The Asian Quick-Casuals (2/4)

A third category of chains label its offerings “ global noodle ” dishes, these include Noodles & Company ( the largest of all such chains, with nearly 100 restaurants), Nothing But Noodles and Wild Noodles. Here, the noodles themselves are theme, with selections ranging from American comfort-food classics ( such as macaroni and cheese) to Italian-style pasta dishes to Asian noodle dishes such as lo mein or Pad Thai. The Asian-inspired selections may be inventive: Noodles & Company’s Indonesian Peanut Saute, Wild Noodles’ Mongolian Noodels and the Spicy Japanese Noodles’ Mongolian Noodles and the Spicy Japanese Noodles at Nothing But Noodles. Unlike the more traditionally Asian chains, which employ a traditional wok stir-frying method, these “ global noodle” chains use the wok only to heat ingredients and pre-made sauces to create various flavor profiles. The competition among these restaurants chains is fierce. All are relatively new and unknown, and no company has ye emerged with undisputed national dominance. And while they are competing with each other for consumer recognition, these chains are also competing with all other types of Chinese and Asian restaurants as well as with the quick-casual sector as a whole. Why These Chains Are Growing Why are these 10 chains, and a few others like them, growing so quickly? The short answer is that they serve important needs for today’s dining public. Technomic has developed several criteria to identify emerging concepts. These include the strength of the management team; the quality of development plans, partners and markets; and adaptability of “chainability” of the concept. But the most critical criteria for identifying a concept that will emerge as a wining chain are: strong unit economics ( food costs appropriate and in line, high AUVs, strong ROI); differentiation( how well the chain stands out from competitors through menu, décor, pricing and service systems); and fit with consumer demand ( multiple menu occasions, close alignment with consumer demands.) Asian and noodle quick-casual restaurants score high on all these considerations. The last-consumer demand-merits more discussion. In analyzing the American restaurant consumer’s mindset in 2004, Technomic identified three “push-pull” issues that are tugging diners in different directions: wellness versus indulgence; experimentation versus reliability ( the “sure thing”); and value driven by quantity versus value driven by quality. All three of these issues-or, one might say, all six of these impulses-play out in the Quick-casual Asian and noodle segment. Wellness versus indulgence: Consumers *ROI-Return On Investment Perceive quick-casual restaurants in general, as having more healthful food than that available at traditional fast-food outlets. Without exception, the quick-casual Asian and noodle chains market themselves on the healthfulness of their cuisine, the freshness of their ingredients and the fact that menu items are made to order. Exhibition kitchens not only advertise the food and the cooking process for all to see, but add a sense of drama and energy. On the other hand, consumers see noodle and rice dishes as comfort foods. Presentation of meals in heavy china bowls adds to the consumer’s perception that they are both “homey” and subliminally promotes an image of healthfulness and comfort at the same time. “ Life is a journey. Wok with friends,” proclaims Chin’s Asia Fresh. “Peace, Love, Noodles” is the motto of Doc Chey’s Asian Kitchen.