GARDENA CALIF. The Cravery is scheduled to open its fourth outlet later this month in San Francisco. —Betting that Americans will come to love savory handheld pies as much as the rest of the world, an unusual fast-casual franchise concept called
That branch would be the second Northern California location for the chain, whose second Orange County, Calif., outlet opened Oct. 30 in Tustin, following the debut of Cravery-brand pies at concession kiosks in Los Angeles’ Staples Center arena. —Betting that Americans will come to love savory handheld pies as much as the rest of the world, an unusual fast-casual franchise concept called
Launched two years ago with the first location in Irvine, Calif., the chain features a line of gourmet meat- or vegetable-filled pies in a flaky but sturdy crust. Similar to the Cornish pasty of England or the meat pies of Australia, the Cravery’s individual-size pies are designed to meet a growing demand for healthful grab-and-go dining, the franchisor says. —Betting that Americans will come to love savory handheld pies as much as the rest of the world, an unusual fast-casual franchise concept called
Last month, the chain’s third storefront unit was opened by a franchisee in Tustin. Another franchisee has been operating for about a year in Los Altos, Calif. —Betting that Americans will come to love savory handheld pies as much as the rest of the world, an unusual fast-casual franchise concept called
However, the young company, based in the Los Angeles County town of Gardena, has not been able to avoid growing pains. Two corporate units, in Torrance and Huntington Beach, Calif., have closed because of poor location choices, said Cravery founder and chief executive Brian Khoddam. A franchised location in, Calif. was closed after only four months because of problems with the franchisee, Khoddam said. —Betting that Americans will come to love savory handheld pies as much as the rest of the world, an unusual fast-casual franchise concept called
Still, the original Cravery location in an Irvine business district—initially opened by the company and later purchased by a franchisee—is recording an annual sales volume of more than $400,000 in a 1,500-square-foot space, though it is open only five days per week. The Los Altos franchisee indicates that sales there average about $43,000 per month, inspiring plans to open up to six more San Francisco area branches. —Betting that Americans will come to love savory handheld pies as much as the rest of the world, an unusual fast-casual franchise concept called
Khoddam predicted that better location choices would raise the concept’s average sales. —Betting that Americans will come to love savory handheld pies as much as the rest of the world, an unusual fast-casual franchise concept called
“We don’t really have an ‘A’ location yet,” Khoddam said. “We’re looking for that now.” —Betting that Americans will come to love savory handheld pies as much as the rest of the world, an unusual fast-casual franchise concept called
However, the new Tustin outlet—in a newly launched lifestyle center called The District that is the largest shopping mall to open in Orange County in a decade—occupies what could be regarded as a prime site, near the mall’s cineplex and scores of trendy stores and other restaurants. —Betting that Americans will come to love savory handheld pies as much as the rest of the world, an unusual fast-casual franchise concept called
Khoddam, an accountant who previously oversaw more than 200 Office Depot locations, fell in love with the idea of handheld savory pies after a visit to South Africa seven years ago, where such pies are ubiquitous. —Betting that Americans will come to love savory handheld pies as much as the rest of the world, an unusual fast-casual franchise concept called
“The idea of a dough-enrobed meal is popular across the globe,” Khoddam said, noting that meat pies in Australia outsell hamburgers four-to-one. Poland has pierogis. Italy has calzones. Mexico has empanadas. India has samosas. —Betting that Americans will come to love savory handheld pies as much as the rest of the world, an unusual fast-casual franchise concept called
The United States, however, despite a love for chicken pot pies that require a plate and fork, was clearly lacking in portable savory pies. So Khoddam brought in his uncle, pastry chef Hormoz Ghaznavi, to develop a pie that would meet that need. —Betting that Americans will come to love savory handheld pies as much as the rest of the world, an unusual fast-casual franchise concept called
Typically, the Cravery offers 12 types of pies, such as chicken and mushroom, pepper steak, pepperoni and sausage, eggplant Parmesan, chipotle chicken, and vegetable curry. The menu was rounded out with a line of soups, salads and side dishes, as well as fresh-baked desserts and premium bottled beverages. For dine-in customers, the average ticket is about $8 to $9. Take-out customers average about $10 per person. —Betting that Americans will come to love savory handheld pies as much as the rest of the world, an unusual fast-casual franchise concept called
À la carte pies are $5.50. Six combinations of “make it a meal” side dishes with a soft drink are priced from an extra $2, for mashed potatoes and a fountain beverage, to $6, for a second pie and a soda. —Betting that Americans will come to love savory handheld pies as much as the rest of the world, an unusual fast-casual franchise concept called
Using the same pie dough as the crust, six sandwich varieties—among them pastrami and cheese, turkey and cheese, and a tuna melt—each are $4.75 at the new Tustin location. It also has four $3.49 breakfast sandwiches: bacon and eggs, eggs Florentine, eggs with country gravy and sausage, and huevos rancheros. —Betting that Americans will come to love savory handheld pies as much as the rest of the world, an unusual fast-casual franchise concept called
The concept was designed around a commissary system, where the pies and sandwiches are made, flash frozen and shipped for baking in the stores. The ingredients are described as all natural and free of trans fats. —Betting that Americans will come to love savory handheld pies as much as the rest of the world, an unusual fast-casual franchise concept called
Though the Irvine Cravery branch is open for breakfast, lunch and dinner, 70 percent of its business is generated between 11 a.m. and 2 p.m. About 50 percent of the meals sold are dine-in, with the rest being takeout and catering, Khoddam said. —Betting that Americans will come to love savory handheld pies as much as the rest of the world, an unusual fast-casual franchise concept called
“The first store was cash-flow positive within 90 days,” he added, noting that the Irvine outlet’s former general manager had bought that location. —Betting that Americans will come to love savory handheld pies as much as the rest of the world, an unusual fast-casual franchise concept called
The sale of Cravery pies at Staples Center won’t be the chain’s last concession venture, said Khoddam, who is seeking more such opportunities, including airport locations. —Betting that Americans will come to love savory handheld pies as much as the rest of the world, an unusual fast-casual franchise concept called
“It’s a simplified operation that can run on a very lean labor model,” Khoddam said. —Betting that Americans will come to love savory handheld pies as much as the rest of the world, an unusual fast-casual franchise concept called
Opening costs for franchises range between the mid-$200,000 range to the mid-$300,000 range. —Betting that Americans will come to love savory handheld pies as much as the rest of the world, an unusual fast-casual franchise concept called
The chain’s commissary has the capacity to supply as many as 30 or 40 stores, Khoddam said, but eventually the company will look at outsourcing manufacturing. —Betting that Americans will come to love savory handheld pies as much as the rest of the world, an unusual fast-casual franchise concept called
Last year, The Cravery brought in Kevin Kelly as chief operating officer. An early investor, Kelly comes with manufacturing experience as a former senior executive at such companies as Pillsbury and General Mills. —Betting that Americans will come to love savory handheld pies as much as the rest of the world, an unusual fast-casual franchise concept called
Khoddam is still refining the concept. Recently, The Cravery introduced oven-baked sandwiches, using the same crust, but with an oblong loaf that’s split at one side to reveal the fillings, such as ham and cheese. —Betting that Americans will come to love savory handheld pies as much as the rest of the world, an unusual fast-casual franchise concept called
Seeking to build early morning business, Khoddam is also revamping the breakfast menu. Rather than the traditional 7.5-ounce pie, the chain is testing a smaller, rectangular pie at 4.5 ounces, as well as the side offerings of hash browns and mini cinnamon rolls. A $1.99 side of mashed potatoes is a breakfast option at the Tustin location. —Betting that Americans will come to love savory handheld pies as much as the rest of the world, an unusual fast-casual franchise concept called
The company’s initial history of hit-and-miss openings has taught it several lessons. Khoddam concedes that his launch of the chain’s second unit, in Torrance, about six months after the Irvine debut was a mistake. —Betting that Americans will come to love savory handheld pies as much as the rest of the world, an unusual fast-casual franchise concept called
“We kind of rushed into it,” he said. That location, in a business center, proved to be less than what the developer had promised, and the store closed after 15 months, he explained. —Betting that Americans will come to love savory handheld pies as much as the rest of the world, an unusual fast-casual franchise concept called
Similar problems occurred in Huntington Beach, where the branch remained open for only eight months. —Betting that Americans will come to love savory handheld pies as much as the rest of the world, an unusual fast-casual franchise concept called
That didn’t stop Gail and Ian Sanders from opening a franchised unit of The Cravery about a year ago in Los Altos with partners Tony and Amy Wu. —Betting that Americans will come to love savory handheld pies as much as the rest of the world, an unusual fast-casual franchise concept called
Their store, about 10 miles west of San Jose, near Stanford University, has approximately 2,200 square feet with about 50 seats. It offers wine and beer, as well as gelato for dessert. Sales there average about $43,000 per month, according to Gail Sanders, who said the franchisees plan to open five or six more branches. —Betting that Americans will come to love savory handheld pies as much as the rest of the world, an unusual fast-casual franchise concept called
Franchisees Janice Wong and Ken Ung plan to open their downtown San Francisco location near the convention center in late November. Next door, they are also opening a frozen-yogurt shop they developed called Green Apple Yogurt, which will share a prep area. —Betting that Americans will come to love savory handheld pies as much as the rest of the world, an unusual fast-casual franchise concept called
San Francisco is familiar with the concept of savory pies. A company called Peasant Pies has offered a line of European-style savory pies at two restaurant locations and through grocery stores in the city since 1993. —Betting that Americans will come to love savory handheld pies as much as the rest of the world, an unusual fast-casual franchise concept called
Restaurant veteran Aaron Noveshen, founder of the San Francisco-based Culinary Edge consulting firm, predicted that handheld pies would appeal to convenience- and quality-minded consumers. The pies also offer potential for growth in manufacturing. —Betting that Americans will come to love savory handheld pies as much as the rest of the world, an unusual fast-casual franchise concept called
However, he noted, “figuring out the right size [pie] for the right mealpart is critical.” —Betting that Americans will come to love savory handheld pies as much as the rest of the world, an unusual fast-casual franchise concept called
Display is also a challenge. —Betting that Americans will come to love savory handheld pies as much as the rest of the world, an unusual fast-casual franchise concept called
“You can’t see what’s inside them,” he said. “The flavors don’t show themselves.” —Betting that Americans will come to love savory handheld pies as much as the rest of the world, an unusual fast-casual franchise concept called
Operators attempting to merchandise savory pies could consider trying “different-colored doughs or shapes, and ways to cut them to show what’s inside.” —Betting that Americans will come to love savory handheld pies as much as the rest of the world, an unusual fast-casual franchise concept called
Still, he said, a savory pie “is a unique offering that has potential.” —Betting that Americans will come to love savory handheld pies as much as the rest of the world, an unusual fast-casual franchise concept called
However, Noveshen said, “the jury’s still out” on the concept’s viability. —Betting that Americans will come to love savory handheld pies as much as the rest of the world, an unusual fast-casual franchise concept called