REQUEST INVITE
"It's gonna be a little turbulent. The drink cart may not come out on the flight," warned sweetgreen's Chief Development Officer Chris Tarrant, about the restaurant industry's near future. That honest take set the tone for a revealing discussion at RestaurantSpaces, where restaurant development leaders tackled what's working in real estate, design, and technology integration.
Moderated by Sean McGuinness of Sargenti, the conversation united four powerhouse restaurant brands: Chris Tarrant (sweetgreen), Abe Nasrallah (VP of Real Estate Development at Wonder), Tiffany Vassos (SVP of Design & Construction at Dave's Hot Chicken), and Jim Fay (Senior Director at Brinker International).
Real Estate: Flexibility Is the New Currency
With inventory tightening nationwide, restaurant brands are getting more creative with formats, turning constraints into opportunities.
Nasrallah shared how Wonder—a food hall concept featuring 30 restaurants under one roof—has built flexibility directly into their model. "We've created quite a few size prototypes that allow us to flex up and down based on the needs and availability in every market and submarket," he explained. Wonder can build units ranging from 2,500 to 5,000 square feet, optimizing each location based on the specific restaurants they want to serve from that site. This adaptability has enabled rapid growth, with 42 locations already operating and 90 projected by year's end.
For Jim Fay, finding space for Maggiano's large-format restaurants (12,000 square feet) means getting creative with landlords who face their own pressures. "We've found that we've got to be really flexible with landlords and developers," Fay noted. "They're under a lot of pressure from their finance side, so we have to be flexible in our lease terms, rent, and how quickly we can go to lease."
Even established brands like Brinker are leaning heavily into data analytics to guide real estate decisions. "We're using mobile intercept data to see where our gaps are in markets and better estimate sales transfer," Fay said, using modern tools to solve timeless location challenges.
The ROI of Bold Design: Data Proves It's Worth the Fight
Perhaps the most striking revelation came from Dave's Hot Chicken, where design isn't just aesthetic—it's financial. Vassos revealed their system of categorizing locations by exterior design intensity—from "Mild" (basic signage) to "Reaper" (full building transformation with street art).
"When you have a location that's Mild compared to a Reaper, we're seeing almost 25% increase in sales," Vassos explained. This direct correlation between design investment and revenue provides compelling evidence for pushing design boundaries, even when facing restrictive landlords or municipalities.
A Mild Dave's location (above) vs. a Reaper location (below)
Balancing Automation with Human Connection
At sweetgreen, their "Infinite Kitchen" represents this balanced approach. "The kitchen has done a much better job of portioning," Tarrant explained. "It's capable of 230 bowls every 30 minutes at a 96% accuracy rate." The automation delivers labor savings (600-700 basis points) while maintaining human connection at key touchpoints like the finishing station.
Jim Fay emphasized smart innovation over chasing every trend. "What we want to do is make sure we have the right basics to start to plug in as technology becomes more mainstream," he explained. "We're here to sell food and experience." At Maggiano's, this balanced approach led to an elegant solution for multi-purpose spaces: walls that open so banquet areas become flex dining on busy nights when no events are booked. "This helps me keep my square footage down, my seat count up, so I can optimize business," Fay noted.
Supply Chain: Proactive Partnerships Win
To mitigate the impact of looming tariffs and extended lead times, Tiffany Vassos emphasizes the importance of clear, ongoing communication with vendors. By proactively sharing her future needs, she ensures suppliers and manufacturers are prepared well in advance.
"I send weekly reports to every vendor partner, detailing every site we’ve accepted—even those planned for 2027," she explains. "It’s not just about informing our equipment partners; I go directly to manufacturers like Pitco and Taylor so they know exactly what’s coming and can plan accordingly."
This strategy aligns with the approach taken by Jim Fay, Senior Director at Brinker International, who is also navigating rising costs due to tariffs. "We're already seeing price increases, especially on goods from China—FF&E, systems, you name it," says Fay. "To stay ahead, we’ve ordered in bulk, even at a slightly higher rate, to hedge against future hikes."
Wonder has taken similar steps to build resilience against supply chain challenges. "As we're building 10 and 20 and 30 units—and we'll have 90 by the end of the year—we had to have direct partnerships with mechanical and electrical and plumbing subs," Nasrallah explained. They're now proactively procuring HVAC units and electrical panels based on their growth plan, storing them in-house to stay ahead of potential disruptions.
The message was clear: Today's restaurant development leaders are embracing flexibility in formats, boldness in design, strategic application of technology, and deeper supply chain partnerships—a blueprint for thriving through whatever turbulence lies ahead. The drink cart might not always come out, but the flight is definitely still on course.
Watch the full discussion below: 👇
Comments