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Feature Article, May 2006
Family-Style Flavor
Nationally expanding Culver’s keeps a steady pace as it extends beyond the Midwest.
Susan H. Fishman
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Culver’s plans to open about 50 new units during 2006.
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Roughly 50 new family-style Culver’s restaurants will open this year, spilling customers over to nearby shopping centers in the Midwest and beyond.
“We like the activity shopping centers generate, and because we’re a cross between fast food and casual dining, our average check is a little bit higher,” says Tom Goldsmith, Culver’s director of development. “We tend to be a little bit more of a destination and generate quite a few transactions.”
Culver’s are owner-operated fast food franchisee restaurants, known for ButterBurgers, ice cream sundaes, creamy frozen custard sundaes and desserts. The privately held company was started by Craig and Lea Culver in Sauk-Prairie, Wisconsin, in 1984. Frozen custard was a longtime favorite treat for the Culver family, who frequently made trips to Milwaukee (the unofficial frozen custard capital of the world) for their favorite dessert.
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Culver’s is known for its ButterBurgers, ice cream sundaes, creamy frozen custard sundaes and desserts.
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In 1987, Culver Franchising System, Inc.(CFSI) was created as the franchising arm of Culver’s. The first successful franchised Culver’s restaurant opened in 1990. Several new locations followed throughout Wisconsin and eventually branched out beyond state lines. Today, the company has 317 restaurants — 311 franchises and six company-owned stores.
The vast majority of Culver’s restaurants are in Wisconsin, Minnesota and Illinois, though the company also has locations in Michigan, Ohio, Kentucky, Colorado and Texas, for a total of 16 states. Culver’s are primarily found in suburban retail areas among shopping centers and big box developments. The company prefers dense, older areas of cities with a large population, but has locations in smaller cities near the interstate as well as some mid-size communities of 20,000 to 25,000.
“Our location decisions are primarily driven by our owner-operators,” notes Goldsmith. “Because our franchisees have to work in the restaurants they own, most of them live and work in the communities they build in. So our development plans are really driven by who the next franchisee is and where he or she wants to live and work.”
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Recent store openings for Culver’s include Indianapolis, Indiana; Rochelle, Illinois; Westland, Michigan; Peoria, Illinois; Hutchinson, Minnesota; Franklin Park, Illinois; and St. Joseph, Missouri.
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Some of Culver’s most recent openings include Indianapolis, Indiana; Rochelle, Illinois; Westland, Michigan; Peoria, Illinois; Hutchinson, Minnesota; Franklin Park, Illinois and St. Joseph, Missouri. The vast majority of stores are freestanding buildings, with only two food court locations. Food court opportunities are a potential area of growth for the company in cities like Kansas City, St. Louis, Ohio and Texas. Culver’s hopes to open 50 new locations this year, and roughly the same number moving forward.
“We’ve opened about 45 restaurants each year for the last 4 or 5 years,” says Goldsmith. “That’s the level of growth we’re comfortable with; we’re not aggressive enough to make a big push.”
A typical Culver’s restaurant is 4,500 square feet and seats 98 to 118 guests. Due to today’s higher construction and land costs, the company has developed a smaller prototype that is roughly 3,600 square feet and seats 98.
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The seating area inside a typical Culver’s restaurant.
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“That’s one of the biggest changes in the last few years,” notes Goldsmith. “We’ve built some very large restaurants with 150 seats or so, and that takes a lot of property. But now with a smaller prototype, we’ll be able to get into areas we haven’t previously been able to get into.”
Culver’s is known for its clean, comfortable, family atmosphere, featuring homestyle furnishings, such as carpeted dining rooms and real ceramic coffee cups.
“We want it to feel like you’re eating at home,” says Goldsmith.
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Most Culver’s restaurants are in Wisconsin, Minnesota and Illinois, though the company also has locations in Michigan, Ohio, Kentucky, Colorado and Texas.
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The tables are designed to accommodate groups, such as a knitting club or soccer team, and create a social environment. The décor is essentially up to the local owner-operator, many of which use historical photos of their city to adorn their walls or draw their theme from nearby attractions, such as a shipping port or the circus.
While most famous for its ButterBurger, made from a fresh, ground chuck blend and sandwiched between a lightly buttered, toasted bun, the Culver’s menu includes 45 items, such as beef, chicken and fish; sandwiches; salads; and a special kids menu, featuring hot dogs, grilled cheeses and chicken tenders.
©2006 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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