Restaurantchains.net

New newsletter for restaurant chain followers

2010-10-27T07:36:00.000-07:00

The latest restaurant chain newsletter.

News from RestaurantChains.net

2010-09-14T09:49:00.000-07:00

News from RestaurantChains.net for the last week of 09/14/2010

Restaurant buying group for multi-unit operators

2010-07-27T06:00:00.001-07:00

Restaurantchains.net and Joe Dunbar & Associates is your exclusive entree into the entegra co-op buying group.

We have formed a company called Dynamic Chains along with entegra (backed by Sodexo corp.) in 2008 to bring the buying group to companies who have at least 5 foodservice outlets, but no more than 50. An outlet can include units, catering facitlities, etc.

Until our agreement with entegra, you could not join the entegra co-op unless your company's annual purchases exceed $25,000,000.

From when we began our agreement with entegra, there are now 5,500 locations in the co-op who have more than $3.5 billion in annual purchases.

Our original members now find 50% more items than 2008 including brand new programs for CVP Chicken, Red Bull, Sara Lee desserts and additional eco-friendly items.

The savings are spectacular. There are more than 400 manufacturers and suppliers in the program and 7,000 SKU items. In full confidentiality, we can show you who, how much the savings are and the way the program works.

You can call me directly at 914-591-4297 or keith@foodservicereport.com and I will contact you for further discussion and investigation by your company.

Bars & Grills - the winners!

2010-07-26T08:19:00.000-07:00

"Bar & Grill restaurants currently sit atop of the expansion and sales goals of today's existing and growing chains. This is mirrored in relation to independent operators who are opening new stores and performing well in today's environment. Not all concepts, but many family/casual and upscale restaurant operators (chains and multi-units) have either closed or continue to struggle.

As far as industry growth or contraction, we see no discernable difference in 2010 as end consumers continue to eat out. They just spend less and choose differently. Paralleling our statements in 2008 & 2009, new openings of independents as well as nimble, low check average multi-units with smaller footprints have filled the gap where some higher check average and large square footage operations have ceased to exist"

See you at the NRA! May 17th-20th

2008-04-28T07:41:00.001-07:00

If you would like to meet us and see how are various chain programs can benefit you and your company, please stop by!

If you want to meet up somewhere at the show please let me know, we can stop by your booth. My cell phone is 914-980-8692. My email is keith@foodservicereport.com

Hope to see you there!

Foodserviceclub.com

2008-03-04T08:06:00.000-08:00

We started a brand new social networking site for the food service professional. Exchange ideas, expert opinion, operational forms, etc.

www.foodserviceclub.com

Restaurant Cooperative

2008-02-12T11:23:00.000-08:00

Restaurantchains.net has begun our first alliance with Dunbar & Associates in launching Dynamic Chains. Dynamic Chains is a restaurant cooperative where its members receive rebates from companies on the global scale. Items such as paper towels, dish soap, beverages and many brand name companies have rebates available given you have a size-able group. We have already attracted more than 100 companies in joining. To know more please click here...

Topic #4 on service. Asking for help

2008-01-15T06:58:00.000-08:00

The true strength of a good service person is when they ask for help and provide direction to get themselves out of the weeds.

Contrary to many servers beliefs it is not a sign of weakness or that a person can't handle the situation. Situations that come up such as;

1) Being sat 2-3 tables at once.
2) Having food or beverage sitting at the pick-up windows.
3) Sensing table maintenance needs to be done.
4) Initial greetings.

There are endless issues that come up in the service business. Almost any restaurant person will tell you the action comes in waves.

If this happens and suddenly there is a self realization that a server cannot keep up with all the multi-tasking. What is a server to do when that happens, and what are the consequences?

1) If you ask for help, it show you are in sensory command of your area/station and are competent, not weak.
2) If you don't ask for help and the customer feels shortchanged on any of the endless service points they expect, they can feel cheated out of a good experience.

Who can help to make sure it doesn't happen as often?

1) The server, other servers, the host/seating staff and the manager. If a server is seated multiple tables at once, or for whatever reason is backed up on providing good service and does not ask for help and provide direction, the host station and the manager on duty can and should be monitoring this and directing additional staff as necessary to help the server. Until a server is experienced enough to ask for help themselves they will need this assistance. After the shift the manager can discuss the event again with the server to help them understand the behavior.

The January 2008 Top Ten Fastest Growing Concepts list

2008-01-08T07:25:00.000-08:00

The new list is out. See Here.

FOH Series Continued. Topic #3, The Swarming Method

2008-01-02T07:07:00.000-08:00

There is a method called "The Swarming Method" of customer FOH service. This means that service/wait staff share the responsibility of good customer service with the primary service or order taker.

Essentially there are restaurant zones at some restaurants and other restaurants make everyone responsible to swarm. In other words, keep your eyes on all the tables in your area for re-fills of beverages, table maintenance, etc. Then you, as the non-primary server fulfill whatever the table wants and in turn other servers do this for your tables.

I think I first noticed this method done correctly in the 80's by the HOUSTONS restaurant chain.

It went like this:

A server would introduce themselves and provide menu Q&A, take the order and start the process as the primary server at the point of sale with the customer. Sometimes even the primary server would not take the order.

Then as another server/runner would deliver (whose job is to run food during the entire shift or another server who happened by the pick-up window in the kitchen) the food/beverage, they would ask if the table needed anything else. Or the runner/swarmer would see the table required maintenance of some type. That runner/swarmer would then obtain (or clean, etc.) for the table of patron(s) whatever it is they needed all while perhaps neglecting their own tables/station.

The thought was that another "swarmer" would provide the necessary upkeep for their table while they're doing it for another. There are times you would never see your original server again during that meal.

Sound confusing? I admit when I first saw this method put into play I had my doubts.
But Houstons pulled it off with elegance! I was amazed they were able to do it and I as a patron felt taken care of. It almost felt as if little angels would just swoop in at the right time and keep satisfaction high.

Since that time, I have noticed many companies trying to emulate the same method and few have with the same level of success.

______

When this method works and when it does not:

It works when:

1) Servers are thoroughly trained and supported by supervisory personnel who are watching the process during the entire shift. Management has instituted a strict "points of service" method and performs continual figure "8's" of the FOH floor to ensure it's all coming together.

2) Servers are given constant feedback on their ability to perform this method. New hires typically require up to one month and beyond.

3) A team effort where all the staff believes in this method and has genuine concern for all the restaurant patrons, not just the ones at their tables.

4) The menu and style of service is either QSR, quick casual or casual/family service.

It does not work when:

1) The restaurant is upscale. Watching over another's table is vitally important, but the bond made by the primary waiter in this sort of establishment should not be broken. Multiples of servers and support staff suddenly showing up and "over" servicing a table can leave a diner confused and feeling under-valued. The primary server should act as the captain of the ship in this type of restaurant for any table in their station, for the entirety of the meal.

2) The management team is not carefully watching the interaction amongst the staff. Therefore at times, some less professionally trained servers can rely on the "system" of swarming and forget about their primary tables. What happens is that the customer can feel as if no one is taking care of them.

What it can appear like to a patron if not done correctly:

A jumbled mess of confusion where the customer feels as if they have seen countless servers and the same questions asked repeatedly. This can exhaust a customer and put into question whether or not they return.

FOH Series Continued-Topic #2 eye contact, Genuine Concern

2007-12-26T07:59:00.000-08:00

In our continuation on front of the house service our topic is eye contact which is what we call a sub-topic of GENUINE CONCERN (or lack there of).

There has been much noticed and written on the deterioration of service in the retail industry (including restaurants) in the past 15-20 years. I have noticed as times have evolved (I am 47 y.o.), the manners police have joined with the politically correct police to create a very high bar where everyone is a critic!

I can say with good confidence that while you do your retail shopping, you feel a sense of quality and (maybe even) knowledge on your initial, split-second interaction with a customer service rep, cashier, or server.

Isn't it true that the person you are paying your money to, you as a customer expect some sort of connection that says, "I appreciate your business, and you as an individual?"

Case in point: I can't count the retail locations I have gone to where the floor staff or cashier did not make eye contact with me or the people I am with. I have heard or read statements made that a certain picture is worth a thousand looks and others not even one.

Some simple points for staffers:

1) The last statement above pertains to beauty and looking at a picture, not a paying customer. Your customers are paying and deserve to have you create some sort of bond.
2) If you are addressing a table (server or order taker, cashier) of multiple people, it is your job to make a connection with everyone, not just the person you perceive to be paying the bill.
3) One of the simplest actions, aside from the providing of a warm smile is to simply make eye contact with your patrons and make them feel connected to you. The "connection" between customer and staffers is perhaps the most important issue customers think about when evaluating their experience.

New series on FOH service- You guys ready to order?

2007-12-17T12:16:00.001-08:00

We are beginning a series on waiter service. The reason to write a series about this, is a result of what I see as small but powerful missteps from FOH staff that can be easily remedied with approaches and understandings.

I had been a professional waiter in many places. I was lucky enough to have been hired by the Hyatt Regency in 1980 to work in the Esplanade restaurant as a waiter in fine dining. Beyond that period I worked in a variety of upscale restaurants during and after hospitality school.

I am just going to jump in with my first topic:

Topic 1) Customers are not "guys."

Unless you work in a wings place, pizza or sub shop it is totally unacceptable to call a table of customers guys unless their are no females present (and I am not even sure you should call customers guys in these instances either, even folks, y'all or you all is more appropriate.).

Case in point; I have gone out more than once to upscale restaurants with my wife where the check average is clearly more than $15-25 per person and we are often asked , "are you guys" ready to order, etc.

Some reasons that is un-acceptable for wait staff to ever address customers as "guys". Some simple thoughts for a wait person to know:

1) If there was ever a romantic thought going on at that table, you just killed it.
2) Some people, however stuffy you as a server may think they are, are customers that have a paying privilege to be addressed accordingly. As the check average rises so should the formality.
3) Just like you as a server cares which side to place the silverware on, so goes this etiquette.
4) Customers are not your friends and family. Even if it's a family style/casual restaurant stick to the formalities. I always prefer to hear and be called either sir, ma'am or ladies and gentlemen.

Curent Restaurant Incubator Index

2007-12-11T06:57:00.001-08:00

This month's current RII displays continued growth in emerging chains with less than 200 stores. Data indicates November was the best month for the RII growth in 5 months.

Yes, things are slowing in AUV is many shapes and sizes, but business optimism has not stalled at all. And seemingly, there is sufficient capital for the continued expansion. There is specific growth in the QSR type of locations. Casual/Family style remains flat.

Recent press on small sandwiches, some bets.

2007-11-01T11:50:00.000-07:00

Recently we have seen in various trade magazines of some restaurant groups and chains who are focusing on small sandwiches and hamburger sliders. The defining moment is the reality that fast casual and family/casual restaurants are finally seeing the light regarding lower check averages.

In our blog we stated around a year go that we saw this as being the future. If we can pretened to have a crystal ball and look further into the future, we would bet the trend will continue for the next 1-2 years and perhaps longer.

We bet that chains that are of the casual nature will figuratively change their concepts in other ways as well.

We can also state that family casual chain growth has come to a near halt. Some chains are continuing, but the pace is very slow. We see this as a positive as chains work on store level P&L improvements by spending more on staffing, training and employing newer and faster technologies on stores already opened.

To reiterate another way;

This lends itself to the notion that operations is back! We suspect the talented GM's will increase their earning potential. There is and will be less demand in the store replication departments and more demand on store improvements.

The NAFEM show in Atlanta, 2007

2007-10-17T12:02:00.000-07:00

I spent two days at the show just walking the floor and networking. Here's what I saw;

Restaurant equipments time has truly come!

We are in a period where, if you could imagine it, it can be done. I saw custom fabrication employed by dozens of companies with the use of microchips and some various applications inside the guts of restaurant equipment with the internet infused at times.

As a publisher of business data online, there is a notion by many that we are in an if-you-can- think-it, you-can-make-it world on the internet. That notion is advancing more quickly than ever in the operations of restaurants.

Antibacterial everything was a significant theme as well.

In the TV show Kitchen Nightmares, how come you don't see any multi-units portrayed?

2007-10-08T13:48:00.001-07:00

How come you don't see any multi-units portrayed in the TV show on FOX called Kitchen Nightmares?

Because Multi-units have what's called Standards of Operations (SOP) or Standard Operating Procedures. As a previous family restaurant operator and a chain GM I learned the difference, clearly.

The TV Show Kitchen Nightmares (for those who have not seen it), has Gordon Ramsay (famous restaurateur) entering into a restaurant that is failing for some reason(s) or another.

Gordon than (correctly and quickly it seems) does a review of the restaurant from the front door to the back. What he finds in each and every mission is a staff that seems oblivious in many facets of restaurant operations.

You would never see so many obvious mishaps in a multi-unit operators store because they have SOP's. A manager or supervisor almost always has a reference as to what to place here, there, and everywhere (for the most part). Then (optimally) how to hire, train, supervise and execute shifts, all with forms of documentation and feedback.

Of course, not all chain stores work this way, but by and large they (the big chains) mostly all have MANUALS.

The restaurant manuals help the operator/owner to stay on some sort of track (including recipes for food served). I am not trying to make it sound easy, because it is certainly not. But if you don't have SOP's how does a staff tell right from wrong in most cases? How you can have accountability without direction?

To sum it up in my opinion, single-unit independents are NOT being swallowed up by chains because of their marketing and ad budgets, but because of no SOP's and therefore poor accountability. It's hard to have pride in hitting the bulls-eye if you don't even have a target.

October's Top Ten Fastest Growing Concepts List

2007-10-02T03:44:00.000-07:00

See the just released list of October's Top Ten Fastest Growing Concepts with less than 50 stores.

Four concepts were on previous lists this year. One concept that grew past 50 units had less than 50 at the start of the period. See the current list.

Mistakes in this weeks newsletter

2007-09-25T09:40:00.000-07:00

Garlic Jims actually was #6 on our top ten list in July. We stated they were #10.

Also, Flemings increased by 8 units during the period, not 10 as we stated.

Sorry for any confusion.

We will print corrections in next weeks newsletter.

M&A representation by Restaurantchains.net

2007-09-25T05:06:00.000-07:00

Time to sell?
or
Time to expand?

Take advantage of Restaurantchains.net's close contact with thousands of restaurant chains.

Restaurantchains.net offers merger & acquisition gateways. Restaurantchains.net and our principals have decades of M&A experience including FOH & BOH operational competency, consulting, advising and P&L management.

Services include establishing the right fit for the thousands of restaurant chains with whom we have frequent and close, inter-personal contact. We offer:

*Diligence and pre-screening of potential acquisitions and/or potential acquirers.
*Development of equity strategy including divestiture.
*Full fledged consultation of current properties including transition flow and core philosophy entanglement resolution.

Contact us for an initial confidential discussion. Contact us at restaurantchains@gmail.com or call Keith Gellman at 914-591-4297.

State of the Industry. New Alerts feature.

2007-09-09T06:03:00.000-07:00

1)In all this recent hullabaloo about the economy,

My opinion is reflected due to my organic involvement with the business is that, the industry is going strong.

Due to the (ever so) consistent nature of daily food consumption by customers, the shift is still decidedly quick service. People have not stopped eating, just shifted according to their wallets. Our research has continued to show this to be the case for at least the past two years.

We anticipated this to continue for the foreseeable future. The August RII (will be posted next week) along with our internal capturing of growing concepts (see newsletters) helps to prove the case.

And,

2) Restaurantchains.net is going to issue an alerts feature showing clients which concepts are achieving new unit growth plateaus and benchmarks. This will enable end-users as well as manufacturers see who the newest growth winners are. Stay tuned.

Natural progression of recent RII and other issues

2007-08-14T05:23:00.000-07:00

If you have seen the RII in recent months you will notice a last quarters rise of burgeoning companies with less than 200 stores. Please follow the link above to see the recent outputs.

We have begun to syndicate our weekly newsletters. You should be seeing us on www.restaurantnewsresource.com and bluemaumau.org. These are two sites that are PR related. Each has it's own twist on presentation and audience. We expect to be posted on some other major sites shortly.

Julys Top Ten Fastest Growing concepts below 50 units

2007-07-10T05:10:00.001-07:00

Top Ten list for July in order of largest percentage growth;

1. Which Wich
2. Tacos Don Chente
3. Homemade Pizza Co.
4. Costa Vida Fresh Mexican Grill
5. Heidi's Brooklyn Deli
6. Garlic Jim's Famous Gourmet Pizza
7. Fat Tuesday
8. Extreme Pizza
9. La Paletera
10. Ted's Montana Grill

Perfecting the figure 8, another 6th sense story

2007-06-12T06:39:00.000-07:00

As a newbie manager in the 80's, the main issue for my leaders to get into my head was "awareness."

It was the ability to see what was going on where in the restaurant. Being that restaurants had a front as well as a back of the house in addition to numerous dining areas and entrances there was no real way to see it all once.

So we were taught to make a figurative "figure 8."

In other words to move from area to area, room to room and place to place over and over again throughout the shift. Then, from the perspective gained from floating from point to point you were able to gather the goings on of staffs and customers that often exceed 3 or 400 people, places and things to look at-all within minutes.

This was never easy, but this practice allows the unit manager to see, touch and feel the operation while being the manager on duty and providing necessary coaching and directing to create a successful shift. I found that this method was sound and enabled myself as well as other managers to obtain the elusive "sixth sense."

In order to graduate from a unit manager to become a GM, this was demanded of me. I believe most operators today strive for the same.

The NRA show in Chicago. Is it worth it to be an exhibitor?

2007-05-25T11:41:00.000-07:00

I have been going to the NRA for 7 of the past 10 years and I have noticed some changes relating to how the show works, the attendees that visit and the exhibitors of which I am one of.

Being from outside of the region as an objective observer and a company trying to do business, I think it's fair for the amount of time I've spent at the show to make some reasonable observations.

This is my perspective as an exhibitor for the past three years,

1) The media hypes the show as a big deal. But it is a big deal. 75,000 folks going through Chicago veins is a lot of cash and great for the city.

2) Chicago rolls out the red carpet. Wherever you go the hospitality is felt.

3) There are more than 2,000 exhibitors.

4) The show is a big deal and very costly for the exhibitors as well. The exhibitors foot the bill more than any other sector. Even an 8'x10' booth commands around $2600 plus, electric, tables, chairs, shipping, handling, etc.

There are 8 miles of aisles. Then take into account the hotels, travel, food, entertaining, staffing etc.

All in all, it's a very large sum however you slice it.

5) Attendees have been increasingly local. More and more folks have badges that are of local states. This is the most painful part for the exhibitor after all the financial and emotional expense of putting on their show. Where are the non-regional restaurateurs?

Resulting opinion: By and large the show pays off for the bulk of the exhibitors. The exhibitors are always weighing their bang for the buck. So far the majority is hanging on year after year. But this is a national show and national attendee representation is waning.

Why does everyone in the greater Chicago area know that the NRA, perhaps is not the National Rifle Association and everywhere else, often automatically, believes that it is?

Additional thoughts turn to a marketing message that is not being heard in the national arena.

For the show to continue to thrive in Chicago, the city of Chicago working with the NRA must find a way or the show might lose some luster as a national meeting place for the industry.

Management today, NRA show May 19-22, 2007

2007-05-15T07:58:00.000-07:00

From my days in restaurant operations a few things held true. The General Manager was the "key" to the success of any store, and of great importance during busy shifts. It seemed the sixth sense was necessary to run a great store. It still is that way, but we have been seeing from a number of operators the "decentralization of talent."

Corporate offices want to to take away the drudgery and the artfulness. But is it possible? We think it is. We are seeing more and more operations who are working on a simplified system of narrow menu choices, big value to the customer and employee empowerment. Currently all indications are that this trend will continue.

Today's newsletter will be our last until after the NRA show. Exhibit space is sold out and it expects to be busy. See you there. We will be at booth #6365.

Fluidity-let's talk Chipotle

2007-05-08T04:10:00.000-07:00

Chipotle, it's restaurant and their stock are on an upswing if you haven't noticed their recent per share price. By the way, I am not a stock holder nor an operative for the company.

Most public chains today are huge due to their massive display of growth in stores and foot traffic. Same store sales of chains can often show an increase congruent to their advertising, promotion and PR department(s) expenditures.

But something feels different at Chipotle. On the customer end, their is a feeling of fluidity from the moment you get in the door through your last bite before exiting. There is an overwhelming part that makes you feel as though you are part of the process, and within this process, you feel valued and important all while spending around $10 and not leaving hungry.

My opinion is that if you can emulate that, you will have a winner on your hands. If you haven't visited a Chipotle, try it- I bet you will feel the same way.

Industry insights- operations and acquisitions

2007-04-19T12:25:00.000-07:00

We are always tracking chains that are growing, those that are being acquired and those that are closing units. In addition, where I sit at my desk I typically have CNBC on the TV.

I often wonder while watching the stock channel as well as industry publications regarding buyouts as to what qualifies them to perform this sort of surgery on restaurants. From my perspective some chains and some management groups are suited to certain types of operations. It's almost always a square peg in a round hole and yet it is tried over and over again. However if the goal is to slash and burn by selling off or closing units, or changing trade names and concept operations, and your company is public, this can at times make wall street happy.

As for operators, we have noticed some large multi-concept growth in chains that are not meeting customer standards trying to run different concepts. For example, If their DNA is full service casual without deep formal training in upscale operations, I have found that by and large they simply cannot run them to discriminating levels and visa versa for those who make the addition of quick service to their already casual or upscale concepts.

Industry insights- fast service, cheaper eats

2007-04-19T11:51:00.000-07:00

We are reading in the media these days regarding the notion that fast service restaurants are out pacing full service restaurants regarding expansion of locations and unit volume increases versus those with higher check averages. Seems like old news to me.

It's been apparent with the ultra high cost of running full service locations and the squeeze put upon the broad mass of the population in the past 1-3 years, there isn't much choice if you are frequent diner who may go out to eat 5 plus times per week. Can an average person (let alone a family) really afford more than $15 per person for a meal multiple times per week, every week? I suppose some can. But new chain developments and those that are growing are decidedly quick/fast service, and have been.

April's top ten

2007-04-03T05:30:00.000-07:00

Aprils Top Ten list of fastest growing concepts is now out. The winner, Nemos Seafood has a quick service seafood concept that more than doubled it's number of units within 4 months. Companies with less than 50 units and more than 3 are used for this study.

The Top Ten are:

1) Nemos Seafood
2) Shane's Rib Shack
3) Let's Dish!
4) Oceanaire Seafood Room
5) Hurricane Grill & Wings
6) Granite City Food & Brewery
7) Ohana Hawaiian BBQ
8) Jim 'N Nick's BAR-B-Q
9) Stevi B's Pizza
10) Crispers Fresh Salads and Such

Watch next week for our RCO2000 press release along with March's Restaurant Incubator Index results.

NY Restaurant show

2007-03-13T07:29:00.000-07:00

In this years walk and talk of the NY restaurant show we saw the following compared to previous years (By the way, we walk the entire show at least twice) :

1) Lots and lots of Bakery items. Similar to last year as far as the number of cookies, croissants, cakes and specialty sweets. The move towards individual high taste desserts has not changed at all.

2) This year, spirits and beer sections were interspersed vs. last year when they were in one section. It seemed like a lot more fun last year, but perhaps for the vendor it made more sense to diminish the party atmosphere helping them to speak with serious buyers. I think last year they were overwhelmed with dispensing.

3) We always see new vendors and entrepreneurs at trade shows who tell us, "we just started with this show." There seem to be many this year. Innovation never ends.

However we often scratch our heads with wonder as to why any person or company would begin sales, their first days, with a trade show. I suppose it works now and then, but we have seen less than 1% of these efforts ever succeed to come back in subsequent years. It seems that new trade show exhibitors expect too much. I have to imagine it might work this way in other industries, but not ours.

4) The show was rocking busy! Once again, the exposition company got the people there.

New information for users (and future clients)

2007-02-13T04:18:00.000-08:00

We have just completed a migration to a more robust database. Speed and use issues have been resolved by the move to SQL server . In addition it's now easier to look up by key contact name.

In the very near future the export tool will allow you to choose the exact fields to export as well as the type of layout vs. the current limited allowance of two export models with fixed layouts.

Coming next week you will see a launch of our new free service for Chain operators called, "restaurant trademark watch."

Expect some surprises by the Spring, including a release of the data that's behind the Restaurant Incubator Index. It's been about a year, we have tailored our tracking to produce "never seen before" statistics of the restaurant chains we follow in our universe.

Included will be future forecasting of industry types. Please stay tuned!

Alerts Newsletter Pro

2007-01-16T06:16:00.000-08:00

Today begins the start of a more enhanced newsletter that includes more detailed information than our typical Restaurantchains.net Alerts Newsletter.

The reason for the change and the enhancement is as follows:

*Readers wanted more information than we were offering.
*Internally we found we required additional income to make a more sophisticated newsletter.
*Non-subscribers were deluging companies in the Alerts Newsletter with too many prospecting phone calls. We believe the free aspect of the newsletter did not help sales personnel to be as discreet as they typically are.

So, starting today we are going to limit the amount of stories for no charge and provide the extra information we had not previously offered. The cost is around $7.50 per week.

Paid subscribers (and Restaurantchains.net Pro clients-the enhanced newsletter will be included with their company subscription) will be receiving a larger newsletter with contact folks, emails and all company particulars in MS Word and MS Excel formats.

Announcing January 07 list of TopTen Growing Concepts

2007-01-02T06:47:00.001-08:00

Announcing our quarterly list of the top 10 growers. As a result of our every four month re-verification in combination with our Restaurant Chain Incubator Index we have put together a top 10 list of growing concepts. A new list will be published every calendar quarter.

They are in this order.

Top 10

1. Papaya King
2. Starwich Salads and Sandwiches
3. Bearclaw coffee
4. Fish City Grill
5. Spicy Pickle Sub Shop
6. Bajio Grill
7. Rumbi Island Grill
8. Heidi's Brooklyn Deli
9. Doubledave's Pizza Works
10. Jreck Subs

Our criteria and methods are posted on the RestaurantChains.net website. Click to see

Clients can view the details of each company, now many units, AUV, annual sales, contact personnel, square footage, seats, average check, etc.

Special analysis from current month data

2006-11-28T07:44:00.000-08:00

For the first time since we began tracking around two years ago we have seen more pull-outs from states, than expansions into new states.

So far this month (November) 20 companies pulled operations out of states versus 17 who have expanded into new states. Although this is the first time we saw an actual reduction of state expansion growth, we have noticed this slowing trend line during the past 4-6 months.

However, 131 companies have posted unit increases compared to 81 who had decreases.

Our synopsis is that; the above facts lend itself to the belief that companies are growing more in a
spoke and wheel development method within a region, while shedding far flung units that prove to be more difficult to operate without close physical corporate and peer contact.

IHMRS in NY

2006-11-15T08:27:00.000-08:00

We just completed a three-day tour of the NY Hotel/Motel and Restaurant Show this past few days. It was extremely busy and we saw a couple of new products to get excited about.

The neatest item we found was a table base made by a company out of Australia called "FLAT" that fixes the problem of wobbly tables. There have been others on the market for years, but this product has actual hydraulic feet in the table base that adjust instantaneously on whatever floor type it is placed on. One of the best features is the cost of the base which runs only around $50.

The other equipment product we saw that got us excited is made by Delfield (A division of Enodis) called "Versa Drawer." It is a drawer refrigerator with four drawers (at least the one that I saw). In each drawer you can set it to either cool, chill, thaw or freeze at a touch of a button. Users can then change the settings on the drawers at will. Now that's versatile!

Increases vs. Decreases. Some trends.

2006-10-31T05:11:00.000-08:00

We have seen a significant closing of units during our last four-month period. For the past two years (since we began tracking), chains were increasing units by 2 to 1 margin. Optimism had a long run. Whether or not locations were succeeding by year over year sales comparisons or not, is not what we gauge here, only expansions and lack there of.

Now we are seeing closings that almost equal openings 1 for 1 for the first time since our tracking began. In some weeks we saw closings edging out openings by slight margins.

Other insights include a purview into quick/fast service locations that have been closing units lately as well as upscale and casual types, which have been steadily shedding units for about one year. Prior to this period, data revealed no end in sight for the quick/fast service segment.

Above all, most growth is still quick/fast service restaurants vs. casual/upscale by a unit-opening margin of 4 to 1.

Restaurant Survey Results

2006-10-20T11:57:00.000-07:00

Here are the results of last weeks survey:

How did you first learn about the Restaurantchains.net newsletter?

51% of respondents are Restaurant Chain executives, senior managers or owners.

47% of respondents are manufacturers, vendors, suppliers or consultants.

2% of respondendents are students or teachers.

____________

If their was an option for a more enhanced newsletter would you want to receive it?

78% Yes

14% Maybe

6% I am not sure

2% No

_____________

Would you consider paying a fee for a more enhanced newsletter?

49% No

47% Yes or it depends upon the cost.

2% Are you crazy?

2% I am not sure

Synopsis:

75% of those who want more information and are willing to pay a fee (to produce the extra work product) are suppliers, vendors and manufacturers.

20% of Restaurant Chain executives are willing to pay a fee for a more enhanced newsletter.

Considering the responses from the survey we are going to launch a more enhanced newsletter option in the near future.

Other issues:

We received alot of comments from chain executives regarding what best methods can they use to submit their company for inclusion in the newsletter.

What you can do:

Typically all news stories come from internal tracking by our researchers as a result of calling your company every four months. But if you have press release information you want to share or breaking news, please send it immediately to us in PDF format.

___________

Many of you expressed interest in exposing the audience to technology information, automation issues, new equipment and operational benefits.

If you have a press release, specific issues or something you think may be of interest to our readers, please send it to us in PDF format.

What we will do:

We are currently putting together a plan addressing these issues for inclusion and commentary.

___________

We've had this question numerous times:

Why can't I see all the alerts that are published each week?

Answer:

This alerts newsletter only highlights a fraction of alerts. Currently full weekly alerts reports are bundled as part of a subscription to Restaurantchains.net.

Soon we will offer the full alerts report as a stand alone product for purchase.

Restaurant Incubator Index for September and....

2006-10-09T07:37:00.000-07:00

Septembers index is slightly up and we are showing a continual slight slowing from July thru September. In the past month of September the index increased by .08% (less than 1/10 of 1 percent). In the previous month of August the index increased by .1% (1/10 of 1 percent).

Clients have warned us about the slowdown. In addition, colleagues in other vertical industries have been complaining of severe slowdowns in almost all retail sectors of the economy in 2006. As you can see by the numbers the increase is far from zealous, but their still is one. As my father always told me: People gotta eat!

Also, many of you have asked how do I get my growth story into the weekly Restaurantchains.net alerts newsletter?

First it would help us to know as much about your company and concept as we can. Start with contacting the office here and asking for inclusion. At the same time help us to go over your company record with a staff researcher. You can begin the process by calling us at 914-591-4297 or sending an email to keith@restaurantchains.net.

A few things

2006-09-26T09:17:00.002-07:00

We found the Restaurantchain.net alerts newsletter to be hugely popular. We are clocking more than 17,000 bonafide reads per month. We are constantly receiving positive reviews from our readers. We love it and say thank you!

Many readers in our feedback survey have asked for more information. As a result we will be adding to the size of the newsletter, adding sponsors, detailed contact personnel and other unique up to date information. Whereas Restaurantchains.net subscribers will always receive our full offerings at no extra cost, non paying subscribers will be asked to pay an enhanced fee for the value added information we intend to provide. Stay tuned.

August RestaurantChains.net Incubator Index

2006-09-12T10:58:00.000-07:00

Our now monthly installments of the Restaurantchains.net Incubator Index are up for viewing at the website. We now have monthly capability and you can watch the index change over time.

You saw it coming

2006-08-29T04:22:00.000-07:00

In recent national press it seems that casual, full-service restaurant chains are having the most trying times they can remember.

When we began our RestaurantChains.net alerts newsletter displaying emerging/growing (and no longer growing) concepts in the beginning of this year, we were hard pressed to find casual chains that were growing at all. For the most part we only noticed they were closing them. We struggled and had a lot of tension in the office here towards trying to find some casual or upscale restaurant chains/groups to write about in the newsletter.

If you've reviewed our newsletters (you still can-they are archived on the website) you can barely find anything but quick service and fast casual chains that are growing. Newsletter after newsletter the point has been proven.

Next week, with the new month coming, we'll be releasing our new Retaurant Incubator Index numbers in the newsletter. To sign up for the newsletter please go to www.restaurantchains.net and sign up on the home page.

Restaurant chain incubator index

2006-08-17T06:42:00.000-07:00

After nearly a year of evaluation and preparation we believe we've created a brand new benchmark for the restaurant industry. Next week, we will release our first findings as a result of our new incubator index.

The new incubator index starts with an index score of 1,000. We have included chains with 4 or more stores and less than 200. Already we are seeing fresh trends. We'll soon get into the details and methodologies. Stay tuned for the release.

Newsletter is now weekly

2006-08-08T07:13:00.000-07:00

Today we are publishing our 13th RestaurantChains.net Alerts Newsletter. We have been publishing twice a month and our readership has grown to the point where we believe it makes sense to go weekly. We've also begun to accept advertising as a means of supporting the free newsletter. We do expect to be offering a more detailed paid version soon.

The new site is up!

2006-08-01T09:38:00.000-07:00

After 9 months of planning, designing and getting ready, we have launched our new restaurantchains.net site. One of the best features is average unit volume per company. I personally took on this project and made the final assessment on the AUV's. Some, who are public companies were easier to gather information on. The bottom line is it took us around six months of time working into the night (weekends and holidays too) to get it done.

The result? A never before published field value (we're the first in the restaurant research/directory business to assess AUV's on so many companies) that makes sense! Now users can search on AUV ranges and create lookups that deliver.

Other changes include full searchability and "from and to" searches on sales.

Celebrity Cruises

2006-07-19T09:07:00.000-07:00

I spent a little more than one week on a family vacation to Alaska. I typically don't review my dining experiences but I'll spend a moment on it for now. You may know that cruise ships typically have an upscale restaurant or two on board for extra charges. On the cruise ship Infinity they have one called the S.S. United States Restaurant.

The cost is $30 additional per person (all other foodservice is included in the cost of the cruise). The service was French and the food Nouvelle French. WOW! it was astonishing as I would give it a full five stars! The food was delicate and the service solicitious and poised. I am happy to recommend it. I spent three of my seven dinners there.

Ice Cream Wars

2006-06-26T08:22:00.000-07:00

The Spring certainly is the Ice Cream growth period. There is a torrid race to brand and capitalize on the publics favorite dessert. Here are some of the current counts:

1. Rita's Italian Ice. Increased recently going from 342-361 units.
2. Maggie Moo's. Increased recently going from 181-190 units.
3. Cold Stone Creamery now has 1300 locations.
4. Marble Slam Creamery now has 326 locations.
5. Friendly's currently has 530 locations.
6. Baskin Robbins has more than 5600 locations.

I have also heard of a concept called Ray's Italian Ices which operates mostly in the NE who is so popular there's a never ending waiting list to become a franchisee. They are very hard to track down. I believe they have more than 50 locations.

Chains Expanding

2006-06-13T10:05:00.000-07:00

Here is a list of some recent expansions by restaurant chains over the most recent four month period:

Buffalo Wild Wings increased 34 units. From 350-384 units.
Bob Evans/Mimis increased 7 units for their Mimi's concepts. From 96-103 units.
Juice it up increased 7 units. From 92-99 units.
Fox & Hound increased 3 units. From 65-68 units.
Logan's Roadhouse increased 7 units. From 153-160 units.
Philly's best increased 3 units. From 18-21 units.
Wing Zone increased 6 units. From 74-79 units.

NRA Chicago 2006

2006-05-25T12:31:00.000-07:00

We just got back from the NRA show in Chicago. As usual the show was very busy. And as many of you may already know, President Bush came by for a speech.

Days 1,2 and 3 seemed even busier than last year as far as foot traffic down the aisles. From our perspective (we were not near food which draws the most foot traffic) Tuesday was off by nearly 50% foot traffic from last year. Overall most vendors in the North and South upstairs were happy. Vendors downstairs complained of light traffic overall.

As usual you see a lot of new products. The best one I saw was from someone who wasn't even exhibiting. Payam Lavi of convenience enterprises came by our booth and showed me a picture of an automatic silverware/napkin wrapper. A good idea considering that job is typically done by a server towards the end of his or her shift. Aside from being typically unsanitary, the labor savings of using a machine to perform this job function seem obvious.

Big restaurant companies are still growing strong

2006-05-08T13:52:00.000-07:00

You may have grown up with some of the chains I am about to mention. But don't think because you've been there a hundred plus times they are getting complacent. In the past four months we found the following growers over the last four month period:

1. Papa Johns. 2903 to 2924 units.
2. TGI Friday's. 778 to 806 units.
3. Outback Steakhouse. 914 to 926 units.
4. IHOP. 1228 to 1252 units.
5. Chuck E Cheese. 507 to 522 units.

Point of Sale systems and Food Distributor changes

2006-05-01T11:57:00.000-07:00

New field additions POS and food distributor were added to the RestaurantChains.net directory over the past 18 months. The first sweep through (calling all chains to find out who and what they were using) took 10 months, the second sweep through (quality control) almost eight months.

Now it's come time to re-verify (annual re-verification) and we began two weeks ago. So far we're through 150 company records and found 3% of companies changed their food distributor and 3% their POS.

Personnel turnover during the past trimester

2006-04-20T06:31:00.000-07:00

In our every four month re-verification cycle of our restaurantchains.net directory we took a count of how many of whom had changed positions at the corporate level during the period from 12/19/05- 04/19/06. Listed here are the results:

Changes in personnel include 32 marketing, 22 chefs, 17 purchasing, 16 operations, 14 human resources, 12 training, 10 real estate, 9 CFO's, 8 COO's, 8 controllers, 7 CEO's, 7 franchising, 6 IT, and 4 construction.

The preceding numbers DO NOT reflect the more than 400 other folks with same (or other) titles who have been added during the period.

Watch out Starbucks and Dunkin Donuts!

2006-04-11T06:48:00.000-07:00

Caribou Coffee is quietly going on a growth tear. The bigger boys are getting the press, but Caribou has grown 17% in just the past four months. They have grown from 337 to 395 stores and expanded into the states of IN & SD.

New Newsletter!

2006-04-01T11:40:00.000-08:00

We started a new (every two weeks) newsletter displaying changes in the restaurant chains that we track. Currently, we have 3719 chains in our database that we call and reverify every four months. 3400 are unique brand, the remainder franchisee companies.

Since the RestaurantChains.net project began we have been through the entire database 10 times by now. I believe we are finding some neat-to-read items.

Now you can get a copy sent to you by email every two weeks. Just send me an email at keith@foodservicereport.com and request to be added and please include your name and company information.

So far we have sent out four newsletters and the demand has been so great we have to hand over our email management to a third party company. Within a week or so we'll have our new website up where we will have newlsetter archives as well as a new email sign up tool.

Quick Casual and Bodacious

2006-03-28T07:16:00.000-08:00

Chains that are developing today do it fast and reasonable. An example of a casual chain is Applebee’s with more than three new locations opening each week in the past months and years. Subway on the quick service side opens more than 30 locations each week in the U.S. alone. We have just begun to look at this, but looking at the new counts of developing chains we estimate new openings are 55-65% to be quick service or fast casual, 30-35% casual or family style and 5-10% upscale. The 100 seat family or upscale restaurant is showing signs of a disappearing profile. To develop quickly today we are seeing full service locations that are large and bodacious or small to mid-size with a quick service approach.

New restaurants and their nature in the beginning

2006-03-16T13:10:00.000-08:00

Here in the office for the past 10 years or so we've been finding, sorting and qualifying new restaurant locations. Most new openings are not chain restaurants but independents. On the average, we publish more than 750 new restaurant openings per week. More than 80% of what we report on are independent, single unit operators. The remaining 20% are chain operators. So rest assured chains are not taking over the world. Not yet.

How come the chains start with such a bang compared to independents? From our perspective it comes down to a sense of posture and respect. We can often tell in the first phone call if someone will be out of business within a year. We believe it's congruent with what a customer sees and feels as they drive into the parking lot and enters through the front door. Sure, clean restaurants and quality design provide a basis but if the phone is not answered with a pleasant indulgent confidence the rest of the operation can follow suit.

If you've ever called a large chain restaurant and asked for the manager (even if the location is brand new or pre-opening), the host, wait person, cook or other line level employee will ask you to "please hold on" and then go and get the manager without much quizzing. Typically he will pick up the phone and patiently answer your questions. Almost nothing is off limits.

Our view is many new independent operators take a filtering approach towards callers which can sometimes alienate future customers.

Special analysis of succeeding restaurant concept types

2006-03-13T13:23:00.000-08:00

In taking a close-up look at the type of restaurants that are emerging over the past months there seems to be a common principle: Allow the customer to order a meal or a significant appetizer for fewer than 10 dollars (excluding beverages and other add-ons). We have found chains with a menu mix that welcomes customers of all shapes and wallet sizes is what’s working now.

It seems that restaurants that can accomodate a table of four and be happy that two folks ordered only an appetizer, one an entree and dessert, and the other only soup are the clear winners in todays environment.

New York Restaurant Show

2006-03-08T08:58:00.000-08:00

We just got back in the office today after three days at the NY Restaurant Show at the Javits. It was extraordinarily busy. I believe the expo company did a more than sufficient job of pre-show marketing. There was alot of food offered. So much so, you could not walk through many aisles for hours with comfort if you wanted to do business and not just graze. We noticed a heavy amount of cookies and cakes. Seems coffee type cakes are all the rage right now.

We saw an amazing product out of Japan. It was a cooler. A sort of reach-in refrigerator like you get your soda from in your local convenience store. Anyway, they grabbed a bottle of un-opened coke out of this cooler and then opened it. Then it magically turned the soda to a slushie type of consistency. Some sort of smooth ice chunks. They said it's hugely poplar in Japan. The company is called Magiquoal. I personally shook a bottle of un-opened water and watched as ice magically appear within the bottle. I imagine they could sell well here. Picture an ice infused slushie in the hot summer with no cup and ice needed.

The show also had a night club area in the back corner of the show. Kind of classy and lots of alcohol sampling going on. This show seemed to have more alcohol presence overall than in the past few years. Lots of exotic liquors and Belgium beers.