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Emerging Brands: Is fun on the menu
Freebirds shows that as much as good food, a unique experience is key to building a brand.
October 27, 2005
Salsa has rivaled ketchup as the No. 1 condiment in America, and burritos are getting wrapped up with more spice and speed than traditional fast food. In an April 2005 report published by the Institute of Food Technologists (IFT), "ethnic" and an "interest in regional foods including Mexican" are among the top 10 global food trends of 2005.With American taste embracing more adventurous, fresher fl avors, it's no surprise to see monster fresh-Mex chains swooping into new neighborhoods across the country. This is the case with Texas-based Freebirds World Burrito, which will break ground in San Antonio in late 2005 for its 13th restaurant."We listen to our customers and take their requests very seriously," said Free-birds CEO Alan Hixon, who fl ew into the burrito segment of fast casual after seeing a need for a fresh-food burrito that allowed for customization."We spend a great deal of time and effort evaluating markets and locations. We are focused on unit economics and good locations versus just getting a specifi c number of stores on the ground," Hixon said. This is evident in the Freebirds fanat-ics who have been spotted standing in lines up to 100 yards long, paying an average bill of $7.50, and waiting two and a half hours from point-of-service to cashier to get what they want, whether a signature burrito, salad, quesadilla, taco or nachos.In addition to Freebirds' signature elements—cloudscapes, bright yellow-andblack color schemes, non-uniformed employees and customers who stand on concrete fl oors surrounded by metal and wood fi xtures—the San Antonio location will feature glass windows, a tree-shaded patio and a playscape area."We try to give each store a few unique components that create an individual identity once we have confi rmed that all the inherent components are in place," Hixon said.Mexican food remained one of the top fi ve most-ordered take-out items among casual restaurants last year, according to IFT. In addition, curbside orders grew to 20 percent of all meals in 2004, up from 17 percent in 1990. The drive-and-go mentality continues to dominate the fast lane, with "take-out sales from full-service restaurants reaching $14 billion in 2004—just shy of 10 percent of sales."Such fi gures may be one reason that fast casuals such as Freebirds are looking to incorporate technology-driven strategies that include wireless networks, curb-side service, Internet ordering, expansion into college markets and opportunities outside of Texas to increase volume.Freebirds will remain true to what Hixon believes makes the restaurant stand out from the rest—quality of product and number of selections. He quickly adds that, "Simple will be important. Too much can be a problem in expansion. We will focus on quality and economics." There will be a focus on quality real estate as well. "Pushing the model into freestanding units is challenging. Our model has to be fl exible."
To paraphrase Freud, sometimes a burrito is just a burrito. That would not be true at Freebirds, however, where the Mex favorite is just one ingredient in a truly unique fast-casual experience.Catering to customersIs there a secret list of ingredients spicing up the demand for fresh-Mex fair? Hixon believes that the popularity boils down to what consumers really care about."I think people truly care about the quality of the products they eat, and they also love the opportunity to custom build it to their liking. Making this available at a good price-point in a counter-service environment allows for easy access."Marketing specialist Nicole Krajewski of Salsarita's Fresh Cantina added, "I think fresh-Mex food is so popular because it's the perfect combination of American fast food and authentic Mexican. The food still tastes very traditional, yet the menu is easy to read and order from."H.P. Patel, a Salsarita franchise owner in Knoxville, Tenn., said, "Once we taught customers how our ordering process works, we gained a great following and brand recognition."The importance of quality ingredientsFarm-fresh foods are among the top 10 global food trends reported by IFT, and fast-casuals, including the fresh-Mex restaurant Chipotle are already incorporating this into their menus."It started with everything being fresh. Fresh isn't enough anymore," said Chris Arnold of Chipotle. "Finding the best quality ingredients that we can get is key."Chipotle currently offers naturally raised chicken in 20 percent of its locations, beef in 17 to 18 percent and pork in all locations. The company uses 90 million pounds of naturally raised meat a year—more than any other company. Arnold said the reason for switching to naturally raised meats was based on the company's own beliefs that it benefits not only the taste of their food but also benefits farmers, the environment and everyone else involved."Flavoring" or the trend to "layer" foods, which helps to explain boosts in sales of condiments and ethnic foods, continues to gain in popularity. A Chipotle spokes-person said that one way it is able to offer flavoring is not only making sure the menu is full of flavor but that it is simple, too."When the focus is on fewer things we can do them better, allowing for more flexibility and customization of orders," Arnold said. "From an operations perspective, this allows us to cook fresh throughout the day."El Pollo Loco, another contender in the "flavor" market, was founded in Mexico in 1975 as a roadside chicken stand and now operates over 300 restaurants in four states. It recently announced it will be moving into Chicago, Boston, Washington D.C. and Denver. The company took in an estimated $219 million in sales for 2004—a 6.1 percent growth over one year—and attributes its success to the flavorful experience offered to customers enhanced by quick service, fresh ingredients and the wholesome, universal appeal of chicken."It's a full sensory experience," said Mark Hardison, director of marketing for the chain. "The way we grill our chicken in front of the customer excites all the senses. Our customers are always looking for a new adventure, and they find it in the great tastes we offer."Like Hardison, most fresh-Mex fast-casual directors find that combining fresh Mexican flavor and delivering it to consumers in a unique, customized experience is making this segment soar to the top of fast-casual dining.What makes Freebirds flyThe food
It's hard to find restaurants that don't claim it's the food that sets them apart from their competition. So it's not surprising that Freebirds has several systems in place to gauge its performance in this area. After all, that's why the company is in the food business.Although Freebirds offers several non-burrito items, the burrito remains the core product and is available in four sizes and four flavors of tortillas, with two types of cheese, three varieties of beans and three meat choices. There are also other unique items, including roasted garlic and vegetables plus five sauces."We strive to ensure that the flavor profile of every single item can stand on its own," said Freebirds' Hixon.The connectionThere's a certain connection that customers make after visiting a Freebirds location. The company's marketing initiatives use the "It's Not Normal" phrase for a culture that seems to have its own groove and vibes, with everything from the "backwards F" logo to the notion of doing it the "Freebirds way" when approaching something new."We strive to make the experience something that people are not used to seeing on every corner in America," Hixon explained. "We find that our customers are our best salespeople. They love to tell other people about it once they've experienced it."Hixon said it's not unusual to see customers bringing in new people for the first time, quite often in groups, and selling the concept to them as if it were their own.The service"We have been told many times that we provide the most efficient and personable service ever experienced in a counter-service environment," Hixon said. He attributes this sense of enthusiasm in part to over 15 years of developing systems that do not pass customers from one person to the next but rather provide one-on-one service throughout the entire transaction."Each customer receives a dedicated company representative who is trained to make suggestions," Hixon said. "This ensures that they receive everything they want. Our goal is to exceed expectations, not just meet them."Libby is fun and funky. Resembling the Statue of Liberty, she is often spotted smash ing through the ceiling at Freebirds World Burrito restaurants on her custom Harley and carrying a foil-wrapped burrito. But Libby isn't a new reality star or female daredevil. She is, rather, an important design element conceptualized by Devon Hanna of Freebirds.While Freebirds strives to create a unique food experience for its customers each day through well-known menu items that include a monster burrito, the chain has also paid close attention to creating a unique environment—one with a distinct image that sets it apart from competitors."We liked Libby because of what she stood for. Similar to our name, the Statue of Liberty welcomes everyone regardless of age, race, background, views, etc. We felt our food was equally as inviting. We were trying to further ourselves from being classifi ed as traditional Mexican food," Hanna said.With the help of profession als such as Laurie Smith Design Associates, the concept of Libby resulted in her arrival at the College Station store, and she was later seen riding her Harley, customized by Voodoo Customs Austin, in the Hancock location.The fun part of the Libby concept is refl ected in the custom ers at Freebirds, who can be found making their own foil people and animals, leaving them on display for others to enjoy. These customers are part of a large percentage of Americans who eat out on a regular basis to fi t a prepared meal into their hectic lives and who also fi nd it to be a form of entertainment.Design elements such as Libby end up playing an important role in drawing them in. Libby's fun-and-free vibes not only distinguish Freebirds' from traditional chain décor but also show that the chain keeps up with trends, knows its market and has a staff whose attitudes refl ect that of its concepts."Libby is an inherent part of our con-cept, but so are several other things," said Laurie. "Her presence really gets to the core of our approach to life and the way that we run our business—'It's not normal.'"
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