Daphne's gears up for franchising with focus on simplicity

Nation's Restaurant News,  Jan 7, 2008  by Louise Kramer

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SAN DIEGO, CALIF. -- Keep it simple. That's the operations mantra at Daphne's Greek Cafe, a fast-casual chain that has nearly 80 units and is positioning itself for a growth spurt.

By early 2008, the San Diego-based company hopes to start selling franchises, and also plans to open corporate stores at the rate of 15 to 20 per year for the next several years, said Daphne's president Steven Fricker.

Daphne's, founded in 1991, is positioned as a casual eatery that features fresh Greek food in a friendly atmosphere with reasonable prices. The average lunch check is $7.50, dinner is $9.

Average unit volume is $900,000.

As part of the franchising ramp-up, the regional chain is working with vendors to develop more prepared ingredients and is streamlining service procedures.

"It is probably the simplest operation I have ever seen," said Fricker, an industry veteran who was hired last summer by Daphne's founder, George Katakalidis, a former professional soccer player, to lead the growth. Fricker has held leadership posts at major chains, including Jack in the Box. Most recently he was a franchisee of Panera Bread Co.

"[At Daphne's] we run with a total of 15 people per unit which is a beautiful thing," Fricker said.

The menu features kebabs and pita sandwiches. Platters include Greek specialties like rice pilaf and tzatziki, a yogurt sauce. There are three meats to choose from, grilled chicken, steak, and gyros made from ground beef and lamb.

Wherever possible, Daphne's brings in food prepared to its specifications by vendors to minimize labor costs and ensure consistency. The meat comes cubed and marinated. Soup is brought in already cooked and ready to heat. Gyro meat is brought in partially cooked. It is finished in the restaurant, and sliced to order.

Most produce, including lettuce, is shipped to units already prepared, but stores still cut tomatoes by hand to maintain quality. Feta cheese arrives already crumbled.

Fresh products are delivered two to three times per week. Preparation is limited to before and after the lunch rush so that all crew is on deck to cook and assemble orders and communicate with customers, said Sean Allameh, director of operations.

The goal is to present a warm atmosphere with an emphasis on fresh food. To that end, there is an open kitchen, and food is served on china rather than paper plates. A new prototype includes booths in addition to tables and chairs. When guests arrive, they are greeted and handed a menu. They place their order at the counter, and a crew member delivers the food to the table.

Later a crew member will stop by the table to see that the guest is satisfied.

"It gives it a kind of casual-dining feel," said Fricker.

The company also is working to improve its web ordering, and is looking at outsourcing phone ordering, Allameh said.

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