Restaurant catches big wave

By: SHANNON WINGARD - For the North County Times | Friday, July 20, 2007 10:58 PM PDT ∞

CARLSBAD ---- For 25 years, Islands Restaurants has succeeded by serving affordable, casual-dining foods such as specialty burgers and fresh-cut fries in a Hawaiian-style atmosphere.

Although it has expanded over the years, said Doug Kollus, president and chief operating officer, "It's still a gourmet burger restaurant."

Based in Carlsbad for three years, the company has 60 restaurants in California, Hawaii, Colorado, Arizona and Nevada.

Kollus said the first Islands Restaurant opened in 1982 in West Los Angeles by Tony DeGrazier, chief executive officer. Additional restaurants spread throughout Los Angeles and Orange County before entering San Diego in 1995 with a site in Solana Beach.

Kollus said that the company, owned by approximately 400 private investors, has seen continued growth.

In fact, it is estimated to gross nearly $200 million in sales this year, and has had an average annual sales growth of 14.6 percent over the last five years.

Part of that continued success, he said, comes from sticking to what has worked in the past.

He said that all of the new restaurants have a tropical decor with such details as fake parrots and straw huts, and are known for many of the same foods as when the restaurant first opened.

In fact, nearly 40 percent of the business comes from its specialty burgers, including its most popular one, the Big Wave with Cheese.

Kollus said Islands Restaurants adjusts its simple menu by adding items, including the Kilauea spicy burger with pepper jack cheese, to accommodate the public. While the business isn't trying to appeal to everyone, he said that burger was added to satisfy an increased appetite for spicy foods.

However, he said, steps are taken to ensure that the menu remains simple. When an item is added, a less popular one is often dropped from the menu.

Aside from keeping the menu simple, he said this practice helps chefs prepare the fresh foods and vegetables in a timely manner.

"We can get the food out pretty fast," he said, estimating that a lunchgoer can be in and out in 40 minutes.

It also allows the restaurants to focus more on quality than on variety.

Another key to its success, Kollus said, has been maintaining a steady expansion pace. "We slowed down our growth this year to let the economy catch up," he added.

Although the company is not expanding this year, he said that it has taken other strides to better serve its customers, including adding a carryout car service to most restaurants and online ordering.

He also said the restaurants' focus on food instead of alcohol sales, which only make up nearly 10 percent of gross sales, has helped establish it as a comfortable place for anyone to eat.

Contact freelance writer Shannon Wingard at scwing711@gmail.com.

Islands Restaurants

Founder: Tony DeGrazier, chief executive officer

Phone: (760) 268-1800

Address: 5750 Fleet St., Suite 120, Carlsbad

(Restaurant locations in Carlsbad, Vista, Encinitas, Temecula and Carmel Valley)

Products: Specializes in selling affordable, casual-dining foods, including such customer favorites as specialty burgers and fish tacos

Web site: http://www.islandsrestaurants.com/

Established: 1982

Employees: 4,615

Estimated gross sales for 2007: $185 million

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