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Why the saturation of the fast casual industry hasn't stopped McAlister's Deli

McAlister’s Deli President Paul Macaluso chats about the unit's 400th opening and shares his plans for the future.

April 28, 2017

McAlister's Deli opened the doors today of its 400th unit, a milestone that President Paul Macaluso discussed with FastCasual, along with his outlook on competing in a saturated industry and his growth strategy for the brand, which opened 33 units in 2016, and grew AUVs $1.65 million.

Paul Macaluso

Q: Why is Texas home to No. 400?

Dallas-based franchise group, The Saxton Group LLC, is one of the largest McAlister’s Deli franchisees in the country, and has had their eye on the vibrant community of Cedar Hill, Texas, for their 69th McAlister’s Deli restaurant for several years. When a new development opportunity in the town presented itself, we knew it was the ideal spot to serve the people of Cedar Hill and the surrounding communities who shop, work and dine in the area. We knew the 400th restaurant opening would occur in 2017; we just had to wait and see how the development schedule played out for the milestone celebration.

Q: How do you ensure that the brand stays relevant with customers?

We’re always looking for new ways to stay relevant. We listen to our guests and work hard to deliver on what they are looking for. For example, we know customization is important — guests continue to have a desire to make meals specialized and their own depending on what they are craving. McAlister’s Choose Two is a great option for our guests to customize their meals and explore a variety of menu items and try new flavors. 

We also know online ordering technology is becoming more important. We understand part of the appeal of fast casual is that it caters to our guest’s busy and on-the-go lifestyles. We offer online ordering with in-store pickup through our website and app. We are also testing a pick-up window that operates like a call-ahead parking spot. Instead of pulling into a front row parking spot and running in to grab your completed order, you can pull up to the pick-up window and receive your order without leaving your car.

Q: How do you decide what flavor trends to incorporate into the menu?

We work closely with our Executive Chef Will Eudy to ensure we are constantly innovating and delivering something craveable. As guests’ tastes, moods and wants change, so must our menus.  With this in mind, we provide guests with handcrafted dishes that are simple, yet elevated. This is an important ethos we focus on when we’re thinking about new menu items.

For the first part of 2017, our menu innovations are around freshness and seasonal flavors. Earlier this month we introduced a new salad and sandwich that highlight black cherry — one of the most flavorful seasonal ingredients this time of year has to offer.

Q: Do you think the market (fast casual) is becoming saturated? 

Yes. We are seeing the addition of many new concepts and the continual development of many existing ones within our category.  With that being said, we are accelerating our growth, because we are more confident than ever in our differentiated and relevant brand vision. 

Q: Are you concerned with the slowing sales of the overall restaurant industry?

While sales in the fast-casual industry ebb and flow, and there are often determining factors that are beyond anyone’s control, at McAlister’s we continue to work hard to improve our accessibility and deliver on what we know our guests crave to ensure an experience that keeps them coming back, time and time again.

8. Why do you think you are continuing to grow despite that trend?

When we first opened our doors in 1989, the founders built a brand driven by genuine hospitality. Beyond providing handcrafted dishes and unique offerings, we pride ourselves on creating an atmosphere that encourages guests to stay beyond their last bite to enjoy quality time with friends and family. This is something our guests recognize, look forward to, and know that they can always rely on when they walk into any McAlister’s Deli.

Q: What areas are you targeting for growth?

From a developing market perspective, we are constantly looking for opportunities to grow, and are focused on a variety of markets around the country. We opened our first McAlister’s in Bountiful, Utah, and the Miami, Florida, area earlier this year. Tucson, Arizona, and Des Moines, Iowa, are additional new markets we are excited about coming to in 2017. We also have our tried and true markets that consistently support our brand that we look to build out and bring more locations to, including Texas, Illinois and Indiana.