Multi-Unit Franchisee Magazine Issue I, 2012 | Page 65

*Versus prior year in nominal terms ¹ LSR All Other includes: Bagel, Barbecue, Chili, Italian, Other Ethnic, Salad, Seafood, Snack and Specialty ² FSR All Other includes: Barbecue, Other Ethnic and Specialty
Source: Technomic, Inc.; company reports

store experience seems to be driving growth. Beyond coffee,
Jamba Juice is the leader, and has cultivated quite a following
among young people.
• Hamburger—McDonald’s dominates the segment, so
it will perform as McDonald’s does. However, fast-growing
players such as Smashburger, Fatburger, and Five Guys are
also contributing. We still see plenty of opportunity for fastcasual burger brands, which account for only about 3 percent
of limited-service burger-concept sales.
• Mexican—Taco Bell is the largest chain, but number-two
Chipotle Mexican Grill is a key growth driver. Competitors like
Qdoba and Moe’s Southwest Grill continue to do pretty well,
but we’ve been watching a lot of emerging chains with selling

points such as irreverence (like Freebirds), authenticity (like
Cafe Rio), and fish tacos (like Chronic Tacos).
• Pizza—Pizza Hut, Domino’s, and Papa John’s together
make up about a third of the segment’s sales. We’ve been watching emerging chains that have a point of differentiation such
as take-and-bake, wood- or coal-fired preparations, or a focus
on healthy or local ingredients.
• Sandwich—Subway dominates this segment. Among the
national chains, results should continue to be mixed. For example, in 2010, Jimmy John’s and Jason’s Deli had nice systemwide sales increases, and Arby’s and Quiznos did not. Breakfast
menus will help build 2011 sales in the segment, as will growing
chains like Firehouse Subs and Jersey Mike’s.

Multi-Unit Franchisee Is s u e I, 2012



63