November 7, 2009
QSRmagazine.com : issue : onetowatch
Moonstruck Chocolate
Cafés | Charlie & Barney’s | Mountain Mudd
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It takes culinary-school trained chocolatiers 36 hours, from start to finish, to make just one of the 40 varieties of artisan truffles sold at a Moonstruck Chocolate Café. With names like Cinnamon Roll Latte, Honey Vanilla Caramel, Raspberry Chambord, and Razzleberry Cream Cone that hardly seems surprising, right? Though the same premium chocolate base is used, it takes decidedly less time to make the equally delect-able beverages and desserts that have elevated the Portland, Oregon—based chain from an upscale confections shop to a bona fide "third place," in the tradition of Pacific Northwest neighbor, Starbucks.
It was that "neighborhood spot" positioning that Moonstruck owners, Dave and Sally Bany, sought when they decided to redesign their wholesale chocolate company’s retail outlets.
When the pair purchased Moonstruck in October 2001, the eight-year-old company was already well-regarded among gourmet chocolate aficionados. (Read: the Chocolatier magazine crowd.) Its four existing cafés, however, were little more than purchase points for the company’s signature chocolates and truffles. Though attractive, they did not encourage dawdling. The two new Moonstruck Cafés that opened this summer do.
Along with an expanded menu featuring proprietary, espresso- and coffee-based drinks and chocolate-topped baked goods, the new units offer plenty of comfortable seating and a more "consumer-friendly" atmosphere. Moonstruck-branded merchandise–mugs, shirts, and candles–can also be purchased, as can gift baskets filled with Moonstruck coffees and cocoas.
One thing that has not changed, however, is Moonstruck’s emphasis on its truffles. Even with all the beverages, desserts, and branded merchandise, café sales still break down into a 60/40 confections—to—everything else ratio. "We’ll always stay true to the chocolate," says Sally Bany.
Though she declined to give exact numbers, Bany did say that morning sales at the cafés are increasingly getting better and better thanks to the new setup. "Anything going forward from here will have the new design," she says. The four older stores–two in Portland and one each in Champaign and Chicago, Illinois–might soon undergo a retrofit, too.
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Though there are burgers, entree salads, and various chicken dishes on the menu at Charlie & Barney’s, the eatery is best described as a chili parlor. You can get the chain’s award-winning version of the spicy stew on just about anything…spaghetti, hot dogs, even said entrée salads. "The whole concept revolves around chili," understates Tom Coyle, the chain’s new CEO. "We want to be known as a great chili and sandwich spot."
On its home turf, Charlie & Barney’s already has that distinction. For 12 years in a row, its chili earned the title of "Best in Indianapolis." Its popularity is also tangibly evident; the chain’s four area units average anywhere from $450,000 to $600,000 each year in sales. For context: A&W (#50 on QSR’s list of top chains) units average $364,000. "It’s the recipe," says Coyle, "Our product is unique."
Until three years ago, each Charlie & Barney’s store made its daily batch of Midwest-style chili onsite. Now, thanks in part to a two-year-old distribution deal with Sysco, the secret recipe chili is mass-produced, canned, and shipped out to not only Charlie & Barney’s units, but other foodservice operations, too. If you’ve wolfed down a chili dog in the Naptown area, chances are it was topped by Charlie & Barney’s.
With its wholesale business firmly in place, the leadership team at Charlie & Barney’s is ready to concentrate on growing the brand in more traditional ways–kinda.
This fall, under the leadership of Coyle and president, Bill Church–both former members of Roly Poly’s development team–the chain initiated a franchise program, offering would-be operators not only the opportunity to open a traditional Charlie & Barney’s shop, but also enroll in a limited menu, branded food program. The target market for the limited menu, or express, sites are bowling alleys and c-stores. As of press time, Coyle is on track to open six of these units by month’s end.
The chain’s first freestanding unit opened in Columbus, Indiana, in October. A 15-unit combination of freestanding, strip center, foodcourt, and limited menu stores is in the pipeline for 2004. "What we’re after is the best of both worlds," says Coyle.
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While the majority of the industry’s coffee concepts focus on creating an experience and expanding their offerings, Mountain Mudd operators worry about only one thing–serving a great cup of java. No paninis. No oversized, Scandinavian-inspired chairs. One 8'x8' Mountain Mudd kiosk fits into a parking space.
Without all the frills, Mountain Mudd’s private-label blend is regularly touted as a "Best of…," perhaps in part because its prices are more in line with a cup of joe sold at the local c-store than the grande lattes found at the local Starbucks. Plus, it offers drive-thru service.
Though drive-thru coffee is nothing new, the concept is becoming more popular. In fact, quick-serve coffee powerhouse Dunkin Donuts has retrofitted many of its existing stores with a drive-thru in hopes of catching more of the mobile coffee consumer market. But Mountain Mudd has an advantage over the field of such "johnny come latelys." It’s been catering to that particular market since 1994, when its two co-founders opened their first kiosk in Billings, Montana.
Nine years later, Mountain Mudd distributes over 200 private products to co-op members scattered across the country. The company also does brisk business selling its hand-assembled kiosk prototypes to independents.
Though the company had a few legal troubles this summer, its expansion has not slowed. In Charlotte, North Carolina, alone, 10 new units are expected to go up over the next two years. On average, a unit costs $68,500 to build and outfit. An additional co-op fee gives the owner/operator the right to carry the Mountain Mudd name.
