LQ Chicken Shack, Chicago
Instead of letting some dead space near the hostess stand go unused, Charlie McKenna turned it into a moneymaker. Chef and owner of Lillie’s Q, a high-traffic barbecue spot in Chicago, McKenna converted the area near the front of the restaurant into LQ Chicken Shack, a takeout-only window that opened in September. “I’m not just a chef,” he says. “As an entrepreneur, I have to find ways to make more money.”
The decision of what to sell from the window was easy for McKenna, whose smoked fried chicken already was popular on the restaurant’s menu. Plus, it’s relatively quick to prep, he says, because the method of cooking the presmoked chicken requires less time than cooking a raw bird. To not bog down the already-slammed kitchen, he added a cook and carved out a separate kitchen in the basement just for the window, treating it as an entirely separate concept. “People can eat our food and not necessarily eat barbecue,” he says.
Figuring out how to get the to-go orders to the window without interrupting the flow of the restaurant was trickier, but McKenna found a system that works: Food is boxed in the kitchen and brought up behind the bar. A runner then brings it to the window.
The biggest benefit of adding the takeout window? “I don’t have to pay any more rent,” says McKenna, who describes LQ Chicken Shack as an incubator within his existing restaurant.
“I have a different restaurant and can grow sales with this new concept,” he says. “If it takes off, maybe I’ll open a storefront for it nearby, and [the window] can be the next trial concept.”
S&M Sausage and Meat, San Diego
The restaurant-market hybrid trend, highlighted by giants such as Eataly, is getting a more focused update. The evolution is well illustrated by S&M Sausage and Meat, a butcher-restaurant combo from Scott Slater, founder of the Slater’s 50/50 burger chain. And it doesn’t stop with the food, on offer over the counter or at the table. Slater is running a company with the goal “to be creative and discover new ways—some good, some bad—of doing things,” he says.
He describes the retail side of the concept (accessible from the restaurant or a separate door) simply as a deli counter with uncooked sausages, housemade bacon and charcuterie. There also are some farmers-market-type wares such as private-label sauces and other local goods for sale.
What sets S&M apart from some of the other butcher-restaurant hybrids emerging in many hipster-friendly cities is its frictionless service style on the restaurant side. Aiming for millennials who “demand a [complete] service experience” and yet want to be in control of the level of interaction they have with staffers, Slater developed a card system that takes control out of servers’ hands and gives guests the reins. “It’s different than any other dining experience,” he says.
Customers not bellying up to the full-service Swine Bar can go the fast-casual route at S&M. They place orders up front at the “concierge desk,” then are handed a set of color-coded cards and directed to seat themselves at one of the communal tables. It’s those cards that tell servers, internally called “experts,” what the guest wants at any given moment—be it the answer to a question or frankly to be left alone.
H-E-B's Table 57
Unlike c-stores aiming to siphon off share of stomach from restaurants by leveraging convenience, supermarket chains are selling themselves as all-in-one dining destinations. One of the most ambitious examples is San Antonio-based H-E-B. In February, it opened the doors to its newest store in Houston, a 91,000-square-foot megamarket that includes Table 57, a 183-seat dine-in restaurant with a bar and patio.
Guests order at a counter from an extensive menu of fresh-cooked burgers, sandwiches, soups, salads, barbecue smoked on-site and more, and waitstaff deliver food tableside. For those without time to sit and eat, Table 57 offers takeout, as well as catering. It also has an attached cooking school for wine tastings, classes and private events.
The restaurant, which is accessible from inside the supermarket as well as streetside, is drawing people into the store to stay a little longer and spend a little more. “It’s mostly a lunch crowd during the week,” says Lacey Dalcour Salas of H-E-B’s public-affairs team. But weekend shoppers also are an important market for the new spot. “We see a lot of customers coming in for Sunday brunch and then doing a large Sunday shop afterward.”
And that, after all, is the advantage these concepts have over traditional eateries. Though they look and act like any traditional restaurant, they have the added benefit of being attached to a grocery store, thus appealing to busy customers looking to kill two birds—shopping and dining—with one stone.
Garages
Garage restaurants, it turns out, are more than just a theme. Increasingly, they’re a solution to an age-old real-estate challenge. Brad Creger, managing partner of Rutledge Cab Co. in Charleston, S.C., can name a few reasons why they are becoming popular spots for eateries, aside from the innate character and history of some old auto garages. “They are usually in good locations,” Creger says. “[And] they are often overlooked for other uses.” Because of a former life holding cars, garages also have ample space for parking.
Molly Swyers, senior VP of design and communications for Garage Bar in Louisville, Ky., found the same: “The former garage sits on a great corner lot—so great [there’s] visibility and good space for covered outdoor dining, along with more land in front and along the side to create a fun beer-garden-type environment.”
Many of the restaurants parking themselves in converted garage spaces are embracing the aesthetic. Chef Jonathan Waxman’s famed Barbuto in New York is in a garage, so when he decided to expand to Nashville last June with Adele’s, he went the same route. “The reason I think a lot of folks like this type of building is because a lot of garages have naturally high ceilings and a rustic, industrial feel,” says Howard Greenstone, Waxman’s partner and the co-founder and former CEO of the Rosa Mexicano chain. “It takes a lot less design to create a fun, casual environment … typically there’s a lot of clean, open space to work with,” he says.
Garages doors are also a big draw for operators. They afford a lot of natural light, Greenstone says. Plus, they make for easier indoor-outdoor dining potential. In fact, Emily Biederman, chief operating officer and Secret Sauce F&B of Steuben’s Food Service in Denver, says it’s the garage doors that make these spaces so desirable. “There is built-in access to the outdoors, and this is also a cool design feature,” she says.
Mini Models
Small, suddenly, is a big thing. It makes sense: Smaller restaurants are more efficient, so why not maximize profits by shrinking a concept? But that’s only one reason why chains are taking the approach to extremes and unveiling a new generation of miniature outlets. Smaller footprints also mean less space to rent, which can translate to less-pricey build-outs. Plus, why dedicate precious room to cashier and counter space when mobile ordering and payment can move much of the transaction to customers’ smartphones?
While full-service chains such as Denny’s and Famous Dave’s are launching small sister concepts—The Den and Famous Dave’s BBQ Shack, respectively—fast casuals, including two of the industry’s most watched, also are thinking small:
Starbucks
The coffee giant’s express-format stores, the first of which is set to open soon in New York, will offer a “concentrated” menu and few frills such as seats or bathrooms. Essentially, the units will be production-pickup hybrids where busy customers can retrieve lattes and espressos they’ve ordered and paid for via their smartphones.
The concept is “a direct reflection of how our customers are interested in both accessibility to the brand as well as speed and convenience,” said Cliff Burrows, president of Starbucks’ U.S., Americas and Teavana divisions, in a release.
Chipotle
The build-your-own chain is scouting locations in which to debut its pint-size stores, which CFO Paul Hartung has characterized as a “really, really small” place to grab a burrito and a limited number of other items. Seating can be sacrificed, because about two-thirds of Chipotle’s transactions are to go.
Here, convenience is the hook, and a smaller store helps in that regard. And there’s little concern about blurring the brand’s perception, Hartung has said, because Chipotle’s core characteristics are so familiar to the public.
S&M Sausage's card system:
- A guest displays a teal “Service” card to let the staff walking around know he wants some assistance, whether it’s placing more orders, refilling drinks or anything else.
- A white “Welcome” card invites servers to greet the customer and explain the S&M Sausage and Meat system.
- A tan card says a guest is ready to close out his bill; to make the process quick and seamless, diners leave a tab open at the concierge desk when they initially place orders.
- A black “Scram” card tells servers to back off—no service necessary.
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