Orange County Restaurant Chains Achieve $37 Billion Sales Surge

The thriving restaurant industry in Orange County as seen in multiple dining establishments.

News Summary

Orange County’s largest restaurant chains have reported systemwide sales reaching $37 billion, marking an 8.5% increase from the previous year. Despite the robust growth in sales, overall employment within these chains has declined by 6.4%. Companies like Kura Sushi and Nékter Juice Bar are driving this surge, with plans for significant growth and expansion. As Taco Bell and Chipotle continue to lead, the industry faces challenges with some chains reporting declines and restructuring plans.

Orange County is witnessing a remarkable surge in systemwide sales from its largest restaurant chains, totaling $37 billion in 2024. This figure represents an 8.5% increase from the previous year, showcasing the resilience and growth potential of the local food service industry amidst a simultaneous decline in workforce numbers.

Despite the impressive financial outcomes, local employment in these chains has taken a hit, with headcounts decreasing by 6.4% to 20,900 employees. This paradox of robust sales paired with declining staffing levels reflects broader trends in workforce availability and changing operational strategies within the industry.

For the next five to ten years, several Orange County-based restaurant companies are actively pursuing growth. Notably, Kura Sushi USA Inc., headquartered in Irvine, has reported a significant 27% increase in annual sales, reaching $238 million in 2024. This marks a commendable rise, elevating the chain two places to rank No. 13 among the largest restaurant firms in the area. Much of Kura’s success is attributed to new restaurant openings, averaging a growth of 23% in its restaurant count over the past five years.

In 2024, Kura added 13 new restaurants to its portfolio and projects at least 20% growth in restaurant counts in the coming years, further strengthening its market position with a current market capitalization of $811 million on Nasdaq (KRUS).

Another local standout, Nékter Juice Bar Inc., based in Costa Mesa, experienced a sales growth of 33%, with total earnings of $162 million, placing it at No. 18. The company has ambitious plans to expand from its current 222 locations to 500 over the next five years. This expansion will include innovative delivery-only locations through a partnership with DoorDash.

Among the top performers, Taco Bell and Chipotle Mexican Grill Inc. continue to lead as the two largest chains in Orange County, both reporting encouraging sales growth. They are also focusing on international expansion and enhancing restaurant innovation to keep up with consumer demand.

Ranked No. 3, In-N-Out Burger saw a robust sales increase of 12% to $2.4 billion and recorded a 5% growth in OC headcount to 3,816 employees. However, the chain is reorganizing its corporate structure and plans to vacate its Irvine headquarters, returning to its previous offices in Baldwin Park by 2029.

Jack in the Box, which owns Del Taco, is currently evaluating strategic alternatives for the Lake Forest-based chain as it reported a slight sales decline of 1.6% to $959 million. Meanwhile, El Pollo Loco, ranked No. 5, has received a buyout proposal from its major stakeholder, Biglari Capital Corp., which holds nearly 15% of the company’s shares.

Other notable performance shifts include Panini Kabob Grill, which experienced a 14% sales increase to $183 million and a 17% headcount increase to 473 employees. Conversely, both Wienerschnitzel and California Pizza Kitchen faced challenges, with sales dropping 16% to $355 million and 10% to $406 million respectively.

In a beacon of recovery, Juice It Up surpassed $50 million in total system sales for the first time in 2024, rebounding from stagnant revenues. The chain has introduced new grab-and-go and heated snack options, aiming to exceed 100 locations by mid-2025. Operating with a franchise model for 99% of its locations, Juice It Up is also innovating by testing various menu items in select stores before broader rollout.

Juice It Up, in partnership with Mountain Mike’s Pizza, has co-owned a new 14,000-square-foot headquarters in Irvine and is looking for a third brand for further expansion. The chain is also pursuing innovative locations, such as Angels Stadium and California State University, Fullerton, to widen its operational footprint.