51.5 F
Laguna Hills
Thursday, Mar 28, 2024
-Advertisement-

Taco Bell Rebound, Openings Lift Restaurant Chains

Taco Bell Rebound, Openings Lift Restaurant Chains

By SHERRI CRUZ

The 15 largest restaurant chains based in Orange County saw 2003 sales rise 6% to $3.8 billion last year, according to this week’s Business Journal list.

The growth rate far outpaced the national rate for restaurants last year, which came in at 1.3%, according to the Washington, D.C.-based National Restaurant Association. This year restaurants are expected to grow sales 4%, according to the trade group.

Some of chains on the list were boosted by the high-protein Atkins Diet and shook off worries about Mad Cow disease, which peaked late last year.

Tacos, chicken and burgers held the top four spots on the list, while Mexican fare dominated at the top three chains. The list includes sit-down, casual dining and fast food operators based here or subsidiaries that have their brand headquarters in OC.

No. 1 Irvine-based Taco Bell Corp., a unit of Louisville, Ky.-based Yum! Brands Inc., easily topped the list again this year with an estimated 4% gain to $1.35 billion in 2003 sales. Yum! Brands doesn’t break out sales for Taco Bell.

In all, the list includes six Business Journal estimates.

Taco Bell’s sales were triple the No. 2 company on the list, Lake Forest-based rival Del Taco Inc., which had $431 million in 2003 sales.

Without Taco Bell in the mix, the 14 other restaurant chains saw sales rise 8% last year to $2.5 billion.

Taco Bell has been on the upswing since 2000, when Emil Brolick took over as president and chief concept officer. Using tactics honed at Wendy’s International Inc., Brolick has revamped Taco Bell’s menu and boosted quality and service.

Analysts call the chain a bright spot for Yum! Brands.

Del Taco, which has poked fun at Taco Bell in commercials, saw sales rise 11% to $431 million last year.

Not far behind was No. 3 Irvine-based El Pollo Loco Inc., which had $396 million in 2003 sales, up 9%.

El Pollo Loco has been surging. For years, the Mexican chain languished as part of Spartanburg, S.C.-based Denny’s Corp. Since 1999, when New York-based America Securities Capital Partners LP bought El Pollo Loco, the chain has seen annual gains in same-store sales.

The biggest sales gainer by percentage on the list: Huntington Beach-based Chicago Pizza & Brewery Inc., operator of BJ’s pizza restaurants and breweries. The company saw sales rise 36% last year to $103 million with restaurant openings in Cerritos, San Jose and Texas.

This year Chicago projects sales of $124 million to $128 million and plans to change its name to BJ’s Restaurants. Alhambra-based Jacmar Cos. and investment company Golden Resorts Inc. own 74% of the company.

No. 5 Tustin-based SWH Corp., operator of Mimi’s Caf & #233;, had a 20% bump in sales to $240 million last year. Mimi’s Caf & #233; Inc. filed to go public in May.

The French country restaurant chain had 81 eateries in 2003, including 11 in OC. Mimi’s Caf & #233; said it opened three restaurants in the first quarter and expects to open eight or nine by the end of the year.

The Business Journal’s OC-based restaurant list debuted last year. This year’s list includes two new finds: No. 8 Claim Jumper Enterprises Inc., operator of Claim Jumper restaurants, and No. 14 Brea-based Calabee’s Inc., a franchisee of Applebee’s and owner of Millie’s Restaurant and Bakery.

The Business Journal estimated 2003 sales for Calabee’s at $32 million.

Claim Jumper’s sales were up 5% to $200 million last year with new restaurants in South Coast Plaza and in Henderson, Nev. This year, Claim Jumper plans to open restaurants in Tucson, Ariz. and Lynnwood, Wash. Eateries are planned for Fresno, Fremont and Thousand Oaks, and Lombard, Ill., in 2005.

The newcomers made their presence known. This year’s group of 15 chains counted 13% higher sales than the 15 on last year’s list, thanks to Claim Jumper and Calabee’s.

Two chains from last year’s list didn’t make it this time around.

Pizza parlor operator Shakey’s Inc. moved its headquarters from Garden Grove to Los Angeles. Shakey’s was No. 15 last year with $2 million in 2002 sales.

Aliso Viejo-based Pasta Bravo Inc., last year’s No. 14, didn’t qualify this year with $9 million in 2003 sales.

This year’s group counted 11,191 OC workers, which was up 3% from a year earlier. In all, the 15 chains on the list count 8,143 restaurants, with Taco Bell accounting for three-quarters of them.

Want more from the best local business newspaper in the country?

Sign-up for our FREE Daily eNews update to get the latest Orange County news delivered right to your inbox!

-Advertisement-

Featured Articles

-Advertisement-
-Advertisement-
-Advertisement-
-Advertisement-

Related Articles

-Advertisement-
-Advertisement-