Asian Development

Sushi, sandwiches and noodle dishes are among menu items luring consumers to the category, spurring segment growth.

By Staff -- Restaurants & Institutions, 9/1/2006

Hanakai’s sushi conveyor belt winds past each of the restaurant’s tables, for quicker service.

Kabuki

The sushi bar at Kabuki is modeled after contemporary restaurants in Tokyo. The chain has eschewed traditional Japanese-style décor for a modern, loft-style space.

There’s ample proof of consumer appetites for Asian fare. Burger giant McDonald’s strayed from its typical all-American menu approach when it added an Asian Chicken Salad this spring. Starbucks borrowed heavily from the continent’s tea traditions when it rolled out Green Tea Frappuccino. Cosi got on board with a wasabi-spiked roast beef sandwich, and Applebee’s Neighborhood Grill & Bar did too, with its Grilled Teriyaki Bowl.

Yet for all the interest, the Asian segment remains surprisingly underdeveloped on the national level. Traditionally dominated by mom-and-pop storefronts, only a few chain players are staking out space. That leaves an underdeveloped category that tempts with possibilities.

Scottsdale, Ariz.-based P.F. Chang’s, an early entrant in the field, still sees ample opportunity and plans to extend its presence by introducing upscale-casual Taneko Japanese Tavern. And Calabasas Hills, Calif.-based The Cheesecake Factory is developing a casual Asian concept expected to debut in ’07.

Growing familiarity and acceptance of Asian fare can both foster and hinder consumer interest in seeking more-authentic dishes, but any remaining barriers are quickly falling.

“We’ve known all along that it takes some time to get to the broader consumer market because many people have conceptions that Chinese food is greasy, Japanese food is bland and Thai food is too spicy,” says Ryan Nguyen Hubris, vice president of San Jose, Calif.-based Lee’s Sandwiches, a Vietnamese chain with 34 locations.

Lee’s set out to introduce banh mi, Vietnamese sandwiches served on French-style rolls, in 2001. Like many other Asian chains, it found growth in adapting its menu—originally designed to appeal primarily to Vietnamese-American customers—for a larger audience.

A traditional Vietnamese sandwich—reflecting the country’s French-colonial history—consists of a baguette or croissant filled with Vietnamese ham, head cheese, pickled carrots, pickled daikon radish, cilantro, onions and jalapeño peppers. When Lee’s expanded from its single San Jose store, the shop added American meats—roast beef, American-style ham, turkey, tuna, salami and bacon—to appeal to customers unfamiliar with traditional Vietnamese sandwich fillings, and added avocado as a topping choice.

The chain also serves other sandwiches. Although neither is traditionally Vietnamese, chicken teriyaki and barbecued pork sandwiches are offered and are among the most popular orders, along with the original Vietnamese Special Sandwich, Hubris says. Typically, non-Vietnamese consumers first try a sandwich with American-style meats, often opting for a traditional banh mi after a relationship with the brand has had a chance to develop.

“There is a lot of crossover, surprisingly,” Hubris. “They try the chicken teriyaki, and then they say they want to try the Special Sandwich. That’s how they’re exposed to it. It really brings them over.”

While sushi has been added to menus at some non-Asian concepts, devotees still seek sushi-specialty operations, and several growing chains look to become the dominant brand.

Nine-unit Kabuki Japanese Restaurant has attempted to define its niche by studying trends at eateries in Tokyo. Kabuki’s interior design style is modeled on the curve of an ocean wave. Each restaurant has a sprawling, backlit glass sushi bar and contemporary furnishings.

“When I started in 1991, all Japanese restaurants looked very authentic and traditional. They didn’t have any windows and there were traditional Japanese paintings on all the walls,” says David Lee, CEO of Burbank, Calif.-based Kabuki. “We have a modern, loft style.”

Belt Drive

Hanakai, a sushi restaurant in Maui, Hawaii, also based its design on modern Tokyo restaurants. Actively seeking franchisees, the company soon will open its second and third units in Las Vegas.

Hanakai claims to be the first American sushi chain using a conveyor belt to deliver food to diners. The 110-foot belt winds past each table, allowing customers to choose from maki, sashimi and appetizers that roll by.

“The conveyor-style restaurant has existed in Japan for 40 years, and it’s only now making its way to America,” says Jon Miyabuchi, chief executive officer. “It’s not often you find a concept that is new and can stand on its own.”

As consumers place more emphasis on the nutritional content of foods, some Asian chains are branding themselves as healthful alternatives to traditional quick-service or casual-dining choices.

Hibachi-San, a 26-store food-court chain owned by Rosemead, Calif.-based Panda Restaurant Group, operator of 800-unit Panda Express, was designed to showcase the freshness of its foods.

“Most food-court restaurants serve food from steam tables,” says Hibachi-San President Nader Garschi. “We cook food fresh in front of customers, and behind each grill we have a display case of fresh vegetables.”

Hibachi-San doesn’t serve Americanized fried rice, as many other food-court Asian chains do, Garschi says. Instead, it serves steamed rice seasoned with sesame oil, which is more healthful, he says. The chain is testing seafood selections and salad recipes, another option for people who prefer grilled meats and steamed vegetables to be served on greens instead of rice.

On the Move

Several smaller Asian concepts are seeking to become national players. Among them: