A large degree of imitation is not uncommon in the restaurant industry
An interesting thing about this industry is there is a large degree of imitation whenever something proves successful. Consider the chicken sandwich wars as exhibit A here.
Such imitation (which is a form of flattery, of course) extends well beyond menu creations and into entire categories. Recall, for instance, the frozen-yogurt era, in which a few wildly successful concepts like TCBY inspired a whole host of similar brands, ultimately leading to a bubble bust. Imitation doesn’t always lead to a bust, however. The better burger and sandwich segments are plugging along just fine, and smashed burgers are trendy again. Most of the time, once there is proof of concept in this industry, the wheels start spinning in overdrive and a rising tide starts lifting all (or many) boats.
That seems to be happening now in a few categories. Dave’s Hot Chicken has been on a tear on the Top 500 list for the past two years, with double-digit unit count growth and nearly triple-digit sales growth in 2023. Now emerging chains like Hattie B’s, Joella’s Hot Chicken, Hot Chicken Takeover, Angry Chickz, Howlin’ Ray’s, and Houston TX Hot Chicken are knocking on Dave’s door.
Crumbl is another high-growth story. It’s hardly alone in the popular cookie category and certainly followed the likes of Insomnia and the Great American Cookie Company into the fray. But its growth has been staggering, hitting over 800 bakeries in just five years. As such, other brands like Chip City, Dirty Dough, Cookie Co. Franchising, and Tiff’s Treats are also pursuing ambitious growth.
This song has also played out recently in the brunch space (with several concepts experiencing double-digit sales and unit count growth), the salad space, and the coffee/specialty beverage space, among others. What makes this industry fun to follow is when such emergence and jockeying changes from year-to-year, and for which concepts the tide ebbs or flows.
Meet the 2024 Top 500: The biggest restaurant chains in America
All data courtesy Technomic Ignite Company data. Looking for more data? Click here to access the complete Technomic Top 500.
Contact Alicia Kelso at [email protected]
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