An Englishman in the US


English-born Jonathan Segal grew his group of STK restaurants in the US before importing the brand to London. He assesses the state of the US market and why he thinks UK operators shouldn’t necessarily assume their US counterparts’ ideas are any better


The US economy doesn’t know which way it is going. We have a bizarre situation where the stock market is doing crazily well – the other day the Dow went through 17,000. People’s 401Ks, the pension plans that operate in America for most Americans, are getting back to where they were pre-2008, and, in addition, recently house prices have continued to rise. A lot of the household economies that


were suffering terribly have bottomed out. So consistent with the way we are in England, we have the feelgood factor. There is no question that over the last couple of years we have seen a rise in America in discretionary spending and that has filtered into the restaurant business. But the market now is reporting a slowing down in discretionary spending, despite the rising stock market. Another thing, which is very alarming and really affects us, is that credit card debt is also on the way up. The recovery is fragile and every time


ica and North Africa: habanero, serrano, harissa, shishito, togarashi, sweet chili, ghost pepper and spicy mayos and aïolis. � Fun, novelty foods Chef Dominique Ansel last year trademarked the term ‘cronut,’which refers to the croissant-doughnut hybrid that shook up the dessert world from his bakery in Manhattan in 2013. Since then, thousands of cronut imitations have popped up across the US, as the hybrid-food trend goes on, for both sweet and savoury foods.


Best-in-class brands So, which emerging US chains are winning at showcasing the latest trends? There are a few brands that are succeeding with consumers, particularly fast-casual concepts that are mar- keting towards contemporary, quality charac- teristics, health and wellness, ‘better-for-you’ foods and social responsibility. There’s also a plethora of emerging chains with fast-casual/ pick-your-own/assembly-line service formats á la Chipotle, which are expanding and find- ing their niche.


Healthy concepts Hannah’s Bretzel boasts that it’s the first fast- casual sandwich concept to focus on organic ingredients, whole grains and green business


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we see a major economy issue arise – like setbacks in Congress’s attempts to approve the debt ceiling – we just see a complete shutdown in our revenues because everyone panics for five minutes and we then begin that whole process of rebuilding. When it comes to trends, it is a fallacy that America is any better than the UK in creating


practices. With the slogan “über sandwich makers,” the Chicago chain offers a variety of made-to-order sandwiches with premium ingredients like grass-fed steak, all served on organic, house-baked pretzel bread. Fast-casual chain Modmarket offers healthy options made with grilled proteins, seasonal produce and housemade sauces served up fast in a clean, modern environment. And at fast-casual Sweetgreen, units are made from reclaimed materials, all proteins served are antibiotic- and hor- mone- free, and


concepts or coming up with ideas. I believe some of the best concepts created come out of the UK. However, the US seems to excel at growing businesses at alarming rates, especially in the fast-casual market like Noodles, Zoe’s Kitchen, Chipotle, Potbelly Sandwich Works and Panera Bread. Incidentally, America is also really great on buzzwords like ‘fresh’ and ‘farm to table’. Fresh and freshly prepared seems to be the way forward. When it comes to fine dining, there are


various concepts that expand by city, but there are very few that grow nationally or internationally. Take Hakkasan, Zuma, Roka, STK, and Morton’s for example. Whether or not it is a byproduct of the


recession, people are nervous about high- priced meals so all the fine dining, multiple expansionary group businesses are creating an underbrand. So, for example, STK has created STK Rebel and Del Frisco has created Del Frisco’s Grille. We are going to see an expansion in casual dining before we see a rapid expansion in fine dining and it is going to be in that $40-50 range, which translates to around £25-30 per head.


produce is sourced from local organic farms when possible.


Chipotle-style chains Eco-friendly Mediterranean specialist Cava Mezze Grill has patrons choose a bowl, pitta or salad, then add a protein, toppings and a spread of hummus or sauce. Piada Italian Street Food serves customizable piadas (Italian-style flatbreads), pasta bowls and salads. The service style is nearly identical to that of Chipotle, but Piada’s unique meal options, along with its slightly warmer décor, prove this concept has its own distinctive posi- tioning. PizzaRev is taking Los Angeles by storm. The brainchild of former Clear Channel Music co- CEOs Rodney Eckerman and Irv Zuckerman, it invites patrons to design their own pizzas – from the sauce to the toppings – then bakes them fresh in under three minutes in giant wood-fired ovens.


September 2014 | Restaurant Insight Report


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