SANTA BARBARA CALIF. In-N-Out Burger’s market share and the expansion aims of several other burger brands with formidable pedigrees. —The Habit Burger Grill, a 23-unit chain with a cult following and restaurant-savvy private-equity backers, is ramping up for regional growth while eyeing
Typically when Southern Californians refer to a burger chain with a cult following, they mean Irvine, Calif.-based In-N-Out, which has grown from a single drive-thru in 1948 to 218 branches in California, Arizona, Nevada and Utah. —The Habit Burger Grill, a 23-unit chain with a cult following and restaurant-savvy private-equity backers, is ramping up for regional growth while eyeing
For its part, The Habit Burger Grill has a 35-year history in Santa Barbara, where founder Brent Reichard began working at a burger stand in 1976 at age 16 then bought it four years later with his brother Bruce. —The Habit Burger Grill, a 23-unit chain with a cult following and restaurant-savvy private-equity backers, is ramping up for regional growth while eyeing
Just like In-N-Out, The Habit, as it’s called, has a simple menu based on select ingredients, including never-frozen meat and real ice cream shakes. —The Habit Burger Grill, a 23-unit chain with a cult following and restaurant-savvy private-equity backers, is ramping up for regional growth while eyeing
In August 2007, private-equity firm KarpReilly LLC, based in Greenwich, Conn., bought majority ownership of The Habit. Last month the investment firm hired Russ Bendel to head the chain, luring him away from the post he’d held for only eight months as president of The Cheesecake Factory Inc.’s restaurant division. —The Habit Burger Grill, a 23-unit chain with a cult following and restaurant-savvy private-equity backers, is ramping up for regional growth while eyeing
That was the second such hiring of Bendel by KarpReilly, which recruited him away from Outback Steakhouse eight years ago to head Mimi’s Cafe before the investment firm sold that growth chain to Bob Evans Farms Inc. —The Habit Burger Grill, a 23-unit chain with a cult following and restaurant-savvy private-equity backers, is ramping up for regional growth while eyeing
Under Bendel’s leadership as president and chief executive, The Habit is now targeting an expansion by 100 to 120 units over the next five to seven years in California, Arizona and Nevada. —The Habit Burger Grill, a 23-unit chain with a cult following and restaurant-savvy private-equity backers, is ramping up for regional growth while eyeing
However, competition is heating up in California among other burger chains with reputations for high-quality ingredients and avid customer followings. —The Habit Burger Grill, a 23-unit chain with a cult following and restaurant-savvy private-equity backers, is ramping up for regional growth while eyeing
Lorton, Va.-based Five Guys Burgers and Fries, the 286-unit chain known mostly on the East Coast but sometimes compared to In-N-Out Burger, opened its first West Coast location in Carson, Calif., in May. That branch is operated by franchisee Phil Ratner, a former president of the Marie Callender’s chain, who plans to open 30 Five Guys outlets in Los Angeles and Orange counties over the next five years. —The Habit Burger Grill, a 23-unit chain with a cult following and restaurant-savvy private-equity backers, is ramping up for regional growth while eyeing
Smashburger, a Denver-based fast-casual concept created by Quiznos founder Rich Schaden, also has its sights set on the West Coast, though it probably won’t pull the trigger on development there for a few more years, officials said. Smashburger, which boasts such hallmarks as Black Angus steak patties, hand-sliced tomatoes and butter-toasted egg buns, has four units open in Denver and another two under construction. —The Habit Burger Grill, a 23-unit chain with a cult following and restaurant-savvy private-equity backers, is ramping up for regional growth while eyeing
Also, a new concept called Best-O-Burger debuted in San Francisco in May featuring high-end mini burgers in a walk-up-stand format. Created by Stephen Weber, owner of the fine-dining restaurant Mecca there, Best-O-Burger was created as a potential growth vehicle, but company officials have yet to disclose expansion plans. —The Habit Burger Grill, a 23-unit chain with a cult following and restaurant-savvy private-equity backers, is ramping up for regional growth while eyeing
Bendel concedes that what might be called the better-burger category is very competitive, but he feels The Habit is uniquely positioned because its streamlined menu also features chicken, freshly prepared salads and sandwiches with unique ingredients, such as roast beef tri-tip and char-broiled albacore tuna steak. —The Habit Burger Grill, a 23-unit chain with a cult following and restaurant-savvy private-equity backers, is ramping up for regional growth while eyeing
The Habit’s broader menu “eliminates the veto vote,” Bendel said, noting that the variety appeals to women, unlike most burger chains that focus on young men. —The Habit Burger Grill, a 23-unit chain with a cult following and restaurant-savvy private-equity backers, is ramping up for regional growth while eyeing
Unlike In-N-Out Burger, which is known for its drive-thrus, The Habit offers only walk-up ordering. Units range in size from 900 to 2,000 square feet with patio dining. Bendel said sales are “north of ” $700 per square foot with slightly more than half of sales generated at lunch and the rest at dinner. The chain has recorded a consecutive string of same-store sales growth for the past five years, he added, noting that transactions are in the $8 range. —The Habit Burger Grill, a 23-unit chain with a cult following and restaurant-savvy private-equity backers, is ramping up for regional growth while eyeing
The Habit’s signature “double charburger” is about $3.85, in the same range as the $3.99 price of In-N-Out’s signature burger or the $4.39 charged by Five Guys. —The Habit Burger Grill, a 23-unit chain with a cult following and restaurant-savvy private-equity backers, is ramping up for regional growth while eyeing
Like In-N-Out Burger, The Habit doesn’t spend much on advertising, preferring word-of-mouth buzz. Another similarity is that The Habit’s officials have no plans to franchise the brand. —The Habit Burger Grill, a 23-unit chain with a cult following and restaurant-savvy private-equity backers, is ramping up for regional growth while eyeing
Bendel said the company would continue to fill in the markets between Sacramento, Calif., where The Habit has five units, and the Greater Los Angeles area, where the company recently opened a unit in Torrance, its eighth in Los Angeles County. There are seven branches in Ventura County and three in Santa Barbara. —The Habit Burger Grill, a 23-unit chain with a cult following and restaurant-savvy private-equity backers, is ramping up for regional growth while eyeing
However, The Habit has agreed not to open in West Los Angeles within a certain radius of an unrelated restaurant called Hamburger Habit, which was the original name of Reichard’s concept. He renamed it in 1998 after learning that the Los Angeles operator owned the trademark in the state. —The Habit Burger Grill, a 23-unit chain with a cult following and restaurant-savvy private-equity backers, is ramping up for regional growth while eyeing
So far this year, The Habit has opened four units and plans to add another two. It expects six to eight more to open in 2009. Currently the company is focusing on building up its infrastructure for growth, following the owners’ incorporation of Habit Restaurants Inc. last year. —The Habit Burger Grill, a 23-unit chain with a cult following and restaurant-savvy private-equity backers, is ramping up for regional growth while eyeing
KarpReilly principals Chris Reilly and Allan Karp recruited Bendel. They also had made him president and chief executive of Mimi’s Cafe, whose multiregional growth Bendel directed for seven years before he joined The Cheesecake Factory last September. —The Habit Burger Grill, a 23-unit chain with a cult following and restaurant-savvy private-equity backers, is ramping up for regional growth while eyeing
The private-equity partners also have investment interests in the Southwestern-theme Z’Tejas upscale-casual chain, created by concept impresario Paul Fleming, and the casual-dining Elephant Bar restaurants. —The Habit Burger Grill, a 23-unit chain with a cult following and restaurant-savvy private-equity backers, is ramping up for regional growth while eyeing
Despite his background in casual dining, Bendel was attracted to The Habit as an entrepreneurial opportunity and by the company’s commitment to growth and “great culture,” he said. However, Cheesecake Factory, with its 141-unit namesake chain and 13 Grand Lux Cafes, books more sales in four days than The Habit may see in a year, he noted. —The Habit Burger Grill, a 23-unit chain with a cult following and restaurant-savvy private-equity backers, is ramping up for regional growth while eyeing
Regardless, The Habit “has a lot of blue sky in front of it,” said Bendel, who, as chief executive, replaced Reichard, who remains chairman. Dave Nordahl, an early partner of Reichard’s, is turning over the title of president to Bendel and remaining on the Habit’s board. The partners retained a 19.9-percent ownership stake after KarpReilly’s acquisition. —The Habit Burger Grill, a 23-unit chain with a cult following and restaurant-savvy private-equity backers, is ramping up for regional growth while eyeing
The Reichard brothers also retained ownership of The Habit’s three Santa Barbara branches, which evolved from the original chili burger outlet in suburban Goleta. That was the brand’s lone unit until the mid-1990s, when Fleming—creator of P.F. Chang’s China Bistro and Fleming’s Prime Steak-house & Wine Bar, among other concepts—was an initial backer of The Habit’s expansion, along with Jim Magglos, founder of the Baja Fresh Mexican Grill chain. —The Habit Burger Grill, a 23-unit chain with a cult following and restaurant-savvy private-equity backers, is ramping up for regional growth while eyeing
The Habit’s original restaurant, with outdoor seating only and fresh flowers adorning its ordering counter, will do close to $1.5 million in sales this year, Reichard said. He added that Bendel’s agreement to join the chain “really validates the concept” and its growth prospects. “I think it could be at least as big as In-N-Out Burger.” —The Habit Burger Grill, a 23-unit chain with a cult following and restaurant-savvy private-equity backers, is ramping up for regional growth while eyeing
