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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.
July 29, 2014
Bruegger’s retained the highest U.S. unit count of all the chains in the Bakery-Cafe segment.
The popularity of the Second 100’s Bakery-Cafe segment remained strong in 2013, with the group growing domestic systemwide sales at an average rate of 6.5 percent in the Latest Year, as chains revamped, refreshed and expanded their operations.
The category — which includes La Madeleine Country French Café, Corner Bakery Cafe, Bruegger’s Bagel Bakery and Au Bon Pain — posted aggregate Latest-Year U.S. systemwide sales of $1 billion, an increase of 5.6 percent over $972.7 million in the Preceding Year.
Average estimated sales per unit, or ESPU, were $1.7 million, up less than 1 percent from the Preceding Year.
Although fourth in number of domestic units with 67, La Madeleine led the segment in terms of unit growth, with an 11.7- percent jump from the Preceding Year. The Dallas-based cafe also led in growth in U.S. systemwide sales, at 11.3 percent; in growth in ESPU, at 4.3 percent; and in ESPU with $2.2 million.
The French-inspired brand’s owner has been on a growth mission for the chain since the start of 2013. Le Duff America, a division of Rennes, France-based Groupe Le Duff S.A., planned new kiosks and airport locations and launched a franchising program for La Madeleine.
• Second 100 Rankings and Results
A new franchised location opened this spring in Lubbock, Texas, reflecting a design shift for the concept from a tray-based, cafeteria-style service line to fully fast casual. Orders are placed along a queue where guests can see food prepared, and an employee delivers orders to customers’ tables after they have filled their own drinks and gathered serviceware.
“We view ourselves as a polished, fast-casual bakery-cafe,” Paul Carolan, La Madeleine’s chief development officer, told Nation’s Restaurant News earlier this year.
Le Duff America, which owns Second 100 Casual-Dining chain Mimi’s Cafe as well as Brioche Dorée, also owns Bruegger’s, another leader in the Second 100 Bakery-Cafe segment.
Headquartered in Burlington, Vt., Bruegger’s retained the highest U.S. unit count of all Bakery-Cafe chains for another year, with 293 locations. Bruegger’s also initiated a brand remodel, with new store designs exposing more of the oven and bagel kettle so that customers can see food being prepared.
The bagel chain also embarked on co-branding efforts in Minneapolis with Caribou Coffee, even tearing down an interior wall that separated the two stores in a shopping center.
Carolan explained that the partnership gives Bruegger’s a credible coffee offering from Caribou, and the Minneapolis-based coffee chain adds credible baked goods from Bruegger’s to its menu.
“When you can marry up coffee that people are rushing through the front door to get with our bagel offerings and food, what a huge leap you can make with your brand,” he said.
Bruegger’s U.S. systemwide sales for the Latest Year totaled $219.6 million, a 4.1-percent increase compared with the Preceding Year’s $210.9 million.
No. 2 in systemwide sales for the segment, Dallas-based Corner Bakery launched a significant redesign of its website last year. One addition to the website’s functionality enables customers to order online and skip the line in the store. Corner Bakery also reworked the franchising section of the website to give franchise prospects easier access to information and a more efficient way to begin the application process.
Corner Bakery signed 12 new area development agreements in 2013 for up to 210 new units. The company opened a net 12 U.S. locations in the Latest Year, ranking third in the Bakery-Cafe segment in number of units, with 159 — an 8.2-percent increase. U.S. systemwide sales totaled $322.9 million, an 8.9-percent increase over the Preceding Year’s $296.4 million.
“Last year was the most significant in Corner Bakery Cafe’s franchising history,” Gregg Koffler, vice president of franchise sales, told NRN in January.
Although Boston-based Au Bon Pain led the Bakery-Cafe category in U.S. systemwide sales with $344.2 million, its 1.6- percent increase in systemwide sales was the smallest in the segment. The 35-year-old chain had 212 units in the Latest Year, up from 197 in the Preceding Year.
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