Crib
Notes.
Hickory-smoked barbecue and tight operations
give Rib Crib the groundwork for growth.
By Sherry A. Hatlestad, Chain Leader
Is it good barbecue or just good business
that explains Rib Crib’s seemingly smokin’ success?
Whatever the reason, the 22-unit barbecue chain continues
to do well in any market it enters.
Beginning with its Tulsa, Okla., roots
down to Oklahoma City; Springfield, Mo.; and Lakeland,
Fla., Rib Crib has been named either the best barbecue
or best ribs in each market. The 10-year-old chain posted
systemwide sales of $20.6 million in 2001, a 29 percent
increase over the prior year. And same-store sales grew
an impressive 5.3 percent in the same time. The privately
held company also estimates unit-level EBITDA of 21.6
percent.
So far this year, Tulsa People voted Rib
Crib the best barbecue for the 10th year running, and
the Polk County Dining Guide of Polk County, Fla., honored
Rib Crib with its 5 Star Excellence Award. (Polk County
is one of Rib Crib’s newest markets; its first unit
opened in January 2000.)
The company plans to open six more units
this year and is entering its fifth market, Alcoa, Tenn.
The first Alcoa unit was opened March 11 by franchisee
Larry Graves. He plans to open 10 to 12 more in east Tennessee.
A former franchisee that opened the 56th Applebee’s
and also opened the 157th Wendy’s, Graves is most
impressed with Rib Crib’s operations, menu and casual-dining
format. “Operationally, Rib Crib is committed. It
has refined the operation down to the lowest denominator,”
he says.
Rib Crib hopes to reach 50 units and ring
up systemwide sales upwards of $60 million by 2004. In
addition to filling out current markets, the company will
continue targeting second-tier markets with populations
of about 50,000. On the radar are Wichita, Kan.; Cleveland;
and northwest Arkansas. Indeed, if the past is any indication
of the future, the company will have no problem achieving
its goals.
Smoke Signals
Founded in May 1992, Rib Crib was the
brainchild of Bret Chandler, a former franchisee of Tulsa-based
Mazzio’s. After five years with the pizza chain,
the now 41-year-old president and CEO of Rib Crib was
ready to venture out on his own. “[Barbecue] was
a niche that hadn’t been disciplined on a grand scale,”
he explains. “The timing was right; the segment wasn’t
crowded.”
First Chandler did his homework. He developed
unique sauces and rubs and extensively researched systems
for cooking and serving the barbecue. “I wanted to
apply the same disciplines—quality, service, cleanliness
and value—as other well established casual-dining
chains,” says Chandler. “And when it comes to
barbecue, having the right smoker is critical to achieving
product consistency.”
He bought and renovated an old, 1,800-square-foot
house near the University of Tulsa and opened the first
Rib Crib in May 1992. Then in January 1994, he opened
a larger, 3,000-square-foot unit, which more closely resembles
the casual-dining format and whimsical Western decor seen
today.
Chandler says he welcomes the success
of other barbecue brands, namely Famous Dave’s and
Smokey Bones. “Each concept is different enough.
There is enough demand for us all.”
Rib Crib’s menu consists of typical
barbecue fare. Hickory-smoked meats such as brisket, ribs,
pulled pork and sausage served in sandwiches, dinners
and combination platters make up its core. Favorites include
the CribWich, a sliced brisket and hot link sandwich served
with one side ($5.50), and the Two Meat Combo—choice
of two meats, two sides and Texas toast ($8.95).
By October 1999, there were 14 Rib Cribs
in Tulsa and Oklahoma City. The following January, the
company expanded to Springfield, Mo., and Lakeland, Fla.
“We wanted to step out [of Oklahoma] and see what
other folks thought of us,” says Rib Crib CFO Marc
Chastain. “People see barbecue as regional, hard
to travel....In both markets we have been voted best barbecue.”
He attributes Rib Crib’s success to sound operations
and systems, not to mention the food.
Keeping it Simple
One of the key attributes that sets Rib
Crib apart from local barbecue joints, wherever it travels,
is its service format. Says Mazzio’s President Craig
Bothwell, “That it’s full service is a real
point of differentiation. If [Rib Crib] is experiencing
the same results in other towns and states as I see in
Tulsa, it could be very successful.”
More importantly, says restaurant consultant
Bob Gappa of Management 2000 in Houston, the unit economics
have to make sense regardless of the service style. “My
first thought is, does it have an economic model that
works. And it does.”
Meats are continuously smoked, so orders
are typically “cut and serve.” As such, orders
are ready within 10 minutes. This speed of service appeals
to Rib Crib’s core customers—25- to 55-year-olds
with families and a household income of $50,000. As well,
the average check of $10 is easy on their wallets.
The cut and serve system also helps keep
a lid on labor and food costs, says Chastain, who reports
labor costs below 20 percent, while food costs hover closer
to 30 percent. Adds Graves: “I’ve experienced
a 6 or 7 percent savings on the labor side compared to
Applebee’s.... [Cut and serve] costs less and can
be served faster.”
From Crib to Corporate
Recruiting from within and maintaining
its culture will also prove to be important to Rib Crib’s
continued growth. Thirty percent of the current management
staff has accelerated through the ranks from hourly positions,
including Director of Operations Seth Nimmo and Training
Director Eric Bartlett. Eighty-five percent of the employees
in the corporate office have come from store level as
unit managers; half of those started as hourlies.
Chastain attributes Rib Crib’s ability
to recruit and retain quality employees to the company’s
positive culture. “Rib Crib’s core values [‘to
boldly deliver the highest quality with a passion for
excellence’] are engrained in our employees from
the beginning,” he says. “We continually ask
ourselves, what are we learning and how are we improving.”
Chandler established this thinking from
the start. “I am a believer in finding good people
and letting them make their own decisions,” he says.
“Employees respond to being empowered. When you attract
and retain those people, everyone benefits.” Especially
Rib Crib, it seems.
Write to Sherry A. Hatlestad at Chain
Leader, 1350 E. Touhy Ave., Des Plaines, IL 60018, or
call her at (847) 390-2051.
Rib Crib. Where Bold Began.
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