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The Greene Turtle's Forward March

Regional casual-dining restaurant chain The Greene Turtle is not letting the recession break its stride.

By Mary Boltz Chapman, Editor-in-Chief -- Chain Leader, 5/1/2009

The Greene Turtle interior
Each Greene Turtle is decorated with mugs from its Mug Club, which customers can join and receive discounts on beverages served out of their own mug.
What makes The Greene Turtle think it's a good time to begin its fairly aggressive plan, aiming to have 150 units open or in the pipeline within five years?

For starters, says President and CEO Michael Sanford, the 22-unit concept lends itself to the times. "We're that comfortable friendly neighborhood place," he says. "That kind of place where if you don't know where to go, you meet there, and then you don't leave."

Evidence: Same-store sales at The Greene Turtle's nine company-owned stores are up 2.5 percent in the first quarter.

Working the Margins

The casual-dining restaurants are part sports bar, with a prominent bar area, televisions on every table and large state-of-the-art screens on the walls. A majority of business is done from happy hour through dinner and into the evening. About 40 percent of sales are alcoholic beverages, which have higher margins than food items.

Sanford says the concept's target customer is between 25 and 40 years old, "the first-time home buyer, people just starting families." He adds that the restaurants cater to families, with small games for the kids, a child-friendly menu and community efforts focusing on schools and kids' organizations.

But a successful growth chain requires more than a timely concept. Sanford says the company targeted 2009 to ramp up growth and has been working for the last few years to build a brand guide, policies and procedures, and infrastructure.

For example, the concept rolled out a new menu. But first, "we went to our manufacturers and said we needed certain things on consistency and pricing." The Greene Turtle eliminated slow-moving items and those with low margins. The menu is smaller but also holds new dishes, mostly reformulations of previous items with different sides or toppings. "It's a good value to customers, but gives franchisees good margins," Sanford adds. With beverages, the average check is about $20.

Geared Up

The Greene Turtle exterior
In July 2007, Columbia, Md.-based private-equity firm JPB Capital Partners acquired 51 percent of the company. Since then, the concept has doubled the number of stores. The Greene Turtle will open six or seven restaurants this year, and plans at least one a month starting in 2010. "Our five-year plan has us at 75 to 80 open, and 80 to 100 more under development," Sanford says.

New markets for 2009 and 2010 include northern and central Virginia, and Pennsylvania, and the chain is targeting markets along the East Coast. The Greene Turtle plans to open one company store for every seven to 10 franchised locations. It's looking for franchisees willing to open three to seven stores.

The Greene Turtle does not help franchisees find financing, but it does help with real-estate selection and looks for sites where developers are willing to deal. The concept does not have a prototype footprint, and is flexible about the size and shape of locations. Ideally, it looks for endcaps in strip centers that are 6,000 to 8,000 square feet, and Sanford says those sites are easier to find lately.

 

Snapshot

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Check out the Emerging Chains page for more profiles, expansion plans and brand-building tactics of new and growing restaurant chains.

Concept The Greene Turtle Sports Bar & Grille

Headquarters Edgewater, Md.

Units 22

2008 Systemwide Sales $45 million*

Average Unit Volume $2.5 million

Average Check $20 with drinks

Expansion Plans 6 or 7 in 2009

*Chain Leader estimate

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