Don’t let the whimsical French country farmhouse theme fool you: Mimi’s Cafe says it is bullish about expanding.
At a time when restaurants are feeling the pinch of a slowing economy worsened by Sept. 11, the Tustin-based chain,known for its tiled roofs and gingham tablecloths,is reporting higher sales. And Mimi’s plans to open 10 to 12 new stores nationwide next year, according to President Russ Bendel.
“We’re fortunate that our sales have remained positive on a comp-store basis through September,” Bendel said.
Privately held Mimi’s grossed about $141 million in sales last year and is on target to hit its projection of $165 million to $170 million this year, ac-cording to Ben-del.
Mimi’s did see a dip following the terrorist attacks, Bendel said.
But “we’re still above last year’s levels,” he said.
By year’s end, Mimi’s expects to have unveiled eight new locations in various states, including a 6,500-square-foot store set to open in Ana-heim across from the Dis-neyland Resort.
By next year, Mimi’s plans to be operating 57 stores,10 in OC, with others in Nevada, Utah, Texas, Arizona and Colorado.
The chain employs about 5,700 people and next year could add up to 1,200 employees, or 100 people per new store.
“We will continue to build restaurants in all existing markets and we’ll be adding new markets in the next couple of years,” Bendel said.
The 23-year-old chain started in 1978 with one location in Anaheim, on Euclid Street. Mimi’s opened about one store a year in Los Angeles and Orange County for the next 16 years.
In 1995, Mimi’s stepped up its expansion, opening about five stores per year for the next several years, the company said.
“We use a combination of cash flow and bank debt to grow,” said Ed Bartholemy, Mimi’s chief financial officer.
In June, the chain brought on Bendel, who previously worked at Roy’s Restaurants, to help in Mimi’s bid to become a national player with locations from here to the East Coast.
Founder Tom Simms remains chairman and chief executive of SWH Corp., the family-controlled parent of Mimi’s.
The chain’s average customer comes in once a week, according to Bartholemy, and average checks range from $6 for breakfast to $7 for lunch and $10 for dinner.
Despite the continental name and d & #233;cor, the restaurants offer a menu of contemporary American standards ranging from meat loaf to lasagna to soft tacos.
“We’re part of people’s daily routines,” he said. “We’re not a special-occasion restaurant. Some of those people, unfortunately, have not done well at this time.”
Added Bendel: “People may be spending less, but they’re still going out to enjoy a meal at affordable prices. We feel we’re positioned well.”
Still, Mimi’s faces challenges. One is getting prime real estate at affordable prices, Bendel said.
And Mimi’s, which created an offsite school to train employees, wants to continue attracting and retaining good employees. According to trade publication Nation’s Restaurant News, Mimi’s turnover rate is less than 70% for hourly workers, vs. national averages that range from 100% to 200%.
The restaurant’s average turnover rate for managers is about 25% vs. a national average of about 50%, the publication said.
“We need to be able to attract great people and that’s one of the reasons for our growth,” Bendel said. “We can provide opportunities for people internally.” n
