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Bruxie Bids to Restart Growth

A danger of doing well at one thing is doing well at one thing.

Consider Santa Ana-based Bruxie.

It began at a patio stand in Orange with a focus on one product: a fried chicken and waffle sandwich.

Founders Dean Simon and Kelly Mullarney essentially folded a waffle around a piece of chicken, creating a sandwich that became the basis for their fast-casual restaurant chain.

Bruxie soon drew comparisons to L.A.-area’s famed Roscoe’s House of Chicken and Waffles.

It also drew immediate crowds.

Its initial Old Towne Orange location—situated in a former ice cream stand diagonally across the street from Chapman University—was constantly packed. New locations had lines out the doors upon their openings.

The crowds soon drew attention of investors; a private equity firm bought the company in 2013.

Then came the growing pains. It struggled with changing food fads, not opening as many restaurants as planned, closing a few and changing its concepts.

Nowadays, the chain is back with a focus on chicken and an expansion plan. It wants to more than double its restaurant count from nine, which includes two in South Korea.

Bruxie is ranked No. 40 on this year’s Business Journal’s list of the biggest restaurant chains based in Orange County, reporting 2018 sales climbed 11% to $15.5 million. Four of its restaurants are in Orange County, employing about 115 (see list, page 23).

Branded

Bruxie became known for “gourmet waffle sandwiches” by the time of a 2013 investment by L Catterton, a Greenwich, Conn.-based firm that calls itself “the largest consumer-focused private equity firm in the world.” Its brands include indoor cycling company Peloton and Cholula Hot Sauce.

L Catterton, which has invested about $15 billion in 200 companies, put Bruxie in its North American Growth group, which has midmarket operators with $10 million to $50 million in sales. Other investments have included Austin, Texas-based Hopdoddy Burger Bar, which has a few local locations.

Bruxie is possibly a portmanteau, or, says Catterton’s website, “Flemish slang” for the “Brussels waffle” brought to U.S. palates at the 1964 World’s Fair in New York.

Bruxie hit about $2 million in unit volume, with six sites open and plans for four to six more in 2014.

It opened two. A Dallas project didn’t pan out and it closed restaurants in Rancho Santa Margarita, Costa Mesa, and Colorado.

Comforts

In 2015, it tapped Dave Barrows, a brand consultant who had worked with Il Fornaio and Chipotle Mexican Grill Inc. as its first president (see story, page 1).

At that time, Barrows told the Business Journal that Bruxie planned measured growth in premium locations—and alcohol sales at new sites.

Bruxie’s recipe weighed heavily: the trend chatter had moved to “low-carb,” with the chain falling prey to “I tried that already” and foodies wanting the next “new” thing.

Its unique selling point became a one-trick pony with the feel of a gimmick.

The former phenom remained a regional operation with most sites in OC, one in the Inland Empire and one in San Diego, later adding Santa Monica and Las Vegas.

Growth continued to elude the chicken chain and Barrows left after a short stint at the company.

Dancing

Hired in 2016, Chief Executive Tony Smith and Chief Financial Officer Scott Miller had a one-word response—chicken.

“We had to use the brand,” Smith told the Business Journal. “Own who you are and don’t run away from it.”

The tag line has morphed into “The Original Fried Chicken & Waffle Sandwich.”

It’s a bold statement in the fowl industry, where competitors include Costa Mesa-based El Pollo Loco Holdings Inc., Chick-fil-A in Atlanta, and 900-pound rooster KFC Corp. in Louisville, Ky.

Smith said Bruxie’s key advantage is that its gourmet approach to fried chicken is tough to replicate.

Bruxie’s chicken is drenched in buttermilk for 24 hours and fried when ordered; toppings include chili honey, cider slaw or cabbage-jalapeno slaw, chives, and pickled onions.

“Our flavors are unique,” Smith said.

The menu also offers a turkey club with pesto aioli or a burger with avocado and egg. It offers vegetarians a roasted mushroom and goat cheese sandwich, the only thing on the menu to include arugula.

Co-founder Mullarney is corporate chef.

Family

To be sure, it’s not getting carried away by a health kick.

There is the BAMF, an acronym for Bacon, Angry Mac & Cheese, and Fried Chicken.

“Chicken is key,” Smith said. “We love fried chicken.”

For those who don’t want a waffle around their chicken, the chains offer Portuguese buns—more gourmet—and limited time offers have included a fried chicken taco.

“All new items will be chicken,” Smith said.

There are limits to what can be done. When asked about a waffle pizza he said, “We can, but we never will.”

More than half of sales come at dinner; just under a third at lunch; breakfast is minimal—half of it on weekends.

Its top-seller is a sandwich answering the chicken-and-egg question by including both.

Seasoned

The pair has decades of experience in the restaurant industry.

Smith was president and partner at Paul Martin’s American Grill in Irvine and is “fascinated with fast casual.”

Miller had been finance vice president at Slater’s 50/50 in Los Angeles; his work includes a stint at Pick Up Stix (see OC Leader Board, page 39).

They have their sights set on 20 domestic locations, including expansion to Asia, where a half-dozen sites are open or on the way. New franchisees must sign to develop multiple locations.

“Bruxie is a rapidly growing fast-casual restaurant concept with ambitions of nationwide expansion,” according to L Catterton’s website.

Bruxie’s franchising arm last month hired John Ramsay to lead development and Danielle Contreras over operations.

Ramsay helped grow chains including Jack in the Box and Rubio’s; Contreras comes from Yogurtland in Irvine.

Catterton still owns a majority stake in Bruxie while Smith and Miller have equity.

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