Sales for 16 privately held Orange County-based restaurant chains grew a collective 10.1% last year to $1.9 billion, according to Chicago-based Technomic, a food-service research and consulting company.
Part of the growth came from chains opening new stores: Unit growth was up 2% to 1,965, or by 36 new restaurants, according to Technomic.
But this year, some chains say they are rethinking expansion plans as the economy cools.
“We have no new units planned for 2001,” said Leonard H. Dreyer, chief executive of Orange-based Marie Callender’s Pie Shops Inc., which had planned to open as many as 24 restaurants in the next two years and now plans only four.
“The middle of last year was kind of soft, so we decided we were going to be a bit cautious and cut back,” Dreyer said.
But that’s not the situation at other chains, including many fast-food and casual restaurants. San Clemente-based Pick Up Stix says it is pushing ahead undaunted.
“We are not scaling back,” said Steve Tanner, the Chinese food chain’s chief financial officer. “We are opening 10 stores, more than any other year. So far, stores we opened this year have been strong, in spite of what’s going on in the economy. We pick up people moving down from full-service to casual quick service.”
Pick Up Stix added six units for a total of 39 restaurants last year. Sales were up 13.8% to $41 million at the chain.
The Technomic figures cover fast-food, casual, family-style and full-service restaurants. The biggest percentage gainer among OC restaurants was San Clemente-based Bubba Gump Shrimp Co., an 11-unit, full-service chain of theme restaurants. The company opened one new restaurant last year boosting its sales 38.4% to $60.2 million.
Another big mover was Wahoo’s Fish Taco of Santa Ana, a quick-service Mexican chain that added five units last year for a total of 19. Wahoo’s saw sales expand 33% to $20 million last year.
The company’s expansion plans this year include a new pact with Santa Fe Springs-based Vans Inc. to develop eateries at Vans Skate Parks.
“We don’t have any concerns about the slowing economy,” said Wing Lam, Wahoo’s marketing director and co-owner. “The minute you panic, so does everybody else.”
Wahoo’s is looking to build new stores in Colorado, San Diego and possibly at South Coast Plaza in Costa Mesa, Lam said.
Other gainers last year: Irvine-based Claim Jumper, which opened four new restaurants in 2000 and saw sales grow 27.9% to $174 million; Tustin-based Mimi’s Caf & #233;, which saw sales increase 23.5% to $142 million last year; and Newport Beach-based Ruby Restaurant Group, operator of Ruby’s Diner, which boosted sales by 19.4% to $43 million after adding two stores for a total of 32.
By 2000 sales, the top three privately held restaurant chains based in OC were Marie Callender’s, Laguna Hills-based Del Taco Inc. and Newport Beach-based Wienerschnitzel. (The Technomic numbers don’t include all OC chains. Others include Aliso Viejo-based PastaBravo Restaurants and Irvine-based Yard House Restaurants LLC. Nor do they include public companies such as Irvine-based Taco Bell Corp., a unit of Tricon Global Restaurants Inc., Anaheim-based CKE Restaurants Inc. and Irvine-based Prandium Inc.)
Marie Callender’s, the 53-year-old chain with 165 restaurants in 11 Western states and Mexico, saw sales increase 9.9% to $354.2 million last year.
The company also unveiled its first new OC location in 13 years with a new smaller prototype restaurant featuring an upgraded salad bar, wine list, kitchen and menu.
Wienerschnitzel saw sales increase 10.5% to $189 million last year. Newport Beach-based Galardi Group Inc. operates the 40-year-old hot dog chain as well as the Original Hamburger Stand.
Last year, Wienerschnitzel added 14 new outlets for a total of 224. The chain plans to continue its expansion this year by opening 40 to 50 units, according to Tom Amberger, director of marketing.
In terms of opening new units last year, Del Taco led the way with 28 new stores. Next is Laguna Hills-based Johnny Rockets Group Inc. at 16, Wienerschnitzel at nine, and Irvine-based El Pollo Loco Inc. and Mimi’s Caf & #233; at two each.
Del Taco, which operates 372 Mexican fast-food restaurants, reported a 13.9% sales gain to $319 million last year. Johnny Rockets, which also plans to open 14 stores in the next 12 months, saw its sales grow 12% to $131 million last year.
Among other OC restaurant chains: Irvine-based In-N-Out Burger’s sales were estimated up 3.6% to $115 million. Shakey’s Pizza Parlors of Garden Grove sold at least two units and saw sales at its 90-unit chain drop 7% to $65 million. And Rusty Pelican of San Clemente, which operates two stores in Glendale and Newport Beach, saw its sales grow 3% to $6.9 million. n
