It took 18 years for Twin Peaks to hit its 100th location, which it did at the end of May with a location near Indianapolis. If all goes to plan, it will take just five years to open the next 100; the company expects to double its footprint by 2027 while also surpassing the $1 billion sales mark.
If the past year is any indication, there’s little reason to be doubtful.
From 2021 to 2022, the Dallas-based sports lodge concept grew its footprint by 3.5%. Meanwhile, sales growth jumped by 23% year-over-year — from over $397 million in 2021 to north of $488 million in 2022. Estimated sales per unit have also jumped by double digits, from $4.9 million in 2021 to $5.6 million in 2022.
This growth puts the chain at No. 103 overall on Datassential’s Top 500, up from No. 108 in 2021, passing Logan’s Roadhouse, Round Table Pizza, Mellow Mushroom, Taco John’s and Long John Silver’s along the way.
According to CEO Joe Hummel, who began as a franchisee in 2011 before taking the helm in 2016, there are several drivers behind this momentum. One, the company has started finding better real estate that provides a “tremendous” return on investment. Twin Peaks has also spent the past several years focusing on its menu and, in fact, its new flatbreads earned the company a 2023 Menu Masters award from this publication. There is also the scratch-made bites and burgers, tacos, wings, soups and more. And of course, there’s the bar, known equally for its signature beers kept at 29 degrees and its craft cocktails.
“Over time, we’ve fine-tuned what our guests want in our building and in our menu offerings. That’s where the AUVs are. We are a sports bar recognized for great quality food and craft cocktails. All of those aspects continue to grow our sales,” Hummel said.
Within that menu, Twin Peaks has also found a balance between premium and value that has helped drive traffic.
“Our barbell strategy appeals to a broad influence of wallets — you can eat and drink on a budget, or you can splurge. We make sure our daily specials are front and center, so if a customer comes in and needs a lower price point, they see it up front. Or you can get all the luxuries you want, like a steak or a Blanton’s served on an ice ball,” Hummel said. “That barbell strategy is key and leaning into it in good and bad times works for us.”
Something else that has worked for the brand of late? Its cabin-like ambience, complete with that full bar centerpiece, firepits and 75-100 TVs with dozens of sports packages. This unique environment has set the concept apart, Hummel says, and has played in its favor as consumers crave experiences after three years of uncertainties.
“You’re not missing much when you come to us. There are so many uses of Twin Peaks, whether it’s lunch, a power lunch, happy hour, dinner, the big game, late-night cocktails,” he said. “It really gives our guests multiple reasons to come in.”
Hummel said his company focuses on a “holistic experience” spanning every daypart to ensure those everyday use cases.
“We don’t want to be pigeonholed into different categories. We want to make sure you’re getting a full experience from the time we open our doors to the time we close our doors,” he said.
Twin Peaks’ momentum was also teed up by its relatively insulated 2021 and 2022. When much of the industry was experiencing debilitating supply chain and labor shortages, for instance, Twin Peaks was creating new recipes based on what was available and making sure its wages were in the upper 90th percentile to retain staff.
“We focused on staff, staff, staff and making sure we could accommodate our guests versus putting a sign on the door that we weren’t open, or we were reducing our hours. We didn’t do that, we attacked. We remained reliable to our guests,” Hummel said. “And we looked to our operators and culinary and supply chain team and attacked on what we did have to substitute if something wasn’t available.”
Now, many of those pressures have eased and Twin Peaks’ momentum has accelerated. That’s why the company is confident in its rolling 5-year guidance of generating over $1 billion in sales by 2027 and surpassing 200 units. The company is opening just over 20 restaurants per year, both franchised and corporate owned. Geographically, the runway is long.
“There are so many more stores and DMAs that can handle a lodge. We’re being strategic about it — filling in the gaps on the domestic side and growing strategically outward,” Hummel said. “We have a lot of white space. The brand acceptance systemwide is tremendous.”
Contact Alicia Kelso at [email protected]