Tulsa-based Camille's Sidewalk Cafe has signed an agreement with Wal-Mart Stores Inc. to place its franchises in supercenter stores around the nation.
The first Supercenter Camille's is expected to open within the year in Austin, Texas, said David Rutkauskas, founder of the chain. Next on the menu: Scottsdale, Ariz. He anticipates about 200 to open in the next five to 10 years. "We inked the deal about a week ago," he said this week. Negotiations took almost seven months yet went smoothly, he added. "What's amazing about this whole thing is they came to us, and that's a testament to our brand," Rutkauskas said. "We found them to be great to work with." The world's biggest and best-known retailer was looking for a new restaurant for its upcoming stores, something more upscale than its long-ago relationship with McDonald's, Rutkauskas said. The move seems in line with Wal-Mart's latest slogan: "Save Money. Live Better," indicating a revised marketing strategy that focuses on the good things in life rather than just low prices for the Bentonville, Ark.-based company. Wal-Mart wanted a convenient and appetizing menu offering healthier foods and a casual feel, Rutkauskas said. "They looked at us as one of the pioneers of the fast-casual movement," he said. "They're excited about Camille's, and they like how we do business." So do those that follow the industry. In the latest issue of Fast Casual Magazine, Camille's jumped to the No. 5 spot on the publication's list of the Top 100 Movers and Shakers within the industry after two years at No. 13. The magazine cited Camille's emphasis on healthy food, and its strategy to target the female demographic. Wal-Mart officials weren't available to discuss the agreement, but sent a comment via e-mail. "At Wal-Mart, we do our best to ensure that each of our stores reflects the diverse needs and wants of our customers," wrote spokeswoman Jami Lamontagne. "Working with local companies, such as Camille's, is just one way we do that." The Camille's locations in Wal-Mart will either be owned by current franchisees who already have at least one restaurant in that particular city, Rutkauskas said, or new owners will be recruited. Franchisees pay the standard fees: $25,000 up front and 6 percent of weekly sales. They must also contribute to a national fund that supports product roll-outs and promotional campaigns. The Wal-Mart locations will be easier to open than stand-alone sites because operators won't have to hunt for suitable retail space, and the build-out will be much quicker, Rutkauskas said. After Camille's 1996 debut in a tiny kiosk at Woodland Hills Mall, Rutkauskas realized the concept's franchise appeal just as investors and consumers were searching for a healthier, fresh-tasting take on quickly prepared food. The business has grown rapidly during the past decade through traditional franchise partnerships, and into a few regional airports and on college campuses through agreements with two different companies. This past year, Camille's entered the Massachusetts and Utah markets, and opened its first location in Puerto Rico. As for international presence, 21 stores are expected to open in the next 24 months in Puerto Rico, and by February locations will be open in the Kingdom of Bahrain in the Middle East. There are now 107 operating Camille's locations and 900 in development worldwide. "We're now about brand-building, and growing out the brand as much as we can," Rutkauskas said. "It's a business opportunity of a lifetime. . . . It's very exciting for us."
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