CSP Magazine

The Future 50 2015

The fastest-growing small restaurant chains in America

The Future 50, the annual ranking of the fastest-growing small restaurant chains in the United States by CSP’s sister magazine Restaurant Business, offers a snapshot of restaurant concepts on the rise: the up-and-comers that are the ones to watch, be inspired by or even invest in.

Compiled by our colleagues at Technomic, recently acquired by CSP parent company Winsight, The Future 50 spotlights chains with annual sales of $25 million to $50 million and unit growth of at least 10% last year, a milestone signaling chains on the brink of national recognition and remarkable growth.

Read on for a full rundown of your latest restaurant competitors.

Click here to read Restaurant Business’ complete Future 50 report.

No. 1 Pieology Pizzeria

Rancho Santa Margarita, Calif. | Franchising: Yes

Sales$44.6M*+230.4%
Units42+180%
AUV$1.6M*-1.3%

*Technomic estimate

Walk into any Pieology, and in place of wallpaper or posters, you’ll be greeted by a giant “quote board” filled with inspiring sayings. Many of the more than 500 phrases encouraging happiness, smiling and respect for others were chosen by the wife of Pieology’s CEO Carl Chang to exemplify what guests will experience at the “better pizza” chain.

Chang—brother and former coach of professional tennis star Michael Chang, who also is a signifi cant investor—cofounded Pieology in 2011, relatively early in the “Chipotle of pizza” era. With 55 company-owned and franchised units in operation, it’s on track for 110 by the end of this year. And commitments are in place for a total of 500 units over the next five to six years.

Pizza may be the most-enjoyed food in the world, says Chang, but a great product at an affordable price was just the baseline. “We wanted to create a truly personalized pizza experience that is fun and inspiring,” he says.

A Model Pizza Chain

There’s no denying that the fast-casual pizza segment is filling up fast. Like much of its competition, Pieology peddles individual-size custom pizzas on housemade New York-style crust, baked in an open-flame stone-deck oven that cooks the pie in less than three minutes. For $7.95, customers pick a style of fresh dough (white, whole wheat or gluten-free) and a sauce, then proceed down a line choosing from some 30 toppings, ranging from prosaic pepperoni to Gorgonzola and cilantro. Guests—dubbed “pieologists”—also can “shake it up with a flavor blast” by adding an after-bake finish of barbecue, pesto or Buffalo sauce.

There also are seven menued pies inspired by customers’ favorite creations, including Alfredo’s Alfredo and Smokin’ Buffalo Chicken with Buffalo sauce, spicy chicken and Gorgonzola. For now, beverages at the fast casual are limited to fountain drinks and bottled water, but the company plans to add beer and wine in the near future. Checks currently average $10.50, or $14.75 when paired with a salad.

The fact that serial pizza entrepreneur James Markham had a hand in developing the system for Pieology as well as several of its competitors, including Mod Pizza (No. 5 in this year’s Future 50 ranking), has lent a certain sameness to the business models. (Chang parted ways soon after launch with Markham, who went on to develop similar concept Project Pie.) Chang is well aware that individual custom-built pies and high-tech ovens are easy to knock off. But Pieology’s  commitment to its core values, says Chang, will help differentiate the brand moving forward. “After all, it’s the local community that decides who makes its favorite pizza,” he says.

“Here, our customers can create whatever they want, without any barriers like cost or rules,” he says. “Our competitors are all about ‘How can we monetize this?’

I wanted to challenge that kind of thinking.”

The Life of Pie

What’s also not so easy to reproduce is Pieology’s congenial culture. The quote board does more than establish the environment. Chang says it represents the “magic ingredient” that motivates staffers, who are trained to interact with guests in an enthusiastic and casual way: “Have you tried the pesto sauce yet?” or “Wow, that’s a cool-looking pizza!”

Staff also encourage guests to snap photos and name their creations for Twitter and Instagram. At a time when social media has become instrumental, Pieology leverages the foodie photos to spread the word about its brand.

Franchise Forward

Pieology is attracting the kind of heavy-hitting area development groups that Chang is looking for. Originally, he was going for corporate growth exclusively, but burgeoning competition in the segment convinced him that scale was needed—and soon. He wants operators with experience, financial resources and what he calls a “tremendous moral compass” to steward the brand into the future.

There are 22 franchisees signed up, and Chang feels he can blanket the country with 45 like-minded heavy hitters. To them, his door always will be open.

Corporate growth still is important, however, and Chang plans to maintain 30 percent of the system in company hands. “Franchisees can’t take all of the risk; if we don’t have skin in the game with our own units, then we don’t know what the franchisee is experiencing,” Chang says. “That creates misalignment.

“We have to be one of the best operators in the system,” he continues. “And we have to keep moving forward in order to stay relevant and engaged.” —Joan M. Lang

No. 2 Blaze Pizza

Pasadena, Calif. | Franchising: Yes

Sales$33M+230%
Units50+400%
AUV$1.5M-8.1%

*Technomic estimate

In the fast-growing, build-your-own-pizza category, three-year-old Blaze claims to be the most ambitious, adding delivery and boasting that it has the most locations open, the most in the pipeline, low opening and operating costs and AUVs higher than pre-IPO Chipotle. Right up there with its made-from-scratch dough and “clean ingredients” messaging is its 180-seconds service promise. It foresees 2,000 units in the United States with some high-profile backers, including LeBron James, Maria Shriver and basketball-star-turned-Power-20-franchisee Junior Bridgeman.

No. 3 Smallcake a Cupcakery

Overland Park, Kan. | Franchising: Yes

Sales$38.7M*+133.1%
Units88+115%
AUV$600,000*-0.8%

*Technomic estimate

Apparently this ambitious bakery chain, with sights on international growth, didn’t get the memo that cupcakes are out. Appearances on the Food Network, a new cookbook and a gig catering the MTV Video Music Awards has helped keep it in the spotlight. To sweeten the franchising pot, Smallcakes began co-branding units in September 2014 with its new Smallcakes Creamery concept that serves small-batch ice cream made daily; 15 such co-branded units are on tap for 2015.

No. 4 Nektar Juice Bar

Santa Ana, Calif. | Franchising: Yes

Sales$26.8M*+119.7%
Units46+100%
AUV$775,000*-1.3%

*Technomic estimate

Steve and Alexis Schulze, the husband and wife team behind Nékter, are aiming to “save the world” from sugary juice and coffee. Their menu, which started with cold-pressed juices and smoothies made with fruits and veggies, has grown in the five years since Nékter was founded to include acai bowls, salads and snacks. Online ordering, an in-app rewards program and a line of bottled cleanse drinks are designed to make its products a part of its hardcore, health-minded customers’ daily lives.

No. 5 MOD Pizza

Bellevue, Wash. | Franchising: Yes

Sales$27M*+107.7%
Units31+121%
AUV$1.2M+2.1%

*Technomic estimate

The third DIY pizza concept in the top 5 currently is the smallest, but it’s quickly catching up via an explosive growth plan. Founded in 2008 by the owners of Seattle Coffee Co., Mod was the first of the bunch to offer customized pies baked in 800-degree ovens in less than three minutes. Though it only opened its first unit outside of Washington in 2013, it has plans—and $70 million in financing—to open 100 more by the end of the year. The founders count several Starbucks alum among their executive “MOD Squad” and advisory board.

No. 6 Salata

Houston | Franchising: Yes

Sales$33.3M+89.2%
Units41+52%
AUV$812,000+3.8%

*Technomic estimate

Billing itself as “the next-generation salad bar,” Salata, which means salad in Latin, is hoping for longevity in a category that has seen similar concepts wither and die. Founder Berge Simonian is doing his homework to avoid a similar fate—calling his Chicago-area debut last fall “an experiment” to see how Salata “could do in a northern environment,” as he told Crain’s Chicago Business. It’s typical behavior for Simonian, who spent a year researching the formulas for Salata’s 10 proprietary dressings, all sold bottled in-store.

No. 7 Rock & Brews

El Segundo, Calif. | Franchising: Yes

Sales$32.1M*+52.9%
Units7+40%
AUV$5.3M*+2%

*Technomic estimate

Though best known as the concept co-founded by Kiss frontmen Gene Simmons and Paul Stanley, this rock-and-roll- themed casual-dining chain goes out of its way to convey a family-friendly (and dog-friendly) concert environment. Patios and kids’ play areas invite guests to hang out. As expected, rock memorabilia defines the decor and a retail section sells branded merchandise. Looking to extend its “world tour” through franchising, the three-year-old brand named a  restaurant-development veteran as its first CEO in November.

No. 8 Nando's Peri-Peri

Washington, D.C. | Franchising: No

Sales$32.6M* +52.5%
Units20+33%
AUV$1.9M* +1.9%

*Technomic estimate

No. 9 Paul Martin's American Grill

The chicken chain with South African roots first landed in the United States in 2008 and has since grown its footprint, with Chicago its most recent new market. In the past year, the chain more than doubled its sales, besting its fast-casual-chicken competition that saw sales grow anywhere from 20% (Raising Cane’s) to less than 1% (Boston Market). Unlike others in the category, its chicken has an authentic, ethnic flair with a spicy kick, thanks to the Portuguese peri-peri sauce made from bird’s-eye chilies.

Newport Beach, Calif. | Franchising: Yes

Sales$34.5M+45.9%
Units8+33%
AUV$5M0%

*Technomic estimate

Think Cheesecake Factory meets Seasons 52. Locations of this casual chain from Paul Fleming (middle name: Martin), co-founder of P.F. Chang’s and Fleming’s Prime Steakhouse & Wine Bar, are housed in large, freestanding stores, often in malls. They boast “accessible prices” (average check is $30.60), quality ingredients and a large wine collection on display. The brand has trademarked “Seasonal and Delicious” as its tagline and sports artisanal, housemade and natural as menu buzzwords.

No. 10 Bagger Dave's Burger Tavern

Southfield, Mich. | Franchising: No

Sales$27M*+44.9%
Units24+26%
AUV$1.3M+3.3%

*Technomic estimate

In the competitive casual-burger market, Bagger Dave’s makes the ordering process interactive. Patrons are given a paper to mark off their choices from a list of proteins, buns, cheeses, sauces, premium toppings and “meaningless toppings” (from ketchup to black-bean chili) to build their own burger. The make-your-own theme extends to the beer list, where guests can select four brews for a craft-beer flight. Adult shakes and bourbons are other boozy options. To add entertainment, electric trains run through each restaurant.

No. 11 Lemonade

Los Angeles | Franchising: No

Sales$36M+40.6%
Units16+23%
AUV$2.5M*+1.8%

*Technomic estimate

Its name is deceiving—Lemonade is much more than a place for consumers to quench their thirst. It’s a hip cafeteria with an international menu and designer dishware that reflect Los Angeles’s diverse neighborhoods. Billing itself as a healthy fast casual, Lemonade’s “seasonal Southern California comfort food” menu offers more than the usual kale salads and wraps. It has braises, chili, sandwiches, salads and, of course, seven lemonade choices to wash it all down. Average check is $11.50. The chain’s growth currently is limited to California.

No. 12 Bareburger

Astoria, N.Y. | Franchising: Yes

Sales$46.5M*+39.2%
Units21+24%
AUV$2.5M*-1%

*Technomic estimate

Clean labels are the name of the game for this Queens-born chain. Its customizable burgers (including elk, bison, vegetarian options and more), sandwiches and salads boast organic, antibiotic- and GMO-free ingredients. Mostly located in neighborhoods, interiors are made with reclaimed materials. Bareburger avoids a preachy tone, however, describing its “Chief Bear,” CEO Euripides Pelekano, as enjoying “happy people, success stories and long walks on the beach.” Bareburger is expected to launch Burnside, a fried-chicken-and-biscuit concept, in Queens this month.

No. 13 The Original Brooklyn Water Bagel Co.

Delray Beach, Fla. | Franchising: Yes

Sales$42.1M*+38%
Units25+32%
AUV$1.9M*+3.5%

*Technomic estimate

The in-store water-purification system is a focus at each location. Housed in a glass-enclosed room, it claims to process water (for cooking and bottled for sale) that replicates the water that flows “through the Catskill Mountains … into the homes of Brooklyn residents.” A new prototype takes the message outside with a water tower atop the store. It also marks the debut of dinner, a line of healthier dishes and a “coffee wall” with self-serve taps.

No. 14 Torchy's Tacos

Austin, Texas | Franchising: No

Sales$25M*+37.4%
Units26+24%
AUV$1.1M*+2.4%

*Technomic estimate

A fast casual with roots as a trailer dragged by a Vespa scooter, this contemporary chain asserts that it’s serving “damn good tacos”—both traditional and breakfast tacos—along with “award-winning” salsa and margaritas, in select locations. While it’s solely in Texas, Torchy’s announced that it plans to open its first out-of-state spot in Denver this fall. Its appeal? It’s hitting on trends: using responsibly sourced ingredients that are regional when possible and eco-friendly packaging, especially for to-go meals.

No. 15 Billy Sims Barbecue

Tulsa, Okla. | Franchising: Yes

Sales$31M*+37.2%
Units44+19%
AUV$765,000*+1.3%

*Technomic estimate

Former Heisman Trophy winner and NFL Rookie of the Year Billy Sims, along with partner Jeff Jackson, got into the regional barbecue game to sling Oklahoma-style ’cue. Ten years later, the football-themed quick-service concept has expanded into six states, including two nontraditional units in sports stadiums that opened in 2014. Focused on serving authentic cuisine—a selling point among millennial diners today—it claims to be among the top-rated athlete-owned

restaurants.

No. 16 Native Foods Café

Chicago | Franchising: No

Sales$45M*+35.5%
Units25+47%
AUV$2.1M*0%

*Technomic estimate

The vegan fast-casual set its sights on growth in the last year, almost doubling in size and expanding into new markets. And it plans to continue at a fast clip: Included in the announcement of a new CEO in February, Native Foods said it plans to have 200 stores within four years. But it’s focused not only on growing the unit count. The chef-driven concept expanded catering to all sites at the beginning of the year and launched a cookbook to get its name out in new markets.

No. 17 Taziki's Mediterranean Café

Birmingham, Ala. | Franchising: Yes

Sales$48.6M*+34.6%
Units36+16%
AUV$1.5M*+2.5%

*Technomic estimate

When founder Keith Richards took a family trip to Greece, he brought back the idea for the now-burgeoning chain that boasts the healthfulness of the Mediterranean diet. To promote its better-for-you message, Taziki’s takes to social media with transparent posts such as “We have over 100 items made fresh daily!” and “No freezers, fryers, or microwaves.” It’s also building its following through nontraditional marketing by participating in local festivals, events and dine-arounds in its different markets, largely focused in the South.

No. 18 Eureka!

Hawthorne, Calif. | Franchising: No

Sales$30.6M*+34.2%
Units14+27%
AUV$2.5M*+2.1%

*Technomic estimate

Eureka! is all about local—local produce, local beers and even local music. Self-described as “the enlightening burger experience,” the casual-dining spot offers all-American options such as chicken wings, flat-iron steak and corn-dog lollipops, with a focus on handmade dishes. Entertainment also is a focus, with a house-curated playlist, televised sports and live music. While growth is concentrated in the San Francisco Bay area, the chain also has moved into Texas and Washington.

No. 19 Veggie Grill

Santa Monica, Calif. | Franchising: No

Sales$35.4M*+33.1%
Units26+18%
AUV$1.5M*+2.4%

*Technomic estimate

Veggie Grill uses only plant-based ingredients on its menu, but the global flavors, seasonal ingredients and chef-inspired dishes draw meat eaters as well as vegetarians. The company’s goal is to double sales every 18 to 24 months and make it a top choice among health-conscious diners. In the past five years, its compound annual growth rate was 43.1%.

No. 20 Freshii

Chicago | Franchising: Yes

Sales$41.8M*+32.3%
Units52+24%
AUV$890,000*0%

*Technomic estimate

This health-focused fast casual is in the middle of a growth spurt; it announced in late November that it plans to open 160 franchised units in 2015. But it’s not resting only on expansion to build business. The chain continues to update its menu to stay on top of trends, adding a line of nutrient-dense juices in January and starting a test of frozen kefir at select units in late March, all in line with its goal of serving energizing meals and snacks to on-the-go diners.

No. 21 Sandella's Flatbread Café

West Redding, Conn. | Franchising: Yes

Sales$32.3M+31.8%
Units107+18%
AUV$301,000+2%

*Technomic estimate

Originally started in 1994 as an upscale coffee and sandwich shop, the fast-casual bakery-café is competing in the better-sandwich market, which is on an upswing right now. Appealing to the health-conscious crowd, the chain is transparent with its menu of wraps, panini, quesadillas and salads, even listing the exact four ingredients in its signature brick-oven flatbread on its website.

No. 22 Barcelona Wine Bar & Restaurant

South Norwalk, Conn. | Franchising: No

Sales$43.8M*+29.6%
Units10+11%
AUV$4.6M*+2.6%

*Technomic estimate

The chef at each upscale-casual unit creates about a third of the menu. But it’s not just the Spanish tapas that differ. Each location has a unique design to give it a more independent vibe. To add to sales, as well as reach beyond its East Coast home base, Barcelona added an online store in December for olive oil, paella kits and more.

No. 23 Rusty Bucket Restaurant and Tavern

Columbus, Ohio | Franchising: No

Sales$43.6M+29.4%
Units17+13%
AUV$2.8M+16.2%

*Technomic estimate

A sister company of multiconcept operator Cameron Mitchell Restaurants, this tavern-style chain has expansion on its mind. “While we have grown steadily since our founding in 2002, the upcoming year represents our most aggressive growth strategy to date,” said president and founder Gary Callicoat in a release in February. Instead of large cities, it has pegged smaller markets in Ohio and Michigan for its growth.

No. 24 Yogen Fruz

Scottsdale, Ariz. | Franchising: Yes

Sales$27.4M*+28.6%
Units117+30%
AUV$265,000*0%

*Technomic estimate

While the frozen-yogurt boom may be on the same market-saturation path as cupcakes, this international chain’s positioning as a nutritious alternative to traditional frozen sweets has helped it continue to grow. To set itself apart, it promotes probiotic-packed treats. And it also boasts “profitable and responsible growth” as one of the business’s key values. With real estate a growing problem in the industry, its small footprint and limited seating make mall spots and other nontraditional locations realistic ventures.

No. 25 Paris Baguette

Moonachie, N.J. | Franchising: Yes

Sales$29.4M*+27.3%
Units38+19%
AUV$840,000*+3.7%

*Technomic estimate

The bakery-café chain first entered the U.S. market by way of Los Angeles in 2005 and has spent the past decade growing in California and on the East Coast. Its Facebook page reads like a map pinpointing its development in urban areas. What sets Paris Baguette apart is its glass display cases filled with a range of pastries and desserts and its array of salads and sandwiches in grab-and-go boxes for diners who don’t have time to wait for an order to be prepared.

No. 26 Bob’s Steak & Chop House

2014 Systemwide Sales $38.4M* | Change 25.5%

Total U.S. Units 11 | Change 10%

No. 27 Little Sheep Mongolian Hot Pot

2014 Systemwide Sales $35.4M* | Change 22.1%

Total U.S. Units 16 | Change 33%

No. 28 Wings Etc. Grill & Pub

2014 Systemwide Sales $32.9M* | Change 21%

Total U.S. Units 32 | Change 23%

No. 29 Toppers Pizza

2014 Systemwide Sales $48.8M | Change 20.3%

Total U.S. Units 67 | Change 31%

No. 30 North Italia

2014 Systemwide Sales $30.5M* | Change 20.1%

Total U.S. Units 7 | Change 17%

No. 31 Marlow’s Tavern

2014 Systemwide Sales $48.5M* | Change 18.3%

Total U.S. Units 15 | Change 15%

No. 32 Dinosaur Bar-B-Que

2014 Systemwide Sales $27.2M* | Change 18.3%

Total U.S. Units 8 | Change 14%

No. 33 Tokyo Joe’s

2014 Systemwide Sales $30.1M* | Change 17.6%

Total U.S. Units 30 | Change 15%

No. 34 Taco Casa

2014 Systemwide Sales $36.6M* | Change 16.9%

Total U.S. Units 70 | Change 11%

No. 35 Zoup! Fresh Soup Company

2014 Systemwide Sales $46.3M* | Change 16.9%

Total U.S. Units 63 | Change 15%

No. 36 Barberitos

2014 Systemwide Sales $27.9M* | Change 16.7%

Total U.S. Units 39 | Change 11%

No. 37 East Coast Wings & Grill

2014 Systemwide Sales $38M | Change 16.6%

Total U.S. Units 32 | Change 19%

No. 38 Ono Hawaiian BBQ

2014 Systemwide Sales $30.8M* | Change 16.2%

Total U.S. Units 53 | Change 21%

No. 39 American Deli

2014 Systemwide Sales $48.8M*| Change 15.4%

Total U.S. Units 96 | Change 16%

No. 40 The Rock Wood Fired Kitchen

2014 Systemwide Sales $47M* | Change 15.2%

Total U.S. Units 21 | Change 24%

No. 41 Jimmy’s Egg

2014 Systemwide Sales $27.9M | Change 14.6%

Total U.S. Units 40 | Change 11%

No. 42 Showmars

2014 Systemwide Sales $30.5M* | Change 13%

Total U.S. Units 33 | Change 38%

No. 43 Russo’s New York Pizzeria

2014 Systemwide Sales $31.1M* | Change 12.7%

Total U.S. Units 36 | Change 13%

No. 44 Iron Hill Brewery & Restaurant

2014 Systemwide Sales $30M* | Change 12.4%

Total U.S. Units 11 | Change 10%

No. 45 Bono’s Pit Bar-B-Q

2014 Systemwide Sales $30.3M* | Change 11.8%

Total U.S. Units 22 | Change 16%

No. 46 Hale and Hearty Soups

2014 Systemwide Sales $27.7M* | Change 11.7%

Total U.S. Units 33 | Change 14%

No. 47 Native Grill & Wings

2014 Systemwide Sales $43.7M* | Change 11.5%

Total U.S. Units 31 | Change 19%

No. 48 Leo’s Coney Island

2014 Systemwide Sales $30.4M* | Change 11.4%

Total U.S. Units 54 | Change 23%

No. 49 Another Broken Egg Cafe

2014 Systemwide Sales $42.9M | Change 11.0%

Total U.S. Units 41 | 52%

No. 50 Mackenzie River Pizza

2014 Systemwide Sales $28.4M* | Change 10.3%

Total U.S. Units 23 | 21%

Rankings are based on percent change in sales (all percent changes vs. 2013 sales).

*Technomic estimate

Methodology: How the Research Works

The Future 50 is a measure of the fastest-growing restaurant concepts between $25 million and $50 million. Data is compiled by Chicago research company Technomic. Rankings are based on percent change in systemwide sales from 2013 to 2014; chains must have opened new units in 2014 to qualify.

All unit counts are as of Dec. 31, 2014. Information was collected via mail, phone and email. When data was not provided, Technomic estimated sales based on public information, comparable concepts, market and other factors.


Four Trends from The Future 50

Hyper-Regional

Numerous stats on millennial consumers show that they’re looking for authentic food. And that isn’t limited to ethnic cuisine. Operators are pushing beyond basic regional fare and offering up place-specifıc menus, such as the self-described “Southern California comfort food” at Lemonade.

Soft AUVs Don't Mean Small Sales

Despite a dip in unit-level performance for some chains, sales are still on the rise. In fact, seven chains on the list had AUVs that slid from last year, including the fırst chains of this ranking, which saw AUVs drop anywhere from less than 1% to more than 8%. Yet all four grew sales more than 100%.

Redefining Healthy

Better-for-you might’ve been all about calorie counts in the past, but operators are recasting health into a number of niche menu segments. No longer are diners seeking healthful meals relegated to salad spots—though some of those still are thriving (see Salata, No. 6). Veggie Grill and Native Foods Café, for example, tout veganism’s plant-based motto, while Roti Mediterranean Grill and Taziki’s support the Mediterranean diet as a healthier way of eating.

International Invasion

Chains started abroad are gaining steam in the United States. While South African Nando’s is handling U.S. growth in-house, Paris Baguette from France and Little Sheep Mongolian Hot Pot from China have turned to franchising as their growth vehicle

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