The economy has not been friendly to restaurants this year. But fast casual chains, which represent many of Modern Baking’s Top 50 foodservice bakery operators, are faring well compared to other segments of the foodservice industry. Consumers are eating out less, looking for bargains and trading down to less expensive eateries.

“These are still difficult times for restaurants, including for fast casuals and bakery cafés as weak consumer spending continues, and we are not expecting any significant near-term help from the economy,” stated Mark Laramie, C.E.O., Spicy Pickle, Denver, in a press release.

The Top 50 foodservice bakery chains, however, stand in a good position to meet the demands of the cash-strapped consumer. The Top 50, ranked by number of units, includes some of the most innovative chains in the United States. The chains offer quality food at reasonable prices in convenient, comfortable settings, and they are using new technology to further market their brands and build customer loyalty.

“We are in a good space. Bakery cafés and the fast casual category are positioned well for the times we are in,” says Jim Greco, C.E.O., Bruegger’s Enterprises, Burlington, Vt. Like many in the Top 50, Bruegger’s maintains its healthy position through new product development, innovative marketing strategies and renewed focus on the dining-in experience.

Café appeal

Bruegger’s is among many former single- product chains that have expanded their food offerings and overhauled dining rooms to the broader bakery café model.

“This year, we began a new round of renovations in our next generation design,” Greco says. The company has built or remodeled 25 restaurants with the latest design, and 10 more locations are currently being renovated. Renovations incorporate an earth tone color palette, partitions to separate the space into more intimate dining areas and the addition of plates and flatware.

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“People feel it is a warmer, more inviting atmosphere. And introducing plateware instead of deli wrap makes for better food presentation,” he adds.

La Madeleine de Corps Inc. opened a new prototype in Dallas with a fast casual ordering process. The company replaced its cafeteria-like ordering line with six flat screen menu boards and an ordering and payment point at the entrance. Customers take numbers to their tables where their food is delivered once prepared.

Even Denny’s, Spartanburg, S.C., joined the café bandwagon by opening its first Denny’s Café location, a smaller version of the traditional Denny’s with a more streamlined menu, counter service and a smaller restaurant size. Geared for urban, more densely populated markets, Denny’s Café opened Nov. 3 in Orange, Calif., with another soon to come in Livermore, Calif.

Cinnamon roll chain Cinnabon, Atlanta, announced plans to expand beyond the sweet roll in its product line as well as its store design. “We plan to reinvent the brand over the next three years,” says Kat Cole, C.O.O., Cinnabon. “With our counterservice model, you can’t really create seating, but the goal is to get the feel and emotion of a bakery café so guests will trust trying a sandwich.”

The chain plans to implement a more contemporary look by using dark wood and jewel tones, and it is testing a breakfast program of egg sandwiches made on bread baked in-store with Cinnabon dough. Panini-style sandwiches and espresso-based coffees are also in the works.

New products abound

Continuous new product development sets the Top 50 foodservice bakeries apart from other fast casual restaurants. They focus on fresh-baked products, and they work to develop new menu items that complement their bakery lines.

Last year, Cinnabon tested cupcakes as its first baked product line expansion. Despite the popularity of cupcakes, sales of Cinnabon’s cupcakes were no match for its signature gooey cinnamon rolls served warm.

“When our guests compared the cupcake to our classic roll, there was no competition. The roll won every time,” Cole says.

With the cupcake trial, Cinnabon executives learned to market and roll out a completely new product and to maintain focus on the company’s specialties. Going forward, Cinnabon’s dough remains a key element in its breakfast sandwiches and paninis. And sales of its latest product launch are “far and away exceeding expectations,” Cole says.

Introduced in September, Cinnabon’s new Center of the Roll is a bowl of bite-sized pieces of cinnamon roll dough drizzled with icing and a choice of nut or fruit toppings. A portable product that maintains Cinnabon’s dedication to decadence, the Center of the Roll is proving to be a home run for the company.

Complement bakery foods

Bruegger’s keeps bagels at the heart of any new product development. During the past several years, the company has added salads, sandwiches, coffee and bread baked on site. This year, the company beefed up its beverage offerings by introducing Lemonade Chillers in lemon and strawberry flavors.

“The only thing we didn’t change was our bagel,” Greco says. “It was already a superior product, and there was no way to make that better.” Bruegger’s restaurants continue to boil and bake bagels in every location. “We hold other products up to the standard we have for our bagel in terms of ingredients, authenticity and quality,” he says.

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