October's release of the top 10 growing concepts.

Each calendar quarter we publish a list of the top ten growing concepts (by percentage) who start the preceding calendar quarter with less than 50 units. This list is a result of academic research performed in-house by our market research department.

See the whole story. Continued...

October's results are now posted.

The index added 1.38 points during the month of October moving forward from 1030.01 to 1031.39. The October gain was the sixth straight growth month. The slow but steady growth pattern continued for another period. Major moves led by the coffee houses. Continue and see results...

Hillsboro, OR-based PIZZA SCHMIZZA (founded 1993) has opened a new unit, from 29 to 30 (3% growth), entering into the state of ID.  Other trading areas are OR and WA.  This quick serve pizza concept is open for lunch and dinner, serving beer and wine at some locations.  Catering and delivery services are available.  More than 90% of locations are franchised.

CAPITAL RESTAURANT CONCEPTS based in Washington, DC (founded 1982) has added a new concept called Big Kahuna Cantina.  Company increase is from 10 to 11 units (10% growth).  Big Kahuna is a family/casual concept serving Mexican and Polynesian food. Seating is for about 200 and the check average is around $15-$30 per person.  The company’s other concepts vary in cuisine and some are upscale.  Concepts are Big Kahuna Cantina (1), Georgia Brown's (1), J. Paul's (2), Neyla (1), Old Glory Bbq (1), Paolo's (4) and Pik A Pita (1).  Locations are in DC, MD and VA.

Dunwoody, GA-based DUNWOODY RESTAURANT GROUP (founded 1996) has opened a new pub concept, called The Bat & Ball.  This increases the company’s total restaurant operations from 5 to 6 (20% growth).  Other concepts include Crown & Anchor Pub, Dunwoody Tavern, Iron Horse Tavern, Royal Oak Pub, and Ship & Anchor Pub.  The restaurants are family/casual restaurant bars, with seating for about 150.  Meal periods are lunch and dinner, with a $10-$30 per person check average.  All locations are in GA.

The TX-based chain, PALIO'S PIZZA CAFÉ, has opened 2 units, from 10 to 12 (20% growth).  These are quick serve, Italian & Pizza restaurants, open for lunch and dinner.  Seating is for about 50.  Beer is served.  Delivery is available.  All units are in TX.

ONO HAWAIIAN BBQ of Walnut, CA has increased by 7 units, from 22 to 29 units (32% growth).  These are quick serve Hawaiian BBQ restaurants with seating for about 50.  The per person check average is around $3-$8 and catering is offered.  Locations are in AZ and CA.

EARL OF SANDWICH based in Orlando, FL (founded 2004) has increased by 2 units from 6 to 8 (33% growth) and expanded into NV and MI.  These are quick serve sandwich shops serving breakfast lunch and dinner.  Seating is for about 100 and the per person check average is around $4-$10.  Locations are mostly franchised and are in CA, FL, IN, MI, NV and TX.

Dallas, TX-based DICKEY'S BBQ PIT (founded 1941) has opened 4 units, from 73 to 77 (5% growth) and entered into 4 new states (MO, MS, NC, OR).  We have previously mentioned this concept in our 7/31/07 and 6/19/07 newsletters (3% and 14% growth, respectively).  These are fast casual BBQ restaurants, open for lunch and dinner, with a $6-$12 per person check average.  Beer and wine is served.  Seating is for about 150.  Catering is available.  Trading areas are CO, FL, IA, ID, MO, MS, NC, NM, OH, OR, TN, and TX.  More than 90% of stores are franchised.

Irvine, CA-based CLAIM JUMPER RESTAURANT (founded 1977) has increased by 2 units, from 42 to 44 (5% growth).  This concept was covered in our 1/9/07 newsletter (8% growth) and in our 6/12/07 newsletter (5% growth).  Overall growth in 2007 is from 37 to 44 (19% growth).  These are family/casual American restaurants, with a full bar and seating for about 450.  Per person check average is $10-$30.  Meal periods are lunch and dinner.  Trading areas are AZ, CA, CO, IL, NV, OR, and WA. 

Sacramento, CA-based MOUNTAIN MIKE'S PIZZA (founded 1978) has opened 6 units during the period, from 124 to 130 (5% growth) and expanded into UT. This company was covered in our 6/5/07 newsletter (3% growth).  These quick serve pizzerias are open for lunch and dinner, serving beer and wine.  Seating is for about 50.  Catering, delivery, and online ordering are available.  Trading areas are CA, NV, OR, and UT.  More than 90% of locations are franchised. 

Houston, TX-based SALTGRASS STEAKHOUSE (founded 1991) has opened 5 units, from 37 to 42 (14% growth) and entered 2 new states (NC, TN).  This concept was previously featured in our 7/19/06 newsletter (13% growth).  These are family/casual steakhouses, with a full bar, and open for lunch and dinner.  Per person check average is $10-$30.  Restaurants are in the states of CO, LA, NC, NV, OK, TN, and TX.  Saltgrass Steakhouse is a subsidiary of Houston, TX-based Landry’s Restaurants.

GENGHIS GRILL of Dallas, TX has increased 3 units, from 14 to 17 (21% growth) and expanded into IL.  These are fast casual Asian restaurants with seating for about 125.  The per person check average is around $8-$20.  Full bar is offered.  We last reported on this concept in our 5/8/07 newsletter when they had 17% growth.  Locations are more than 70% franchised and are in CO, IA, IL, MN, TN and TX.  There are plans to open locations in AZ and NV during Fall ’07.

SEASONS PIZZA & RESTAURANT of Newark, DE has increased by 2 units, from 14 to 16 (14% growth) and expanded into NJ.  These are family/casual Italian and pizza restaurants with seating for about 60.  Beer and wine are served and catering and banquets are offered.  The per person check average is around $6-$12.  Locations are 19% franchised and located in DE, MD and NJ.  We reported on this concept in our 4/10/07 newsletter when they had 8% growth.

Milk Sales and Dairy Product Supplies

The chart of the week is US third quarter fluid milk sales.  Third quarter fluid milk sales were 2% less than last year and their lowest level this decade after trending higher the two previous summers.  The decline in fluid milk sales is attributed entirely to the inflated price levels that consumers have experienced at retail outlets in recent months.  Most of you reading this probably don’t buy a lot of milk.  But you most likely procure a notable volume of some other dairy product.  When less milk is consumed at the retail level it will inevitably free up more milk for cheese, butter and other dairy product output. Continued...

Cash is King?

A well lubricated restaurant model should pump buckets of cash into the bank. Once a unit's fixed investment stabilizes, a decent sales volume will start producing positive cash flow. The Wall Street people monitor a key indicator of business health - EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization). EBITDA eliminates many of the financing and accounting policies from the income statement model. EBITDA is not the same thing as cash flow. Continued...