Foodservice

Restaurants Hungry for More

Boosting system-wide sales; Five Guys tops "hot" list

WASHINGTON -- Against a backdrop of increased federal and state scrutiny and regulations in terms of menus, labor and other issues, some restaurants have been able to significantly boost system-wide sales, according a special STORES report accompanying its Hot 100 Retailers list. Topping the list is Five Guys, the Virginia-based hamburger chain that sported 38% 2010-over-2009 sales growth.

Like No. 2 Jimmy John's and No. 5 Wingstop Restaurants, Five Guys' growth has been powered by the rapid addition of franchised locations.

The top 15 are listed below (ranked [image-nocss] by year-over-year change from 2009 to 2010): Five Guys. Jimmy John's. Chipotle Mexican Grill. BJ's Restaurants. Wingstop Restaurants. Panda Restaurant Group (Panda Express). Bojangles Restaurants. Buffalo Wild Wings. Cheddar's Casual Cafe. Focus Brands (e.g., Moe's Southwestern Grill, Auntie Anne's, Seattle's Best, Carvel). Chick-fil-A. Little Caesars. Panera Bread Co. Papa Murphy's. Subway. Click hereto view the data.Burgers in general are enjoying a resurgence with the dining public: Nearly half of all consumers eat at least one a week, up from 38% two years ago, according to Chicago-based research firm Technomic.

"The value menu is certainly a big part of this increase in burger consumption," said Sara Monnette, director of consumer research at Technomic. "There are other factors at work, however, as the specialty burger craze has driven growth in a way that is almost defiantly separate from pricing. The better burger restaurants in the fast-casual segment have put the burger top-of-the-mind for consumers, and even the quick-service chains have begun to respond and focus portions of their menus specifically on quality perceptions."

Jimmy John's is making a repeat appearance near the top of the chart. The sandwich chain is noted for baking bread on premises every day and for the vegetables and meats it slices fresh in house.

Wingstop, where chicken wings prepared nine different ways are the main attraction, was acquired by Roark Capital Group from another private equity firm last year. Roark is represented on the list twice--first as the owner of Wingstop and sister chain McAlister's Deli--and again as the owner of Focus Brands, which operates such chains as Auntie Anne's Pretzels, Carvel ice cream shops, Cinnabon, Moe's Southwest Grill and Schlotzsky's.

Both Chipotle Mexican Grill and BJ's Restaurant and Brewhouse own and operate their own locations, and both are making repeat appearances as they continue to open new stores despite tough economic conditions. Known for its fresh food served in a fast-casual environment, Chipotle expects to double the amount of locally sourced produce at its 1,000-plus restaurants this year. Growth (20.9%) slowed

STORES Media is the publishing group of the National Retail Federation (NRF), the world's largest retail trade association.

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