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Movin’ On Up

Movin’ On Up

Moving out of your home and into a new one often requires packing countless boxes and poring through heaps of records and photographs. When Cheryl Jarvis, senior vice president at Landmark Bank in Columbia, and Greg Jarvis, a sales representative of Legacy Classic Furniture, moved last August, Cheryl ran across a packet of information about a Southern restaurant called Zaxby’s.

She says it was serendipity.

In 2002, the Jarvises had contacted Zaxby’s corporate to inquire about opening a franchise in Missouri. Zaxby’s is a franchised, Southern-based, fast-casual restaurant that specializes in chicken. Greg is a Georgia native, and the couple’s son Logan Gray attended the University of Georgia, so the family has long enjoyed the restaurant’s famous chicken. But at the time, Missouri wasn’t exactly in Zaxby’s immediate plans.

“They said they were just starting to move into Louisiana and Kentucky,” Greg says. “They actually weren’t even in Arkansas yet. They still had a lot of growing to do down south.”

Ten years later as Cheryl rifled through the contents of her home in August 2012, she thought she would give it another shot. It turns out Zaxby’s was just getting ready to move into Missouri, having recently opened stores in Arkansas, and was growing the brand across the delta.

Zaxby’s is part of the “fast-casual” restaurant trend that has been taking off across the country. Think of Noodles, Chipotle, Panera, Five Guys; it’s not tablecloth-and-wine fine dining, but it’s a step up from typical fast-food operations.

Although Zaxby’s still has a drive-thru, the restaurant prides itself on having higher quality food than a grab-and-go chain. Zaxby’s calls its fare comfort food and specializes in chicken. Six locations in the Columbia and Jefferson City region will open within four years if all goes according to plan. The first two stores are scheduled to open by October at the intersection of South Providence and Nifong/Grindstone (directly across from Sophia’s) and also at the Highway 63 and Stadium exit near The Domain student housing community.

Fast-casual demographic

FastCasual.com reports that upscale décor, an average check of $8 to $16 and food cooked fresh to order comprise the basics for a fast-casual restaurant.

Zaxby’s thrives on the promise of delivering hot, fresh, high-quality food but not at the cost of precious time. The fast-casual market has exploded in recent years; 85 percent of Americans eat at a restaurant considered fast casual at least once a month, according to a Technomic study this year. And fast-casual revenue growth was up 6 percent in 2010, compared to 1.9 percent in limited-service restaurants and 1.3 percent in full-service dining establishments, according to Technomic on Fastcasual.com; there was also an 8 percent increase in fast-casual revenues in 2011.

During the recent economic recession, fellow Zaxby’s franchisee Tracy Perry of Georgia says business held up and even increased. And this seemed to be a result of the basis of the fast-casual model; people who might have previously gone to casual, full-service restaurants such as Applebee’s or Chili’s opted to spend less money dining out without resorting to fast food.

In 2010, Zaxby’s ranked fourth nationally based on sales among fast-casual restaurants, bringing in $778 million. Panera topped the list with $2.9 billion, and Chipotle was second with sales of just less than $2 billion, according to Technomic.

But Zaxby’s led the chicken segment of fast-casual restaurants in 2011 with sales of an estimated $840 million. The company could hit the $1 billion sales/revenue mark with close to 600 store locations by the end of 2013.

Zaxby’s does have a drive-thru, however, which not all fast-casual restaurants use as a method of service. “Because of this and our product, our main competitor tends to be Chick-fil-a,” Perry says.

A Southern connection

As a native of Madison, Ga., located 20 miles south of Athens, Greg Jarvis has loved Zaxby’s since his first bite almost 20 years ago. Like his son, Greg attended the University of Georgia, and trips to visit family and friends always ended up with a trip to Zaxby’s to enjoy his favorite: chicken fingers, wings or a chargrilled sandwich.

“They (Greg and Cheryl) know Columbia, and we know Zaxby’s,” Perry says. With 14 years of experience and 11 locations, Perry feels confident in his Columbia locations that will open during the next few years. He owns his various locations with Andy Brady, his longtime business partner, and Perry’s son Taylor. Vergil Tudor has also worked with Perry at his Dalton Zaxby’s and will assist with the Columbia locations.

This past school year, the University of Missouri entered its first year in the Southeastern Conference. This brought Georgian Zaxby’s franchisees, including Perry, up north for some good ol’ competition outside of business. After a trip to watch the MU Tigers men’s basketball team defeat the Georgia Bulldogs Jan. 16, these Southerners approved of Columbia’s atmosphere and potential — but maybe not the loss on the court.

Perry’s son Taylor graduated from Georgia this year and will be moving to Columbia as part owner of his father’s new Zaxby’s locations.

Cheryl Jarvis doesn’t have the Southern drawl like her husband and Perry, but she shares the enthusiasm about the effort to bring the restaurant to the Midwest. Cheryl says it’s hard to imagine she won’t succeed when so many people she knows love the restaurant. “Our older son, his friends and so many others make sure we always go to Zaxby’s,” she says. “I especially love the zalads for a healthier option.”

And yes that’s with a “z.”

The Zaxby’s franchising department has an extensive website that includes everything from costs of starting a location to videos of interviews with current franchisees. One of the most helpful pieces of information is an interactive map of the United States. When you click on a particular state, the site lists every region in that state where Zaxby’s is currently accepting offers. Some states, such as Illinois, are not yet on the radar.

Franchisee applicants have to go through interviews as well as background and financial checks to begin a Zaxby’s. Pritchett says, however, that most franchisees don’t have previous restaurant experience, much like Cheryl and Greg.

But why Missouri? And why not St. Louis or Kansas City if entering Missouri?

To start, there’s no more room down south. Or east. So now they’re heading north and west.

Zaxby’s has locations as far north as Ohio and Indiana and as far west as Texas. These restaurants often begin in smaller towns, such as the very first in Statesboro, Ga. Then there’s expansion into bigger cities such as Atlanta.

Finding a place in Columbia

Students and residents have rallied for popular chains such as Chick-fil-a and Jack n the Box, but many Columbians might not be familiar with Zaxby’s and its Southern comfort food. The company breached the Mississippi River and aims to become a household name beyond the South. “We really believe in the West and think if people try it, they’ll love it,” says Amy Camp-Pritchett, senior director of Zaxby’s franchise administration.

“First impression is going to be so important,” Perry says. “We just really want to serve the Columbia community right.”

Pritchett says the demographics were key in the decision to break into Missouri. “The numbers looked very similar to Athens where we’re headquartered,” she says. Hitting the 100,000 population marker can be huge, and Columbia has been growing in past years. The presence of a college town also proves a desirable market.

“We do cater to the college town, but at the same time soccer moms trying to get an upscale salad in a drive-thru love it,” Pritchett says.

Job creation

Zaxby’s presence creates the possibility for employment in the area. Perry says a single location aims to staff 40 employees, eventually narrowing to 25 or 30 as the need for external leadership decreases. Perry’s first location, the first Missouri Zaxby’s off of Stadium and Highway 63, will be a part of a rapidly expanding community, complete with student housing, an FFO Home, new gas stations and restaurants.

The aim is to be up and running in October. The Jarvises’ first location will be on Nifong and Providence near Sophia’s about a month later. This location, like Perry’s, is also surrounded by student housing. Cheryl intends to utilize this community and hopes to have students work in her restaurants. Although Greg will be hands on in the day-to-day operations of the restaurants, Cheryl intends to focus on administration duties and interview potential employees.

“Students are some of the brightest and quickest to learn,” Cheryl says. “They have some great possibilities for us as employees.”

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