Golden Corral, a 51-year-old national buffet restaurant chain with more than 350 locations in 39 states and Puerto Rico is in expansion mode. As it looks to grow — the company has identified 400 potential future markets across the country.
Among the 17 potential Pennsylvania markets identified, are Berks, Bucks, Chester, and Montgomery counties. Specifically, the company has identified Pottstown, Reading, Downingtown and Warminster Heights as possibilities for future Golden Corral restaurants.
The buffet chain currently has six Pennsylvania locations, three in the western part of the state and three in the eastern area — in Bensalem, Lancaster and Whitehall.
“What we look for is areas with active restaurant and retail activity and strong local employment. We want to see 20,000 cars on the road in front of us, and we prefer to have highway exposure if possible,” David Conklin, chief development officer for Golden Corral, said during an interview Friday.
Conklin added that Golden Corral has two different building sizes. For the larger building, he said the company looks for about 120,000 people within a 15-minute drive, and for the smaller building, about 70,000 people within that same distance.
He added that the areas should have good retail and restaurant development, as well as strong residential support and involvement.
“Golden Corral wants to be part of the community so, we basically look into what makes an area unique,” he said, adding that the company wants to know there are good opportunities for franchisees to be part of the communities.
Each of the four area markets fits Golden Corral’s criteria, Conklin said, with population density, solid incomes and diverse employment bases.
“In terms of the areas — I can say we would love to be there,” he added.
While the Berks, Bucks, Chester and Montgomery County markets are identified, there aren’t necessarily specific sites identified in each market.
“So that means we need to identify the franchise candidate and match them with a market opportunity,” Conklin said.
Poised for Continued Growth
Conklin said while some of its competitors have been closing locations or getting smaller, Golden Corral has grown — opening five stores this year, with plans to open another 10 next year.
“We anticipate ramping up even further,” he said. “Bringing on a new store, finding a piece of real estate, and opening can take 8, 10, 12 months to do that.”
Conklin said there are several components in place that are contributing to the company’s confidence in accelerating its brand growth.
“We don’t have a national buffet competitor — we’re the biggest buffet team out there. We have a great culture and relationship with our franchisees and we have great sales results. We have a media presence that is creating pent-up demand and we offer a great value for our guests,” he said.
In terms of brand loyalty, Conklin said the chain’s most frequent customers visit a Golden Corral restaurant more than 70 times each year — a “very high rate in the industry,” he said.
When it comes to its value proposition, Conklin said the chain made a strategic decision to limit price increases, as some of its competitors are raising prices or reducing portion sizes.
“We have stayed focused on becoming more efficient — where can we take costs out that wouldn’t impact the guests: How can we get better insurance rates, how can we get better power rates, how can we get a more efficient kitchen layout,” he said, adding that the average price per guest is less than others in the family dining category.
“And that puts us in a very good position to be able to grow.”
He added that the company also sees real estate opportunities as some of its competitors close locations.
“We’re a big proponent of converting closed competitors’ locations into Golden Corral locations.
In addition, he said Golden Corral offers a unique development incentive to help with growth.
“We know inflation has been an issue for everyone, but we know it’s temporary. So we’ve designed a new store opening program to minimize recent impacts of inflation,” Conklin said. “Golden Corral gives a food credit on their invoices for food for the first three years of operations. We basically give a percentage of our sales back in food provider credits for the first three years a store is open.”
When it comes to franchisees, Conklin said the ideal candidate should have a strong business acumen. The company looks for candidates with restaurant operations or ownership experience; or someone with an experienced operator on the team who can help run and manage the restaurant.
“We are a privately held company and we have what we call a 100-year plan — where we want to be in business for at least 100 years. We’re 51-years into it, and that plan is about making the right long-term decisions that will benefit our franchisees,” Conklin added.
