Bar-b-cutie Why It Bears Watching

(Wednesday, February 01, 2006) - WHEN BUISNESSMEN TAKING THEIR SECRETARIES to lunch at their favorite restaurant means eating in the stock room on the backside of a drive-thru barbeque restaurant – and the secretaries are happy about it – then you know the food is good. That was the case at Nashville's Bar-B-Cutie in the late 1980's, before owner Ronnie McFarland decided to add a dinning room. Now that the famous hometown hangout is preparing to evolve into a fast-growing franchise, the restaurant's most unusual feature, its name, will continue to be a reminder of its roots. The "Cutie" in Bar-B-Cutie describes the short-skirted, roller-skating carhops who served customers in the 1960s and 70s. "It's a name that stays with you," says Ronnie McFarland, president and CEO. "It tells you what we sell and where we've come from.'' Bar-B-Cutie opened in 1950; McFarland's father, Eddie, bought it in 1958. Now the third generation, Brett McFarland, Ronnie's son and the company chief operating officer, is spearheading the chain's transformation and growth. This isn't the first major evolution for the restaurant, which began with a menu of barbecue, burgers, and fries. Later it became a full-service restaurant with " meat and three" offerings to complement the hickory pit baby-back ribs. Ronnie McFarland scaled back the restaurant to a fast-paced drive-thru-only concept until customers started eating in the stock room regularly. "This went on for months," McFarland recalls. "Then one Secretary's Day, all of our regulars brought their secretaries to eat in our stock room. It was quite a sight." A small dining room was added in 1990. The menu has remained relatively unchanged, aside from a few operational tweaks designed to make preparation efficient and replicable. Perhaps the brand's most famous dish is the Bar-B-Q on Cornbread Sandwich with slaw, which McFarland says is "fried like pancakes and is just like magic when you put those flavors together." Other favorites include Big Bob's Beef Brisket, the hickory-smoked barbecue and baby-back ribs, and homemade banana pudding. Meals range from $6.99-$12.99, with an average check of $10.50. Company-owned restaurants run about 400 tickets per day for one to four customers each. Catering is also a large part of the business. In fact, the McFarlands have catered meals for the likes of Dolly Parton, Garth Brooks, Faith Hill, and those aboard Air Force I and II. Potential franchisees are taking notice. The first franchised Bar-B –Cutie opened in 2003. There are now two company stores in Nashville and five franchises in Smyrna, Rivergate, ( a Nashville suburb),Murfreesboro, and Memphis, Tennessee; and Atlanta. A sixth store is slated to open in Dallas. Franchising will remain a major focus for the chain in 2006. Eight stores are slated to open in 2006 and with 12-15 each year following. Franchise sales group The Empire Builders estimates growth potential at 25-50 franchises per year. In preparation for expansion, the Bar-B-Cutie guys have updated their look with a cuter Cutie – a more contemporary cowgirl- a new web site, and a replicable prototype, now open in Memphis and Atlanta. "The new store just feels like barbecue," McFarland says. "You know you're in the right place to eat a homestyle, Southern meal." The prototype features a rustic-looking building with a patio, strung lights, and stacked hickory wood. Most notable about Bar-B-Cutie's plans is not what has changed, but what has not: the menu, the flavors, and the service. "We're the best of both worlds, the fast and the casual," McFarland says. "You come in and order at the counter and get your drinks. In most cases, by the time you sit down, the food is at your table. Most restaurants are through with you at that point, but we provide great service after the sale.
Bar-B-Cutie isn't the headline concept you hear about often with an innovative menu, atmosphere, and branding led by highly trained, energetic entrepreneurs with a few years experience and a calculated plan. That's not to say the McFarlands lack energy or solid expansion plan. They're certainly highly trained in barbecue, and this restaurant has been around 56 years, with the same ole' recipes and many of the same customers. "The majority of our customers are regulars," McFarland says. "Many of them come in two or three times a week. Dolly Parton goes through our drive-thru." "This restaurant has proven itself ," adds Brett McFarland. This is the only thing my father and I have ever done, and this is it for us. We care about every franchisee and customer." The McFarlands say they've worked to put together an attractive and reasonable priced franchise package. Initial investment, including the $35,000 franchise fee, is estimated between $265,000 and $393,000, excluding the cost of real estate and improvements. The standard store footprint is 2,400-3,000 square feet.

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