Pollo Campero Sales Strong as Restaurant Chain Sees Sales Growth of 9.1% for Third Quarter of 2016

November 3, 2016


Campero Marks Sales Momentum with New Store Openings and New Value Latin Meals

DALLAS, Nov. 1, 2016 /PRNewswire/ — Pollo Campero, the world’s largest Latin chicken restaurant brand, announced today its sales momentum remains strong as it reports a 9.1 percent same-store sales growth for the third quarter 2016. This marks the Latin chain’s 19th consecutive quarter with positive comparable growth and comes as Campero focuses on expanding both its U.S. and international footprint, while growing its Millennial customer base.

In fact, Campero has now generated a +8 percent compounded same-store sales growth for the past five years. “We are extremely pleased that we continue to see strong growth, despite a restaurant industry slowdown this year,” said Tim Pulido, President and CEO of Pollo Campero International. “Year to date, we have posted excellent comparable growth of +9 percent, positive comparable traffic growth and 22 percent total sales growth driven by our new store openings.”

Pollo Campero has seen steady growth with Millennials, with the group now comprising more than 64 percent of Campero’s customer base in 2016, according to Technomic’s Consumer Brand Metrics. Campero attributes much of this growth to the constant innovation and enhancement of its bold, Latin-inspired menu.

“Pollo Campero has maintained its relevancy with its growing Millennial customer base by introducing menu items that are true to who they are,” said Darren Tristano, President of Technomic, Inc. “Their new products are viewed as exciting by their customers, helping them differentiate the brand from the competition—their sales results this year reflect that.”

Pollo Campero’s latest limited time offer items include value offerings for individual and family occasions that highlight Campero’s signature Latin flavors. The brand also launched its new kids’ program featuring new Pollito Meals with healthier pairings and more variety for the entire family.

“We understand that our guests have busy, demanding lives,” said Pulido. “Campero’s new Latin meals are proof that families, no matter how busy, can still enjoy fresh, flavorful meals on the go and on a budget.”

Pollo Campero Expansion: Challenge Accepted
As sales continue to grow, Pollo Campero also remains focused on restaurant expansion both in the United States and around the world. Campero currently has in place a goal to nearly double the number of its restaurants in the next three years. So far in 2016, Campero has opened 8 restaurants in the United States, with 6 more slated to open by the end of the year.

While much of Campero’s growth plans are concentrated on key states, such as California and Texas, along with the Washington, D.C. metro area, the brand has recently inked a deal to open its first restaurant in Tennessee – a franchise to be located in Nashville and expected to open during the first quarter of 2017.

Pollo Campero, considered the home of Authentic Latin Chicken, is the largest Latin chicken restaurant brand in the world. It first opened its doors as a tiny, family-owned restaurant in Guatemala in 1971 with the goal of treating family and friends to its prized chicken recipe passed down from generation to generation. Today, as Pollo Campero marks its 45th anniversary, its focus on quality, and its mission to stay true to its Latin roots remain the same. Pollo Campero is committed to serving unique Latin recipes prepared by hand daily using high-quality and all-natural ingredients. At the heart of that commitment: the promise to use fresh, never frozen, hormone-free chicken paired with traditional Latin sides, drinks and desserts in a vibrant atmosphere. There are more than 350 Pollo Campero restaurants around the world and Campero is accelerating growth. For franchise information, or to learn more about Pollo Campero, visit Campero.com. Follow the flavor on Facebook, Twitter and Instagram @CamperoUSA.

How to save money — and avoid talking to anyone — when ordering takeout

November 2, 2016

By Alessandra Malito

Tech companies are entering the food delivery scene in full force; here’s how to capitalize

The way people order takeout food has evolved.

Instead of using a phone to call a restaurant, many now use their phones to access apps like Facebook FB, -0.59% or GrubHub GRUB, +0.46% to place food orders. Even though it costs more than cooking at home, it’s still possible to save a few bucks for those nights you just want to order in, especially now that there are so many services available.

Tech giants Google GOOG, -0.88% , Facebook and Amazon AMZN, -1.07% have entered the food delivery races. A Google Maps for iOS update lets users “place an order” from restaurants in major cities with a button on its app, 9to5 Mac reported last week. Amazon expanded its one-hour delivery service for its Prime members to Brooklyn. Facebook jumped in last month with an option to start an order from a restaurant’s page.

“More restaurants are doing mobile ordering, and because of that the younger consumer is definitely engaging,” said Darren Tristano, president of Technomic, a food-service and restaurant research and consulting firm. “Today using your mobile device with either an app or the internet becomes a very good, strong option.”

The fans of the hit 2000s show “Gilmore Girls,” which is returning for a four-episode revival on NFLX, +0.43% later this month, may find this familiar ­­— main characters Lorelai and Rory Gilmore hardly ever had a home-cooked meal on the show, opting instead for takeout and delivery for nearly every meal. Though that is somewhat of an exaggeration of real life, Americans do spend $1,100 a year on average ordering food online, according to turkey company Butterball, which surveyed 1,000 people last year. One in 20 ordered every one or two days, and 25% ordered delivery or takeout at least once a week, the study found.

Online orders may soon beat phone orders. About 904 million online orders were placed in May 2015, up from 403 million in May 2010, while 1.02 billion phone delivery orders were placed in May 2015, down from 1.39 billion in May 2010, according to research firm NPD Group.

The interest from tech companies and restaurants may be the popularity from delivery startups, such as GrubHub, Seamless some of which these tech companies are using on the back end to see their deliveries through. Ride-hailing app Uber has been on the delivery scene since 2014, though it launched its stand-alone food delivery app earlier this year. These services give those at home or at work takeout options from local businesses without having to eat in, or step into, those establishments.

Americans’ annual expenditures on food away from home jumped 7.9% from 2014 to 2015, according to Bureau of Labor Statistics, while food at home expenses jumped only 1.1% over that same period. The change doesn’t necessarily mean more people are ordering takeout, but that prices are going up, said Warren Solochek, president of food service practice at the NPD Group.

“If you’re working from home, restaurants have to do a lot more to incentivize people to go to a restaurant,” Solochek said. “I can order from GrubHub or I can go to the refrigerator, and guess what, I have most of my meal right there.”

Still, there are ways you can save, even when you do grab for your phone. Here are three:

1. Look for deals: Check food delivery sites or do a quick web search for promo codes before placing an order. Amazon is offering a $10 off code to its Prime members for its one-hour restaurant delivery and other services like Seamless and GrubHub periodically provide discounts for users, such as during the presidential election. Some sites also have first-time user deals.

2. Avoid additional fees: Double check your bill total to ensure you know exactly what you’re paying for, since some sites may tack on additional fees. Uber announced late last month that even its UberEATS service in certain cities would be subject to surge pricing, when there are more orders than drivers. The company said in its announcement the extra fee will appear as a separate line item before checkout and on the receipt.

3. Participate in referral programs: Seamless gives back to those who refer their service, in the form of $7 for every friend. In fact, both parties win — those referred get $7 off their first order and once they try the service, so will the one who recommended Seamless.

Striking While the Tortilla Warmer is Hot

October 5, 2016


By David Farkas

Mendocino Farms co-founders Mario Del Pero and wife Ellen Chen have put their money where many mouths are. Last month, the couple invested an undisclosed sum in Dos Toros, a 11-unit New York City-based taqueria chain that plans to expand to Chicago next year. “There is an unbelievable runway for them [to grow],” Del Pero declared in a recent interview.

The timing of the investment is no accident. Investors have been scouting for a viable investment vehicle in the category given the troubles at beleaguered Chipotle Mexican Grill. “I think that with the decline in traffic to Chipotle, the opportunity for other restaurants to capture share and support their desire for flavorful Mexican fare is very high,” Technomic Inc. President Darren Tristano told the Monitor. The market research firm expects Mexican fast-casual to grow 8% overall in 2016.

Del Pero and Chen invested alongside Managing Director Nick Marsh of GrowthPoint Partners, which last month made a $10 million minority investment in Dos Toros. Marsh, an early investor in the Studio City, Calif.-based premium sandwich chain, is also CEO of Chopt Creative Salad Company. “He’s a close restaurant friend that we trust,” Del Pero said.

Although Del Pero declined to reveal how much capital the couple put up, he acknowledged it was their own money. Still, he added, he sought permission for the investment from private equity firm Catterton, which has a substantial stake in 13-unit Mendocino Farms. “We made it very clear that we’re just investors, though we are a sounding board for Leo and Oliver,” Del Pero explained.

Brothers Leo and Oliver Kremer founded Dos Toros (“two bulls” in Spanish) in 2009, slowly opening units in Manhattan and Brooklyn until they added a second line in store in a busy Manhattan food-court two years ago. The addition has allowed new units to serve 450 people an hour.

Del Pero wouldn’t comment on Dos Toros AUVs or unit economics but claimed Dos Toros unit sales rivaled Chipotle’s. Before the chain’s food-poisoning problems, CMG reported volumes of $2.5 million. Dos Toros reportedly rang up $20 million in 2015.

He also said the couple would likely offer Dos Toros advice on catering and procurement as the brand scales outside New York City. “We think there is opportunity in catering. So that’s one of the things we can help with,” Del Pero offered.

How is it possible that bacon sausages didn’t exist until he invented them?

September 26, 2016




On a whim in 2008, Lance Avery hopped a quick flight to Des Moines to check out the inaugural Blue Ribbon Bacon Festival, a small event that drew about 200 bacon enthusiasts to a local bar. He remembers seeing men dressed in bacon suits and others with pieces of bacon stuck to their faces and thinking, “These are my people.”

Avery is finding that “his people” are all over the place today. The Des Moines bacon festival? It was held earlier this year in the city’s convention center and hosted 14,000 fans from 42 states and seven countries. As for Avery, the former corporate chef now runs Big Fork Brands, a line of all-natural, antibiotic-free, naturally encased sausages made primarily with bacon that he introduced at the 2011 festival.

Big Fork Brands, which consists of Avery and a single sales manager, had total sales of about $500,000 in 2015 and is on pace to do about $800,000 in 2016 after landing placement in the refrigerated shelves of Whole Foods and Costco stores in Illinois over the past few months. Its annual run rate just surpassed $1 million in its most recent financial quarter. He thinks the Big Fork brand can be worth $15 million to $20 million by 2020.

“Right now, we have more leads than we can deal with,” says Avery, 41, who quit his day job as a food consultant in January to focus on Big Fork full time. “We’ve got to be smart and strategic about how we position the brand and where we go from here.”

Funded with about $300,000 of Avery’s own money plus a small bank loan (that was recently paid off), Big Fork is now distributed in about 15 states both at retail and through food-service channels. Available in eight varieties, including aged cheddar, maple and brown sugar, and best-seller hickory and applewood, Avery’s bacon sausages can be found in grocers such as Plum Market and restaurants like Tavern on Rush. They retail for $6.99 to $7.99 for a 12-ounce package of four links.

He’s now trying to take his startup to a national platform. To get there, Avery knows he’s going to need help. That may mean partnering with a bigger manufacturer that can use its sales teams and infrastructure to broaden Big Fork’s presence or a private-equity-style investor that can inject capital into the business to allow Avery to hire more staff to scale the business.

Darren Tristano, president of Chicago-based market research firm Technomic, says the product is innovative and has a chance to be a hit; but its appeal likely will be limited to a niche group of bacon fanatics. “It’s the type of product that appeals to a more affluent, craft-focused consumer who’s willing to pay more,” Tristano says. Big Fork is “very well-positioned for a bigger brand to come in, and purchase it and build it up.”

Eatery digests patrons’ feedback

June 6, 2016

Arkansas-based fast-casual restaurant chain Slim Chickens, known for its tenders and wings, is rolling out a chicken-breast sandwich for taste-testing.

Testing is underway at Slim Chickens’ three Fayetteville locations, its Rogers store, and in Broken Arrow, Okla., near Tulsa. The restaurant chain is offering cayenne ranch and buffalo chicken sandwiches in Northwest Arkansas and cayenne ranch and Cajun chicken versions of the sandwich in Oklahoma.

Customers who select the sandwich are asked for feedback in a survey that takes about a minute to complete. That information goes straight to a few select Slim Chicken executives. So far, customers’ feedback has already resulted in changes to one of the sandwiches. The process is expected to continue for the next several weeks.

“Early indicators are positive,” said Sam Rothschild, Slim Chickens’ chief operations officer. “This is why you test.”

While the chain has offered sandwiches in the past, this is the first one made with a whole, premium chicken breast. Rothschild described the test sandwiches as being made from high-quality chicken and “fully dressed” with Slim’s sauce, pickles, lettuce and onions.

“We want our sandwich to stand out,” he said.

Slim Chickens has 35 restaurants — 25 are company owned and 15 are franchise operations — in Arkansas, Texas, Oklahoma, Illinois, Nebraska, Kansas, Louisiana, Missouri and Tennessee, with 21 other stores under construction. With the new stores, Slim’s is expected to have more than 50 restaurants open by the end of the year. The company said it hopes to have 600 stores in the United States by 2024.

Slim Chickens competes in the fast-casual segment, where operations focus on an enhanced dining experience compared with fast-food operations. While they don’t have a wait staff, fast-casual restaurants typically deliver patrons their food after ordering.

According to information provided by Chicago-based Technomic Inc., a research and consulting firm focusing on food and food service, sales at limited-service chains among the top 500 U.S. restaurant chains grew 5.5 percent to $211 billion in 2015. Sales at limited service chicken restaurants was up 9 percent. Limited service chains include fast food and fast-casual concepts.

Sales in the fast-casual segment alone were up 11.5 percent, and unit growth was up 9.6 percent in 2015, according to the report.

Darren Tristano, president of Technomic, said that portability, in the form of a sandwich, is something that consumers are looking for, and that adding a sandwich helps fast-casual operations compete with more traditional fast food’s convenience factor.

“One hand on the wheel and the other on a sandwich,” he said.

He added that Slim Chickens’ efforts to test the sandwiches locally are wise.

“They are getting consumers to validate the quality of the product,” he said. “It’s what successful brands do but not what everybody does.”

Rothschild said the sandwich sells for $3.99 by itself or as part of a combo meal at $6.49. Slim Chickens’ lowest cost combo meal, pre-sandwiches, was $6.99. He said that puts the Slim Chickens’ sandwich and combo meal close to fast food on price.

“We want people to come to us when they want chicken,” Rothschild said.

McDonald’s All-Day Breakfast Sparks a Fast Food Fight

May 9, 2016

by Leslie Patton


Fast-food joints aren’t hitting the snooze button anymore.

McDonald’s Corp.’s decision to start selling Egg McMuffins all day long last year — meant to help sales during lunch and dinner time — has boosted its morning business as well. That, in turn, has kicked off a scramble among its rivals to find new ways to combine eggs, potatoes and meat for a tasty breakfast.

The latest example is Burger King’s Egg-Normous breakfast burrito, which is being introduced in the U.S. on Tuesday. It’s stuffed with sausage, bacon, eggs, hash browns, cheddar and American cheese and served with picante sauce. The home of the Whopper, which still serves breakfast only during morning hours, also recently added a supreme breakfast hoagie and got rid of slower-selling English muffin sandwiches.

“We’ve invested more in breakfast,” Alex Macedo, head of Burger King North America, said in an interview. “The environment is very competitive.”

Along with adding and deleting items, Burger King tweaked its smaller egg burrito earlier this year, removing green and red peppers and replacing them with hash browns.

Skillet Bowls

Taco Bell revised its morning offerings in March to include $1 options such as skillet bowls and sausage flatbread quesadillas. Subway Restaurants just announced buy-one-get-one subs for the month of May. The catch: They have to be purchased before 9 a.m. And Dunkin’ Donuts revamped its menu boards to focus on all-day choices and started advertising $1.99 Coolatta drinks that are sold at all hours.

The changes come as more U.S. consumers grab eggs and coffee outside the home, according to a study by researcher GfK MRI published by EMarketer.com. Last year, more than 34 percent of Americans reported buying breakfast at fast-food restaurants, an increase from 32.8 percent in 2011. Meanwhile, fewer consumers said they’re dining out for lunch and snacks. Dinner increased less than 1 percent.

McDonald’s all-day breakfast in the U.S. has helped turn around its worst sales slump in more than a decade by drawing more customers throughout the day, including the morning. The plan is surpassing its goals.

Exceeding Expectations

“It’s still exceeding our expectations,” Chief Executive Officer Steve Easterbrook said on a conference call in April. “Whilst we clearly added incremental visits and incremental spend across rest of day, our breakfast business has also prospered.”

Items like Egg McMuffins and hash browns fueled a 5.4 percent U.S. same-store sales increase at McDonald’s in the first quarter. That’s stronger than the most recent quarterly gains posted by Burger King, Dunkin’ and Taco Bell.

“It’s helped drive success, which they haven’t seen for several years,” said Darren Tristano, president of industry researcher Technomic Inc.

After losing customers to McDonald’s all-day Egg McMuffins, Jack in the Box Inc. has been advertising a triple-cheese and hash-brown breakfast burrito. Same-store sales at company-owned Jack in the Box locations may be down as much as 3 percent in the recently ended quarter, the company said in Februar-1x-1y. The chain also is adjusting and improving other breakfast items, CEO Lenny Comma said during a conference in March.

Dunkin’ Donuts said last month that its new menu boards are helping drive breakfast-sandwich sales. It’s also focused on introducing mobile ordering and will start a 1,650-store test in metro New York in May to get customers their morning meals even faster. CEO Nigel Travis says McDonald’s push has actually helped Dunkin’ in the breakfast battle by highlighting that the doughnut chain has the same menu all day. Still, the change has increased competition for diners’ dollars.

“Clearly, the value war is pretty intense,” Travis said in an interview.

Yum! Brands keeping headquarters in Louisville, moving executives to Texas

March 1, 2016

Caitlin Bowling
INsider Louisville
February 24, 2016

With Yum! Brands Inc. relocating five key C-suite executives to Plano, Texas, Louisville may become a show headquarters for the restaurant conglomerate, while employees in Texas are the ones actually steering the ship.

Yum Brands Inc. is headquartered at 1900 Colonel Sanders Lane. | Courtesy of Yum! Brands

Yum Brands Inc. is headquartered at 1900 Colonel Sanders Lane. | Courtesy of Yum! Brands

“Whenever you move your C-level team … in effect you are moving your headquarters because that is where your heads are,” said Darren Tristano, president at Technomic, a Chicago-based restaurant industry research firm.

Business First previously reported that Yum CEO Greg Creed, chief public affairs and global nutrition officer Jonathan Blum, chief legal officer Marc Kesselman, chief people officer Tracy Skeans, and a yet-to-be-named CFO will move to Plano, where Yum’s global operations team and its subsidiary Pizza Hut are located.

Yum’s former CFO Pat Grismer resigned effective Feb. 19, Insider Louisville previously reported.

The company is adamant that Louisville is and will remain Yum’s home. Virginia Ferguson, a spokeswoman for Yum, told IL that none of its nearly 1,000 Yum and KFC U.S. employees are moving to Texas.

“We are proud to be here,” Ferguson said.

IL was scheduled to interview Blum this afternoon about the impending move; however, a few minutes before the appointment, IL was told he was suddenly pulled away and would be unavailable for comment. Ferguson forwarded along statements from Yum explaining the decision.

Creed and the other four executives “will be highly mobile, traveling to many of our international markets and offices throughout the year, including Louisville for 1-2 weeks each month,” Ferguson said in an emailed statement. “Given the global nature of our business, which has transformed over the years, the YUM executive team’s office will be in Plano, but they will retain an office in Louisville.”

She also noted that Yum has based its international operations in Texas since 1997, when the company spun-off from PepsiCo.

It makes sense that the company’s leaders would want to be close to its overseas operations, Tristano said. “Today, a lot of the growth restaurant companies are seeing takes place outside our borders.”

Texas also is home to a number of other restaurant chains and restaurant-related businesses, including Pie Five Pizza, Dickey’s Barbecue Pit, Romano’s Macaroni Grill and Apex Restaurant Group.

“Dallas is considered a very big restaurant town,” Tristano said, noting that many industry events and restaurant innovation happens there. It also is warm, has a large population and is somewhat centrally located.

While Louisville city leaders often tout the city’s location and its proximity to other places, the truth is one of the few ways to get a direct flight is to be a box the United Parcel Service is shipping.

The Louisville International Airport has fewer than 20 nonstop flights to cities in the United States. The Dallas/Fort Worth International Airport is a major transportation hub; it has nearly 50 nonstop flights to international cities and countless more within the continental United States.

“There is no way to overlook that,” said Nat Irvin, the Strickler executive in residence and professor of management at the University of Louisville College of Business. “We can get to the airport in 20 minutes from any place in the city, but part of the downside is you can’t get to any place directly.”

And Dallas is closer to China — where Yum will spin-off its operations this year — offering a nonstop flight to Beijing. Although Yum China will technically operate as its own company, Yum leaders will no doubt be keeping a close eye on how the company is faring in China’s sometimes volatile market.

Already, Yum executives spend a good portion of their year abroad, according to the company.

“I think what (the move) represents is the importance of face-to-face communications when you are developing strategy,” Irvin said. “You like to see them; you like to hear them; you like to be close to them.”

The only factor in Yum’s decision, according to Ferguson, was the fact that the company’s global operations offices are in Texas

“Our business is a global business, and it makes sense,” she said.

Tristano said he wouldn’t be surprised if Yum moved more jobs to Texas in the future, but the company also has good reason to remain in Louisville. If the company said it planned to move its headquarters but keep jobs in Louisville, it could end up with a retention problem.

“It would make sense for them to continue to have that (Louisville) location regardless of what they call it,” he said. “This is a less disruptive strategy for them.”

With its name plastered around the city (see KFC Yum! Center), Irvin said he is confident Yum will continue to maintain a large presence in Louisville.

“I think Yum is fully ensconced in this community. The company has a very broad footprint in this community, and I think the heart still remains right there,” Irvin said. “I think what they have made is a decision for the company. I don’t think it’s a detriment to the community — a good idea for them, not necessarily a bad idea for us.”

Still, the decision by Yum is an unusual one.

Tristano could not think of any comparable examples, except possibly Tim Horton’s and Burger King. However, the quandary over where to headquarter those two restaurant chains is the result of their merger back in 2014. As of now, Tim Horton’s base of operations remains in Canada, while Burger King resides in the United States.

Overall, Tristano said he thinks Yum is making good decisions to focus more globally and try to appeal to younger generations.

“They seem to be moving in the right direction strategically.”