Article

East Coast Wings develops QSR prototype

August 3, 2010 by

In a report issued July 20, the NPD Group stated that QSR unit counts are down 1 percent within the past year.

Consumer spending in the industry is also down and Greg Starzynski, director of product development-foodservice at NPD, said it has been a difficult time for restaurants, with "the greatest impact on the independent restaurant operators."

Many may be reluctant to try a new concept in such choppy waters.

Sam Ballas, however, is not among them.

Ballas, CEO of fast casual concept East Coast Wings and Grill, experienced 26 consecutive quarters of sales growth. In the second quarter of 2010 alone, ECW was outperforming 2009 second quarter sales by more than 16 percent.

With these encouraging numbers, and confidence in the product, he decided to create a quick-service restaurant concept based on his fast casual brand.

“We feel very comfortable and confident that we have some of the best wings in the country,” Ballas said.

He also believes an "on-the-go" model is a great opportunity for loyal ECW franchisees to increase their customer base and potential revenue.

QSR prototype

Once Ballas had an idea of a QSR model, about a year ago, his team began to develop the prototype concept. They set a range of 1,400 to 1,800 square feet for the new restaurant, dubbed East Coast Wings and Grill On-the-Go, and decided to have 35 to 42 seats, including a few counter seats.

The On-the-Go menu features 37 items, from wraps and burgers to sandwiches and salads. And, of course there are the wings. As with the original ECW, the On-the-Go concept will offer 75 flavors of wings.

The QSR will focus on take-out orders with no drive-thru or deliveries. It will also sell beer, however will not include a full bar like its fast casual counterpart.

The overall design of the QSR will have a similar design to the fast casual, with tiled floors and bathroom walls. Ballas said it will be colorful with all wood tables and chairs, as well as flat screen televisions.

“(It will be an) up-scaled wing operation,” Ballas said.

Ballas already has one ECW On-the-Go up and running: a full-sized restaurant that was converted into the QSR version. He plans to have three to four more running by the end of this year, 12 to 20 in 2011 and 20 to 30 in 2012.

This expansion is planned to take place mostly on the East Coast and in Ohio, and mostly in grocery-anchored shopping centers.

“We have an aggressive plan for the brand,” Ballas said.

Ballas said marketing for the new concept will be minimal. ECW hasn’t spent much money on marketing, and Ballas doesn't plan to change that for the On-the-Go outlets. But, he does plan to communicate to his fast casual customers that they can enjoy some of their favorite ECW items when they're in a hurry.

Growing the franchisee system

After taking over ECW in 2000, Ballas has turned the brand into a family-oriented concept, instead of its original sports bar concept. He also developed a franchise base.

Ballas said he realized that if a franchisee is doing well, then the company as a whole will do well. He wanted to have a stable franchisee infrastructure before launching ECW On-the-Go, adding that he is willing to stop brand growth if his franchisees are having trouble.

Ballas hopes the new QSR concept will drive existing ECW franchisees into expanding their repertoire within the company. To achieve this objective, he has divided the On-the-Go plan into two phases.

The first phase is simply offering the QSR concept to exsiting franchisees, while rewarding them for being loyal and helping them control revenue growth. He also plans to offer the concept to new area developers when they buy three or more units.

In the second phase, Ballas will open the buying to anyone else who’s interested.

Ballas said the first phase is important because he is committed to helping the franchisee succeed, adding that he wants the new concept to grow at the pace of his franchisees.