Also in this playlist...
This transcript is automatically generated
This Wednesday up next the spotlight is on cornerback corner bakery cafe.
Never really small business -- -- perhaps.
Having -- set to go national but joining us from our Dallas bureau is Gary price the president of corner bakery cafe thank -- Gary for man.
Hi Lauren how -- I'm very good so I was looking into some research for a corner bakery cafe he started back in 1991.
In downtown Chicago.
Yes that's correct that the F corner of clarkin -- we were originally -- they create it was designed by rich melman and lettuce entertain you.
To be the production victory for my -- has little Italy.
OK so that was a long time ago when -- twenty years ago.
Yes -- the brand has evolved quite a bit today where we're one of the fastest growing players in the fast casual segment.
If you I -- into -- -- your ears your bakeries.
Or cafes check on cafes.
Either cafes okay can you describe or explain what's so cool are different about them.
Well the real.
Difference between us and most of the other players in the -- cafe segment is.
Go ahead the other players and Diana -- Kentucky who -- the other players is that would be camera and yep and there would be certainly the biggest that most people would recognize but the the real differences we have an ingredient inspired.
Seasonal met menu that -- really cooked on an open flame with real cuts you know we are we are baking grilling salt paying scrambling.
Every single day in in our store so -- -- chef inspired ingredients fired menu.
And in the quality of the product is the real differentiating point.
Right right and so you put yourself in what what is the name of the segment that you're of this of this in that.
In fast casual and that's the fastest growing segment of the restaurant industry -- -- -- percent over the last three years.
Well today's consumers are really very.
Discerning and they're looking for higher quality product than.
What is typically available in the average quick service restaurant mcdonalds and Burger King.
But today's consumers are very time -- are starved for time so.
-- -- don't necessarily have the time to sit down for a full -- -- a full service restaurant.
Like mid scale casual -- dining like the chili's -- Friday -- That's casual really combines the best of both worlds -- higher quality and sit down menu.
With real cooks and -- in place that chef inspired ingredients -- menus.
With the service style where you order an account or you pay and then our our server assistance will do everything after that will bring -- -- they've we're gonna take care get.
And service you from that perspective so.
Our average dining time to get in and get out -- very very quick thinking that your your meals served in.
In about five minutes.
Impressive impressive you know.
Even though you are different and growing category seems many -- you still competing with the big guys read the burger.
Giants McDonald's Wendy's and Burger King as they're trying to reinvent themselves right bringing in more healthier ingredients that seems to be the trend in the buzz word.
Give a lot to compete -- Now absolutely we're all competing for what we call share of stomach.
But -- Yet the the dining public it is growing people are starved for time there eating out and they are.
They're looking for concepts like quarter bakery that our new and innovative -- their menu.
There to cool war.
We have a neighborhood BOR development approach is really to be part of the neighborhood and to be part of the community.
And our partners that we partner with the growth through franchising.
Our local to those areas and -- so they become part of that community so it's more than just about a great dining experience it's about being connected with the community.
So let's talk about that franchising that started in 2007.
That is correct yes so we we -- sort of franchising -- we are mostly company are all company until that point we started franchising in.
And then in 2011.
We were acquired by Roark capital from Atlanta.
Which is a very large.
-- are up private equity group.
Focused on franchising they've got eight billion dollars under management in the restaurant industry across twelve different brands.
So we have a great partner that is an expert in franchising.
And so we've really ramp up our franchise growth we have signed ten new area development agreements last year.
Representing a 125.
New cafes that will come on line.
Over the next ten years and our goal is to double in size -- to reach more than 400 cafes across this country within the next five years.
A 125 cafes in the next decade.
Yet that -- -- -- networks signed last year time and how much last year and -- how much -- it -- -- each cassette.
It's about a million dollars and on a leased property.
But our unit level economics are very very superior for this industry we have about two to one.
Sales to investment ratio our average unit volumes do over 2.2 million dollars.
-- slightly more than 600 dollars per square foot so it's a very attractive investment for large multi unit.
Franchisees that are in other brands that that want to diversify their portfolio.
Are you starring Gary that with everyone's paychecks being smaller at the start of the year because of the payroll tax increased in Social Security taxes.
And this talk of the sequester that could hit the economy.
On Friday that consumers are just gonna say you know like even if we find they cafes.
Good for our our wallet good for our are still makes an -- time management which is -- eat at home -- does that worry you have you seen that.
Well certainly the restaurant industry has seen a little slow down a lot of brands of recently reported earnings.
And up particularly in January -- and there's been a lot of talk.
Among the larger CEOs that they had seen a slowdown in their business fortunately we are so far doing very well this year and you know I think guests are choosing us because of our local neighborhood -- and because of our menu differentiation in the high quality product that we offer for such a great value.
But clearly you know.
Any type of government regulation and additional cost of the consumer.
Puts burden on on their wallet and and their ability to eat out.
And most popular item that's pretty consistent at all their campaigns.
By far most popular item is our chicken -- Adori -- -- -- -- -- we are.
We are the convening authority.
And so we take our fresh baked sourdough country bread that we -- in house.
And then we thinly slice that -- -- fresh roasted chicken.
Spinach or -- Mayo roasted tomatoes.
And then that's grilled -- opinion it's absolutely fabulous.
Gary I mean I want to agree with you that you are at a penny at parity but -- she did not send any to our -- and it is right around lunch time.
-- -- Well we get Europe and in New York later this year we will certainly send over.
-- of our products one of our biggest things that we do is catering it's not just.
The what we do but it's who we are 20% of our revenues through catering so will be glad to bring over a full catering spreads there.
Idiots there in New York -- later this.
Here we love to have you back on please keep us posted about.
-- expansion especially here where we are and a in New York thank you so much Gary price corner bakery cafe website is on the screen.
And of course where the president -- thank you so much -- have a great day.
Filter by section