QSR Magazine - The QSR 50 - August 2002 - 12

AUV GROWTH | AMERICA’S HOTTEST CHAINS The Big Squeeze In a mature industry, chains look to get ever more sales from their individual units. UICK-SERVICE IS A MATURE INDUSTRY, ed a 10-percent increase. As All-American as and while one manifestation of the chain’s signature product is the way in that fact is the need for chains to which it markets them: In addition to the fact find new and interesting places that baseball great Reggie Jackson was once to place product, another is the imperative to squeeze as TOP 25 CHAINS BY AUV GROWTH much business out of each existing unit as 2001 SALES 2000 SALES SALES PER UNIT possible. CHAIN PER UNIT (000s) PER UNIT (000s) GROWTH RATE Subway again tops the list of chains 1 Subway $354.6 $314.9 12.61% for average unit volume (AUV) growth 2 Taco Time $414.0 $368.0 12.50% at 12.6 percent, just beating out the big 3 Popeyes $987.1 $884.1 11.64% story from this year’s list, Taco Time. 4 Chick-fil-A $1,468.98 $1,333.7 10.13% Based in Eugene, Oregon, Taco Time 5 Wienerschnitzel & Hamburger Stand $621.2 $564.8 9.97% has been around for a bit more than forty 6 Miami Subs $939.5 $861.6 9.042% years and hovers somewhere on the bor7 Panera Bread/St. Louis Bread Co. $1,748.0 $1,616.0 8.16% 8 Taco Bueno $834.0 $779.0 7.06% der between quick-casual and upscaled 9 Arby’s $814.4 $764.0 6.59% quick-service. After several years of 10 KFC $875.0 $823.0 6.31% slow to poor AUV growth—a high of 2 11 Del Taco $988.3 $930.2 6.25% percent in 1998 and a low of –14 12 Checkers Drive-In/Rally’s $651.7 $613.7 6.20% percent in 2000—Taco Time 13 El Pollo Loco $1,157.0 $1,091.1 6.04% embarked on a concerted effort 14 A&W Restaurants $307.0 $291.0 5.50% “to leverage the strengths of our 15 Taco John’s $501.0 $475.0 5.47% brand,” says spokesperson Deb16 Long John Silver’s $627.8 $595.5 5.42% bie Porter. This included a new 17 Whataburger $1,125.0 $1,070.4 5.10% merchandising strategy, a new 18 Chuck E. Cheese’s $1,629.0 $1,550.0 5.09% menu development strategy, new 19 Einstein/Noah’s Bagels $795.0 $760.0 4.60% 20 D’Angelo Sandwiches $553.3 $531.7 4.05% operational initiatives, and a new 21 Round Table Pizza $717.0 $690.0 3.91% marketing campaign. In addition, 22 Church’s Chicken $655.0 $631.0 3.80% the chain’s look was somewhat out of 23 Bojangle’s $1,118.9 $1,081.3 3.47% date, and so it has launched a new facil24 Jack in the Box $1,260.0 $1,220.0 3.27% ities package; because the new look is 25 Domino’s Pizza $584.7 $566.6 3.20% primarily cosmetic, including new paint palettes, says Porter, upfitting doesn’t cost a lot of money for franchisees (which is a spokesperson, the world’s largest hot dog January 2001 and helped propel Miami Subs important, given that the chain is heavily fran- chain is currently running a patriotic on-the- to a 9-percent growth in average unit volume. chised). The new look has performed well, cup game at all its locations, in which guests In two of the three previous years, Miami resulting in a 60-percent increase in sales for have a chance to win prizes centered around, Subs had experienced negative AUV growth. the test unit. you guessed it, baseball, hot dogs, apple pie Finally, the big decliner in average unit All told, Taco Time enjoyed a 12.5 percent and Chevrolet. Prizes for the contest are the volume was Dairy Queen, which finished increase in AUV in 2001. equally All-American 2002 Chevrolet 2000 with AUV growth of almost 40 perAnother top performer in AUV growth is Camaro convertible or a trip for two to the cent but experienced flat same-store sales hot dog chain Wienerschnitzel, which post- 2002 World Series. In a year in which Amer- in 2001. q icans came together in a way unlike we’ve seen before, it is at least fitting that Wienerschnitzel enjoyed such a positive AUV growth. Finishing just behind Wienerschnitzel is Miami Subs, a concept recently acquired by another hot dog chain, Nathan’s Famous, which relies heavily on more-profitable and less–capital intensive expanded points of distribution to sell product. This is a strategy it is poised to roll out with Miami Subs, but the biggest boost is coming from co-branding opportunities. In addition to Miami Subs and its own brand, Nathan’s Famous owns Kenny Rogers Roasters and the co-branding rights to Arthur Treacher’s Fish & Chips and is including all those brands in a concept it calls Miami Subs Plus! The co-branding (or “rebranding,” as the chain calls it) began in AUV GROWTH www.qsrmagazine.com | QSR AUGUST 2002 51
QSR Magazine - The QSR 50 - August 2002

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