QSR Magazine - The QSR 50 - August 2002 - 19

AMERICA’S HOTTEST CHAINS | SEGMENTS Popeyes Chicken & Bicuits, one of two it stands today,” he told QSR in a recent AFC Enterprises concepts in the top five interview, “Long John Silver’s dominates the chicken chains, finished a close third to quick-service seafood industry by a wide Chick-fil-A, with just under $1.2 billion in margin. Granted it’s smaller, but we domi2001 sales, an increase of just under 10 per- nate it. With the power of YUM! Brands, cent. This was the second year in a row from the standpoint of its ability to accelerChick-fil-A topped Popeyes, and that may ate the growth of our brand, invest more not change soon—though Popeyes posted its fourth straight strong W H O ’ S T O P S B Y S E G M E N T increase in sales, those increases SEAFOOD have lagged behind Chick-fil-A’s. ESTIMATED 2001 Watch to see how Popeyes CHAIN SYSTEMWIDE SALES (MIL) performs in 2002, as the Long John Silver’s $749.5 chain is heavily promoting Captain D’s Seafood $486.1 its thirtieth-anniversary celebration. PIZZA/PASTA ESTIMATED 2001 As Boston Market’s sysCHAIN SYSTEMWIDE SALES (MIL) temwide sales have continPizza Hut $5,000.0 ued to drop—almost 12 percent in Domino’s Pizza $2,755.0 2001—AFC-owned Church’s Papa John’s Pizza $1,740.0 Chicken has finally taken over fourth place in the chicken categoLittle Caesars Pizza $1,290.0 ry, with more than $7.2 million in Chuck E. Cheese’s $631.5 sales last year. That’s up just over 3 percent from 2000. aggressive expansion plan in its history. Plans call for a “significant” expansion in both company-operated and franchised stores, and the chain is seeking multi-unit foodservice, convenience store, and retail operators to spur its franchise growth. Captain D’s expects to increase its number of franchised outlets to two-thirds of the system, up from the current level of about one-third. “Captain D’s offers consumers a unique dining experience and a welcome diversion from typical quick-serve and casual-dining fare,’’ says Ron Walker, the chain’s president and chief operating officer. “By giving both consumers and investors the value they want, we’re well-positioned for continued sales and unit growth.” LEADERS OF THEIR PACK Pizza The year 2001 found the pizza industry battered and bruised. Cheese prices rose to exorbitant highs last summer, causing some operators to consider delivery surcharges and raising prices to offset the cost. At the same time, the battles of the cutthroat price wars among the Big Five began to trickle down to the smaller independent operators, many of whom could ill afford to slash prices to keep up with the competition. But all that is in the past, say those close to the industry. This year, it seems, is a quiet year for pizza. Even the recent uproar over the nation’s obesity problem is not expected to cause waves in a segment known for its calorie- and cholesterol-laden menus. “People are still ordering extra cheese pizzas,” says industry analyst Marc Botts of Pizza Today. “Now they are just asking for artichokes and broccoli.” Which leads us to the only truly booming trend in pizza right now: gourmet pies topped with everything from grilled chicken to asiago cheese. Popular for years among the more high-end establishments, gourmet pizza has gone mainstream. Early this spring, Papa John’s introduced its variation on the theme, its Spinach Alfredo and Six Cheese pies. Sales for the two pies have not been what one would call “stellar,” but they’ve sold—well enough for Papa John’s to hold on to its third place ranking among the Big Five for the second year in a row. Little Caesars, which slipped from the number three spot last year, remains an enigma on the pizza scene. How does a company that has not launched a major national campaign in years manage to hang tough with the SANDWICH Subway $4,540.0 The seafood segment is a tiny part Arby’s $2,564.9 of quick-service and continues to be dominated by its two major players, Panera Bread/St. Louis Bread Co. $529.4 Long John Silver’s and Captain Schlotzsky’s Deli $418.4 D’s, well-entrenched in that order, Einstein/Noah’s Bagels $360.0 with Long John’s Silver’s ahead of Captain D’s in systemwide sales by MEXICAN about $260 million. Neither chain ESTIMATED 2001 CHAIN SYSTEMWIDE SALES (MIL) fared particularly well relative to the Taco Bell $5,100.0 rest of the 50; Long John Silver’s posted a below-average increase Del Taco $354.6 in sales of 4.5 percent but increased Taco John’s $193.0 one spot in the rankings, while Chipotle $185.9 sales at Captain D’s declined almost Baja Fresh Mexican Grill $172.0 2 percent and the chain’s ranking dropped two spots. Don’t look for Long John Silver’s to money into operational programs, training lose its lead, either, after being acquired by programs, things that they already have YUM! Brands Inc. (formerly Tricon Global). that we can tack onto, it just makes our posiThe owner of Taco Bell, Pizza Hut, KFC, and tion even stronger and more powerful and now Long John Silver’s and A&W, counts helps entrench Long John Silver’s even multi-branded units as one of its key growth further as the dominant player in the quickstrategies, and that bodes well for Long service seafood category. I would not want John Silver’s. to be competing with Long John Silver’s in Sid Feltenstein, chairman and CEO of the months and years to come.” Yorkshire Global Restaurants, the former The decrease in sales at Captain D’s was parent company of Long John Silver’s and the Nashville-based chain’s second in a row. A&W, is continuing in his role, and he’s Still, it remains confident. It announced earconfident in Long John Silver’s future. “As lier this year that it would embark on the most 60 AUGUST 2002 QSR | www.qsrmagazine.com Seafood CHAIN ESTIMATED 2001 SYSTEMWIDE SALES (MIL)

QSR Magazine - The QSR 50 - August 2002

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