Three of Little Rock's 10 best-performing restaurants in 2013 were Chick-Fil-A franchises, according to data from the Little Rock Convention and Visitors Bureau.
The Chick-Fil-A at 6201 W. Markham St. raked in more than $4.4 million in taxable revenue in 2013. The outlet at 12500 W. Markham St. had nearly $3.78 million in sales, and the Chick-Fil-A at 11525 Cantrell Road wasn't far behind, with taxable revenue of more than $3.65 million.
John Spenst, who operates the 6201 W. Markham St. franchise, said Chick-Fil-A's customer service keeps patrons coming back.
"People come for the great food, but they stay for the great service," Spenst said. "That doesn't mean we always get it right. We don't, but we work really, really hard that when we interact with the guests, we do everything we can to give them a great experience."
Spenst's store handles an average of 1,800 transactions a day, but it has had days when it handled 2,000. About two-thirds of the customers use the drive-thru window. The store has 55 employees, up slightly from the 40-45 when the restaurant opened in 2007.
Each of Little Rock's Chick-Fil-As has a different franchise operator. Spenst said most operators own only one franchise, which helps keep the operators engaged with their customers and staffs.
"They work really hard to find people that they trust," Spenst said.
Bob Paine operates the Chick-Fil-A at 11525 Cantrell Road and said he's seen his revenue increase every year since the restaurant opened in late 2009. For the first quarter of 2014, revenue is up 7 percent. The growth, he said, is because of good food and good service.
"We have to start with food," Paine said. "For a fast-food restaurant especially, our food is really good, and our customer service is excellent."
Paine said the Atlanta-based chain's new grilled products have been selling well, as have the traditional chicken sandwich and summertime favorites like milkshakes. His restaurant handles between 1,700 and 1,900 transactions a day and employs roughly 60 people.
Full-service chains such as Cheddar's Casual Cafe, Olive Garden, Texas Roadhouse and Copeland's of New Orleans were also popular with diners last year. Host International, the company that runs the restaurants in the Bill and Hillary Clinton National Airport/Adams Field, had the highest total revenue at $4.81 million.
Cheddar's, located close to Spenst's Chick-Fil-A, had the highest revenue among full-service restaurants in 2013. After opening in 2011, it posted the highest revenue of any restaurant in 2012.
Spenst's 7-year-old restaurant predates most of the restaurants near Park Plaza. New restaurants in the midtown area have increased competition for his business, but the area's development is good for his long-term business prospects, he said.
"In the short-run, it can be a little bit nerve-racking," Spenst said. "But the area overall is growing, and in the long-term the more restaurants that are here, the better off we'll be."
Montine McNulty, executive director of the Little Rock-based Arkansas Hospitality Association, said restaurant growth in midtown has been strong, but restaurants have been springing up in other parts of the city, as well.
"It's a very attractive spot. Obviously, the ones that are there have been doing well," McNulty said of the midtown area. "Even Main Street has attracted some new restaurants. It's kind of spread. That's a very healthy thing for a city."
Big Orange, the most popular independent restaurant, had about $2.4 million in revenue, putting it behind about 30 chain restaurants. Big Orange opened a second restaurant in midtown in July 2013. Big Orange Midtown posted higher revenue totals than the original restaurant from August to December and continued to outperform it in the first quarter of 2014.
More than 830 Little Rock restaurants generated more than $476 million in taxable revenue in 2013. Nearly 90 percent of that revenue came from full-service and fast-food restaurants. About 450 full-service restaurants drew 59 percent of the revenue, while 139 fast-food restaurants accounted for another 31 percent.
McNulty said full-service restaurants in the area, particularly independent ones, have grown more popular in recent years.
"People are paying more attention to food," McNulty said. "The fresh food and the farm-to-table kind of trend has been really popular and strong in Arkansas, as well as other places."
Caterers, private clubs, mobile food units and concessions in places such as movie theaters, and at Kroger and Whole Foods stores made up the remaining 10 percent of sales.
Overall, restaurants saw a 2 percent revenue increase between 2012 and 2013. On average, full-service restaurants took in about $624,734 last year. Fast-food restaurants averaged just over $1 million in sales. The 2 percent growth is slightly anemic compared with the National Restaurant Association's 2013 projection of 3.5 percent growth statewide.
In 2013, restaurants paid more than $9.5 million in taxes on prepared food. Little Rock has a 2 percent advertising and promotions tax on prepared food. The tax, sometimes called the hamburger tax, raises the city and state taxes on food bills to 10.5 percent. The "hamburger tax" revenue is used to repay the bonds used to build the Statehouse Convention Center and fund the Convention and Visitors Bureau.
McNulty said restaurant revenue is still rebounding from the recession, but he expects the industry in Arkansas to continue to grow.
"Eating out has become a way of life for people," McNulty said. "I think it's a trend that's here to stay."
SundayMonday Business on 06/01/2014
Little Rock restaurant sales
