Coco’s Franchising Is Expanded to Folksier Carrows

Restaurant Enterprises Group said Thursday that it has expanded its franchising of the Coco’s chain to include the slightly more downscale Carrows coffee shop chain as well.

The company said that Carrows family restaurants are perceived as more folksy, down-home eateries compared to Coco’s, even though there is only about 75 cents’ difference per meal in the average customer’s check.

“In the process of selling Coco’s franchises, it became obvious to us that some locations were better suited to a Carrows operation,” said Kenneth L. Harris, president of CFC Franchising Co., the franchising arm of the Irvine-based parent company.

Coco’s is stronger in Southern California, and Carrows is well known and liked in Central and Northern California, according to Harris. Coco’s plays to the upper end of the restaurant segment in which household income is about $52,000 a year. Carrows is more of a mid-level coffee shop targeted to customers whose family income averages $37,000.

So far, Harris said, three Coco’s franchises have been sold. One has opened in Rancho Santa Margarita, another will open in Anaheim Hills in November and a third will be in the Inland Empire.

There are 142 domestic, company-owned Coco’s and 117 Carrows. In addition, 192 more Coco’s are franchised outside the United States. Both chains have expanded rapidly because of the conversion of former Bob’s Big Boy restaurants, which Restaurant Enterprises bought from the Marriott Corp.