Despite the intense competition, Eggs Up Grill is growing at a steady—if not rapid-pace.
The breakfast wars in the restaurant industry keep intensifying. While Denny’s and IHOP still dominate the American landscape for dining out on eggs, sausage and home fries, fast-growing rivals Metro Diner, Black Bear Diner and First Watch have been ascending.
And a leading industry trade magazine named the Eggs Up Grill, another growing breakfast and lunch spot, as one of the 50 emerging restaurant chains in the country. Watch out, Denny’s and IHOP, because Eggs Up Grill is gaining on you.
Eggs Up Grill has expanded to 36 locations—35 of which are franchised, and one is company-owned in Spartanburg, South Carolina, where it and the investment firm that acquired it, is headquartered. It’s also concentrated in two other states, Georgia and North Carolina, and is expanding to Florida in December 2019 and Tennessee in 2020.
It’s proliferating at a steady pace. It has added six new shops so far in 2019 with three more planned in December for a total of nine this year. And it set its sights on rapid expansion for 2020, hoping to add 15 to 20 outlets.
Much of this rapid growth took off when the private equity firm WJ Partners acquired it in 2018. Its ambitious goal is to reach 100 locations by 2022.
Like most chains these days, Eggs Up Grill offers delivery by a slew of vendors such as Uber Eats, DoorDash, Postmates and GrubHub.
Its most popular breakfast items won’t surprise: 1) the classic consisting of eggs, bacon or sausage and home fries, 2) the build-your-own-omelet, and 3) Three Little Deuces, two buttermilk pancakes with bacon or sausage.
Popular lunch items include turkey avocado BLT, chicken salad melt and the classic cheeseburger. But it also offers some distinctive Southern dishes such as shrimp and grits omelet and baked peaches and cream pancakes.
Like several of its competitors, it’s only open from 6 a.m. until 2 p.m. for breakfast and lunch but not for dinner.
Here’s what Spartanburg, South Carolina-based CEO Ricky Richardson, a former president of TGIF, said about its growth:
Eggs Up Grill has a slew of competitors but has had steady growth. How is it achieving that?
Richardson: I think the brand does an incredibly good job on the critical basics of any restaurant: You need great tasting food, consistency of execution, clean restaurants, and the secret sauce at Eggs Up Grill is the quality of team members and franchise partners. It’s the friendliness, the openness, and welcoming guests to our restaurant.
Metro Diner, Black Bear Diner and First Watch are only three competitors. If each of you was on a corner, why would you tell a consumer to dine at Eggs Up Grill?
Richardson: You’re going to feel different when you dine at Eggs Up Grill. People connect with the local operator or franchise owner. They’re going to welcome you into their restaurant and make you feel special.
Isn’t the breakfast landscape saturated?
Richardson: It’s not. That’s where our development strategy makes sense. We’re well-positioned to grow in secondary and tertiary markets. For example, we have eight restaurants in the upstate area of South Carolina and growing rapidly. We won’t go into New York, Washington, D.C, or Charlotte. But we’d go into the suburbs, where we could be close to the community, where people live, work and play.
Why are more Americans dining out for breakfast?
Richardson: There’s a huge social component, with a cross-generational appeal: Millennials, Gen X, Gen Y and boomers eat out together, where you dine out with grandma or parents with kids. It’s an easier pace on the weekend. Everyone loves eggs, bacon, biscuits, waffles, pancakes, fresh fruit.
You’re not open for dinner. Are you leaving revenue on the table?
Richardson: We’re a franchise system, and this is a huge lifestyle appeal. They’re finished by 3 p.m. They can meet their kids after school, and there’s much more flexibility. We also attract higher-quality team members because of that lifestyle appeal.
You’re mostly in the south. Why is that a perfect place to open Egg Up Grills?
Richardson: We started in Myrtle Beach and are growing organically. We don’t want to outstrip our capabilities. Word of mouth is strong in these markets. We’ll be smart about how we grow and expand in our geography.
How did WJ Partners, a Spartanburg, South Carolina, investment firm, fuel its growth when it acquired it in 2018?
Richardson: WJ Partners saw the appeal of the breakfast space and growth. Their acquisition and investment has enabled us to build a team and resources in a way, that without their investment, it couldn’t have done so. We’re investing ahead for the future.
You have 36 locations and 35 franchised. Why is franchising the key to growth?
Richardson: We’re building our organization by being effective franchisers. It is making sure that we’re clear on who we are, we have a robust franchise selection, and our training program, marketing and field support provide the tools that our franchisees need to be successful. We listen to our franchise partners because they’re closest to the customer.
Many Americans are gravitating to healthier food, but you sell a lot of bacon, sausage and home fries. How do you respond to healthier needs?
Richardson: We have turkey bacon, turkey sausage, but more important, we provide choices including egg white omelets, vegetable omelets, salads for lunch, fresh fruits. It’s about giving guests choices to craft the meal they want.
Who’s the target audience?
Richardson: When you go into Eggs Up Grill, you see a wide variety of guests: manufacturing workers getting off night shift, mom and kids on their way into school, business people with their laptops.
What will enable Eggs Up Grill to reach 100 locations by 2022?
Richardson: Stay true to who we are as a brand, making sure we’re friendly, welcoming, and maintain the right quality of execution, deliver great value for the money for our guests, and we can select the right franchise partner and support them well.
Describe the three keys to Eggs Up Grill’s future success.
Richardson: It involves quality of the food, friendly service, and selecting the right franchise partner and providing them with the right support.
