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Calif.-based Blaze Fast-Fire’d Pizza led the Second 100 fastest-growing chains. Founded in 2011, Blaze has excelled in the fast-casual pizza segment and gotten a boost from notable brand investor and promoter LeBron James of the Cleveland Cavaliers NBA team. The chain is positioned for continued growth after an investment by private-equity group Brentwood Associates earlier this month.
Blaze ended the Latest Year with $183.7 million in system sales, entering Second 100 territory for the first time, at No. 191. The chain started the year with a new “Keepin’ It Real” initiative, highlighting a commitment to serving food without artificial additives.
New York-based Shake Shack, which topped the fastest-growing chains list for the 2016 Second 100 report, made a strong showing in the Latest Year, with 43.5-percent growth in U.S. systemwide sales. Shake Shack hit $277 million in domestic sales in the Latest Year, and the brand introduced a mobile app in January that drew 200,000 downloads with the incentive of 90,000 free burgers.
The company expanded its U.S. unit count by 44.9 percent, ranking No. 2 in restaurant expansion among the Second 100 players. It ended the Latest Year with 71 U.S. units.
Riding the eye-opening growth of nationwide breakfast sales, Bradenton, Fla.-based First Watch was a close third among the Second 100 fastest-growing chains, posting 42.8-percent growth in Latest-Year sales. As a result, First Watch moved up in the top 10, and landed at No. 163 in the Second 100, helped by menu innovations.
The breakfast-lunch chain introduced new dishes such as Avocado Toast, Smoked Salmon Eggs Benedict, Farm Stand Breakfast Tacos and Lemon Ricotta Pancakes, as well as a Fresh Juice Bar with on-trend beverages like Kale Tonic.
Frozen custard sets Wichita, Kan.-based Freddy’s apart from the other two better-burger brands in the Second 100’s top 10. With such child-friendly treats as a “Dirt n’ Worms” sundae (vanilla custard, crumbled Oreo cookies, Gummi Worms, whipped cream and a cherry), Freddy’s saw systemwide sales increase 27.5 percent in the Latest Year.
The brand rose to No. 119 in the Second 100 rankings, with $340.5 million in systemwide sales. The company expanded to 236 restaurants in the Latest Year, appealing to customers with its lean ground-beef steakburgers, Vienna Beef hot dogs and shoestring fries.
Despite what Russ Bendel, president and CEO of The Habit Restaurants Inc., called a “fiercely competitive environment in the restaurant industry,” the Irvine, Calif.-based chain saw U.S. systemwide sales grow 25.36 percent in the Latest Year to $293.6 million, narrowly edging out Cooper’s Hawk Winery & Restaurants.
Habit increased Estimated Sales Per Unit to $1.86 million in the Latest Year, from $1.85 million in the Preceding Year.
With its own wine program, which produced more than 300,000 cases in 2015, Countryside, Ill.-based Cooper’s Hawk Winery & Restaurant matches its signature bin-numbered offerings to menu items like braised short ribs and ahi tuna tacos. Capitalizing on its wine differentiation, the Casual-Dining concept increased sales 25.4 percent in the Latest Year.
With systemwide sales of $185.4 million, Cooper’s Hawk entered the Second 100 for the first time at No. 186. The chain increased Estimated Sales Per Unit to $8.2 million in the Latest Year, an increase from $7.8 million in the Preceding Year.
Strong unit growth helped propel Plano, Texas-based Zoe’s Kitchen Inc. up the Second 100 ladder in the Latest Year. Differentiated with a Mediterranean-influenced menu that travels well, Zoës Kitchen also expanded its large-order catering business. The expansion helped keep unit volumes in the $1.5 million range.
At the start of the year, Zoës Kitchen expanded its grab-and-go-case offerings with items like prepared sides and snack boxes, which the company expected to boost sales further. Sales in the Latest Year grew 21.5 percent.
Amid growing consumer interest in juices and smoothies, Metairie, La.-based Smoothie King again took a slot in the Second 100’s top 10 fastest-growing brands with a 21.4-increase in U.S. systemwide sales. In the Latest Year, Smoothie King reached $332.9 million in total U.S. sales.
Smoothie King, which was founded in 1973, developed a new standalone unit design with a popular drive-thru to increase convenience for customers. Privately held parent company Smoothie King Franchises Inc. also offered locations a number of healthful retail products, including sports beverages, energy bars and vitamin supplements.
Another beverage-oriented brand, Atlanta-based Tropical Smoothie Cafe, saw fast-paced growth in the Latest Year. The chain increased U.S. systemwide sales 20.2 percent, reaching $314.2 million. Estimated Sales Per Unit grew to $625,300 in the Latest Year, an increase from $596,600 in the Preceding Year.
The Beverage-Snack brand also grew its unit count to 540 locations in the Latest Year, with much of the expansion from those already connected to the brand. The company said more than half of its development agreements in the past year came from existing franchisees.
The Casual-Dining segment in general was buffeted by competition in the Latest Year, but Scottsdale, Ariz.-based Kona Grill Inc. saw sales of its American grill and sushi offer increase 18.5 percent. Many of Kona Grill’s units are located in regional shopping malls, which have seen challenging retail traffic.
The company has pared back its unit growth plans for the year and said in a May earnings call that it is negotiating with landlords to reduce rents at a number of restaurants. Estimated Sales Per Unit slipped slightly in the Latest Year to $4.1 million, from $4.3 million in the Preceding Year.
