Growth Chains: Tin Drum AsiacaféGrowth Chains: Tin Drum Asiacafé


Music at each of the 10 Tin Drum Asiacafés has been carefully crafted to fall generally into the classic 120-beats-per-minute tempo, one of many details that has helped the fast-casual restaurant concept attract customers and franchisees.


Steven Chan, who founded the Atlanta-based Tin Drum in 2003, said the company will have 14 units open by year’s end and is looking to expand.


“It’s our commitment to the idea of providing customer value [that makes us successful],” Chan said. “I’m a true believer that you don’t have to spend a tremendous amount of money to get a tremendous dining experience.”


The Asian fast-casual niche has room for potential growth, experts say. According to a 2011 Technomic report, only about 6 percent of menus in the chain fast-casual category were Asian, compared with 20 percent for No. 1-ranked Mexican. Major players include Panda Express and Pei Wei Asian Diner.


HEADQUARTERS: Atlanta

MARKET SEGMENT: 
fast-casual Asian

NO. OF UNITS: 10

SYSTEMWIDE SALES: $8.5 million projected for 2012
AVERAGE CHECK: $8.50-$10
LEADERSHIP: Steven Chan, founder
YEAR FOUNDED: 2003

METHOD OF GROWTH: 
franchising and company ownership
NOTABLE COMPETITORS: Pei Wei Asian Diner, Panda Express
TARGET MARKETS: 
Southeastern states

WEBSITE: 
http://tindrumcafe.com

Chan opened the first Tin Drum near the Georgia Institute of Technology campus. Units cover 1,500 to 2,200 square feet and average 60 seats.


The menu includes a variety of noodle and curry dishes, which Chan said were inspired by the “bustling street-side cafes” in his native Hong Kong.


Asian culture influenced the concept’s name, as well. Before the advent of mobile phones and 24/7 cable news, a “tin drummer” would go through towns and beckon residents to gather to hear news and events.


Chan said that inspired the name as well as the chain’s emphasis on music, which appealed to the college-age market it initially reached.


“The music is a truly customized program from a New York-based company that streams the music and does work for the big clubs in Las Vegas,” he said. About 60 percent of the music is at the classic tempo of 120 beats a minute, he said.


Darryl Lewis, one of Tin Drum’s Atlanta-based franchisees, said: “The biggest thing to me was the decor, music and ambience of the restaurant. I [also] fell in love with the food. The customizability lets the consumer get it the way they want it. I looked at a lot of franchises over many years, and this is one where I said, ‘Wow.’”


Chan said Tin Drum tries to focus on chicken as its main protein. 


“Out of all the proteins, chicken is the least expensive in food costs,” he said. “[But] we can truly customize all the dishes for the consumers if they have allergies. We have a gluten-free menu.”


Tin Drum’s menu features more than 35 items made with Thai, Japanese, Chinese, Vietnamese and Indian influences and 15 proprietary sauces. Signature items include the Tin Drum curry and the crab and cheese spring rolls. The chain sells about 3,000 spring rolls each week at its 10 existing restaurants. 


In addition, each unit has two Smartmenu kiosks. The kiosks, installed in 2009 and developed with a research company affiliated with Chan’s alma mater, Georgia Tech, allow guests to customize and place orders.


The kiosks also allow for savings, Chan said.


“It helps drive down labor costs,” he said. “By installing the kiosks, we will never need [more than] one cashier. It also helps with training, as the staff doesn’t need to know all aspects of the dishes. Through that device, guests can find the answers to their questions.”


Check averages at units near universities hover around $8.50, Chan said, but at other locations they are closer to $10.


“We started in college locations, so we cater very well to the student population, including high school and middle school,” he said. “Their parents also become our customers.”


Chan said he is seeking growth through three- to five-unit agreements with existing multiunit franchisees.


“We opened a corporate store last June in Birmingham, Ala., so we’ll continue to expand in that market,” he said. “At the same time, we are looking at other states that neighbor Georgia, so it’s Florida, North Carolina, Tennessee and Alabama.”


The daypart revenue divides to about 60 percent lunch and 40 percent dinner, he said. Carry-out makes up about 15 percent of sales.


Openings this year include the first Tin Drums in Augusta, Ga., and Athens, Ga.

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