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THE COUNTER DISHES UP PREMIUM HAMBURGERS

By Neil Janowitz

Jeffrey Weinstein, owner of a fast-growing chain of burger joints called The Counter, believes in the hamburger and the role it plays in American culture. This is why when the 32-year-old entrepreneur decided to leave the bar-lounge business and become a restaurateur, he wanted a place that emphasized customization above all. So now Counter customers can customize their burgers according to the chain’s 312,000-some-odd combinations. “You first pick your patty, then cheese, then toppings, sauce and bun,” said Weinstein. “No one else is doing burgers this way.” Weinstein opened his first Counter restaurant in Santa Monica, Calif., in 2003.

Of course, an expansive menu is far from the only attraction, because Weinstein’s designs draw on his nightlife experience. “I essentially designed it for people like me: people in their upper 20s and mid-30s,” said Weinstein. “I wanted it to be hipper and cooler and a more modern experience than something like Johnny Rockets.” To this end, Counter restaurants are devoid of contrived themes. Instead they have an interior aesthetic that is Spartan yet inviting, with a decidedly “hip” bent. White and wood grains permeate the restaurants, with tall, tight table arrangements and an appropriately prominent counter in the middle of the floor.

When Weinstein unveiled his brainchild, though, he discovered that it appealed not just to young hipsters, but to others as well. “We’ve gotten positive feedback from customers aged 5 to 95,” said Weinstein.

Given such a diverse following, it is no surprise that the restaurants have proved to be almost immediately profitable. The Santa Monica restaurant broke even within three months of opening and currently yields about $1,600 per square foot, and the Palo Alto, Calif., spot, which opened in August 2006, routinely posts about $1,200 per square foot. Weinstein says the company is unafraid to roll out an ambitious expansion plan. His team consists of partner Craig Albert and executives from such chains as California Pizza Kitchen and Outback Steakhouse. “We have four current locations and plan to add two more, in Irvine and Palm Beach, Florida, before the end of the year,” Weinstein said. “In 2008 we’re eyeing 25 openings. They’ll primarily be in California, Arizona and Nevada, but we’re looking into Westchester [New York] and Hartford [Connecticut] counties and Washington, D.C., as well.”

Roughly 75 percent of those restaurants will be franchised, most of them by one of the 21 investment groups that have already signed a regional multiunit deal with the company. Potential franchisees should be prepared to agree to a five-unit deal and pay $40,000 per unit in fees.

The ideal unit will measure about 3,000 square feet and have about 40 feet of frontage, says Weinstein. Corners, endcaps and freestanding units are preferred, and if the buildings can accommodate the Counter’s garage-style, roll-up front window, so much the better. Weinstein says the restaurants seem to fit well near Starbucks units, probably because the communities the chain seeks are upscale and do not balk at expensive coffee or an $8 hamburger.

Nowhere is this truer than in Palo Alto. The restaurant there, owned by Peter Katz, who was looking to exit a Silicon Valley career in favor of a new challenge, earned the distinctions of being Palo Alto’s “best restaurant” and “best burger” in a 2007 local newspaper poll. Katz says there is no mystery involved. “There’s nothing else like it,” he said. “The quality of the food is unheard of in the hamburger industry.” Katz says his traffic continues to grow, with an even mix of university students and professors (Stanford is nearby), families and retired people.

Katz’s landlord, Eric Sorensen of Premier Properties, says he is as thrilled as the customers. “The Counter has had a very positive effect on our plaza,” Sorensen said. “It’s always busy during lunch and dinner and attracts lots of new customers.” Sorensen says his only complaint is that the restaurant produces a lot of grease, but this is to be expected of a restaurant, and the Counter has been cooperative in taking care of the waste, he says. “They’re just a great business,” he said.

That seems to be the prevailing attitude among landlords and management companies; Katz says he gets calls every week from prospective hosts. But perils await those who expand too fast, says Paul Fetscher, president of Great American Brokerage, a Long Beach, N.Y., firm specializing in site selection for restaurants and retailers. “They’ve got good food and good style,” Fetscher said. “But they have to realize that it’s not for everyone. It’s one of those things that has a California tree-hugging feel to it. Do the first dozen locations in California and Vegas, and go from there. Would it work in Manhattan? Sure. But I don’t think I’d put one in Bensonhurst, and I’m very skeptical about how many you can put in mid-America.”

The extensive array of options will present problems in areas with a less-than-rabid following, Fetscher says. The concept relies on fast turnover to keep the ingredients fresh. If the chain expands to the point that a particular restaurant is having slow periods, there will be waste and diminished margins. But with prudent site selection and a consistent product, Fetscher says, the Counter can still carve out a place for itself. “America is returning to the basics,” Fetscher said. “We’re sick of ‘McMeals.’ We want something better. People are willing to pay more for a better burger.”