Lille Allen/Eater
While big Atlanta restaurants shutter, what makes chain places like Rreal Tacos, Fox Bros. Bar-B-Q, and Big Dave’s Cheesesteaks flourish?
Like anywhere else, the restaurant industry in Atlanta is volatile. Restaurants are suffering as the cost for retail rent in the city has increased by as much as 9 percent, the cost of wholesale ingredients rose 5.4 percent compared to last year, and rising costs and labor shortages are putting a dent in profit. Major closures like Todd Ginsberg’s The General Muir’s Sandy Springs location, South Main Kitchen in Alpharetta, and Damsel in Westside have shown that might and size are no guarantees for survival — Eater reported a “brutal month for restaurant closures” in August.
Yet others are flourishing, with one new location after another popping up like mushrooms, Mellow or not.
For instance, the local market chain Savi Provisions has experienced an astounding expansion with more than 17 locations. Rreal Tacos reports that since July 2022, they’ve opened “one location almost every 120 days.” NaanStop is looking to more than double its current number of locations to seven in the next year alone, and founder Neal Idnani is projecting 30 to 40 franchised locations in the next five years.
Big Dave’s Cheesesteaks is looking to expand out of metro Atlanta, potentially making them an addition to the dozen powerhouse restaurant chains that got their start in Atlanta. Part of that list is American Deli, which is moving forward with a number of new openings, including its first drive-thru location in Sandy Springs.
So what’s the secret sauce?
Knowing Your Neighborhood
Any good realtor or property investor will stand by this truth: location is everything. For Sean and Becky Yeremyan of HOBNOB Neighborhood Tavern, that meant using a professional to do an in-depth study of an area under consideration, and it’s a strategy that’s worked. With the research, they understand the demographic of a particular neighborhood and its budget and needs before opening a new location. They look at traffic and competitive mix — market terms to describe the customer base, local competition, and appropriate price points.
This is smart due diligence, but some of the most successful brands whose pockets aren’t deep enough to pay for research still manage to hit on just the right spots based on something else: being an active part of the city. Being Atlantans.
Jonathan Phillips/Eater Atlanta
A large Tuesday lunch crowd at Fox Bros. Bar-B-Q off of Dekalb Avenue.
“Atlanta has a track record of supporting its own,” says Jonathan Fox, co-owner of Fox Bros. Bar-B-Que, which recently opened a new taproom in partnership with Wild Heaven Beer in DeKalb County. Business owners say a local advantage helps them figure out what’s missing in a neighborhood, which has been the key component of Rreal Tacos’ growth, which has seven locations in Atlanta with two more announced.
“We know Atlanta like the back of our hands. We know where people frequent, the hot spots, and what parts of the city are up and coming,” says Miguel Hernandez, COO of Rreal Tacos.
For some, opening a business can be a gamble on one’s gut, as was the case with St. Germain French Café & Bakery when they opened in Ponce City Market in July 2016. “We knew it was going to change Midtown and become an Atlanta landmark. Nobody seemed to want our little spot, but we loved it for a counter pick-up vibe, like in bakeries in Europe,” says co-owner Mathieu Jourdan-Gassin. Since then, they’ve launched three locations in similar live, work, and play communities like The Interlock and Buckhead Village, and have become the suppliers for The Bellyard Hotel and The Reading Room in Decatur.
Listening to diner feedback
Honeysuckle Gelato started as a food truck in 2011 and used its route to explore metro Atlanta. There are now seven locations in Georgia and North Carolina. “We intentionally engaged with our customers to gather feedback to help us identify the best flavor lineup and location for our first brick-and-mortar,” says CEO and co-founder Wes Jones. He also used their feedback to inform the brand’s food bank partnerships.
Christine Kim, president of American Deli, shares that her team takes location suggestions customers post to their social media seriously, as they seek to fill a need Atlantans just can’t get enough of: budget-friendly, casual dining with a global twist.
Even those who started from the outside in are originally from Atlanta and understand the city. Homegrown NaanStop started as a food truck in Los Angeles for their proof of concept. But when it came time to move into a storefront, there was no place like home.
Atlanta likes to eat diversely
The types of restaurants thriving in the city are ones perceived as accessible for everyday eats.
“There has been a shift away from full-service toward fast casual dining, and the younger generation seems to prefer more local, boutique restaurant experiences they can’t find in every state … they prefer supporting mini-chains than national chains,” says Daniel Halpert, president and CEO of airport restaurant giant Jackmont Hospitality.
Atlanta is a different city for dining than just 14 years ago when Yeremyan launched HOBNOB. “The Atlanta food scene was just starting when we first opened,” he says, reminiscing that his formula for success was “we serve familiar food in a familiar atmosphere.”
The Wilbert Group
NaanStop has locations in Buckhead, Atlantic Station, and Downtown Atlanta.
Today, Atlanta is open to more dining adventures that do not need familiarity. NaanStop’s founders, Neal and Samir Idnani, credit their success to “a young population that’s more open to trying new things” and Atlanta’s increasing diversity.
“We know a lot of people aren’t familiar with Indian food … [but now] by being an approachable place where people can feel comfortable trying it for the first time, we’ve created a ton of NaanBelievers and that makes us super proud,” they say.
As small businesses grow in Atlanta, one key thing is clear: Community is the secret ingredient for a successful chain restaurant here — where business owners hold local opinions in high regard.
“Atlanta won’t give you a pass if you don’t understand the city and what the people want,” Hernandez says. Kim concurs, “Atlantans are foodies. They know good food and good flavors. If you can provide that, combined with affordable prices, you’re golden!”
