DALLAS —Regional players in the barbecue segment are working to maintain their grip on escalating operating costs, with several chains launching fast-casual variants that help control commodity and payroll expenses.
Dickey’s Barbecue Restaurants Inc., based here, parent of the the 87-unit Dickey’s Barbecue Pit chain, recently debuted a fast-casual version of its standard cafeteria-line service model that company executives say helps keep food and labor costs in line while maintaining value for customers. —Regional players in the barbecue segment are working to maintain their grip on escalating operating costs, with several chains launching fast-casual variants that help control commodity and payroll expenses.
Similarly, Bono’s of America Inc., a 24-unit, full-service barbecue chain based in Jacksonsville, Fla., is readying the debut of its fast-casual entry, Willie Jewell’s Old-School Bar-B-Q. —Regional players in the barbecue segment are working to maintain their grip on escalating operating costs, with several chains launching fast-casual variants that help control commodity and payroll expenses.
Barbecue, given its homey image, is well-positioned for these challenging economic times, according to operators in the segment. —Regional players in the barbecue segment are working to maintain their grip on escalating operating costs, with several chains launching fast-casual variants that help control commodity and payroll expenses.
“Barbecue is a simple food that takes tremendous care to get right,” said Josh Martino, vice president of operations and franchising for the Bono’s Pit Bar-B-Q chain. “Even in big cities, it’s a soul food that makes people feel good. And right now, everybody needs a little bit of that.” —Regional players in the barbecue segment are working to maintain their grip on escalating operating costs, with several chains launching fast-casual variants that help control commodity and payroll expenses.
While not immune from the vagaries of thrifty customers, business has been good, Martino says. —Regional players in the barbecue segment are working to maintain their grip on escalating operating costs, with several chains launching fast-casual variants that help control commodity and payroll expenses.
“The barbecue segment is facing the challenges of the economy, but our numbers are way up, especially in blue-collar areas,” he said. “And where the numbers are flat or down, we don’t feel as bad as most people with the economic downturn.” —Regional players in the barbecue segment are working to maintain their grip on escalating operating costs, with several chains launching fast-casual variants that help control commodity and payroll expenses.
However, larger players in the barbecue segment have seen a slowing of growth. Among such chains is Famous Dave’s of America Inc. of Minneapolis, which has 164 units, annual sales exceeding $370 million and check averages in the $17 to $18 range per person, which are heftier than those of many of the regional players. —Regional players in the barbecue segment are working to maintain their grip on escalating operating costs, with several chains launching fast-casual variants that help control commodity and payroll expenses.
Though growth remains a priority for the nearly 80-unit Shane’s Rib Shack, a division of Raving Brands of Atlanta, that chain has been struggling to improve relations with franchisees. —Regional players in the barbecue segment are working to maintain their grip on escalating operating costs, with several chains launching fast-casual variants that help control commodity and payroll expenses.
Other chains have shifted ownership and begun trying new approaches to menu marketing. After shuttering more than 50 Smokey Bones units earlier last year, Darden Restaurants Inc. sold the barbecue chain’s remaining 73 branches in December for $80 million to an affiliate of Sun Capital Partners. Smokey Bones recently began offering an all-you-can-eat baby back ribs special for $16.99 in most of its trading areas through May 11. —Regional players in the barbecue segment are working to maintain their grip on escalating operating costs, with several chains launching fast-casual variants that help control commodity and payroll expenses.
Meanwhile, smaller chains have tapped their deep roots in local neighborhoods to gain advantages from customer loyalty, said Martino, noting that Bono’s was founded in 1949 in Jacksonville. “We’re like the Fenway Park of our community,” he said. —Regional players in the barbecue segment are working to maintain their grip on escalating operating costs, with several chains launching fast-casual variants that help control commodity and payroll expenses.
Bono’s 24 units are primarily in Florida, but the chain also has outposts in Denver and Grand Rapids, Mich. Six units are corporate-owned, and the rest are franchised or licensed. In 2007, Bono’s sold five corporate branches to franchisees. —Regional players in the barbecue segment are working to maintain their grip on escalating operating costs, with several chains launching fast-casual variants that help control commodity and payroll expenses.
Though a pullback in consumer spending has been noticeable, Martino said, “it’s not as bad for us as it seems to be for other concepts.” —Regional players in the barbecue segment are working to maintain their grip on escalating operating costs, with several chains launching fast-casual variants that help control commodity and payroll expenses.
“I think the greatest thing about barbecue is that [at] any given time you can see the CEO of a Fortune 500 company sitting next to a garbage collector, striking up a conversation and having a great meal together,” he said. —Regional players in the barbecue segment are working to maintain their grip on escalating operating costs, with several chains launching fast-casual variants that help control commodity and payroll expenses.
Bono’s per-person check average is $9 to $10. “Other concepts’ ticket averages have climbed, but we’re a place where people can go to lunch or dinner for a reasonable price,” Martino said. “That’s why the blue-collar neighborhoods have come in even more. Nobody can really afford an expensive meal anymore, and grocery prices are going up 10 to 12 percent. We’re not increasing prices much or decreasing portions, so we’ve become far more affordable.” —Regional players in the barbecue segment are working to maintain their grip on escalating operating costs, with several chains launching fast-casual variants that help control commodity and payroll expenses.
Food costs are a challenge, however. “We’re increasing some prices, but we’re also increasing portions,” Martino said. “Our pork prices—and pork is our No. 1 seller—are less expensive at times than they were 20 years ago.” —Regional players in the barbecue segment are working to maintain their grip on escalating operating costs, with several chains launching fast-casual variants that help control commodity and payroll expenses.
But the freestanding Bono’s format with waiter service has become more expensive, he said, leading to the advent of Willie Jewell’s. —Regional players in the barbecue segment are working to maintain their grip on escalating operating costs, with several chains launching fast-casual variants that help control commodity and payroll expenses.
“In the past year, we’ve examined our concept and created a new concept, a fast-casual version of Bono’s Bar-B-Q. We are within 90 days of putting one into the ground.” —Regional players in the barbecue segment are working to maintain their grip on escalating operating costs, with several chains launching fast-casual variants that help control commodity and payroll expenses.
Bono’s units typically cost $1.8 million to $2 million to build, but the fast-casual variant is expected to cost only $330,000 to $450,000 to open, he said. A Willie Jewell’s Old-School Bar-B-Q unit will comprise about 2,400 square feet, versus the average 4,000 for a full-scale Bono’s. —Regional players in the barbecue segment are working to maintain their grip on escalating operating costs, with several chains launching fast-casual variants that help control commodity and payroll expenses.
Martino said area developers in Orlando and Pensacola, Fla., are planning to expand Willie Jewell’s, which was named for an employee of Bono’s early Jacksonville restaurants. In the new fast-casual restaurants, the company plans to maintain a staffing tradition by using a “pit boss” to cut meats for each order. —Regional players in the barbecue segment are working to maintain their grip on escalating operating costs, with several chains launching fast-casual variants that help control commodity and payroll expenses.
Martino expects food costs to go down at Willie Jewell’s because of its restricted menu. —Regional players in the barbecue segment are working to maintain their grip on escalating operating costs, with several chains launching fast-casual variants that help control commodity and payroll expenses.
“Bono’s over the years has tried to please everyone by adding menu items,” Martino said. “But we’re going back to the old-school…pork sandwiches with baked beans, French fries and cole slaw.” —Regional players in the barbecue segment are working to maintain their grip on escalating operating costs, with several chains launching fast-casual variants that help control commodity and payroll expenses.
“We’re very confident and very excited. Although it may have a different name on it, we feel like this is the true expansion of Bono’s Bar-B-Q and really the [chain’s] legs going forward,” Martino said. “We think the Willie Jewell’s concept is far more affordable and will open the doors to many more potential franchisees.” —Regional players in the barbecue segment are working to maintain their grip on escalating operating costs, with several chains launching fast-casual variants that help control commodity and payroll expenses.
Similar moves are being made at Dickey’s Barbecue Restaurants, which was founded in 1941 and started franchising the cafeteria concept 14 years ago. Its two fast-casual variants, one in Cedar Rapids, Iowa, and the other in Dallas, feature a brighter color palette and a more contemporary design. —Regional players in the barbecue segment are working to maintain their grip on escalating operating costs, with several chains launching fast-casual variants that help control commodity and payroll expenses.
Shifting to its new service mode in the fast-casual branches allows Dickey’s to keep food costs in line because portion control is tighter, said Roland Dickey Jr., third-generation president of the family business, which owns six of the mostly franchised chain’s 87 branches. —Regional players in the barbecue segment are working to maintain their grip on escalating operating costs, with several chains launching fast-casual variants that help control commodity and payroll expenses.
The new fast-casual units range from 1,500 to 2,000 square feet and have an average of 50 seats. Dickey said check averages are about $8.50 for both the fast-casual outlets and the cafeterias, about one-third of which offer beer. —Regional players in the barbecue segment are working to maintain their grip on escalating operating costs, with several chains launching fast-casual variants that help control commodity and payroll expenses.
In evaluating the demographics of potential expansion sites, Dickey’s looks for a mix of potential residential and business customers, average household incomes of about $60,000, and locations on the “going-home” side of streets to catch dinnertime commuters. —Regional players in the barbecue segment are working to maintain their grip on escalating operating costs, with several chains launching fast-casual variants that help control commodity and payroll expenses.
To appeal to local preferences, Dickey’s lets franchisees offer different styles of barbecue sauce geared to varying regional tastes. —Regional players in the barbecue segment are working to maintain their grip on escalating operating costs, with several chains launching fast-casual variants that help control commodity and payroll expenses.
“Our whole strategy is to take barbecue to the mainstream,” Dickey said. —Regional players in the barbecue segment are working to maintain their grip on escalating operating costs, with several chains launching fast-casual variants that help control commodity and payroll expenses.
