EXPERIENCE: Building and growing a new restaurant brand for non-traditional locations
SITUATION:
Sandella’s was established in 1994 as a Tuscan themed, fast casual cafe with just one location. The concept quickly grew to 10 company-owned locations in just 5 years, then grew to 25 locations by 2001 through franchising. Due to the intense competition (among quick service and fast casual concepts) for great operators and great locations, and the 9/11 attacks (which resulted in the closing of multiple locations in NYC) Sandella’s growth slowed.
The brand had fantastic food, but needed to pivot to re-energize growth. As a result, the company looked to the non-traditional market. The first opportunity came by partnering with Lackmann Culinary Services with a location at Adelphi University in Garden City, New York. At the time, we had re-engineered the concept to fit in very small spaces (50 – 150 square feet) using equipment that didn’t need ventilation, which increased the range of location options. Adelphi put a branded Sandella’s store into an under-utilized space in their student center. That unit did the same volume our stores were doing on the corner of main and main– the students loved it!
Here’s what Bob Godabon Lackmann Culinary Services Foodservice Director at Adelphi said about Sandella’s:
Sandella’s branded Wrap & Pizza program literally transformed a 50 square foot area in Adelphi University’s cafeteria. Sandella’s supplied the merchandising and we used existing equipment– so our only investment was in purchasing Sandella’s Flat Bread and Sauces. We went from selling a few pretzels to selling an average of 150 Sandella’s Wraps & Pizzas a day. Sandella’s is a hit on campus with us and, more importantly, with the students!
We thought we were onto something, then proved it when we did a deal with Compass Group/Chartwells at Louisiana State University. That unit did triple the volume of Adelphi. It was so successful they added a second unit to the campus within the year.
David Pratka Chartwells Foodservice Director at Louisiana State University said this after installing a Sandella’s,
At LSU we offer students a variety of branded concepts. We had three Pizza Hut Express units on campus. One unit was not performing to our expectations. We decided to change that unit over to Sandella’s. Since there was no capital expenditure it was a quick and easy choice for us. Within weeks we had the unit converted. Sales started at approximately $1,000/day and have been steadily growing ever since. We are thrilled with the student’s response to the program. And, it is surpassing our sales expectations.
REASONS SANDELLA’S, A BRANDED CONCEPT, WORKED IN NON-TRADITIONAL LOCATIONS:
- Captive audience
- High quality perception (professionally developed brand)
- Delicious, high quality food products (wraps, pizzas, quesadillas, salads and rice and noodle bowls)
- Easier and more cost effective than developing a branded concept internally
- Excellent, consistent branding (signage, menu boards, posters/merchandising, digital assets, paper products, logos, materials to use for on-site promotion)
- Comprehensive operations training (in-person and video)
- Ease of installation (done by Sandella’s) and operations
- Access to over 190 recipes to keep the menu fresh
- Concept was licensed not franchised (license fees were built into the cost of the proprietary products: flatbread, sauces, paper products)
RESULTS:
The strategy of working with contract feeders (Lackmann, Compass Group/Chartwells and Sodexho) at non-traditional locations worked so well that the brand rapidly grew to over 125 locations in just 2 years. The concept could be found at colleges and universities, business cafeterias, and transportation centers across the country.