Einstein Bagels Launches Major Growth Blitz.

Retail: Push Is Aimed at Chain's Top 10 Markets

Einstein Bros. Bagels has launched a major growth campaign in its top 10 markets in the U.S. -- including San Diego.

Einstein, a subsidiary of Golden, Colo.-based New World Restaurant Group, Inc., plans to open new company stores as well as franchising opportunities in those markets. There will also be licensing agreements for Einsteins on college campuses and elsewhere, said Anthony Wedo, chief executive officer for New World.

Einstein is well-positioned as a recognized brand in the "fast casual" market, which combines low price, speed and convenience with more upscale fare than a fast-food restaurant would offer, Wedo said.

"We're uniquely positioned to own that segment in the United States. Right now, people want a no-compromises environment. The baby boomers are aging, they want great quality food, they want a nice atmosphere, and by the way, they don't want to wait for it," he said.

Wedo has seen that demand rise. In 1997, Einstein was primarily a bagel-and-coffee place whose lunch menu accounted for only 12 percent of its sales; now, although overall sales have increased, lunch accounts for 35 percent.

All this came with little or no advertising or marketing. The new campaign changes all that, he said.

"We're starting with a more traditional marketing campaign, basically telling the consumer what the consumer's been telling us for four years, which is, 'Hey, we're the great fast casual alternative for lunch. Come visit us; we re not just that breakfast bagel place any more,'" he said.

Wedo added San Diego's market resembles what Einstein is pursuing -- a mix of young people and baby boomers, fairly wealthy and college-educated. It's what makes this area exciting, he said.

Wedo noted that the company has been growing recently, in an environment of layoffs and slowdowns.

Joice Truban Curry, a spokeswoman for New World, added fast casual dining is moving from strength to strength recently, even as fewer people dine in high-end restaurants in the wake of the Sept. 11 terrorist attacks.

Curry pointed to an article in Business First, a Columbus, Ohio-based business publication. The article stated that more upscale restaurant chains are pulling back, while sales at quick-service restaurants increased during the week of Sept. 10.

The article attributed this to people being more likely to grab something quick before going home to watch the news on television.