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The next Applebee's is BJ's Restaurant and Brewery

This post is part of my series featuring established companies and the smaller, more aggressive or innovative rivals that may eventually succeed them.

Applebee's is the largest casual dining restaurant chain in the United States, with nearly 2,000 units spread out over 49 states. Applebee's changed its formal name back in 1986 to Applebee's Neighborhood Bar and Grill to give it a local appeal. In November 2007, International House of Pancakes -- IHOP -- now formally known as DineEquity, (NYSE: DIN) bought out Applebee's for $2.1 billion. It's hard to imagine Applebee's and IHOP as DineEquity!

The casual dining sector is embracing a newer player with aspirations of a national roll out. That player is BJ's Restaurant and Brewery (NASDAQ: BJRI) based in Huntington Beach, California. BJ's offers an on-site brewery with its own beer recipes or a trusted third party's recipe.The chain serves gourmet salads, steaks, chops, fish, poultry and several other popular dishes. It also makes superb deep-dish pizza for both in-house dining and carry out.

BJ's has 72 units in the chain spread over 13 states with enormous room to grow. Being a California-based company, BJ's stronghold is California, but the concept has become popular in key restaurant markets like Florida and Arizona. The casual nature of the chain has an appeal in many large markets not yet penetrated. BJ's has yet to open a unit in New York, Pennsylvania, Illinois, Georgia or Tennessee.

BJ's could 10-fold the concept over the next decade and still only be half the size of Applebee's. The company has not offered franchise opportunities as all units are company owned. The franchising of BJ's could accelerate the growth of the concept very quickly, as it did with Applebee's in the 1980s and 1990s.

BJ's is known for its quality menu at affordable prices and beer lovers enjoy the local brewery choices. As DineEquity attempts to redefine the Applebee's concept, the opportunity for BJ's is to forge itself as the better choice in markets where they compete directly. Applebee's has had a 28-year run, it is time for a new and exciting player -- BJ's Restaurant and Brewery.

I don't know about you, but I am getting hungry....

Georges Yared is the editor of YaredsGameChangers.com and author of "How to Spot the Next Google."

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Last updated: September 05, 2008: 05:35 AM

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