen processes, and

Temoc Morfin, inspired by his

aligned with their values and pro-

ensuring consistent sourcing of fur-

family’s immigrant journey from

vided an authentic Mexican dining

niture, fixtures, and equipment.

Guadalajara, Mexico, sought to

experience.

The plan is to expand in Chicago-

Chicago, Illinios

UNITS:

Clutch Coffee HE ADQUARTERS:

Mooresville, North Carolina

UNITS:

fulfill his American dream by

Cilantro Taco Grill stood out

land through corporate stores and

opening a taco shop with flavors

not only for its authenticity but also

joint-venture restaurants, then tar-

rooted in tradition. In 2013, Cilan-

for its profitability. It boasts healthy

get the top 100 media markets in

tro Taco Grill was born in Stone

margins, exceeding industry aver-

North America. Internationally,

Park, Chicago, offering a menu fea-

Cilantro Taco Grill aims to explore

turing Mexican classics like tacos,

ages in labor and food costs, with an average unit volume (auv) of $1.4

15-20 trade areas, including Ger-

Co-founder Darren Spicer’s jour-

burritos, and tortas, as well as sig-

million and high sales per square

many, the U.K., Dubai, Kuwait,

ney into the world of drive-thru

nature dishes, all made with guests’

foot. The brand has successfully

and Saudi Arabia.

coffee began during his high

CLUTCH COFFEE

The 40/40 List

Cilantro Taco Grill

choice of protein. The restaurant also emphasizes creating wealth for families, with each of Morfin’s

Toastique

siblings opening their own stores, making his father proud. A decade later, Cilantro Taco Grill has expanded to 15 locations and is on the brink of a major franchising initiative that aims to bring 1,000 outlets to markets worldwide in the next decade. To facilitate this growth, the brand has partnered with Fransmart founder Dan

TOASTIQUE

Rowe, known for his involvement in

HE ADQUARTERS:

CILANTRO TACO GRILL

like Five Guys, QDOBA, and The Halal Guys. The idea for this partnership was influenced by global music artist Pitbull, who advocated for

FEBRUARY 2024 | QSR | www.qsrmagazine.com

Toastique is an up-and-coming franchise playing

in a better-for-you segment that’s quickly growing as consumers seek healthier choices in the wake of COVID. The fast casual was founded by Brianna Keefe, a former D-I athlete who gained an appreciation for wholesome meals on the go. The brand is known for its artisanal toast-based foods, all-natural smoothies, cold-pressed juices, and açaí bowls. As of November, the fast casual had locations based in Washington, D.C., Utah, California, Colorado, Florida, Maryland, New Jersey, Pennsylvania, and Virginia. In early October, Toastique announced a three-unit agreement to expand into Minnesota. The Twin City franchisees—Scott and Laura Seabloom— both bring relevant experience to the brand. Scott’s background comes from the retail technology industry while Laura has a master’s degree in holistic health studies and holds a health coaching certification. Some notable openings in 2024 include Los Angeles; Boca Raton, Florida; Austin; Atlanta; Charlotte, North Carolina; and Las Vegas. In May, Toastique revealed that it launched a guest engagement program on Paytronix’s platform after using the company for its mobile app and online ordering services. Back then, the chain’s online orders accounted for 20 percent of sales. The restaurant also noted that it was looking to launch a subscription service in the near future.

Washington, D.C.

the expansion of successful chains

UNITS:

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www.loomis.us

2500 CityWest Blvd., Suite 2300. Houston, TX 77042

713-435-6700

school and college years when he

new shops offer ample storage

Through extensive testing with

fell in love with the interactions and

space and efficiency for employees.

family and friends, he honed his

The 40/40 List

people at coffee stands. Despite his graduation leading to a successful career in medical device sales, Spicer couldn’t let go of his passion for quick-service coffee. While still working his full-time job, he helped manage a Dutch Bros location in California and pursued a franchise opportunity. Unfortunately, the coffee chain decided to no longer offer franchises, but Spicer’s dream

recipe and launched Crimson Cow-

Crimson Coward Nashville Hot Chicken

ard in Downey, California.

HE ADQUARTERS:

California, Michigan, Texas, and

Los Angeles, California

Since its inception, the fast casual has been on a rapid expansion trajectory, popping up in various locations across the U.S. By early 2024, the brand anticipates having nine stores in operation in

UNITS:

Virginia. Its ambitious goal is to grow even further, aiming to reach

lived on.

a total of 200 stores in the future.

Determined to follow his coffee drive-thru ideals, Spicer left his

The Good Salad

medical device sales career, taking an 80 percent pay cut, and co-founded Clutch Coffee Bar with two others. After a year and a half

HE ADQUARTERS:

of hard work, the first Clutch Cof-

Silcon Valley, California

CRIMSON COWARD NASHVILLE HOT CHICKEN

fee shop opened in Mooresville, North Carolina, in March 2018. Spicer recognized the untapped potential of drive-thru coffee on the East Coast, particularly in the Southeastern markets.

CRIMSON COWARD NASHVILLE HOT CHICKEN

some competitors, they use runners to take orders, greeting customers sooner and showing they are a priority. Their menu includes a wide range of offerings, such as coffee, milkshakes, iced teas, refreshers,

ship with a developer partner to expedite its expansion, securing a solid pipeline for the coming years. While it’s received franchise inquiries, it’s current focus remains on opening company-owned stores, with franchising potentially considered in the future.

erences without feeling financial

Crimson Coward’s open kitchen ensures every meal is cooked to order, eliminating the need for heat

maximizing flavor by making everything in-house.

HE ADQUARTERS:

In 2023, the brand expanded

Mount Pleasant, South Carolina

from a single takeout-only location to four, including a 3,500-squarefoot central production kitchen that ents daily to its retail outlets. This central kitchen also serves as a significant contributor to the cater-

lamps. The brand also puts significant effort into standardizing its menu, stores, and staff to maintain consistency in service across all locations, no matter where it lands in the U.S. The company traces back to 2019 when Ali Hijazi, a Los Angeles native, fell in love with Nashville

Spicer believed the new devel-

hot chicken. Hijazi’s path led him

opment strategy with purpose-built

to create a food lab in his garage,

drive-thru-only buildings is more

take trips to Nashville for inspira-

repeatable and cost-effective than

tion, and collaborate with chefs

the first two stores, which were ren-

and restaurants to develop a unique

ovations of existing spaces. These

blend of heat-inducing spices.

FEBRUARY 2024 | QSR | www.qsrmagazine.com

UNITS:

Vicious Biscuit has made a disruptive entry into the break-

prepares and distributes ingredi-

THE GOOD SALAD

2024. It has a strategic partner-

exact flavor and nutritional pref-

strengths is its commitment to

positive energy to its guests. Unlike

Coffee eyes 20 units by the end of

can build salads tailored to their

removed. One of the chain’s key

customer service, aiming to provide

the Carolinas and Georgia, Clutch

With the Good Salad, customers

its them back when toppings are

itself through a strong emphasis on

With a growth plan focused on

strain, as the restaurant cred-

Clutch Coffee differentiates

and more.

UNITS:

fast and brunch segment by challenging traditional comfort food norms. This concept blends the appeal of fast-casual dining with the expectations of fullservice establishments, creating a unique dining experience. The menu at Vicious Biscuit, originating from Charleston, South Carolina, features creative and indulgent dishes like The Fat Boy, The Flame Thrower, and The Vicious, alongside Southern classics like Sweet Puppies, Beignets, and Shrimp and Grits. To complement these offerings, the restaurant serves freshly squeezed mimosas, craft cocktails, and boasts a Jam Bar featuring signature jams and

ing business. The Good Salad has imum 4.8-star rating on major platforms like Yelp, Google, and DoorDash without the need for extensive marketing campaigns. Its growth has primarily been driven by word of mouth and loyal repeat

“Romy” Gill to rebrand it as Curry Pizza House. The menu at Curry Pizza House is a fusion of Indian and contemporary flavors, featuring unique creations like the Curry Chicken Masala Pizza, Palak Paneer Pizza, and Shahi Paneer Pizza,

The 40/40 List

Vicious Biscuit

achieved and maintained a min-

customers. This year, The Good Salad plans to leverage its experience and operational optimization in salads to venture into other menu categories and expand into new cities. The brand is self-funded and committed to maintaining consistency across all locations. Founded by Sanad Al Souz, an engineer who moved to the U.S. CURRY PIZZA HOUSE / ISABEL BAER

as a refugee in 2012, the company emerged from a failed BBQfocused meal kit venture. Sanad’s inspiration came from observing the popularity of salad stations in VICIOUS BISCUIT / ANDREW CEBULKA

corporate cafeterias. In 2021, he teamed up with a local chef and transformed a warehouse into a commercial kitchen, offering online salad orders with a pick-up window. The concept quickly gained traction, leading to its current success.

VICIOUS BISCUIT / ANDREW CEBULKA

house-made butters for the ultimate biscuit pairings. Since its inaugural location in Mount Pleasant, South Carolina, in 2018, Vicious Biscuit has expanded its footprint, with five additional restaurants and a seventh in development, set to open in early 2024. Vicious Biscuit’s origin goes back to 2017 when veteran restaurateur George McLaughlin, inspired by a food critic’s glowing review of a local caterer with a biscuit-focused food truck concept, connected with the chef behind the concept, Michael Greeley. Together, they envisioned expanding Vicious Biscuit into brick-and-mortar quick-serve locations, leading to its successful launch in December 2018. The chain’s growth strategy extends to franchising, with plans to expand its footprint to 75 locations within the next five years. The brand partnered with franchise brand accelerator Pivotal Growth Partners to lead its franchise growth and development. Around 40 units were awarded in 2023. Franchise opportunities are available for both single and multi-unit investors, with average unit volumes of $2.5 million for prototype locations and an initial investment ranging from $744,400 to $1,133,750.

Curry Pizza House HE ADQUARTERS:

Fremont, California

UNITS:

Curry Pizza House founder Gursewak Gill started his culinary track after leaving a trucking background. As a first-generation Indian American, he was inspired by his family’s practice of adding spices and curry to their Friday night pizzas. This led to his experimentation with pizza dough, original sauces, and recipes, ultimately giving birth to Bombay Pizza House in Union City, California. Tragically, the original restaurant burned down in a fire, but Gursewak persevered and, in 2013, partnered with Gurmail

alongside classic pizza styles, gluten-free and vegetarian options, and thick and thin crusts. It also offers marinated wings and a variety of sauces, along with a wine and beer menu. Over the years, the menu has evolved to incorporate different flavor profiles from European and Asian cities, attracting a diverse customer base. The brand’s success lies in its ability to cater to different demographics and communities. For example, areas with a South Asian population favor the Vegetarian Pizza, while cities with Northern Indian and non-vegetarian populations prefer other styles. Recognizing the appeal of its concept beyond South Asians, Curry Pizza House decided to expand through franchising, partnering with a law firm specializing in franchising to create a program in about 18 months. The brand now has over 40 signed franchise locations in California, Texas, Nevada, Oregon, and Washington, with plans to expand further into Arizona, Utah, Colorado, and select East Coast cities. The compa-

www.qsrmagazine.com | QSR | FEBRUARY 2024

Überrito HE ADQUARTERS:

Houston, Texas

UNITS:

Überrito prides itself on creating its salsas, chips, guacamole, and marinades in-house, providing cus-

ÜBERRITO / CHUCK COOK ÜBERRITO

The 40/40 List

ny’s goal is to add 100 more stores in the U.S. in the next two to three years. The franchise program offers real estate and construction expertise, modern restaurant design packages, operational and training standards, and lending partners. Ideal locations range from 1,500 to 2,600 square feet with pickup windows, including conversions.

tomers with a wide array of choices, including different tortilla flavors, protein options, rice variations (including cauliflower rice), beans, and toppings. While rooted in TexMex, Überrito caters to diverse tastes, accommodating meat lovers and vegans alike. The chain emphasizes handmade Mexican food, speed, and Southwestern hospitality. The res-

taurant caters to modern consumer preferences by offering various dining options, including dine-in, takeout, delivery, drive-thru, and pickup lanes. It’s revamped model and cutting-edge technology are fueling its expansion, primarily in Houston and beyond. The concept’s story goes back to 2006 when parent company Mexican Restaurants, Inc. (mri) acquired Mission Burrito, a Mexican grill concept with a devoted following in Houston. MRI, responsible for overseeing several other dining establishments, aimed to capitalize on its extensive experience in the Mexican and Tex-Mex sector. It intended to provide Mission Burrito with its operational expertise, increased purchasing power, cost

reduction strategies, and enhanced profit margins. In March 2014, Williston Holding Company, an infrastructure development firm, took control of approximately 80 percent of MRI’s ownership. Following this change in ownership, Mission Burrito underwent a rebranding process and emerged as Überrito.

4 Rivers Smokehouse HE ADQUARTERS:

Florida

UNITS:

4 Rivers Smokehouse has garnered increasing popularity and recognition both regionally and nationally.

Vicky Bakery HE ADQUARTERS:

Vicky Bakery, a brand with deep

UNITS:

Cuban roots, is poised to shine in 2024 and beyond due to its rich heritage, commitment to tradition, and expansion plans. For over 50 years, the chain has celebrated its Cuban origins, passing down the love and togetherness that originated in 1972. The brand’s core values revolve around quality, variety, convenience, and delivering a memorable experience. The brand takes pride in preparing multiple authentic Cuban delicacies, including pastelitos, croquetas, pastries, desserts, breakfast items, sandwiches, cakes, and coffee, all created daily in its own kitchens. Its founding is deeply intertwined with the love story of its founders, Antonio and Gelasia Cao, who fell in love at the original La Vencadora bakery in Havana, Cuba, before fleeing the island’s communist regime. In 2020, the brand embarked on a franchising journey and is now expanding beyond South Florida, with new locations in Southwest Florida, Orlando, Palm Beach County, and more.

VICKY BAKERY

Miami, Florida

FEBRUARY 2024 | QSR | www.qsrmagazine.com

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NAYA

Notably, it has made various “Best BBQ” lists in Florida and received Southern Living.

as its COO during a period of substantial growth. He established Pickleman’s with the mission of

A noteworthy development in

delivering high-quality food with

2023 is the partnership with Lime

speed. Over time, Pickleman’s has

Fresh Mexican Grill restaurants,

expanded to 30 locations across

where 4 Rivers Smokehouse pork is

seven states, with its first Texas

featured in several permanent menu

location opening in Dallas in Feb-

NAYA

items, introducing innovative flavor

NAYA

combinations to the industry. This collaboration promises unique culinary experiences for customers.

ruary. The brand is also exploring HE ADQUARTERS:

New York City, New York

Beyond its food endeavors, 4 Rivers is committed to community

UNITS:

NAYA was founded by Hady Kfoury, who aimed to

involvement. The company engages

introduce authentic Lebanese cuisine to New York City. Initially, NAYA operated as a full-service restaurant and garnered significant attention and patronage following a positive New York Times review. In 2008, the brand pivoted to a fast-casual model, a moment that paved the way for future growth. NAYA’s growth trajectory continued with multiple locations opening across New York City and expansion into nearby regions in 2023. Currently, the chain operates roughly 20 locations across NYC, Pennsylvania, Connecticut, and New Jersey. The brand’s mission remains steadfast: to provide authentic, fresh, and nutritious Middle Eastern meals. Looking ahead to 2024, NAYA plans to open new locations in Boston, further strengthen its presence in New York City, and expand its footprint in New Jersey. The company’s journey is marked by overcoming challenges, including the 2008 economic crash, by adapting operational strategies and displaying innovation in scaling production. It plans to grow its footprint methodically, focusing on areas where its concept has been proven and where it can maintain its approach to local sourcing.

in fundraisers within its restaurants and established 4Roots, an initiative dedicated to sustainable food education and building a healthy food system by connecting farmers, redistributing excess food to the needy, and providing educational opportunities for students. The brand’s founding stems from an idea hatched in John Rivers’ garage—a “barbeque ministry” fundraiser to support a young cancer patient. This spirit of compassion continues to drive the company’s mission to uplift those in need and support the communities it serves. Looking ahead, 4 Rivers

through partnerships, open more restaurant locations, and further enhance its commitment to serving others.

HE ADQUARTERS:

Denver, Colorado

UNITS:

Jimmy Seidel, AKA “Snarf,” set out more than two decades ago to create the world’s finest sandwich. The former Chicago market maker quit his job and headed to Boulder, Colin hopes of mastering the craft. All

ing its menu and practices. The

mented guidelines to ensure the

the while, Seidel developed a menu

chain incorporated No Antibiotics Ever (nae) chicken and introduced

exclusion of harmful chemicals

for his own concept on the side and

from items like cookies and salad

searched for a location to open the

NAE pulled pork. The brand also

dressings.

eponymous brand, which took its

The company’s commitment to

inspiration from Seidel’s college

quality has translated into success,

nickname. Ultimately, he found

with a year-over-year AUV increase

a spot nobody wanted—a rickety,

of 14.5 percent in 2022, reaching

650-square-foot building on Pearl

$1.446 million. Pickleman’s strong

Street affectionally dubbed “The

presence on social media, increased

Shack.” He worked 18 hours a day

coverage in mainstream media, and

bringing Snarf’s to life. The brand

continuous innovation in its menu

gained a quick fanbase, with lines

offerings are attracting a grow-

snaking through the parking lot

ing number of loyal customers.

in hopes of getting into a cramped

Pickleman’s Gourmet Cafe distin-

Additionally, a high-end location

hallway that served as the dining

guishes itself by offering freshly

redesign is set to be unveiled in

room. Today, Snarf’s has 34 stores

made food crafted onsite with

February, further enhancing the

through Colorado, Texas, and Mis-

brand’s appeal.

souri, with another 10 planned

expanded its beverage options to

Pickleman’s Gourmet Cafe St. Louis, Missouri

include healthier choices and imple-

UNITS:

responsible, clean ingredients. In the past year, the brand has taken significant strides in elevat-

FEBRUARY 2024 | QSR | www.qsrmagazine.com

PICKLEMAN’S GOURMET CAFE

HE ADQUARTERS:

Snarf’s Sandwiches

orado, to work for a national chain

Smokehouse is poised for continued growth, with plans to expand

multi-unit deals with existing franchisees in the coming year.

SNARF’S SANDWICHES

The 40/40 List

acclaim from publications like

worked at Jimmy John’s and served

The chain was founded by

for 2024. In addition to corporate

Doug Stritzel, who previously

development, Snarf’s will launch a

CRISP FOOD TECHNOLOGIES® CONTAINERS

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Cross-flow ventilation protects taste by maintaining temperature and texture for up to 30 Minutes.

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Durable & stackable single and multi-compartment table-ready designs, so meals arrive looking great.

INCREASE PROFIT BY REDUCING ORDER ERRORS

Clear, anti-fog lids help the kitchen avoid order errors without opening the packages and releasing heat.

PROTECT FOOD, SERVE SUSTAINABLY

Protecting food quality reduces food waste. Reusable, microwave & dishwasher safe, and recyclable after use.

anchorpac.com

The 40/40 List

franchise program this year, look-

seeking new locations alongside a

ing to recruit multi-unit and area

fresh warehouse and commissary

development agreements.

space to backend that growth. Since inception, THB has sold

Throughout the journey, Snarf’s commitment to quality—

12 million eggs, 10 million pounds

think giardiniera peppers and

of bacon, and some 64 million

signature bread—and inclusive

bagels. The bagels are baked fresh

culture continues to drive results.

each day, which has garnered the

There are stores anywhere from

brand “Baltimore’s Best Bagels”

Class-A office towers to grocery-

honors 15 times. Throughout the

anchored shopping centers. Each

year, THB unleashes creative and

location is uniquely designed to

Instagram-worthy inventions, from

reflect the community it serves.

rainbow to Old Bay to pink straw-

The only constant is the food,

berry-flavored bagels that help

which is always made-to-order.

raise awareness for breast can-

Tiki Taco

cer. Purple and Teal Bagels shed light on suicide prevention, too.

THB Bagelry & Deli HE ADQUARTERS:

Greater Baltimore, Maryland

Also, many of THB’s promotions include partnerships with local

TIKI TACO

charities such as LifeBridge Health and the American Foundation

UNITS:

for Suicide Prevention. After 25

Tiki Taco began as a walkup window in 2017. Three years

years, the company remains family owned with a passion for providmembers. As a breakfast and lunch concept, it closes early, ensuring employees can attend soccer games and family dinners. THB has invested in tech as THB BAGELRY & DELI

well, including a recent partnership with Paytronix Online Ordering, a new mobile app, and streamlined gift cards that improve the guest experience and operational effi-

THB BAGELRY & DELI

ciencies.

1999, when four young Italian

Community Burger HE ADQUARTERS:

Georgia

cousins tasted an authentic bagel

UNITS:

Founded by award-winning chef

shop in the heart of Towson, Mary-

Todd Hogan, Community Burg-

land. That set what was originally

er’s menu stands out from a

from traditional classics to glob-

boozy milkshakes don’t hurt, either.

called “Towson Hot Bagels” into

crowded pack by offering options

ally inspired creations, including

Community Burger touts an on-tap

motion. The Naples, Italy-raised

plant-based and seafood items, as

cocktail program that rotates sea-

cousins grew the brand to seven

well as proprietary spice blends and

sonal flavors and craft mixers.

locations over the next 25 years.

house-made condiments. This culi-

The brand plans to use 2024 as

Now, THB is poised to double

nary innovation appeals to a wide

within the next five years through

range of tastes and dietary prefer-

an opportunity to refine the model ahead of growth (one or two stores

ences, ensuring a broad customer

could debut next year). Community

base. The crafted cocktails and

engagement, naturally, will define

ment. The company is actively

FEBRUARY 2024 | QSR | www.qsrmagazine.com

COMMUNITY BURGER

sandwich at a small, unassuming

corporate and franchise develop-

UNITS:

later, new ownership rebranded and renovated the original spot. *and a food truck The changed also brought forth a bright, bold concept and freshened-up flavors, which have expanded to three stores in two states, alongside a mobile unit. Tiki Taco plans to continue purchasing new properties to open corporate stores in KC metro and beyond, and is in the early stages of considering a franchising path. The fast casual growing today boasts a coastal feel that showcases California flavors of the past with touches of Polynesian and Thai mixed in with Mexico. The upbeat décor and vibe caters to a neighborhood joint feel with a focus on service. Tiki Taco makes five different types of salsa in-house and serves Cali-style burritos stuffed with French fries. Additionally, it’s known for a vast array of vegetarian and vegan options. The brand partnered with a local tortilla company that just won a James Beard Award, and is linked with a nearby ice cream shop that creates its famed “Tiki Chocos.” Each location spotlights unique elements and Tiki Tacos keeps it lively with giveaways, live music, and crazy burritos of the month. One store has a large patio, two have exterior order windows plus inside dining. All have a bar top. A large percentage of sales flow through delivery apps as well.

ing a positive quality of life for team

The story of THB dates back to

HE ADQUARTERS:

Kansas City

BECOME PART OF A

WINNING CONCEPT 80+ LOCATIONS

$4.8M

AUV*

*BASED ON 2023 FDD

A scalable concept poised for expansion into untapped markets, backed by a dynamic leadership team of seasoned industry experts and a commitment to culinary excellence.

FASTEST GROWING BUSINESSES

#11 FAST & SERIOUS SMARTEST-GROWING BRANDS

#1 SPORTS BAR FRANCHISE

WHY US? Best-In-Class Training Food-First Sports Bar Prime Markets Available Team Oriented Culture

INTERESTED?

Kelly.Parker@Walk-Ons.com | WalkOnsFranchising.com | (225) 330-4533

an attractive 401( k) match program

during the pandemic.

Its “My Community Matters” pro-

Under the wing of NEXT

after six months of employment and

gram supports local nonprofit and

Brands, the chain plans to grow to

provides free Servsafe certifications

community causes each quarter—

over 50 units in the next three to

for all employees interested.

an initiative that not only sets the

five years with a flagship training

restaurant apart but also fosters a

location in West Dundee, Illinois.

to grow its corporate footprint in

positive and supportive relationship

Target markets include the Mid-

with the local community.

New England, expand its customer

west and the Southeast, with a

Additionally, Community

base, and sustain philanthropic

focus on bringing a “warm and

Burger benefits from strategic loca-

programs in its restaurants.

welcoming Midwestern home”

tions that are easily accessible to

atmosphere to all future locations.

In 2024, the brand will continue

Just Poke

local residents and visitors. Its pres-

Haven Hot Chicken

enhances appeal as a go-to spot for dining and social gatherings.

Beef A Roo UNITS:

UNITS:

Co-founders Danny Brawer and

Norman Wu founded Just Poke in 2016 with the mission to eat clean,

act right, and live well. In the eight years since its inception, the fast casual has become a trailblazer in

Beef-A-Roo has spent most of its

sustainability, employee satisfac-

50-year history huddled inside

tion, and strategic growth.

Rockford, Illinois, but is ready to

Just Poke’s signature and

expand nationally with the help of HAVEN HOT CHICKEN

NEXT Brands and Development, which acquired franchising rights in 2021. Known for its slow-roasted beef

New England’s first fully dedicated

sandwiches, burgers, and famous

Nashville hot chicken concept is on a

cheddar fries, Beef-A-Roo has

mission to hit 25 units by 2025, and

grown a cult-like following in Illi-

its unit economics are promising.

nois and values its long-serving

customizable bowls use line-caughtby-hand tuna, Best Aquaculture Practices (bap) certified salmon, and biodegradable packaging. The brand is also recognized as an Ocean Friendly Restaurant by the BLACK SEED BAGELS / MAX FLATOW

HE ADQUARTERS:

Rockford, Illinois

HE ADQUARTERS:

Connecticut

HE ADQUARTERS:

The Pacific Northwest

BLACK SEED BAGELS

ence in community-centric spaces

Black Seed Bagels

Surfrider Foundation.

Since its origination in 2020,

employees.

Haven Hot Chicken has sustained

The fledgling franchise

greater than 100 percent year-

program offers two models: a brick-

JUST POKE / BEN VANHOUTEN

The 40/40 List

the fast casual wherever it expands.

over-year revenue growth and store payback (roi) of under two years

and-mortar restaurant and an 800-square-foot drive-thru-only

in existing locations. The average

container model, aimed at high-

order is $25-$26 dollars, higher than

traffic locations and a cost-effective

the average quick-service check.

prototype for operators. The drive-

els of heat, vegetarian options,

driving most of Beef-A-Roo’s sales

and traditional Southern sides, the emerging fast casual has something for everyone. In just over three years, the brand has amassed over 13,000 Instagram followers and donated more than $30,000 to local JUST POKE

charities. The company is committed to

BEEF-A-ROO

supporting its community by reduc-

ing its carbon footprint, taking care

In an industry rocked by labor

of its team, and limiting waste in its

shortages, Just Poke stands out with

stores. Haven Hot Chicken offers

20 percent above industry average

FEBRUARY 2024 | QSR | www.qsrmagazine.com

UNITS:

As Black Seed approaches its 10th anniversary this April,

With a menu offering five lev-

thru models have been successful,

HE ADQUARTERS:

New York City, New York

it’s ready to expand on the retail and CPG side, with a focus on sustainability (the brand brews beer and bakes cookies with unsold bagels) and collaborative relationships with like-minded companies. Black Seed plans, at least, four openings per year in the New York City area going forward—a path that should take it to 30 locations by the end of 2027. The concept came about

pay and healthcare benefits, leading to high employee satisfaction and retention rates.

The 40/40 List

The poke chain grew by 10 locations in 2023 and is soaring internationally with a location opening in British Columbia. Showing no signs of slowing down, Just Poke is prepared to bring what Wu calls “the gold rush of poke” to a thriving customer base.

Sankranti HE ADQUARTERS:

UNITS:

SANKRANTI / BRANDON AMATO

Georgia

Sankranti, which translates to “positive change,” was launched in 2021 in Dunwoody, Atlanta, and has been on a mission to make Indian cuisine more approachable ever since. The brand has scaled to Dunwoody, Emory Village, and Midtown, and owner Srinivasa Nimmagadda, also known as “Nimms,” aspires to take it nationwide. Sankranti operates with a

BLACK SEED BAGELS / SHAY HARRINGTON

model similar to Chipotle, where guests build meals. The menu is health-conscious and presents a ■ BLACK SEED BAGEL IS PREPARED TO DIVE INTO CPG AND RETAIL.

lineup of dishes reflective of both the Northern and Southern regions of India. Guests can order curry bowls, kathi rolls, pulao, kabobs, and traditional appetizers like

from a friendship between two Big Apple F&B operators, Matt Kliegman and Noah Bernamoff, who were then neighboring business owners. They teamed with executive chef Dianna Daoheung. The partnership solidified after Hurricane Sandy. Evening beers lamenting the storm’s damage to their respective businesses turned to morning coffee discussing the lack of good bagels in New York. United by a love of bagel baking and appreciation for artisanal ingredients, the team worked to create a unique offering that combines traditional and modern techniques. Daoheung has since been nominated for two James Beard awards for Outstanding Baker.

samosas, salads, and desserts. The protein options, including tikka chicken, malai chicken, and lamb, cater to meat lovers, while vegetarian choices like paneer tikka masala and mixed vegetable kurma offer a variety of options.

www.qsrmagazine.com | QSR | FEBRUARY 2024

The 40/40 List

Slice House by Tony Gemignani HE ADQUARTERS:

San Francisco, California

UNITS:

Since opening its original location in 2010 alongside Tony’s Pizza Napo-

fic locations. Currently, over 100

chicken segment since 2018, grow-

ence are factors propelling Angry

units are in development across sev-

ing behind the scenes to 25 units

Chickz into the future as it spreads

eral states, including California,

and counting. Founder David

its wings and begins the process of

Texas, Nevada, and more.

Mkhitaryan has been obsessed

franchise development. By choos-

with spicy food since childhood and

ing partners who fit its people-first

used his experience working in his

culture, LaRue says the brand is

family’s restaurant to create a chain

building a framework for success.

Angry Chickz HE ADQUARTERS:

Sherman Oaks, California

letana in San Francisco’s historic North Beach neighborhood, Slice

with “the best hot chicken and the best customer service.”

House by Tony Gemignani has been

Angry Chickz has been a quiet dis-

a local staple, offering authentic

ruptor in a sizzling Nashville hot

slices of the award-winning pizzaio-

While the brand’s first location

UNITS:

was a cozy 900-square-foot space in Hollywood, it will soon go nationwide with a new franchise system backed by industry veteran Mike LaRue, who was named vice president of franchise development in

lo’s New York, Sicilian, Grandma,

October. “[ Mkhitaryan] is really just

Detroit, and California-style pizza in a fast-casual setting. The brand gradually expanded over the next decade. A second restaurant opened in 2016 in Walnut ANGRY CHICKZ

Creek, California, that now serves as the brand’s corporate headquarters. Gemignani licensed three

Uncle Sharkii Poke Bar HE ADQUARTERS:

Houston, Texas

UNITS:

There’s something about Uncle

focusing on the culture, the people,

Sharkii Poke Bar that landed

the quality of the food, and having

it partnerships with giants like

fun,” LaRue shares. “I’m excited

Walmart and Universal Stu-

for the brand’s future.”

dios—its uncomplicated design,

Favorable unit economics and a compelling customer experi-

inclusive environment, and authentic Hawaiian touches all

additional brick-and-mortar spots in the state and opened several licensed units in casinos. He also launched a concessions business, selling pizza by the slice in major league sports stadiums in San Fran-

Tacotarian

cisco and Las Vegas. HE ADQUARTERS:

Las Vegas, Nevada

concept proved to be “almost COVID-proof.” Slice House launched its first-ever franchise program in early 2023. It offers a

SLICE HOUSE BY TONY GEMIGNANI

fast-casual model with limited seat-

ing. Those stores range from 1,200 square feet up to 2,200 square feet. There’s also a roughly 500-squarefoot kiosk model designed for stadiums and other high-foot-traf-

FEBRUARY 2024 | QSR | www.qsrmagazine.com

UNITS:

Tacotarian owes its roots to more than

seven decades of history. Co-founder Regina Simmons’ family has operated a restaurant in Mexico City dating back 70-plus years. Kristen and Carlos Corral (the brand is owned by two couples, the Corrals and Dan and Regina Simmons), were plant-based when they took a trip to Mexico City one year. Afraid they might not find suitable options, they realized, in fact, the heart of Mexican food wasn’t the meats often associated; it was the bold, spicy, and savory flavors like achiote and chile de arbol that can be used to shape any plant-based dish. During the trip, Dan, Regina, Carlos, and Kristen, all vets in the Las Vegas restaurant industry, were inspired by veggie dishes and wanted to bring the soul of Mexico City and other parts of the country to the heart of Sin City. In the next year, the group plans to expand with new locations in other cities as well as a CPG launch of signature house-made meat alternatives that will be available online, in-restaurant,

TACOTARIAN

Gemignani didn’t consider franchising until 2020, after the

■ TACOTARIAN WAS FOUNDED IN 2018.

and at premium grocers. While plant-based meat alternatives aren’t novel, the Tacotarian team innovated a shelf-stable product that matches the texture and flavors customers have become addicted to. The brand will use this new line to collaborate with other restaurant concepts and further its mission of inspiring the future of

egy. With plans to capture the

poke franchise with a Hawaiian

popular Nashville hot chicken mar-

co-founder, an attractive selling

ket with a sweeter, Texan-inspired

point for both guests and potential

twist, Savory’s industry experience

franchisees.

will help the emerging brand grow

In 2024, Uncle Sharkii plans to

on both corporate and franchis-

UNCLE SHARKII POKE BAR

lead the poke evolution by empow-

contribute to its growth.

rience, Uncle Sharkii makes eating

Serving protein-packed poke

healthy an accessible and convenient

bowls, boba tea, and soft serve,

process for guests. Rooted in the

the fast casual prioritizes captur-

idea of food, family, and simplicity,

ing the essence of Hawaiian cuisine

the brand prides itself on appealing

through an all-inclusive selection of

to the modern pace of life.

ahi-tuna, salmon, shrimp, tofu, and

ing levels.

ering aspiring entrepreneurs with a

Ten units are expected to

promising franchise program and

come down the pipeline for

strategic partnerships.

HHC in 2024, and the brand is expected to stretch out its fran-

Houston TX Hot Chicken

chising arm nationwide and

HE ADQUARTERS:

Big Dave’s Cheesesteaks

Las Vegas, Nevada*

become a power player in this niche market segment.

UNITS:

13 *3 locations there

HE ADQUARTERS:

With a flagship location at

Atlanta, Georgia

the International Marketplace

spicy scallops. By streamlining the poke expe-

The 40/40 List

solidifies itself as the only national

in Waikiki, Hawaii, the poke bar

UNITS:

West Philadelphia native Derrick Hayes launched Big Dave’s Cheesesteaks in 2014. The restaurant is an homage to his late father, as is its signature “Dave’s Way” sandwich, which features a beef, chicken, or

TACOTARIAN

authentic Mexican cuisine. Since Tacotarian’s 2018 inception, the goal remains to change the outlook of American consumers to shift their idea of what “traditional” or “authentic” Mexican food is. The restaurant deploys inspiration from all parts of Mexican cuisine, from Baja to Mexico City, to develop dishes that capture the flavors of Mexico in a modern way. Since the restaurant opened, it has served over 600,000 diners, including celebrities like Steve Aoki, Carlos Santana, Jared Leto, Chelsea Handler, and Kamala Harris.

HOUSTON TX HOT CHICKEN

fried onions, fried mushrooms, American cheese, provolone cheese, and cheese sauce. What started with a single

Houston TX Hot Chicken is fired

restaurant in a small gas station

up for growth. Founded in 2021 by

outside of Atlanta has expanded

co-founders Edmond Barseghian

into one of the city’s fastest-grow-

and Houston Crosta, the brand

ing businesses. The footprint now

already has 13 locations across

spans seven stores, along with a

seven states. In 2022, AUVs stood

food truck and several units in the

at $3–4 million. The brand’s momentum is fueled by a large YouTube and social media presence, with grand openings typically garnering a crowd of up to 4,000 attend-

BIG DAVE’S CHEESESTEAKS

TACOTARIAN

salmon cheesesteak topped with

ees. Additionally, its menu of hot chicken, loaded fries, party platters, and milkshakes offer guests a variety of options to meet their

Mercedes-Benz Stadium, home

cravings.

of the NFL’s Atlanta Falcons. The

In November, HHC partnered

first location outside of Georgia is

with private equity firm Savory to

set to open this spring in Charlotte,

execute its ambitious growth strat-

North Carolina.

www.qsrmagazine.com | QSR | FEBRUARY 2024

Hayes opened the doors to

La Boulangerie Boul’Mich

franchising late last year. That

The 40/40 List

marked a significant step toward realizing his goal of reaching 100 locations by the end of 2025. He spent the last two years preparing for the franchise launch with heavy investments in the brand’s leadership, supply chain, and operational systems.

Jan’s Health Bar UNITS:

LA BOULANGERIE BOUL’MICH

HE ADQUARTERS:

Huntington Beach, California

Jan Gaffney opened her eponymous eatery, Jan’s Health Bar, in 1972. Known for sandwiches, LA BOULANGERIE BOUL’MICH

salads, and smoothies, the thensingle-unit restaurant carved out a niche for itself as Huntington Beach’s healthy hot spot. Fast-forward 38 years, Gaffney was searching for a successor that

JAN’S HEALTH BAR

LA BOULANGERIE BOUL’MICH / ROBERTO PASTORIZA

aligned with the brand’s mission.

Enter Poppy Holguin. The former employee and longtime customer acquired the original location in

La Boulangerie Boul’Mich was born in 2014, when four Ven-

HE ADQUARTERS:

Miami, Florida

UNITS:

ezuelan-born partners purchased the former La Nueva Boulangerie brand from chef-owner Massimo Stanzione. The European bakery and café has a distinctive Latin twist, with a broad menu that spans croissants, pastries, and specialty coffee to sandwiches, salads, pasta, and more. With six successful franchise locations and one kiosk location, the fast casual has been channeling more resources into its marketing strategies lately. That encompasses everything from brand collaborations and promotional events to targeted campaigns, all geared toward enhancing awareness around its fusion of French and Latin flavors. La Boulangerie Boul’Mich is gearing up for a significant milestone in its growth journey with the launch of an upcoming store situated in Miami’s historic DuPont building. It will serve as a new flagship location for the brand, which also is eyeing opportunities to expand into new territories.

2010. She’s added five additional stores since then, expanding into Costa Mesa in 2013, Laguna Beach in 2015, Corona del Mar in 2017, Irvine in 2021, and most recently, a second location in Huntington Beach in 2023. The focus remains on healthforward items made with whole,

tried-and-true menu, including

HE ADQUARTERS:

plant-based coconut soft serve and functional coffee made with adaptogenic mushrooms.

New York

Avo got its start in 2017, when cofounders Alessandro Biggi and Francesco Brachetti set out to bring

UNITS:

the simplicity of the Mediterranean culinary tradition to New York’s fast-paced food scene. Inspired by

Jan’s Health Bar shows no signs

the nutritious, comforting, and

of slowing down under Holguin’s

trendy avocado, the former class-

stays like the Peanut Butter Banana

leadership. The faithful-employee-

mates opened their first location in

Date Smoothie and Tuna Salad

turned-proud-owner has plans to

Sunset Park, Brooklyn.

Sandwich continue to be customer

continue expanding the eatery into

favorites after more than 50 years.

new markets.

FEBRUARY 2024 | QSR | www.qsrmagazine.com

What began as “the world’s AVO

simple ingredients. Original main-

tion came with additions to the

Avo

The opening of the sixth loca-

first avocado-bar concept” has

Village Juice and Kitchen

since evolved into a daily staple for scratch-made bowls and salads that

The 40/40 List

are designed with “ultimate convenience and customization” in mind. Along with the initial spot in Brooklyn, there’s four additional locations in Chelsea, Midtown East, Nomad, and Midtown West Manhattan. Avo’s asset-light setup doesn’t require any gas or venting. That means the brand can take virtually any retail box. Shorter payback periods have enabled it to continually reinvest in organic growth, too. Those factors have helped fuel a strong record of post-pandemic expansion, with two restaurant openings in 2023 and three more

■ VILLAGE JUICE AND KITCHEN BEGAN WITH BEVERAGES, BUT EVENTUALLY BOSLTERED ITS MENU WITH HEALTHY FOOD OPTIONS.

HE ADQUARTERS:

Miami, Florida

UNITS:

Village Juice and Kitchen is the

The Salty Donut was born in a vintage 1950s Aljoa camper as the

HE ADQUARTERS:

Winston Salem, North Carolina

UNITS:

brainchild of Lonnie Atkinson, Nathan Atkinson, and Clyde “CP” Harris. They purchased their first juicer in 2014 and started selling an array of cold-pressed juices at their local farmers market. The business quickly gained traction from there.

product of dreams from Amanda Pizarro and her then boyfriend, now husband, Andy Rodriguez. The goal was to create a community space centered around donuts,

VILLAGE JUICE AND KITCHEN

The Salty

VILLAGE JUICE AND KITCHEN

expected in 2024.

coffee, and “good vibes.” A place where you could bring a first date,

a growing fast-casual brand with

Eatzi’s Market & Bakery

12 locations open across Florida,

HE ADQUARTERS:

or celebrate a birthday with family

2014, which led to the brand’s first

and friends. Coupled with the duo’s

retail shop in Miami’s Wynwood

commitment to high-quality ingre-

Arts District the next year. Its humble origins have transformed into

Georgia, Texas, North Carolina, and a handful more slated to launch this year in Colorado and

Dallas, Texas

that “push the boundaries of what a donut can be,” The Salty also prides itself on being a commuTHE SALTY

ads, sandwiches, pastas, hot grill items, artisan baked goods, and sushi, all prepared from scratch. During COVID, Eatzi’s embraced e-commerce platforms to connect with customers—a strategy EATZI’S MARKET & BAKERY / THE MAMONES, LLC

brand’s ever-changing menus

Offerings include customizable sal-

In addition to the family-owned

social change by championing ini-

the Dallas-Fort Worth metro area.

UNITS:

Tennessee.

nity builder and positive force for

Texas restaurant scene, serving

With a history spanning over

that continues to evolve and bear fruit. In 2021, this approach led to the most successful year in Eatzi’s history. Notably, a new location opened at Dallas/Fort Worth International Airport (dfw) in October, which introduced “just-walk-out” technology from Amazon for a has-

dients and a unique coffee menu,

tiatives for a healthier environment

25 years, European-style Eatzi’s

The Salty started gaining traction

and raising awareness for impor-

has firmly established itself as a

addition to a full bar—a departure

after opening in a parking lot in

tant causes.

respected presence in the North

from the traditional Eatzi’s model.

FEBRUARY 2024 | QSR | www.qsrmagazine.com

sle-free checkout experience in

the Leveys never skimped on steak or high-quality ingredients, and it paid off—the brand now has 19 WISEGUY PIZZA

stores, and is marking 2024 as a year of significant growth. To make sure the next 30 years are as successful as the first, Philly’s Best underwent a total revamp in mid-2023—everything from store design exploration and tech stacks to franchise systems, in-store operations, and more. That includes menu boards across all locations, a new website, a new restaurant prototype, a streamlined loyalty program, and a rebooted franchise program to help expand the business. The couple is betting their strategic investments will help push Philly’s Best into further expansion.

UNITS:

*Washington, DC, Virginia, Maryland, and Florida

The story of Wiseguy Pizza began

pizza: a chewy, golden crust cooked

commitment to tailoring each loca-

at a minimum of 500 degrees on a

major Texas markets, including

to detail and regional success eventually caught the eye of Thompson Restaurants, a family-run and minority-owned hospitality company, who acquired the company in

growth trajectory.

Local Kitchens HE ADQUARTERS:

San Francisco, California

UNITS:

11 LOCAL KITCHENS

PHILLY’S BEST

plans are in motion to explore other

Irvine, California

in a product testing. Erol’s attention

oil and parmigiano-reggiano. All-

ing throughout the DFW area,

UNITS:

100 New Yorkers, who participated

from California. Italian virgin olive

Eatzi’s primary focus is on expand-

HE ADQUARTERS:

Wiseguy Pizza’s quality and authenticity was confirmed from

stone deck oven. Fresh tomato sauce

tion to the local market. While

Philly’s Best

Truffle, Il Capo, Buffalo, and

Wiseguy Pizza is on a promising

This move underscores the brand’s

in other Sunbelt states and airports.

variations including Mushroom

pipeline for this year and beyond,

Turkey, set out to create the perfect

as well as considering opportunities

ten-free, 10-inch pies in several

level. With four locations in the

when founder Nuri Erol, a native of

Houston, Austin, and San Antonio,

brand also offers cauliflower, glu-

2022 to take the brand to the next

Wiseguy Pizza Washington, DC

Chicken and Paneer Tikka. The

Backyard Pie.

a new POS system and digital

HE ADQUARTERS:

as well as fun flavors like Korean

natural cheese from dairyland, Wisconsin. Housemade sauces and dressings, plus dough made with fil-

Andrea Levey brought a pas-

tered water for better control over

sion for doing Philly cheesesteaks

the quality. After gaining experi-

right when they moved out west to

ence as a line cook, manager, and

Southern California more than 30

pizza chef, Erol opened his first piz-

years ago. They decided to shoot

zeria in a gas station in 2012 before

their shot and open an authentic

expanding to four more restaurants

cheesesteak restaurant there, which

in the Washington, D.C. metro area,

Local Kitchens co-founders Jon

meant bringing in Amoroso rolls

including Virginia and Maryland,

Goldsmith and Andrew Munday

from the East Coast, plus Penn-

plus Florida.

were involved in the early days of

sylvania Dutch Birch Beer, Herr’s

LOCAL KITCHENS

VILLAGE JUICE AND KITCHEN

1992. Despite rocky beginnings,

The co-founders opened the first brick-and-mortar location in Winston-Salem, North Carolina, two years later. It initially offered smoothies and juices but steadily evolved to encompass a variety of health-forward offerings, like salad bowls, sandwiches, wraps, soups, toasts, and breakfast items, plus a line of plant-based desserts called Billy Cakes. Two years after that, Village Juice built a corporate kitchen, commissary, and training facility in its hometown. It opened two licensed locations at Wake Forest and Elon University that same year. Since then, the footprint has grown to include more licensed units at universities, a company-owned location inside of a hospital, and two franchised stores. Future growth will partially be driven by more licensed units in nontraditional venues like colleges and healthcare facilities, thanks to national deals with Aramark and Sysco. Additionally, Village Juice plans to build a handful of corporate units this year, which will help build the infrastructure needed to support more aggressive franchise growth down the line.

The 40/40 List

VILLAGE JUICE AND KITCHEN

in Fountain Valley, California, in

Along with classic pies, Wise-

third-party delivery giant Door-

Along with a love for the Eagles,

Chips, and Tastykakes. They

guy Pizza also has a rotating menu

Dash. Now, they’re helping small

Philadelphia natives Bob and

called it Philly’s Best, and opened

of specials including vegan options

and independent restaurants grow

www.qsrmagazine.com | QSR | FEBRUARY 2024

tions and provide marketing at scale. With 11 locations under its belt, the company is pulling back on accelerating the pace of new openings and focusing more on bringing in high-caliber culinary experts and “the best of the best” menu items into the fold. Last year, it partnered with Michelin-starred chef Andy Ricker to create the

offers signature dishes like Red Curry with Sweet Potato, Crispy Wings, and more for takeout, deliv-

with top-notch chefs this year.

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grations to streamline operations and customer experience. Founded by a team of entrepreneurs and boba aficionados, Krak Boba’s journey began with a vision to rev-

FEBRUARY 2024 | QSR | www.qsrmagazine.com

in Portland, Oregon, Voodoo’s home city is known for supporting local businesses, showcased by the all-encompassing slogan “Keep Portland Weird.” Voodoo Doughnut’s unique vibe aligns perfectly with the mantra, even as it has expanded to new markets including Arizona, California, Colorado, Florida, Washington, and Texas. An eclectic mix of traditional and innovative pastries, plus fun branding choices like Voodoo’s signature bubblegum pink, sets the doughnut shop apart from competitors. The brand’s new store in Tempe, Arizona, promises to offer a blend of local artistry and the brand’s iconic

concept—taking recipes from older generations and family members and infusing them with modern flair. Fun menu items with bold colors appeal to younger generations VOODOO DOUGHNUT

BODEGA TAQUERIA Y TEQUILA

olutionize the traditional boba tea

a pastry shop. Headquartered

innovation and high-level tech inte-

Bodega Taqueria y Tequila opened in South Beach Miami in 2014 as a fastcasual Mexican street food concept with a unique night-life twist. By day, the taqueria’s menu showcases authentic Mexican favorites along with unconventional interpretations served from the brand’s signature airstream trailer-turned-taco-truck. At night, it transforms into a speakeasy-style lounge with innovative cocktails and live music by local bands and DJs. Some locations also include an intimate mezcaleria offering premium tequilas and mezcals. Considered the first to introduce fast-casual Mexican fare to South Beach, Bodega Taqueria y Tequila also embraces technology to enhance the dining experience, and is introducing self-ordering kiosks to improve efficiency and personalization at locations, starting with the Coral Gables, Florida, outpost. In 2023, the brand announced national expansion plans, with new locations in Chicago, Washington D.C., and Nashville. Bodega is set to double its footprint in the next two years, including additional South Florida locations, expansion into Downtown Miami, and Miami’s Wynwood arts district in 2024.

attention for being more than just

KRAK BOBA / JEROMY ESTABILLO CHAN

Riverside, California

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The 40/40 List

in new locations and new markets with micro food halls that combine multiple concepts under one roof, bringing a variety of menus and cuisines to suburban communities. Unlike ghost kitchens, which provide a facility where a restaurant can lease kitchen space behind the scenes, Local Kitchens works closely with its partners to cover all opera-

ordering to personalized loyalty programs, Krak Boba wants to stay ahead of tech and flavor trends

kitsch and humor. The Tempe

and use guest preferences to drive

store partnered with local creators

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lor menu offerings, such as a range

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DRIVE-THRU INNOVATION

Fast Casuals Wheel into Drive-Thru Competition

SWEETGREEN / KATELYN PERRY

FEBRUARY 2024 | QSR | www.qsrmagazine.com

DRIVE-THRU INNOVATION

The off-premises channel is becoming a bigger focal point of innovation. /

BY SAM DANLEY

Fast casuals have traditionally rejected the drive-thru, positioning themselves as a higher-



SWEETGREEN LAUNCHED A DIGITAL DRIVE-THRU LANE TO HELP ITS ON-THE-GO CUSTOMERS.

end alternative to fast food with elevated fare and service. That’s no longer the case today. COVID played a role in that shift, but the evolution was underway before the pandemic helped push it along. Most brands aren’t looking to fully emulate the standard setup, but pull-thru lanes for digital orders are an increasingly popular strategy for attracting convenience-minded consumers. Shake Shack, Noodles & Company, CAVA, Schlotzsky’s, Pancheros, McAlister’s Deli, and many more are adapting to changing customer dynamics by embracing pickup windows. The movement was largely spurred by Chipotle. The category pioneer was one of the first major chains to launch a digital order pickup lane. The about-face came in 2018 when it started piloting the now-ubiquitous Chipotlane concept. Limiting the drive-thru to digital orders allows fast casuals to sidestep concerns that prevented them from considering the channel in the past while still offering an experience that “screams access and convenience,” says Haris Khan, vice president of operations services. “Traditional drive-thrus were really never an option for us,” he says. “Imagine being a guest at the speaker box, where you’re building and calling out your completely customized, multi-ingredient entree off of a menu board. Not only would that kill throughput, but it would make for a terrible guest experience.”

www.qsrmagazine.com | QSR | FEBRUARY 2024

DRIVE-THRU INNOVATION

The number of Chipotlanes started growing exponentially during the pandemic, increasing from 66 at the end of 2019 to 170 in 2020 and 355 in 2022. Now, over 700 stores are equipped with pickup lanes. “We don’t plan on slowing down development anytime soon,” Khan says. “We’re going to open anywhere between 285 and 350 restaurants in 2024, and 80 percent of them will likely feature the Chipotlane, much like last year. By 2025, we’ll probably have close to 1,000 open and ready to go.” It’s not hard to see why Chipotlanes are a key strategic priority. They’ve boasted high organic adoption and positive customer feedback from the outset, generating higher sales and a higher overall digital mix that skews heavily toward order ahead. Orders placed through the channel are the brand’s highest-margin transactions. New units with the feature typically have 15 to 20 percent higher sales and significantly “ YOU CAN BE CREATING MORE OPERATIONAL higher restaurant-level marCHALLENGES FOR gin, so Khan says the pickup YOUR TEAM BY lanes “are really just paying for THINKING YOU’RE themselves.” OPENING UP ANOTHER Chipotle’s approach to manACCESS CHANNEL FOR YOUR GUESTS, aging digital orders is key to SO YOU HAVE TO that success. It’s akin to operMAKE SURE THAT ating a restaurant within a WHAT YOU’RE DOING restaurant, with second make FITS WITHIN YOUR lines and dedicated resources BACK-OF-HOUSE LABOR MODEL.” that ensure the in-store expe-

rience isn’t compromised by the influx of off-premises orders. That mindset was firmly in place before the first Chipotlane window slid open six years ago. “We were ahead of the curve on creating a new workflow for our employees, but there were still some incremental learnings early on when we introduced the Chipotlane,” Khan says. “We had to figure out how to avoid having an individual that ends up getting stuck at the drive-thru window for their entire shift.” Chipotle needed to guarantee team members could flow seamlessly from the line to the window and back. That’s where its “Smarter Pickup Times” technology comes into play. The tool monitors digital capacity to ensure each location effectively manages the orders coming into the kitchen. Ergonomic enhancements to the second make line enabled further throughput and accuracy gains. “You can be creating more operational challenges for your team by thinking you’re opening up another access channel for your guests, so you have to make sure that what you’re doing fits within your back-of-house labor model,” Khan says. “That can get overlooked a lot of the time, but we’ve found that the more we focus on the team member experience, the more elevated the guest experience becomes.” Sweetgreen’s entry into the rapidly crowding drive-thru world began in 2022, when it opened its first sweetlane location in Schaumburg, Illinois. Like many of its peers, the fast casual opted for a pickup-only model, where orders are placed ahead of time and handed over through the window. Co-founder and chief concept officer Nicolas Jammet says

•

MOST OF CHIPOTLE’S STORES GOING FORWARD WILL BE CHIPOTLANES.

CHIPOTLE

FEBRUARY 2024 | QSR | www.qsrmagazine.com

DRIVE-THRU INNOVATION

the prototype builds on Sweetgreen’s growing strength in digital channels, which already accounted for over half of the company’s sales before the pandemic kicked that part of the business into hyperdrive. “Our operators were used to running a secondary make line to handle online orders, so that wasn’t new, but there were all of these small nuances we had to work through, like how team members interact at the window and how they have visibility into the queue,” Jammet says. “We had to think about all the wayfinding that happens in this new format, both for team members and for customers.” The sweetlane is driving owned digital acquisition by funneling more customers into the brand’s app and website, but he says that wasn’t the primary motivation for piloting a drivethru format. “A lot of the decisions that we make are based on where we see the industry going, but we’re also obsessed with learning from our customers,” Jammet says. “It’s less about focusing specifically on digital sales and more about understanding what people want, and then removing friction to create the optimal experience for them.” Since the company already knew how to unlock digital throughput and orders are paid for in advance, it takes all of 45 seconds on average to get food to customers through the pickup lane. The optimal Sweetgreen drive-thru experience isn’t just about speed and efficiency, though. It’s also about reinforcing the brand’s mission of “connecting people to real food made with healthy ingredients.”

The Schaumburg location still offers dine-in service, and guests can still watch food being prepared in an open kitchen, just like a traditional restaurant. The sweetlane brings that element of the in-store experience outside with a large observation window for customers driving by. “You see our team members roasting our meats and preparing all of our ingredients from scratch, so you still get that peak into our fresh-prep operation without even leaving your car,” Jammet says. “I think subtle cues and design details like that really enhance the overall customer experience.” The sweetlane caters to the sizable share of guests that already were ordering ahead for in-store pickup, but it’s still outperforming expectations. Two-thirds of digital transactions happen in the drive-thru, and customers who order through the channel spend around 20 percent more than the Chicago market pickup average. “More than 70 percent of customers have used sweetlane to try Sweetgreen for the first time, so people are really showing an incredible need for convenience and receptiveness to trying something new in this format,” Jammet says. “We see this as our first step into learning what drive-thrus and pull-thrus look like at Sweetgreen, so we’re excited to expand on it in the future.” The company is looking to open more pickup lanes in 2024 and beyond. An ongoing push to expand the footprint into more suburban markets could play a role in the format’s potential, similar to the way Starbucks and others are leveraging the drivethru to gain a foothold in smaller, previously untapped markets. “The possibilities for sweetlane are pretty incredible,” Jam-

•SWEETGREEN’S MOBILE

ORDER WINDOW ALLOWS GUESTS TO PICK UP FOOD WITHOUT A WAIT.

SWEETGREEN / KATELYN PERRY

www.qsrmagazine.com | QSR | FEBRUARY 2024

DRIVE-THRU INNOVATION

•

met says. “I think it’s going to inform so much of our growth in the future. There are a lot of brands out there that are looking for these types of sites, so there’s some competition for the real estate locations, but we’re still early in our growth journey as a brand, so I’m excited to use this as a tool to open in places where we maybe wouldn’t have otherwise.” Fast casuals with established drive-thru capabilities also are leaning deeper into the channel. Brands like Panera Bread and Fazoli’s had traditional order-at-the-board formats long before the pandemic and have opened their lanes to digital orders, too. Portillo’s is another brand that’s no stranger to the drivethru. It’s been a key source of revenue for the company since it launched over five decades ago. The channel persistently hovers at around 40 percent of the overall sales mix. That’s stayed 46

FEBRUARY 2024 | QSR | www.qsrmagazine.com

consistent even as the digital business grows from pickup and delivery. “Historically, the drive-thru has been unbelievably important for us, and it’s something that’s always evolving,” says Mike Roman, vice president of field operations. “We’re constantly looking at new ways to innovate in that channel.” The company launched its first Portillo’s Pickup restaurant in Joliet, Illinois, two years ago. It has an in-store pickup area along with a drive-thru. A second iteration of the prototype launched late last year in Rosemont, Illinois. It features a smaller footprint, an updated kitchen, and a triple-lane drivethru—all of which evolved through observations and insights from the initial location. The smaller footprint drives standard-size revenue and margin dollars with a lower buildout cost. The new kitchen unlocks efficiencies for team members with modern equipment and a better layout. The extra drive-thru lane, meanwhile, accommodates smaller tickets that are pushed out quickly as well as orders placed ahead of time through digital platforms. Additionally, Portillo’s is testing a third lane at a traditional store in Madison, Wisconsin, to get a better sense of what a digital pickup process might look like in that format. “There’s a lot of complexity when you start thinking about how to build that out,” Roman says. “What should that look like? How do you queue them in? Should you start looking at different ways to bring in more technology as you move that into the future?” That’s just the latest evolution of the drive-thru at Portillo’s. The Chicago-based chain also was one of the first brands to implement drive-thru runners that move down the queue of cars and take orders to get tickets to the kitchen as quickly as possible. “Guests are able to get their food when [CONTINUED ON PAGE 53]

PORTILLO’S (2)

DRIVE-THRU HAS ALWAYS BEEN A KEY BUSINESS FOR PORTILLO’S.

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OPERATIONS

The West Coast Wage Frontier A California law has restaurateurs rethinking how to approach labor and technology. BY GARY STE RN

icked. How are we going to pay for that? How can we keep our guests coming in when we’re going to have to raise prices?” they wondered. Yet when they simmered down, most came to realize that Pizza Factory was a “legacy brand and have relationships with our customers” that won’t be denied because of a price increase, she says. A one-topping pepperoni pizza at Pizza Factory usually costs around $18, and Riva expects that prices will rise about 10 percent in 2024 to $20 a pizza. So with four beverages, a family of four can sit down and dine together at dinner for $30 ( before tax and tip), under the new price structure. Franchisees will have to make adjustments, she suggests. They’ll need to monitor staff hours, emphasize cross-training so employees can handle multiple roles, and put more of an emphasis on productivity for every worker. Also, operators will have to rely more on online ordering to relieve employees of taking phone orders and ensure the culture of each eatery stays welcoming and inviting to increase guest frequency. Mike Whatley, the National Restaurant Association’s vice president of state affairs and grassroots advocacy, says AB 1228 will present a “serious challenge for the industry. Twenty dollars an hour is big money, and some restaurants will be reducing staff, leaning in more on automation technology, and some may close.” To keep revenue flowing, some price hikes will be passed along to the customer, Whatley says, but restaurants will look at how many employees are needed on every shift, where technology can be employed, and explore whether smaller footprints work and drive-thrus can cut staffing. The law, he adds, touches all employees across the board— kitchen staff, order takers, counter staff, and, where applicable, servers. What works in West Hollywood may not work in the rural areas of California, where paying $20 an hour is more likely to cause closures, Whatley expects. Chains are in a tricky position, explains Michael Halen, a Bloomberg Intelligence senior restaurant analyst, because samestore sales have been moderating, traffic has [CONTINUED ON PAGE 52]

n California, AB 1228—which will raise the minimum wage for quick-service employees with 60-plus units to $20 an hour starting in April—is triggering several reactions from restaurants across the state. Since the current minimum wage is $16 an hour, that’s a 25 percent rise. It will likely lead to most concepts lifting prices to keep pace with rising labor costs. But it also could yield several benefits, including helping restaurants recruit more staff and boost morale. Therefore, AB1228 is going to shake up California’s fast-food industry, which recently came out of the pandemic and is already contending with rising food expenses. The law will affect over 500,000 fast-food workers across the state. The Service Employees International Union (seiu), which represents them, issued a statement that said AB1228 will lead to “fairer wages, healthier working conditions, and better training.” It also has components of paid sick leave and paid vacations. Mary Jane Riva, CEO of Pizza Factory, which has 109 locations, all franchised except for one, with 72 based in California, acknowledges that when the law passed, franchisees “were pan-

FEBRUARY 2024 | QSR | www.qsrmagazine.com

PIZZA FACTORY

Pizza Factory is one of the California brands impacted by the new fast-food law.

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INNOVATE

Burgers and Blockbusters BurgerFi’s turnaround is taking a cinematic twist. BY SAM DANLEY

guests with different experiences in different places in their lives. That’s why I think nontraditional spaces across the board are a great opportunity to grow the brand and get people excited about BurgerFi again.” Restaurants of all shapes and sizes have been going deeper into nontraditional spaces over the past few years. It’s the natural progression of a shift that started with the move from dine-in to dine-out during the pandemic. “Delivery was the first step in this evolution of getting higher-quality products in a different space,” Bachmann says. “Now that people are back out in the world, it’s important for us to still be bringing the food to them and meeting them where they are, as opposed to just building a brick-and-mortar store and waiting for them to come to us.” Along with the opportunity to grow awareness and find new customers, nontraditional outlets come with smaller footprints and lower startup costs. BurgerFi has opened five airport locations in the past few years. The roughly 500-square-foot kiosks are among its highest-volume restaurants, so there’s a clear opportunity to drive revenue without the same level of capital expenditure as a 2,500-square-foot store. BurgerFi is already working on a second movie theater location with Apple Cinemas in Warwick, Rhode Island. It also is continuing to strengthen its presence in airports across the country with a second location in the Fort Lauderdale-Hollywood International Airport. Both units are slated to open this year. Additionally, the brand is “aggressively seeking new development opportunities” with an eye toward gaining a foothold in more channels, like stadiums and train stations. “Airports and cinemas are just the starting point,” Bachmann says. “You could see us back in a mall. People probably wouldn’t have thought that we’d do that just a few years ago, but malls are evolving and becoming more of the center of a community. There’s all kinds of action parks and different things that people do as a group or as a family.” Those sites could help BurgerFi accelerate traditional development. The brand spent the back half of 2023 assessing and closing underperforming locations. With much of that work completed, it’s looking to expand throughout Florida and [CONTINUED ON PAGE 52]

orget the popcorn, nachos, and candy. Moviegoers in Rochester, New York, are eating food from BurgerFi while catching the latest blockbuster. The Florida-based burger chain inked a licensing agreement with Apple Cinemas to operate a franchise location inside the ninescreen venue. The outlet opened in December and operates like a typical restaurant outside of the theater, with third-party delivery available via DoorDash, Grubhub, and Uber Eats, even outside of movie hours. There’s also in-theater service, where guests scan QR codes during their movies to have food delivered directly to their seats. “We wanted to be able to introduce people to the brand at Apple Cinemas, and they were looking for a vendor that could elevate the food to match the overall experience, so it just seemed to line up perfectly for both of us,” says CEO Carl Bachmann. The partnership is part of a broader push to deliver new points of distribution to consumers. “We’re redefining our portfolio, and that means choosing new spots to play,” Bachmann says. “It’s about finding ways to meet

FEBRUARY 2024 | QSR | www.qsrmagazine.com

BURGERFI / RON CORSO

Part of BurgerFi’s comeback plan is finding new sales opportunities.

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OPERATIONS / CONTINUED FROM PAGE 48

been declining, and most franchisees have grappled with single-digit net margins. “If they want to stay profitable, they’re going to have to raise prices,” he notes. Halen adds that three chains with large California presences, Starbucks, Chipotle, and Jack in the Box, have been at the forefront of testing automated technology that can help reduce employee costs. But there’s not a whole lot of wiggle room, so if they want to stay profitable they’re likely going to have to cut spending. This new law presents issues for most larger restaurant chains in California because the “margins for restaurant businesses are thin to begin with. They’re going to have to look at increasing prices and optimizing the use of labor or reduce labor count,” explains Perscilla ( Perse) Faily, CEO of Tillster, a San Diego-based restaurant e-commerce platform and a partner at private equity firm Sid R. Bass Associates. Restaurants will need to scrutinize where their labor can be used more efficiently, she says, such as encouraging guests to use kiosks instead of having staff take orders. That way employees can be used to prepare the food or get it out in a timelier way, satisfying customers, Faily says. Hope Neiman, CMO of Tillster, says if orders are taken digitally, which intensifies their speed, order volumes will rise and revenue will spike. Average restaurant orders digitally are 25 percent higher because the technology offers more personalized upselling. “Do you want a chocolate chip cookie with that order as you did the last time?” it can say. Another way restaurants can offset their higher labor costs is to engage with guests to bring them in six times a year, instead of four times. Loyalty programs that offer coupons and incentives that encourage more spending on digital ordering can boost revenue and compensate for higher labor costs, Neiman says. Faily notes that many customers, but not all, prefer ordering digitally because the machine never makes a mistake. She also says restaurant employees must emphasize hospitality and make a connection with guests to encourage return visits. The legislation covers businesses that own 60 or more units, but Riva expects all establishments and restaurants, from momand-pop eateries to sit-down restaurants to 52

FEBRUARY 2024 | QSR | www.qsrmagazine.com

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smaller chains, will feel the impact of this AB 1228. “Everyone will be affected. You can’t pay someone $15 an hour if they can walk up the street and get $20 an hour,” she says. And what started in California, by far the largest state in the union with nearly 40 million people, will cascade to other states. It’s already being discussed in New York and will reverberate from state to state, says Riva, who’s been CEO for 11 years. Bloomberg’s Halen says minimum wage laws will likely not be invoked in red states such as Texas and Florida but could take hold in New York, Illinois, Washington, and Oregon. Riva says increased paychecks will make life easier for restaurant staff, however, prices will rise across the board for food and other necessities and cut into the larger salary checks that workers reap. She believes most Pizza Factory customers can absorb the likely 10 percent price uptick in 2024, but it’s reached the limit where prices can’t rise without customers balking or limiting their family pizza outings. Riva says the looming wage hike in 2024, “all comes down to strategizing. We need to devise a plan to ensure profitability, and make the guest, the employee, and the franchisee adjust to this new wave and making sure we’re hitting all of our goals.” Faily predicts that starting in April, “the first 12 months will be a challenge for restaurant operations and margins will be squeezed. But after that, they will adapt by looking at their labor costs and use of technology.” For example, paying higher wages may make it easier to attract more staff and enable eateries to stay open longer hours, which will increase revenue. The biggest question, Faily says, will be, “Are restaurants ready to pivot to strategies that are more helpful to them,” such as using technology to improve efficiency, mitigate rising costs, and find ways to maintain, if not increase, profitability.” To wrestle with growing employee costs, Whatley forecasts more automation, including full-on robotics, more tablets, and streamlining menus. He says not just California restaurants are to be impacted, but also the state’s entire economy.

along the I-95 corridor. The plan is to seed new markets with lower-cost stores in nontraditional venues before building out its brick-and-mortar footprint. Redefining the portfolio in terms of where to grow is just one part of a multipronged turnaround plan underway at the burger chain, which was in the midst of a sales slump when Bachmann took the helm last summer. The former Smashburger exec quickly mapped out five key priorities for BurgerFi and its sister restaurant Anthony’s Coal Fired Pizza & Wings. It’s been all systems go since then. Step one is enhancing employee training and doubling down on general manager development. Those efforts already were bringing about “significantly better” turnover rates on both the hourly and management sides after just 90 days. Step two is upgrading the menu. To that end, BurgerFi last fall launched jumbo chicken wings as a permanent menu addition. That was part of its goal to push chicken mix to 10–15 percent. It also enhanced its previously poorly rated fries and removed less popular and labor-intensive items that dragged down throughput and ticket times. Priority number three is redefining the portfolio. That includes digging more into nontraditional spaces, opening the first cobranded BurgerFi and Anthony’s location, and launching a new store in New York called the Better Burger Lab. Housed in a former franchise location that shuttered during the pandemic, the restaurant offers the full menu of burgers, sides, and drinks alongside an exclusive lineup of limitededition offerings. Step three doesn’t end there. It also includes a focus on improvements within the four walls of the restaurant–everything from back-of-house technology and kitchen equipment to front-of-house details like lighting, music, and temperature. The fourth area of focus is setting clear standards for consistent execution and implementing a restaurant-level audit process to hold teams accountable. The fifth and final priority is “punching above our weight” from a marketing perspective and “getting much more aggressive” when it comes to digital.

Gary Stern is a regular contributor to QSR and is based in New York City.

Sam Danley is the associate editor of QSR. He can be reached at sdanley@wthwmedia.com.

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FAST CASUALS WHEEL INTO DRIVE-THRU COMPETITION / CONTINUED FROM PAGE 46

While corporate unit growth has been swift, the franchise program will take a more methodical approach, ensuring the first few inked deals will be intelligently and sustainably executed. LaRue believes the first two to three deals will dictate the next decade for Angry Chickz. In choosing the right operators, he is applying his own methodology and checking off three boxes: perfect fit for the brand, market, and for the franchisee themselves. “We’ve been patiently aggressive in bringing in these first couple of franchisees and setting the bar high in terms of the quality of the partnership,” LaRue says. “I’m trying to instill the mindset of who we are as a brand and bring in people who have not just restaurant experience but who fit from a culture perspective too.” The brand is actively seeking multi-unit operators with a strong focus on community. LaRue points to leaning on groups with infrastructure on the ground in their current portfolio, and discussions with 100plus unit operators are in the works to roll up a wide range of markets across the U.S. As Angry Chickz spreads outside of California, Nevada, and Arizona, LaRue is keen on preserving Mkhitaryan’s passion and dedication to impacting the local community. While interest in the brand is buzzing, he isn’t looking for short-term operators who want a cash grab. “Making a bigger impact in communities is something rarely done at scale,” LaRue explains. “While it might take a little longer to bring in those first few franchisees, we want to create an emotional connection and we’re looking for groups that have a track record of doing that within their restaurants.” LaRue says he’ll never claim Angry Chickz is the hottest concept or the fastest growing, but he challenges the community to “just watch” as it builds up its infrastructure, develops a franchise platform, and flips the underdog narrative. “A lot of people talk about [making an impact], but it’s rarely done,” LaRue says. “Not a lot of brands do it consistently well, and that’s something we want to be known for as we grow.”

Kevin was out of town visiting his family,” Armenti says. “I ended up driving down to Denver with no expectations … but ended up pushing down the line and into the actual development [of the show].” Like Buena Papa, Gabauer recounts the rush of emotions: flying to Los Angeles, working with producers, racing to make food before their pitch, and the feeling as they walked down the famed corridor toward the Sharks. Fat Shack caught the eye of four of them, but it was Mark Cuban who struck a deal for 15 percent of the concept in exchange for $250,000. Using Cuban’s presence in Texas and national acumen, Fat Shack added three more restaurants to its portfolio of 30, with a Fort Worth location opening in late 2023. Within the first month of airing, Gabauer says north of 3,000 franchisee requests flowed through Fat Shack’s inbox. “The growth exceeded our expectations,” Armenti says. “We had stores that were experiencing a 90 percent jump in sales, breaking their weekly sales records, and we had to make sure everybody was all hands-on deck service-wise. But there’s no preparing you to handle thousands of emails in such a brief period.” Moving into the New Year, Fat Shack had plans to reopen its franchise pipeline to qualified individuals in existing markets across 13 states: Colorado, Kansas, Oregon, Florida, Missouri, Pennsylvania, Washington, Georgia, Nevada, Tennessee, Illinois, Oklahoma, and Texas. The brand wants to fill in the gaps in areas where there might only be one or two stores. For aspiring brands looking to make their “Shark Tank” debut, Armenti and Gabauer believe preparation and being in a position of strength is key for going on the show. Armenti says having an established concept and knowing the business inside and out gave them a leg up in front of the Sharks. He wouldn’t recommend using it as a “Hail Mary” to survive. “You’ve got to have your business figured out,” Gabauer says. “The reality is that [the Sharks] have tons of investments, and even if you strike a deal, they’re not working with you every single day. Operationally, the more independent you can be, the better shot you’ll have at success.”

it’s ready, instead of having to wait for the queue to get to the window,” Roman says. “If you’ve got a hot dog, a fry, and a drink, and the person in front of you has five beef sandwiches, you don’t want to be waiting for their order to be fulfilled before you get your food. Everything should be going out as soon as it’s ready to be expedited. That’s where the runners come into play.” Portillo’s also was an early adopter of a two-lane system that allows guests to peel off and exit the drive-thru if they get their order before the cars in front of them. “You can get your food but still be stuck in line,” Roman says. “That’s where the multiple-lane drive-thrus come in. Obviously, we want to get throughput. That means having a larger car stack that you can still get through quickly. Having a pullout lane means cars can actually get out once they get their food.” Those innovations have helped the company match the ultra-swift service typically associated with fast-food restaurants, resulting in drive-thrus that average just under $4 million. Like Sweetgreen, speed and efficiency are only part of the equation. “Speed is super critical, but it isn’t the only thing that matters,” Roman says. “You have to be thinking about the entire experience and making sure your team is engaging with guests authentically.” To that end, Portillo’s has honed in on the employee experience. It pays a premium for people working the drive-thru in inclement weather. It went cashless in the channel last year, a move that Roman says was made “100 percent for team members.” Now, it’s eyeing opportunities to retrofit existing locations with heaters, canopies, and other amenities. “Creating a better teammate experience is the guiding light on what we want to do from a guest perspective,” Roman says. “I think some form of drive-thru capability is almost going to be a necessity in the marketplace because the pandemic has changed the way consumers want to receive their dining experience forever. Brands that are making that pivot are going to realize something we learned many years ago, which is that if you take care of the team, the guest experience is going to be solid.”

Satyne Doner is a staff writer for QSR. She can be reached at sdoner@ wthwmedia.com.

Sam Danley is the associate editor of QSR. He can be reached at sdanley@wthwmedia.com. www.qsrmagazine.com | QSR | FEBRUARY 2024

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Tracy Kim CEO DIG

What was your first job? My first real employment was as a “cookieista” at a Mrs. Fields cookie shop in college. What’s your favorite menu item at DIG? I’m a carnivore, but actually, it is the Maple Glazed Crispy Tofu. It’s really good, but it is also sneaky in that it tastes like it’s fried. But, it’s actually baked, and it’s vegan. What’s your favorite cuisine aside from DIG? Honestly that is tough, because food and I are very good friends.

Who inspires you as a leader? I’ve been on a roll lately watching sports movies with “rising up” themes. So, I think I’ll go with Herman Boone, who led a racially integrated high school football team in Virginia in the 1970s to an unlikely state championship. Denzel Washington played him in the movie “Remember the Titans.” What’s the best piece of advice that other restaurant executives should hear? What a flattering question, given how much talent and energy there is among restaurant executives already. Here’s my take: While it is important to have an executive perspective, I have found it so important to stay in the field. In spite of any analysis, offsite or strategic work session, I have found that most of the answers are found within the four walls of the restaurant – talking to employees, talking to customers and working on the line.

eflecting upon my journey as CEO of DIG, I look back fondly at my start in the workforce—ironically earning my first paycheck at another fast casual concept. From those earlier years when I was just starting out and learning a lot, I have always had a love for people and food. And at DIG, those two passions collide in the best way possible. Before I joined the DIG team, I attended Stanford University, where I earned my bachelor’s degree, and Harvard University, where I then earned my Master of Business Administration degree. I’ve spent years in the consumer industry, working for popular nationwide brands like General Mills and Weight Watchers. Then later gaining experience in the technology sector, I served as CEO of Aaptic, where I led the company—an app startup—to profitability. Those years spent dedicating my time to the growth of various brands really motivated me to help take DIG to the next level and truly hone in on my growing passion for leadership.

FEBRUARY 2024 | QSR | www.qsrmagazine.com

What DIG ultimately strives for, and what’s been at the forefront of its mission since inception, is bringing home-cooked goodness to our communities in a fast, affordable, and nutritious way. To us, knife skills are life skills. I know my team would agree with me when I say, I believe that tasty and healthy food should be accessible. Initiatives like our DIG Dinner Box really bring that idea home, no pun intended. If anyone takes a look at our social media— trust me, it’s worth the follow—they’ll notice that we also like to have fun with cooking and try new ways to engage with the community. That’s an aspect of my job that I really try to lean into. Being out in the field, interacting with our guests, and seeing the happiness that our food and our team’s energy brings to people’s day is amazing. As a leader, that’s something that I believe every CEO should strive for. Working alongside your team at every level possible can make a world of difference to the comradery and the culture that is created within your restaurants.

DIG / QSR MAGAZINE

But I would probably pick Chinese—in particular, dumplings and dim sum.

FEBRUARY / 2024

ADOBE STOCK / ANON

The last few years have been a roller coaster for the franchising industry as a whole, but restaurants have bounced back

ANOTHER BROKEN EGG

PEACH COBBLER FACTORY

bb.q CHICKEN

PEPPER LUNCH

BONCHON

SAVVY SLIDERS

CICIS

SIP FRESH

THE HUMAN BEAN

SLIM CHICKENS

IHOP

VITALITY BOWLS

RESTAURANT FRANCHISING | FEBRUARY 2024