Before COVID, two-unit, Georgia-based sandwich concept Zunzi’s was all set to launch a franchising push with its standard fast-casual model.
But then the chain, which began in 2005 as a takeout shop with South African roots, opened a location with a full bar—known as Zunzibar—and those original franchise plans got tossed aside.
While the traditional fast-casual Zunzi’s location was pulling in $1.5 million in annual sales, the restaurant with the bar added is seeing $4 million to $5 million in annual sales, CEO Chris Smith said.
“We needed to give our franchisees everything at their disposal,” Smith said. “We’re going to grow with the dual concept.”
It’s yet another example in a long line of recent demonstrations of fast casuals blurring the lines with other restaurant segments. With the consumer focus on convenience driven by the pandemic, the industry has seen many traditional fast casuals open drive-thrus, more closely resembling QSRs. And, as fast-food chains have raised prices, their average checks are now creeping into fast casual territory.
Late last month, fast casual Smashburger opened its first restaurant with a full bar, crossing over into casual-dining territory.
“A lot of people have pivoted their models,” Smith said. “There’s a whole new segment of next-generation casual that blur the lines between fast casual and casual dining.”
Smith became a Five Guys franchisee straight out of college in 2007. But he kept hearing about a hole-in-the-wall sandwich shop called Zunzi’s that was generating lines around the building.
At the time, Smith said, Zunzi’s diners were eating their sandwiches outside on overturned Home Depot buckets and the restaurant kept irregular hours.
“They didn’t run a great operation,” he said. “It added to some of the quirkiness. I said, ‘Someday, I’m going to buy this and franchise it.’”
Smith kept in touch with the owners and in 2014, they called and asked if he wanted to buy them out.
“That set into motion for us to sell the Five Guys and go all in on Zunzi’s,” he said.
In 2017, he expanded from Savannah and opened a second location in Atlanta.
Last May, he moved the original Zunzi restaurant and added the bar. But the Zunzi’s team was thoughtful about doing so, he said.
“We didn’t want to just be a Zunzi’s with a bar,” Smith said. “With every brand, people have a feeling of what it’s supposed to be. If Chipotle opened a bar, people aren’t going to want to hang out there and drink.”
So, Zunzi’s created a true sister concept, with a dedicated space for people who wanted to hang out and enjoy their drinks and food.
Diners can order at a kiosk and receive a text when their sandwiches are ready. Or, they can order via QR code at the table and a server will come by to take their drink orders.
“When people are dining, they’re looking for convenience or experience,” Smith said. “If people just want food they’ll order online for takeout or delivery. If you’re going out, you want an experience. You want to go to a place and have a good time and be in a fun environment.”