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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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Reader Comments (Page 4 of 4)
7-07-2008 @ 1:58PM
helen goodman said...
Reading the many favorable comments about your BJ Restaurants and Breweries I am interested in finding a location close to where I reside. I live in Delray Beach Florida 33446 Is one available in this location or are you planning one. Delray "Beach is a highly diversified area, youth and senior citizen oriented. Boca "Raton is south of us and Boynton Beath north of us featuing a Ruby Tuesdays. Sweet Tomatoes is a little further north of that. In my immediate area we have several Chinese buffets and many pizza privately owned shops which feature full meals. There are several sports bars one in Boca Raton called the Boca Ale House, and one closer to me called Brus there are more which I cannot immediately recall. Sweet tomatoes is in West Palm Beach. There is also an Applebees close by and IHOPs and Dennys etc.etc. I firmly believe that a BJs in this immediate area with your concept would do fabulously well. We also have a number of really classy and more expensive operations and a Friendlys just opened in a local shopping center same place as McDonalds. A family friendly restaurant moderately priced is just what the doctor ordered. Look into the possibility of it happeing and let me know. I hope it works Helen Goodman
7-25-2008 @ 11:26AM
Bob said...
Would like to see this restaurant come to our town. If that's a possibility please contact me , I have a very nice strip mall in Utah.
8-19-2008 @ 11:48AM
GOO Reader said...
Ate at Applebee's once in Fountain Valley, CA. The salad was awful and they staff didn't care about giving me a different dressing. I'll never go there again.
BJ's in Huntington Beach, CA is great. We go there once a week for lunch during work. Great, friendly staff, great food, affordable prices.
I hope BJ's expands so others can enjoy it, especially if Applebees is the only other choice, sad.
9-02-2008 @ 10:43PM
cliran said...
Have any of you thought that you get bad service because you are rude to your server? They are people too and just because they are waiting on you dosnt mean they are less. I use to serve while i went to school and now I am a doctor...... so no... servers are not low lives!!!! A tip for those of you that go out to eat at the same place and always complain or leave a bad tip..... they remember you!!!!!!!