Fuel Juice Bars takes the top spot in Horizons’ latest survey of fastest-growing fledgling brands, having grown from eight units in 2011 to 24 this year.
Fuel heads a league table of emerging foodservice brands in the latest Ones To Watch* survey, many of which occupy niche markets in less than typical locations. Other top performers are Dunkin’ Donuts, healthy quick service operator Abokado, Tortilla Mexican Grill, Pieminster, Boost Juice bars and Asian fast casual operator Chozen Noodle.
“We are seeing particular qualities in all these fledgling Ones To Watch brands, which are helping them become scaleable concepts,” commented Nicola Knight, Horizons’ director of services.
“They are often simple ideas, sometimes based around a single product, which can be easily replicated to the same quality and which lend themselves to being prepared in a small space. Operators are also taking a novel approach to location – whether it be in small shopping mall kiosks or transport hubs – rather than in traditional high street sites,” she added.
“We are also seeing a lot of expansion through franchising rather than company-owned outlets, which means that the management has a vested interest in success.”
The most active sector in terms of outlet expansion during 2014 has been healthy quick service outlets (107 new outlets), Italian casual dining (91), and Mexican burrito outlets (78). Artisan bakeries and coffee shops (74) continue to be the top sector by new outlet numbers, along with sandwich bar outlets (74).
Kings Park Capital-backed Fuel Juice Bars was founded in 2005 and has found a niche with small kiosks in shopping malls away from food courts. The group has just announced the opening of a further five sites in transport hubs and shopping centres, with plans to open several new units in subsequent years.
“The beauty of this business model is that it’s not affected by seasonality as in a covered environment with good footfall,” commented Knight. “Fuel offers a quick, healthy alternative to coffee, which ticks the boxes for consumers who are increasingly concerned over diet and lifestyle.”
Dunkin’ Donuts takes second place in the league table, having expanded from just one outlet in 2013 to 14 this year. The US group, led by CEO Nigel Travis, is attempting success in the UK for the second time having previously withdrawn in the 1990s under then owner Allied Domecq. The brand’s aim will be helped by in-roads made by Krispy Kreme in the UK, although Dunkin’ Donuts has bigger ambitions than its 50-site rival, with plans for 144 UK sites.
Healthy fast casual specialist Abokado shares joint second place in the list of Fastest Growing Brands, having added 13 sites from 2011-2014, giving it a total of 22. The London-based, lunch specialist, has another two sites in the pipeline to open by March 2015 and growth potential of 100-200 outlets in London and other European capital cities. Founder Mark Lilley puts its success down to a greater awareness of health issues amongst consumers. The brand has seen like-for-like sales grow 19% over the past financial year, with around 80% of its £10m turnover coming from the two-hour lunch period.
Burrito bar chain Tortilla Mexican Grill, backed by Santander and private equity group Quilvest, shares joint third place in the list. The brand now has 20 outlets, making it the largest Mexican fast casual brand with outlets in London, the South West and North East. By the end of 2015 the company will have 21 sites.
Pie outlet Pieminster comes in at joint third, having grown from seven to 20 outlets over the past four years. Pieminster has plans to double its estate over the next four years and is increasing its presence in pubs by launching a full brand licence, essentially a franchise, to pub operators.
The latest Ones To Watch survey also notes a novel approach to investment activity. With the online crowd-funding platform Crowdcube being the investment vehicle of choice for some new and emerging brands. Chilango, number 82 in the Fastest Growing Ones to Watch brands list, and River Cottage Canteen, number 15 in the list of Bubbling Under brands, two such examples.
Chilango raised £2.16m through its ‘burrito bond’ fundraising, the largest amount ever raised on Crowdcube, with 749 people investing. River Cottage Canteen raised £1m through Crowdcube, from 283 investors in the space of 36 hours. The funds enable the business launch an outlet every year, taking it to seven units by 2018.
* To qualify for inclusion in Ones To Watch a restaurant or quick service concept must have between five and 25 outlets and a growth in outlet numbers of at least 20% over the past three years combined. Brands with fewer than five sites, but the potential to expand rapidly are listed in the survey as Bubbling Under brands.
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For more details or comment contact Linda Pettit at Tilburstow Media Partners on 01342 832866 / 07973 789853 or email Linda@tilburstowmedia.co.uk. Alternatively contact Nicola Knight on 0844 800 0456 or email Nicola.knight@hrzns.com.
Editor’s Note
Horizons helps its clients make better business decisions by providing accurate and detailed information about the foodservice market, its trend, and opportunities. The company provides consultancy services, workshops and statistical information based on its model of the sector and database of key accounts across Europe.
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