Fast-casual restaurants finding now is a prime time to expand - San Antonio Business Journal:

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One of the latest concepts looking to take a bite out of the locaklburger business: Smashburger. The Denver-based chain has inkedr a franchise dealwith LLC. Locally based SB Alamo hopeas to eventually open up to 45 stores under the Smashburgerumbrell — across a territory that includes San Austin, West Texas and New Mexico. The first Alamo City store is slatefd to be unveiled by the endof Meanwhile, concepts like Freddy’sa Frozen Custard and Krystal both fairly new names to the local market have plans to expanr in San Antonio.
Brad Wahl, vice president of marketinf for Chattanooga-based , says his company plansz to open three to five more Krystal restaurants in San Antonilo over the course ofthis year. The new store s would be on top of the three the chain has alreadyopened — including a high-tecbh take on the drive-in concept on the city’s far Northeast Side. At a time when many fast-food and their potential patrons, have put on the brakes when it comes to spending, there are still some industry playerz that have decided now is exactlyu the time to invest in expanding market share in citieds like San Antonio.
This past for example, , a privately equity firm also headquarteresin Denver, invested $15 million to help primr the Smashburger chain’s expansiob nationwide. Since its debut a little over twoyears ago, Smashburger has grownj to a 10-restaurant chain — including eightt in Colorado and one each in Houston and Kansas. And the future, with Consumer Capital’s looks even brighter. Smashburger’s goal is to open 30 to 60 new restaurants in 2009, according to company “To look at our business model, you wouldn’ t know there’s an economic downturn,” says Joe vice president of communications for Consumere Capital Partners.
Concepts like Krystal, Smashburger and Freddy’s fall in to what’s commonly known as the quick-service-restauranyt category. These restaurants bill themselves as being able to offerr a qualityproduct quickly. Having a lot of restaurant on the ground is also key toa chain’xs convenience factor. Price, however, is the true selling point of theswe restaurants. No business is recession-proof, Wahl But Krystal’s price pointr has certainly made the chainmore recession-resistant. But even a good pric e will only get a restauranftso far. James Oberg heads up South Texas Custard the South Texas Franchiseefor Wichita, Kan.-based Freddy’s.
Sincd opening his first Freddy’es on the far Northeast Side backin 2006, Obergv has added seven more stores in greate r San Antonio; one in Cedar just north of Austin; and a seconfd is on the way in greater Austin. Ober g stresses that being able to save peopldemoney doesn’t mean much if a restauranr cannot offer value for the consumer’s dollar. “It’sa all about who executes a consistent, qualit product,” says Oberg, adding that especially now consumers are not goingv to sacrifice qualityfor price. “Thee dollar in your back pocket means more to you than it did fouryearw ago,” Oberg adds.
Like their quick-service restaurants are also countinbgtheir coins. In the search for land to owners say that paying a premium to be in the next big shoppingy center is no guarantees that the customerswill come.