Athens chains reaching broader audience

Athens may be best known for sending NFL draft picks to major markets or launching successful bands. But several of its restaurant chains are proving they can travel too.

Barberitos joins fellow Athens-based chains Zaxby’s and Locos Grill & Pub as it moves beyond the college town to the big city. The founders of these restaurants say the college environment provided a strong base of hungry customers for their original restaurants. These students have stayed loyal to the brand even as they’ve graduated and moved away.

In fact, college towns have served as the launching pads for other national and regional restaurant chains. Domino’s Pizza, based in Ann Arbor, Mich., originally catered to students at the University of Michigan by delivering pizza to their dorm rooms and apartments. Ruby Tuesday was created by University of Tennessee grads in Knoxville, Tenn.

McAlister's Deli was started in Oxford, Miss., home to the University of Mississippi. And Schlotzsky's hails from Austin, Texas, where it sold hearty sandwiches to University of Texas students. McAlister’s and Schlotzsky’s, part of Focus Brands, are both owned by Roark Capital, an Atlanta-based investment firm.

Zaxby’s, a chain of chicken finger and wings restaurants started in 1990, has roots in two Georgia college towns. The chain, which now has 489 outlets, is headquartered in Athens but its first restaurant was in Statesboro, home to Georgia Southern University.

College towns are good for restaurant chains because they’re more recession-proof than other cities, said Zach McLeroy, co-founder and chief executive officer. Parents make sure their children have money for basic needs, such as food, transportation and books, he said.

It also helps to sell affordable food that appeals to college-age customers, McLeroy said. “I don’t think you could come into a college town with a steakhouse and get the same result as you would with a chicken finger concept,” he said.

As it has expanded, Zaxby’s has evolved its look and menu to appeal to a broader audience, McLeroy said. It has added sandwiches, salads and limited-time only products and developed a prototype that fits in newer developments.

Zaxby’s still attracts college students, but it’s also serving young professionals, families and middle-aged customers.

“Our core customer now is inclusive of more people,” McLeroy said.

Since opening in 2000, Barberitos has kept its core menu much the same, but it has added items for children to attract more families, a California-style burrito for vegetarians and a spicy chicken burrito to meet the growing demand for spicy options. The Roswell location that opened this week marks the first metro Atlanta location for Barberitos, which has 21 outlets.

A South Georgia native, Barber said he returned from Colorado to start Barberitos in Athens because he thought a quality, affordable burrito restaurant would appeal to college students.

The first summer, a dead period for a college town, was challenging, but Athens also provides a fall boost that most cities don’t get, Barber said.

Night games, in particular, drive traffic to its Athens location because fans spend more time in town, he said.

“We get a good lunch, a good dinner and then a huge crowd after the game,” Barber said. “You have 90,000 people coming out of a game hungry. That’s a huge positive.”

Athens and its college community have provided a great base for building and expanding Locos Grill & Pub, said Jamey Loftin, founder and chief operating officer. Loftin and Hughes Lowrance, founder and chief executive officer, started Locos in 1998 while attending UGA.

The Locos founders recently opened a second concept, KEBA Spitfire Grill, that they plan to start franchising next year.

Locos, which now has more than 20 outlets, has matured along with its clientele, Loftin said. The original Locos sold and delivered sandwiches and grocery items out of a small 400-square-foot store. Its new restaurants are about 5,000 square feet and feature sandwiches, burger, wings, chicken tenders, steak, salads and appetizers.

Former UGA students continue to provide a core base of customers even after they leave campus, Loftin said. Locos, though, is careful about promoting the chain’s roots in some locations.

“Certainly in Atlanta, it’s okay to have a UGA restaurant and bar,” Loftin said. “But in Auburn, Ala., we don’t want to advertise the fact that Locos is Athens-born.”