As for customers, Frabitore says Tupelo is for anyone from 4 to 94 years old—whether it's dietary restrictions or simply splurging. Its strongest appeal is with 25- to 45-year-olds that are food-forward and enjoy trying new things. That consumer is also 60 percent female and more highly educated. In February, the chain launched a program for its "raving regulars." The brand empowered stores with budgetary money, tools, and marketing programs that will recognize and reward the best customers. That includes secret menu items, participation in focus groups, and tasting new products.
Frabitore says younger generations have particularly taken to its Generation Four prototype, which launched in late 2018 in Denver, Colorado. He describes the slightly smaller 5,500-5,900-square-foot store as comfortable and full of light with a meaningful bar program. Older restaurants, which are required to be refreshed every seven or eight years, have been remodeled with the package and have seen sales jump 20-30 percent. Off-premises isn't too much of a factor, contributing only 6-7 percent of sales. Frabitore says building an experience and one-one-relationship with a customer is difficult "through a styrofoam box."
In 2023, Tupelo will open in Las Colinas, Texas; Indianapolis; and Omaha, Nebraska. Starting next year, the brand will open six locations annually. Other future locations include Rogers, Arkansas; Columbia, South Carolina; Farragut, Tennessee; Kansas City; and a couple of stores in Kentucky.
"We've been very focused on refining our brand, refining the cost of a new store, getting the elements of an upscale-casual store that we want," Frabitore says. "And we really hit the nail on the head with our new stores."
The growth strategy starts with "plowing every dime the company has ever made" back into infrastructure, Frabitore says. Tupelo hasn't taken a dividend or any other money off the table in 15 years. Regions are broken into six-store areas and supported by a senior regional director and culinary director. Those are run by a vice president of operations.
All of it is company-operated with no licensing agreements or franchisees. Don't expect that setup to change in the foreseeable future.
"We really want to control the guest experience," Frabitore says. "We want to train and impact our people. We want to hire to our standards. And with the results that we've been enjoying and everything we've done, it's not like we've accomplished this out of the blue in a year or two. It's been a lot of work for 15 straight years. So I don't think we need to franchise. We're not exploring it. We don't have any interest. We're not doing airports, that kind of stuff. We're not doing any of that. We're focused on our Generation Four stores, our remodels, and what we do."