Last fall, the fast-casual Mediterranean concept Brassica announced a minority investment from Chipotle’s venture fund. Now the six-unit Brassica is getting ready to double its unit count.
The Columbus, Ohio-based chain is scheduled to open its first location in Cincinnati this winter, said co-founder Kevin Malhame. Then in the spring, the company plans to open in Houston, followed by Indianapolis next summer.
All three are new markets for the brand, which currently operates only in Columbus and Cleveland (though Malhame has other restaurants in Cincinnati, so that market is at least familiar.)
Three more restaurants are planned within those five markets, for a total of six more within the next 18 months. All restaurants are company owned and Brassica has no plans to franchise.
And, at a time when other fast-casual brands are reporting significant macroeconomic headwinds—including Chipotle—Brassica is “doing terrific,” Malhame said.
The upscale Mediterranean concept started the year with an average unit volume “north of $3 million,” he said, which is close to Chipotle.
Brassica’s same-store sales increased over 10% in the first quarter.
“The second [quarter] was even better, and the third looks like it will be our best yet,” said Malhame. “And we haven’t had a price increase in almost three years. It’s all traffic.”
Brassica is elevated fast casual with about 50% of sales from dine-in. | Photo courtesy of Brassica.
How is Brassica accomplishing that?
There are no tricks, said Malhame. It’s just a focus on operations, management culture and food quality, fundamentals that likely attracted Chipotle’s investment last year.
The amount of the investment was not disclosed, but it was an unusual move for Chipotle to invest in another restaurant brand through its $100 million Cultivate Next fund. Other investments have targeted technology companies, suppliers and sustainability-driven startups that support farmers.
Malhame said the partnership with Chipotle has been “wonderful. They’re providing all sorts of expertise” in areas that Brassica has no experience, from technology to marketing.
“I can’t overstate how great they’ve been as partners,” he said.
The move from Ohio to Texas and then Indiana is a big jump, Malhame acknowledged. But the company invested early in building a solid support staff for both Brassica and sister-brand Northstar Café, along with several one-off concepts. That team gives Malhame the confidence to move out of Ohio.
And there is clear interest in Mediterranean cuisine across the country, which is perceived as healthful. Chains like Cava, Great Greek Mediterranean Grill, Naya and others have aggressive growth plans, but there are still plenty of untapped markets.
Brassica is also somewhat unique.
Co-founded by Kevin and his brother Darren Malhame, who are of Lebanese descent, the menu at Brassica reflects the Mediterranean region fairly broadly.
Kevin was inspired to create the concept in part after having a mind-blowing falafel sandwich in Paris more than 25 years ago, he said.
Brassica’s menu is built around pita sandwiches, salads and the dips and sauces, like hummus, baba ghanoush, tahini and z’hug. There are fries and beer and wine, along with a frozen tequila-based cocktail dubbed a Brassarita. And tahini-chocolate chip cookies.
Brassica sees catering as a big opportunity. | Photo courtesy of Brassica.
Like Chipotle, Brassica also sees catering as a big sales opportunity. Kevin said the Mediterranean chain’s catering is now about 5% of sales, a number he would like to grow.
But Malhame said he’s not really worried about the competition.
“It’s all a bit of a distraction. I do believe we can out-compete most of the other players in our space,” he said. “In the world of restaurants, if you stay focused on what you do and what you do well, there will be business.”