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Feature Article, June 2005
All-American Opportunity
Johnny Rockets shoots for the domestic retail galaxy with traditional as well as entertainment-based locations.
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Johnny Rockets' All-American image adds appeal to shopping centers.
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You can't go wrong with Americana these days, as The Johnny Rockets Group, Inc., knows. The privately held company based in Aliso Viejo, California, operates an American diner-style restaurant under the name Johnny Rockets in the United States and abroad and is expanding the concept to a variety of types of locations. Johnny Rockets serves up a simple menu of All-American favorites, from hamburgers and hand-dipped shakes and malts to freshly baked apple pie, in a nostalgic 1950s environment. The authentic diner look includes tabletop jukeboxes, chrome trimmed counters, red bar stools and a dancing wait staff who twirls straws and helps customers pound ketchup out of the bottle.
“The entertainment we provide for our consumer sets us apart,” says Greg Hubbard, senior vice president, development and franchise for Johnny Rockets. “The music, dancing and interfacing with customers — it's not about the food, it's about the experience you have at Johnny Rockets.”
Founded in 1986, the first Johnny Rockets opened its doors on trendy Melrose Avenue in Los Angeles. Today, the company has 167 domestic and corporate locations in 29 states and four countries. Entrepreneur magazine's annual Franchise 500 list recently recognized Johnny Rockets as the Number 1 full-service hamburger restaurant, while CitySearch and AOL CityGuide have consistently ranked Johnny Rockets among the nation's top hamburger and family-friendly restaurants.
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Johnny Rockets' All-American image adds appeal to shopping centers.
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Johnny Rockets targets traditional retail locations, including enclosed malls and lifestyle centers with a mix of specialty retail, as well as entertainment-based locations. The prototypical site is a 2,200-square-foot, shopping center end-cap location with 30 feet of frontage. In addition to casinos and theme parks, the All-American burger concept has made it to six Royal Caribbean cruise ships, with plans to expand with four more ships over the next 2 years. The most recent restaurant opened on the completely renovated Royal Caribbean International cruise ship, Sovereign of the Seas. As guests vacation in the Bahamas, they can enjoy Johnny Rockets standard treats as well as special items created especially for Royal Caribbean guests. The company's newest casino location, which it developed with Baltimore-based The Cordish Company, is located in the Seminole Hard Rock Hotel and Casino, which resides on an epic 86-acre resort in Hollywood, Florida. Johnny Rockets also recently opened in Florida's indoor role-playing theme park for kids, Wannado City. The restaurant is located at Sawgrass Mills mall, which is within Wannado City. Both Wannado City and the Johnny Rockets franchise are owned and operated by Wannado Entertainment. Florida now has 20 Johnny Rockets locations, and the chain is aggressively seeking to increase its brand awareness in the outstanding tourist area. Other new Johnny Rockets locations include a lifestyle center, called Destin Commons, in Destin Florida; another tourist location on the Riverwalk in San Antonio; Bali's Atlantic City on the Boardwalk; and the company's first location in Queens on Austin Street. Primary target markets for company locations include Florida; Baltimore/Washington/Virginia; New York, including Manhattan and Upstate New York; California; and Las Vegas and Reno, Nevada.
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A Johnny Rockets mall location with an exterior entrance.
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With 109 domestic franchisees and 17 international franchisees, Johnny Rockets is looking for sophisticated developers who have food service brand experience. Franchisees and/or a business partner(s) must have at least 5 years of restaurant owner/operator experience, must live in the market to be developed, must have a net worth of $1 million and above, and must have liquid capital between $250,000 to $500,000 to support restaurant operations.
“We focus on experienced developers who are willing to commit to a geographical area development agreement and who have the financial capability to develop the market over a period of 10 years,” notes Hubbard. “Our typical agreements are a minimum of five locations.”
For now, Johnny Rockets will remain focused on the domestic market, as the company currently is not actively pursuing international markets. This year, the chain will open 24 franchised locations and three additional company locations. Next year, it will increase to seven to 10 company locations and another 27 to 30 franchised locations nationwide. The company is targeting annual unit growth of 20 percent per year for the next 5 years.
— Susan H. Fishman
©2005 France Publications, Inc. Duplication or reproduction of this article not permitted without authorization from France Publications, Inc. For information on reprints of this article contact Barbara Sherer at (630) 554-6054.
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