L&L Hawaiian Barbecue: Pacific Rim operators ride wave of success as multicultural concept swells on mainland

Nation's Restaurant News,  Jan 31, 2005  by Milford Prewitt

Tags: Research In Motion Ltd.

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L&L Hawaiian Barbecue might seem to connote smoke-flavored ribs steeped in exotic Polynesian flavors--perhaps marinated in pineapple and papaya juices--but many outlets of the Honolulu-based chain are known as drive-in restaurants, not barbecues.

Though none of the fast-growing chain's outlets in Hawaii or on the U.S. mainland sports intercom-activated parking stalls for in-car dining, the brand original name of the brand--still carried by older units in Hawaii--is L&L Drive-Inn.

When L&L began its mainland expansion, the name was changed to be more representative of the menu, which in fact features several rib items and other grilled-meat dishes along with an eclectic assortment of Hawaiian-accented specialties.

Although the name now features barbecue imagery, the format of L&L is based on a dining style called "plate lunch" that's popular all over Hawaii and is featured by countless lunch wagons, small cafes and counter-service diners.

Derived from the Japanese-style bento box meals once widely consumed by immigrants in Hawaii, the classic plate lunch evolved into a hugely portioned, bargain-priced meal that is served on a segmented paper plate or in a plastic foam clamshell box. A plate lunch always includes two large scoops of rice, one large scoop of macaroni salad and a meat or fish main item--all dishes reflective of the island state's Pacific Rim multiculturalism. A plate lunch with two meat or fish items is called a "mixed plate."

An L&L signature main item that also is a traditional favorite throughout Hawaii is "loco moco," which consists of two hamburger patties topped with two fried eggs and thick gravy. Other L&L dishes feature grilled Spam, also a favorite food of working-class Hawaiians.

Although the menu of L&L Hawaiian Barbecue is replete with food styles that might not have seemed exportable on a mass scale, the fast-casual concept has proliferated on the mainland and now enjoys success as far afield as Illinois and New York.

Founded in Honolulu in the 1950s by a husband-and-wife team of Korean immigrants, the original L&L Drive-Inn was purchased by Eddie Flores, a successful commercial real-estate broker who grew up in Hong Kong, and his partner, Johnson Kam. Flores decided to buy the concept in 1976 as a gift for his mother, who formerly had been the "clean-up lady" and cook for some of the earliest stores.

Flores, a philanthropist and community-minded entrepreneur whose company is behind a number of scholarships and community-improvement programs, is president of L&L Franchise Inc.

Together, the Drive-Inn and Barbecue brands have 112 stores, all franchised except for a few in which Flores and Kam share a minority partnership that is not affiliated with L&L Franchise Inc.

After a boom in growth that saw the chain more than double in size in the past three years, from 54 units at the start of 2002, L&L Hawaiian Barbecue is growing on the mainland at the rate of about three to five new stores a year.

Of the 61 L&L outlets on the mainland, 52 are in California. The chain recently made its debut in New York City, and a second branch is scheduled to open soon.

"L&L Franchising is such a fun story to cover because of its expansion," says Erika Engle, business reporter and columnist for the Honolulu Star-Bulletin. "It's the only local company I can think of that is expanding on such a large scale to the mainland, and Eddie is a real character to follow."

While L&L Hawaiian Barbecue's market identity, menu leaning, target audience and franchising have catered to an Asian-American demographic, Flores says the kinds of crowds the concept draws in Los Angeles, Arizona and Washington give him confidence that the brand can enjoy sustained success in penetrating the mass-market mainstream.

Nevertheless, L&L is expanding in the 48-contiguous states in markets that are known to be dense with expatriate Hawaiian natives of both Asian and Polynesian backgrounds.

Flores admits that L&L has bent the rules a bit in terms of image and expectation, but that has not hurt business or growth.

"Yeah, I guess it is a misnomer to call ourselves a drive-in," Flores concedes, "and I know the term 'plate lunches' throws off people who are unfamiliar with what we do. But our guests are responding, and new customers are coming back."

Flores explains that plate lunches stemmed from the kinds of meals Japanese immigrants dined on when they worked the plantations in Hawaii in the early 1900s.

"They would come to work with food in a box--rice, meat, teriyaki often--and over the years that evolved into what we think of as bento boxes today," he says, "but it was basically working-class, blue-collar food."

By the time the Korean couple that launched the concept sold out to Flores and Kam, Hawaii's many Japanese, Korean, Chinese and other Asian culinary traditions and foods had been incorporated into the basic menu of the concept.