This is part of the Nation’s Restaurant News annual Second 100 report, a proprietary ranking of restaurant brands Nos. 101-200 by U.S. systemwide sales and other data. This special report is a companion to the Top 100 report.
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Zoës Kitchen appears in the Second 100 for only the second time, but the fast-casual Mediterranean chain’s 27-percent growth in domestic systemwide sales kept it in the top five, although Freddy’s knocked the brand down a notch.
Zoës Kitchen ended the year with 166 domestic locations, rising nearly 26 percent year over year. The chain expects to open between 34 and 36 restaurants in 2016, representing unit growth of about 20 percent to 22 percent.
The brand entered the new market of Missouri in 2015 with its first opening in Kansas City, and planned to build out to between four to six locations in the area through 2016. Zoës Kitchen planned to seed new markets in 2016, including Denver.
Kevin Miles, CEO of Plano, Texas-based parent Zoe’s Kitchen Inc., said Zoës Kitchen was on a path to become the definitive lifestyle brand of Mediterranean fast-casual cuisine.
“There are very few restaurant lifestyle brands out there,” Miles told Nation’s Restaurant News in March. “Really the one that jumped out to me was Starbucks. People are viscerally connected to it. They’re proud to walk around with a cup, and that’s what we’re striving to do at Zoës, and the only way to do that is through your team.”
To achieve that, Miles said Zoës Kitchen is working to improve service by building the culture of its organization, of which the majority of its members are Millennials.
“They eat differently, they think differently, they want to put their thumbprint and be empowered,” he said. “That culture piece is not new, but it’s something we’re really focused on right now as we’re approaching 5,000 employees.”
Keys to Growth:
Owning Mediterranean: With little competition in the space, Zoës Kitchen offers something different than the usual burger players, with recent healthful additions like a Rosemary Ham Piadina and a baked feta starter with cherry tomatoes, olives, basil and Calabrian peppers. The company also hired Antonio Iocchi, formerly of Romano’s Macaroni Grill, as vice president of culinary strategy to lead menu initiatives.
Catering: Zoës Kitchen made a big investment in catering in 2015, and sees the larger-order segment as a strong driver of sales. The chain’s Mediterranean menu can accommodate diverse dietary needs, such as gluten-free, low calorie and allergies.
Technology: The chain is testing new kitchen display systems and equipment, as well as point-of-sale system upgrades and other enhancements that will improve scalability.
Contact Lisa Jennings at [email protected]
Follow her on Twitter: @livetodineout
Contact Ron Ruggless at [email protected]
Follow him on Twitter: @ronruggless
