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The Counter to ramp up growth with fast-casual sister brand

Two formats offer flexibility for U.S., international expansion

The parent of full-service The Counter Custom Built Burgers and fast-casual sister concept Built Custom Burgers is poised for a new wave of growth, both domestic and international.

Craig Albert, co-CEO of the Culver City, Calif.-based The Counter said the availability of both a full- service and fast-casual variations on the brand has opened doors for developers to move into new territories.

The Counter is largely franchised. But the company has agreed to a joint venture that will bring both brands to Texas.

Internationally, deals are in the works to bring the concepts to Russia and Japan. The Counter will soon have five units open in Saudi Arabia and the United Arab Emirates, and another two in Ireland. Restaurants are scheduled to open this year in Mexico and Malaysia for the first time.

Photo: The Counter

“We’re excited about international,” said Albert. “For what we do, there’s a lot less competition and we’ve been approached by lots of groups who are intrigued by the different concepts and the ability to develop two service formats.”

The Counter was founded in 2003 in Santa Monica, Calif. as a build-your-own-burger concept created by Los Angeles restaurateur Jeff Weinstein, who is co-CEO. The Counter currently includes 40 locations.

The concept hits squarely on the customization trend, allowing guests to build a burger, salad, bowl or even a grilled cheese sandwich with more than a million possible combinations. The menu also offers beer, wine and milkshakes, as well as “adult milkshakes” with wine, like the Chocolate Cherry Pinot Noir.

Photo: The Counter

The first restaurant allowed guests to build their meal by checking off items on a clipboard. Customers can now order ahead online or via smartphone.

Albert said the chain is also looking at allowing guests to order at the table using their own devices, rather than a tablet or physical menu.

In 2013, the company launched the secondary fast-casual brand Built, which offers a limited version of the same menu and fully customizable options at a lower price point and in a smaller footprint.

“It’s like a Chipotle (Mexican Grill) in that you walk the line and have a choice of proteins, toppings and sauces,” said Albert. “We looked at the landscape of everyone with burgers and no one had really taken the Chipotle-style approach.”

Built units feature a smaller burger with a quarter-pound patty, versus the one-third-pound patty at The Counter.  The average check at Built is $10.50, compared with around $15 at the full-service sister brand.

Built is also designed for smaller sites, typically between 1,700- and 2,000 square feet, though Albert said the model can shrink as small as 500-square feet for a food court location or airport that doesn’t require seating. The Counter, alternatively, is typically in the 2,500- to 3,000-square-foot range.

The fast-casual variant has three locations: in downtown Los Angeles near the University of Southern California, at San Diego International Airport, and at the University of Miami.

Albert said college campuses are ideal for the brand because the menu focuses on the sort of quality ingredients younger diners seek out, like antibiotic- and hormone-free Angus beef, grass-fed organic bison and natural chicken and turkey. The menu includes gluten-free options and healthful sides, like quinoa, kale and veggie skewers.

The company plans to open two more Built units this spring in San Francisco and at Los Angeles International Airport.

Albert expects to see five to seven locations of Built open this year, and the company expects to ramp up from there. “We’re going to walk before we run with Built,” he said.

The Counter, meanwhile, will also continue to grow with domestic units planned in Palm Beach Gardens, Fla., Phoenix and Cupertino, Calif., as well as Los Angeles International Airport.

Albert projects the company will see $100 million in systemwide sales this year. He declined to reveal comparable sales but said they are trending up compared with 2014.

In addition to unit growth, the company has been promoting a catering program launched last year called Custom Built Burger Bar, which includes the delivery of a “build-your-burger kit,” with a selection of proteins, toppings and buns, for home or office meetings.

Custom Built Burger Bar catering program. Photo: The Counter

“It’s a build-your-own-burger experience for a conference room,” said Albert.

Contact Lisa Jennings at [email protected].
Follow her on Twitter @livetodineout

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