Genghis Grill Grows; DFW Restaurant Frenzy

Originally Published: Real Estate Bisnow | Dallas/Ft. Worth

Genghis Grill Grows;
DFW Restaurant Frenzy


It takes its conquering name seriously: Genghis Grill opened 22 locales last year with plans for another 14 in the first half of ’13, including its first international store in Guatemala. And, there’s one opening in DFW Airport Terminal E early ’14. (If you’re flying to Guatemala, that’s two meals you don’t have to plan.)

 

Genghis Grill Franchise Concepts CEO Al Bhakta (right, he also heads The Chalak Group) started out with a single Genghis franchise in Dallas in ’02 before buying the concept in ’04 and growing to 107 restaurants in 22 states. Here, he’s with Metropolitan Capital Advisors’ Sunny Sajnani and Chalak real estate gurus Ryan Eastman and Greg Blandford; Ryan and Greg do site selection and Sunny assists with structuring financing for their stores. Al and his three partners (COO Nik Bhakta, CFO Chet Bhakta, and CMO Ron Parikh) ran that first store themselves—while keeping their day jobs and irritating their wives—and didn’t see one customer on their opening day. (Al’s wife clearly didn’t leave; they have a 5-month-old son, Sevan.)

 

 

The chain opened its first airport store in Charlotte last month. Al says it’s part of efforts to grow in non-traditional markets. He says Genghis works well in suburbia with young families and good daytime population. Ideal markets: Frisco and Plano. And it already has a strong operator lined up in Mexico if Guatemala works out. It’s not the only restaurant The Chalak Group’s expanding: after buying a 30-store KFC/Taco Bell porfolio in ’11, it closed on 120 more stores over the summer. It also owns the Baker Brothers concept.

 


Dallas Big On Dining Out

 

Ever wonder why so many restaurants keep popping up? We really like going out to eat. (Exhibit A: DFW reporter Tonie Auer and family at Beth Marie’s in Denton.) The DFW MSA ranks No. 6 for per capita annual spending on going out to eat: $1,173/person.Our MSA also ranks first in spending most of our going-out expenditures on food (48 cents for every $1 spent). We’re not alone: Houston follows us at No. 3 with almost 47%. Who says? Stats from the Bureau of Labor Statistics, the National Restaurant Association, and the 2010 Consumer Expenditure Survey.

 


Mi Cocina, Taco Diner, and Schlotzsky’s: Oh My!

 

Restaurants are a growing market nationally, too. John T. Evans Co prez John T Evans II says his company is working with MCrowd Restaurant Group CEO Michael Cox on the expansion of Mi Cocina and Taco Diner (we love the great brisket tacos) into Atlanta and DC. A few other markets will be announced soon, he says. Taco Diner just inked a 3,200 SF deal in Sundance Square’s new Westbrook Building at 425 Houston St, Fort Worth, where John and Chad DuBose repped the tenant.

 

 

There’s growing demand in DFW for fast casual restaurants, John says. His firm worked a handful of leases for Schlotzsky’s (repped exclusively by Jim Jamerson), Jakes Uptown, and WU’s Asian Bistro across Lake Worth, Fort Worth, Frisco, and Coppell. John and Preston Evans also repped the landlord in Twisted Root Burger Co’s 4,358 SF lease in the Union at Carrollton Square (1111 S Main St, Carrollton; top dog Jason Boso is pictured at the SMU location). The Cambridge Cos’ Carter Wilson repped the homemade pickle, root bear, and burger maker.

 

 

John says operators are also looking for new concepts. One of his Schlotzsky’s franchisees also picked up a Dairy Queen concept called DQ Chill. His client is looking for locations to buy and build DQ Chill and Schlotzsky’s on the same land, he says. There’s a few sites in mind, but he’s mum on the locations.

 


Rusty Taco Opens 10th Location

 

Denton’s fast casual and hip restaurant list gets to add another: Dallas-based Rusty Taco inked a deal for 2,000 SF in the former Ramen Republic at 201 E Hickory (it’s just around the corner from Fuzzy’s Tacos, almost next door to Burguesa, and across the street from the Mellow Mushroom). This will be its 10th Texas location and the first in Denton. SRS Real Estate Partners’ Jason Puig and Lee Loftis repped the tenant, while Verus Real Estate Advisors’ Greg Johnson repped the landlord, VOW 201 E Hickory.

 

 

Jason tells us SRS is taking the master broker role by helping Rusty Taco and founder Rusty Fenton (here at his first location on Greenville) expand nationally. The Denton location (open by early summer) will be operated by a franchisee, and Rusty Tacos is negotiating with other prospective franchisees, he says. More good news for Denton foodies: A new MacDaddy’s (the only one in Texas) and Pie Five will open along the 1200 block of West Hickory (across from Fry Street), while Fuzzy’s is adding a new site in Denton on I-35 across the street from the new Genghis Grill.