Coming to a town near you

Inside Beef-A-Roo’s resurgent expansion

A special supplement to:

Megan Rosen Chief Development Officer Next Brands & Development SFV Services – C2C Construction Management

Coming to a town near you

Inside Beef-A-Roo’s resurgent expansion

Interview by Michael J. Pallerino

Beef-A-Roo Aims to Bring Cult Status to National Scene

Under NEXT Brands, the storied brand hopes to open 50 stores in the next three to five years. Beef-A-Roo is coming to a city near you—and then some. The 50-plus year fast casual brand with all its restaurants located in and around the Chicago suburb of Rockford, Illinois is looking to up its game (it has 9 total). Thanks to acquiring its franchising rights last year, Next Brands partnered with Beef-A-Roo to feanchise the brand and expand it nationally. Known for its slow-roasted beef sandwiches, burgers, chicken sandwiches, cheddar fries, onion rings, milkshakes and salads, BeefA-Roo was founded by Dave Debruler and Jean Vitale in 1967. The duo later sold it to their children, who then turned the company over to a private equity firm a few years ago. One of the drivers behind the expansion effort is Next Brands Chief Development Officer Megan Rosen. To help bolster its franchising appeal, Next is leaning on store design, themeing some of the new units as a 50s diner, train station, fire station, and north woods lodge—the type of decor. We sat down with Rosen to get an inside look at Beef-A-Roo’s expansion and marketing strategies.

Give us a snapshot of your brand?

Beef-A-Roo is a fast-casual restaurant serving delicious cheese fries, roast beef sandwiches, fresh salads, and sweet milkshakes made with quality ingredients for local families. Our mission is to bring delicious fast-casual comfort food to local families and communities.

What was the inspiration behind that concept?

We were inspired by the Beef-A-Roo brand because of the strong roots in the Rockford, Illinois community. The family atmosphere of the restaurants and the success they have seen over the last 50 years.

What type of consumer are you targeting?

Our consumer is the Traditional American. We’re targeting rural towns and smaller suburbs that may be overlooked by the larger competitors. Some of our most loyal customers are workers with alternative schedules. Some who may be ending their day at 10 a.m. and want a Burger for “dinner.” Our customers are families that value comfort food but also need to stay on budget.

What are some of the adjustments you made with/to your business model surrounding the recent state of events?

The pandemic showed us that Beef-A-Roo’s customer base stays loyal, and while they couldn’t join us in our dining room our drive-thru sales stayed consistent. Because of this we created a modular concept, for drive-thru only service, built out of shipping containers. The shipping container concept allows for a full kitchen menu offering with half the labor requirements of a traditional brick and mortar. This reduces labor without decreasing sales.

How does your restaurant design cater to what today’s consumers want?

Today’s customer is looking for quality without the cost. Inflation has the cost of goods at an all-time high. Families more than ever are feeling that. The kitchen design is constructed so the flow of the sandwich is prepared from back to front. Employees have ample area to navigate their job and each step flows easily from one to another.

That’s why Beef-A-Roo is a great choice. Families can enjoy a night out and a meal together without breaking the bank, and without feeling guilty about what they’re feeding their children. Beef-A-Roo’s design is counter ordering but table service. Our ample seating area and clean dining room allow for families to gather. They can enjoy their meals without feeling rushed or like they are eating in a dirty fast food dining room.

Is there a location that really stands out for its community engagement?

Our West Dundee, Illinois location is my favorite. I was in the restaurant when we hosted a customer appreciation $1 Milkshake Day. The turnout was awesome. Our first customer arrived two hours before opening. We opened our doors and people kept coming. We had teenagers, door dashers, families and older couples all come for our famously delicious milkshakes. It was a great day.

People are returning to classic cheese burgers and looking for a quality burger, which we can deliver. I’m also seeing a lot of meat alternative options coming to the market.

Walk us through how and why it designed the way it is?

The kitchen design is constructed so the flow of the sandwich is prepared from back to front. Employees have ample area to navigate their job and each step flows easily from one to another.

Take us through your construction and design strategy.

We have an in-house design and construction company. Our first step is to visit potential locations then work with what is existing to make the most cost-effective restaurant without sacrificing brand standards.

This may mean passing up the “best” real estate option from a demographic standpoint to the second best. Building a restaurant is a large investment and choosing the wrong location can blow your budget big time, so our focus is on functionality and cost.

Give us a rundown of the market’s layout.

Our markets are larger rural towns and smaller suburbs of major cities. Often an hour or more outside a major metropolitan area. This is where you’ll find communities that are still tight knit, where neighbors know each other and say hello outside. Beef-A-Roo wants to join the community and be active members. One of our core missions is to fight food insecurity. We partner with local outreach groups to provide meals, make donations and sponsor youth groups in each community we are a part of. What’s the biggest issue today related to the construction side of the business?

Supply chain. Yes—cost of goods has gone up, but it doesn’t matter how much something costs if you can’t even obtain it. We are seeing delays in kitchen equipment up to six months in some markets. That’s why we are actively ordering materials for spaces even before we have a location secured. The core equipment of our kitchens does not change. Being able to order equipment prior to a lease being signed expedites the development process immensely.

Talk about sustainability. What are you doing?

There is only one way to actually make your business sustainable. That is by keeping your customer happy. Being able to effectively negotiate contracts with food suppliers to ensure consistent product across states, having platforms that allow customer feedback so we can cater to our customer wants and needs help are valued highly in our company. Coaching new owners and managers how to effectively control labor and food cost to ensure maximum profit is also a key tenant in our training procedures.

What is your growth plan? What areas are you targeting?

Our growth plan is to target areas like northern Michigan, and build brand recognition in that area. Establish a customer base and a strong operations team before turning the stores to franchises. Our goal is to have established our brand as a household name in MI, Ohio, Illinois, Florida, Georgia and Texas by 2025.

What trends are you seeing?

I believe the “Chicken Sandwich War” is over. People are returning to classic cheese burgers and looking for a quality burger, which we can deliver. I’m also seeing a lot of meat alternative options coming to the market. As a restaurant that caters to both meat eating and vegetarians, I’m excited about the new plant-based options that are coming on the market. I would love to partner with Beyond at some point.

One-on-One with... Next Brands’ Megan Rosen

What’s the most rewarding part of your job?

The sense of accomplishment and feeling like I’m creating something. I’m continually humbled by the opportunity and trust my company has given me to build a brand that will resonate with communities.

What was the best advice you ever received?

Never burn a bridge—always treat people well.

What’s the best thing a client ever said to you?

“Couldn’t have done it without you.”

Name the three strongest traits any leader should have and why.

Empathy. A strong work ethic. Having a vision for the future.

What are you going to do once we get back to some sense of normalcy?

Travel. The last two years have forced me to stay home quite a bit. I am looking forward to getting back out to new places both stateside and outside the country. What’s the secret to creating a “must visit” restaurant today?

If I told you that, I’d have to kill you. All I can say is what is working for us, which is to treat your employees well, take pride in what you’re offering, serve quality products and always welcome people with a smile.

What’s today’s consumer looking for?

Today’s consumer is looking for quality without the cost. The cost of living, food, gas is at an all-time high. Access to quality food to fuel your body at a reasonable cost is hard to find. We’re happy to provide our communities with this option.

What’s the biggest item on your to-do list right now?

Personally, I’m looking forward to completing my first triathlon. I have been training for months and will be excited to just survive the swim. Professionally, it is getting our brand to market and recognized outside of Rockford, Illinois.

Describe a typical day.

I live on the West Coast, but like to start my day closer to East Coast scheduling. I wake up at 6 a.m., feed my pets, make coffee and give myself 30 minutes to enjoy coffee and complete my Worlde. Usually I do this outside, enjoying the cool morning air. I start checking my emails and respond to urgent ones before my first call, which is usually scheduled for 7 a.m. I take my calls, answer additional emails and address anything urgent. I then run down my to-do list. Around 8:30 a.m., I take a break to stretch my legs and walk my dog. The rest of the day is balancing between calls, marketing and business development for our two other companies we run.

Tell us what makes your brand so unique?

Beef-A-Roo stands out because we bring quality food at affordable prices to the communities we serve. All our items are 100% made to order, real food and high-quality ingredients. CK