French-food chain to partner with Chi

La Madeleine plans LR outlet in ’15

Dallas-based La Madeleine, a chain of French-inspired bakery-cafes, is partnering with a family-owned restaurant and hotel group to develop four to five La Madeleine eateries in Arkansas this year -- the first one in Little Rock.

The Arkansas partner is Chi Development Co., headed by Jacob Chi, a veteran restaurateur and hotelier. The Chi family owns and operates Chi's Dim Sum & Bistro on Shackleford Drive, Chi's Chinese Cuisine on Chenal Parkway and Chi's Asian Cafe on Old Cantrell Road, all in Little Rock.

They also own two hotels in the region and are working on a third, Chi said.

The Chis have been in business here for three decades. Chi said La Madeleine is one of the Chi family's favorite French restaurants and that they frequent Dallas often. They've been in communication with La Madeleine owners for the past 15 years and decided to take the plunge when the French eateries began to franchise operations two years ago.

The development group has already purchased property for the first restaurant, but Chi would not disclose the location. Another one or two are planned for central Arkansas and two for Northwest Arkansas. Another operation in Springfield, Mo., is possibility.

"We really want to make sure that location No. 1 is a home run," Chi said. La Madeleine is partnering only with the Chis in Arkansas.

La Madeleine was established in 1983 by Patrick Esquerre, who wanted to bring classic French country fare stateside. The recipes are his mother's and have been passed through the generations. Atmosphere is also a plus, with a fireplace in every location.

The eateries offer breakfast, lunch and dinner in a fast-casual dining experience with "handcrafted entrees, sandwiches, salades and soupes, as well as freshly-baked breads, artisan patisseries and several additional distinctive specialties," according to a release from the company. All ingredients are fresh or the closest to it, said David Gonzalez, vice president of franchise development for the company.

Until two years ago, La Madeleine has been a largely Texas, Georgia and Washington, D.C.-based brand, Gonzalez added.

"We've been franchising in concentric circles around our current base of operations in Texas, so Arkansas is a logical extension of that," he said. The company has 75 locations; all but 10 of those are corporate-owned and operated. The other franchise locations are in San Antonio, Lubbock and El Paso, Texas, and Tulsa.

Gonzalez noted many connections between Arkansas and Texas, such as business, schools and travel.

"Little Rock, specifically, is a great town. It's a big-city town. People like to go out and eat. People just need more options, and we'd like to be one of those," he said.

Fast-casual dining as a restaurant segment is growing for several reasons, said Mary Chapman, senior director of product innovation for Technomic Inc., a research and consultant group in Chicago. Fast-food and casual dining are lumped together in a category labeled "limited service," with fast food taking 85 percent of sales in the segment in 2014, Chapman said.

However, over the next five years, Technomic estimates that fast-casual dining will grow by 6 percent while fast food sales will remain essentially stagnant.

"It's a very bright spot in the industry and it has been for several years," she said.

Fast casual has the more sophisticated menu, comfort level and decor of a full-service restaurant with the counter service and pay-in-advance convenience of a quick-service or fast-food restaurant, she said.

"It's a nice hybrid of those two worlds," Chapman added.

Most of all, it fits consumer trends that are driving restaurant visits today, such as the ability to "pace" one's own meal. Customers also value the use of fresh ingredients, not having to tip and customization of meals -- the ability to order one meal different ways.

Business on 01/23/2015

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