There’s not a lot of positive buzz out there right now, but percolating under all the doom and gloom is clear evidence that you just can’t keep a good concept down or clip the industry’s entrepreneurial wings. The Future 50, identified by Technomic, Inc. as the fastest growing chains with sales between $25 million and $50 million, includes 32 that defied the odds to grow sales by 20 percent or more in 2007. Of those, a dozen hit 40 percent or higher sales growth. As a group, they’re hot, they’re nimble and they’ve got what many of their large competitors don’t right now—momentum.

Of the 50, 27 are casual dining operations, 20 are limited-service restaurants and three are mid-scale concepts. “Among the LSR companies, the group is pretty well dominated by fast-casual concepts,” notes Darren Tristano, executive vice president at Technomic. “From strictly a sales volume perspective, they’re able to generate higher numbers than are most purely limited-service operations. And casual dining operations do even better when it comes to unit volumes, so from this measure—sales alone—it makes sense that they dominate this group. The reverse is probably true when you look at growth strictly by numbers of units. That’s where LSRs tend to dominate.”

Topping the 2008 Future 50 list is Cincinnati-based Buffalo Wings & Rings, which more than doubled its revenues in 2007 to hit an estimated $37 million. The 20-year-old regional concept has taken flight since new partners came on board in early 2005. Led by Philip Schram, they’ve launched an aggressive franchising program and taken BWR national as well as into international markets in Kuwait and Jordan. The company is selling new franchised units at a clip of one per week.

Native New Yorker, second on the list, took flight last year with a similar combination of signature wings, a casual atmosphere that’s family friendly and sports themed, and an aggressive franchising program. Founded by Judy and Floyd Anderson and their four daughters, the Phoenix-based company had grown to five stores by 1990, when the family began testing the franchising waters. In 2004, with their concept refined and their ambitions for it growing, they partnered with a franchise consulting company to help take it national. Today, NNY has 24 locations open throughout the Phoenix metro area and franchise agreements sold throughout the country. Sales last year grew more than 70 percent to $29 million.

Wings also show up in the top 25 at Wow Café & Wingery, up 40 percent in sales last year; at Hurricane Grill & Wings, up 30 percent; and at Green Turtle Sports Bar & Grill—one of only three mid-scale restaurant companies to make the list—where sales grew by 27 percent last year.
“It’s no surprise that wing concepts were well represented among these up-and-coming chains last year,” notes Tristano. “They’re capitalizing on the success of Buffalo Wild Wings and Hooter’s, which have dominated that niche for so long. Wings are incredibly popular with consumers and it’s a segment that’s ripe for new competition.”

It’s also no surprise that franchising programs are providing the wind beneath 31 of the Future 50’s wings, he points out. “When you look at the high growth companies at this level, it’s really about franchising much more than it is about financing growth internally,” he says. “The trend has been to sell off company stores to franchisees and subsequently grow by selling new franchises. The model allows you to raise capital and lower your expenses by using other people’s money. It’s a far better and less risky way to grow.”

From a menu standpoint, the Future 50 represents a diversity of concepts and cuisines, from hip Japanese barbecue at Gyu-Kaku to Middle Eastern fast casual at Aladdin’s Eatery, fresh and healthful sandwiches at Pita Pit and ’wichcraft, and upscale teas at Teavana, to quick-casual Bajio Mexican Grill and fresh grills like Season’s 52. —D.T.

Key:
S: 2007 System wide sales/% change
U: Total units open/% change
A: Average unit volume/% change
rankings based on percent change in sales
all percent changes vs. 2006
*Technomic estimate

THE TOP 5 (2008) (complete list of all 50, external link)

1. Buffalo Wings and Rings
Milford, OH
S: $37 million*/111.4% 
U: 25/92.3% 
A: $2 million*/5.4%

Topping the 2008 Future 50 list is Cincinnati-based Buffalo Wings & Rings, which more than doubled its revenues in 2007 to hit an estimated $37 million. The 20-year-old regional concept has taken flight since new partners came on board in early 2005. Led by Philip Schram, they’ve launched an aggressive franchising program and taken BWR national as well as into international markets in Kuwait and Jordan. The company is selling new franchised units at a clip of one per week.

2. Native New Yorker
Gilbert, AZ
S: $29 million*/70.6% 
U: 23/53.3% 
A: $1.5 million*/1.7%

Native New Yorker took flight last year with a similar combination of signature wings, a casual atmosphere that’s family friendly and sports themed, and an aggressive franchising program. Founded by Judy and Floyd Anderson and their four daughters, the Phoenix-based company had grown to five stores by 1990, when the family began testing the franchising waters. In 2004, with their concept refined and their ambitions for it growing, they partnered with a franchise consulting company to help take it national. Today, NNY has 24 locations open throughout the Phoenix metro area and franchise agreements sold throughout the country. Sales last year grew more than 70 percent to $29 million.

3. Bajio Mexican Grill
American Fork, UT
S: $28.5 million*/62.9%
U: 36*/125%
A: $1.1 million*/2.3%

"Inspired Mexican" is what Bajio calls its sophisticated take on made-to-order fast-casual fare, with marinated meats, "amazing flavors" and gentle spicing. Owned by Fred De Luca's Franchised Brands,
LLC, headed by former Subway real estate executives, Bajio is scouting lifestyle centers and downtown sites. Ten new units will open soon in Utah, Florida, Washington, Kentucky, Idaho and California, part of a total 45 new units this year, says Director of Operations Bonnie El Halta.

4. Gyu-Kaku
Los Angeles, CA
S: $25 million*/56.3%
U: 12/50%
A: $2.5 million*/8.7%

"Grill.Sip.Love" is the simple message from this Japanese barbecue concept. US:. units are clustered in California and Hawaii, with two in Manhattan. Plans call for two possible new company-owned outlets on the East and West coasts in the next year. Gyu-Kaku is "looking for around five multi-operators to franchise, possibly starting from 2009," a spokesman says.

5. Golden Spoon Frozen Yogurt
Mission Viejo, CA
S: $42.5 million*/54.5%
U: 84*/23.5%
A: $575,000*/4.5%

Golden Spoon, with more than 90 units, expects to have 100 open by year-end and 120 by the end of 2009 through expansion only with existing developers. Currently units are located in California, Alabama, Nevada, Utah and Tokyo.