2014 Second 100: Top 10 Growth ChainsJul 29, 2014
This is part of Nation’s Restaurant News’ annual Second 100 report, a proprietary census ranking restaurant brands Nos. 101-200 by U.S. systemwide sales and other data. This special report focuses on a smaller, more growth-oriented universe than the Top 100 report.
The 10 Second 100 chains with the largest growth in U.S. systemwide sales range from newcomer Menchie’s Frozen Yogurt, with 18.6-percent growth in Latest-Year sales, to No. 1 Twin Peaks, which grew its sales by more than three times that amount. The domestic sales growth demonstrated by these 10 brands is especially impressive in the Latest Year, when overall U.S. unit growth for the Second 100 slowed to 1 percent from 1.5 percent in the Preceding Year, and the average rate of unit growth for Second 100 chains slowed from 3.9 percent to 2.7 percent.
These 10 chains’ success in sales growth is largely due to their ability to grow their unit bases and, for the most part, maintain or grow estimated sales per unit — even in the face of ever-increasing competition from both within and outside their segments.
In addition to Menchie’s, the group of 10 includes two other chains that are making their Second 100 debuts: Casual-Dining chain Twin Peaks and LSR/Burger player Freddy’s Frozen Custard & Steakburgers, which snagged the Nos. 1 and 2 growth spots, respectively, on the strength of meteoric sales growth upward of 45 percent. The Casual-Dining and Limited-Service segments represented by those top-two chains make up the bulk of this roster, but three brands from other segments made it into the bottom half of the list, including a Chicken, a Pizza and a Beverage-Snack chain.
All 10 of the concepts that made this year’s systemwide sales growth list are profiled in brief here, along with a look at key metrics and year-to-year percentage growth changes.