As inflation continues to have its effect on dining-out trends, consumers are becoming more selective and creative with how they experience full-service restaurants. Many are choosing to forego them altogether, instead opting for pickup meals. Others are being more conscious with their spending, electing for a cheaper priced quick-service dessert outing, for example. But the latest fad appears to be a nice compromise: dining out at a sit-down restaurant that primarily caters to desserts, akin to the now defunct Farrell’s Ice Cream Parlor. These full-service dessert restaurants offer unique options, whether that means catering specifically to the post-meal offering, including fancy sugary cocktails, or providing savory meals in addition to the delicious final course. The concept works well for special event celebrations, date outings and tourist destination experiences. The frontrunners of this full-service dessert trend that are causing a stir include Sugar Factory, White Rabbit Dessert Experience and Better Than Sex.
Sugar Factory anticipates opening between five and 10 new units per year over next two years. Upcoming restaurants for 2023 are expected in Jacksonville, Fla., by the end of this month, in addition to a second unit in Miami Beach, as well as Boston and Honolulu. Keep an eye out for a smaller-sized “Sugar Factory Express” in both The Galleria shopping mall in Houston, as well as a second unit in Orlando, Fla. By 2024, expect at least two new restaurants in Southern California, as well as northern Texas to be eyed, especially Richardson. New Midwestern markets, such as the metros of Ohio, could also be targeted, considering Sugar Factory opened its first units in neighboring Indiana and Michigan in 2022, with restaurants in Indianapolis and Detroit, respectively. Nashville, Tenn., is also on Sugar Factory’s radar.
Square footage for Sugar Factory’s full-service restaurants can range from 8,000 to 16,000 s.f.; however, the brand introduced its smaller format “Sugar Factory Express” units in early 2022, which are between 3,000 and 5,000 s.f., and offer a limited menu of its favored popular items at more affordable price points. The brand is also expected to roll out a drive-thru version of this “Express” restaurant in a still undisclosed location in Los Angeles County and, if successful, Sugar Factory will continue to open more drive thrus in suburban markets of the metros where it already has a presence.
End caps and inline units of outdoor power centers and lifestyle centers, as well as indoor mall sites, standalone restaurant spaces and retail street-front spots will all be considered, in upscale urban and family friendly suburban markets alike.
Co-tenants should be other family-oriented popular eateries, such as The Cheesecake Factory, as well as entertainment brands, such as IMAX at AMC. While Sugar Factory serves fun savory meals, such as sliders on colorful buns, the brand is known for over-the-top desserts and sweet-infused alcohol drinks, such as its Campfire Spiked S’mores milkshake that is served with a seven-layer S’more treat atop the beverage. The restaurants also feature a candy retail shop, unique candy-themed wall art and elaborate sweet drinks named after famous celebrities.
The White Rabbit Dessert Experience opened its first unit outside of its home state of New York last year with a 3,000-s.f. inline restaurant in an outdoor mall in Orlando. A second unit in Winter Park, Fla., is expected to open later this year at the Disney Flamingo Crossing Town Center, a power center close to the Walt Disney World Resort. As the brand builds up its name recognition with these locations in tourist-heavy spots, expect to see further expansion, between one to three units per year, in other upscale family friendly, vacation-oriented locations that also have a growing population base, and also a nearby college element. Potential sites may include the suburbs of Athens, Ga., Charleston, S.C., and Charlotte, N.C., with the distant future potentially seeing growth into Scottsdale, Ariz., San Diego and Las Vegas. White Rabbit fits in well in upscale suburban outdoor malls with family-oriented errand-type brands such as Best Buy and Sports Clips, as well as other dining brands, such as Pizza Hut. White Rabbit looks for 3,000 to 3,500 s.f. of space, either inline or end cap. The White Rabbit Dessert Experience is a sit-down restaurant in a whimsical Alice in Wonderland themed setting that solely serves dessert items such as homemade ice cream, milkshakes, crepes and waffles, as well as espressos, coffees and teas.
The cheekily named Better Than Sex restaurant currently has six restaurants throughout five Sunbelt states: Texas, South Carolina, Georgia, California and two in Florida.
The concept is rumored to be opening a new location in Nashville by late 2023/early 2024. Potential upcoming locations may pop up in like-minded markets, such as Las Vegas, Atlanta, Phoenix and even additional Texas metros, such as Houston. The franchise concept works best in inline or end cap urban street-front spaces, between 3,000 and 3,500 s.f., especially in areas that attract a large number of singles in the millennial and age 21+ Gen Z category, as the restaurant concept caters to adults with racily-named signature alcoholic drinks and desserts, such as French Kiss Affair or Cookie Nookie Pie. The potential site can be off Main and Main and be on the ground floor of a mixed-use building. Mom-and-pop style restaurants and nightclubs are preferred co-tenants. The interior is designed in a speakeasy style, and the dining booths have an aura of intimacy with privacy curtains. The specialty restaurant only serves desserts and drinks, and appeals to couples, the after-work crowd, and those seeking special event outings, such “girls’ night out” gatherings, for example.
