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Twenty-seven of the largest restaurant chains headquartered in Orange County generated $37 billion in systemwide sales for 2024, an 8.5% increase from last year.
While local headcounts fell 6.4% to 20,900 people across the board, that’s not stopping OC-based restaurant companies seeking to grow stores over the next five to 10 years.
Irvine-based Kura Sushi USA Inc. and Costa Mesa-based Nékter Juice Bar Inc. registered the biggest jumps in annual sales. Kura, ranked No. 13 (up two notches from last year), saw a 27% increase in 2024 systemwide sales to $238 million. Sales at No. 18-ranked Nékter rose 33% to $162 million last year.
Kura Sushi’s Chief Development Officer Robert Kluger attributed much of the growth to new restaurant openings.
On average, over the past five years, “our restaurant count has grown by 23% annually,” Kluger said.
The Japanese sushi chain added 13 new restaurants in 2024 and expects to grow its restaurant count by at least 20% over the next few years. Wall Street has rewarded the company with an $811 million market cap (Nasdaq: KRUS).
Nékter last year looked to increase store growth by driving the opening of new store models such as its new delivery-only locations with third-party delivery operator DoorDash. The 222-unit juice chain plans to more than double its footprint to 500 locations within the next five years.
The region’s two largest restaurant chains, Taco Bell and Chipotle Mexican Grill Inc., captured notable sales growth also. The two companies are setting their sights on international expansion and restaurant innovation to increase sales and transactions even further in the next five years (see stories, page 1).
Chains on the Move
The third largest chain, In-N-Out Burger, saw systemwide sales increase by 12% to $2.4 billion. Its OC headcount grew by 5% to 3,816 employees, as of April. However, that number is expected to shrink in the coming years as the local burger institution, a top five chain on our list since at least 2017, announced plans this year to leave its Irvine headquarters as part of a corporate reorganization.
The move to its old Baldwin Park offices will occur by 2029.
A few other chains are also considering big moves.
Del Taco owner Jack in the Box is exploring “strategic alternatives” for the Lake Forest-based chain it acquired in 2022, including a possible sale. Ranked at No. 6, Del Taco’s 2024 sales declined by 1.6% to $959 million.
San Diego-based Jack in the Box is looking to make “an overall return to simplicity,” according to CEO Lance Tucker.
El Pollo Loco, No. 5, received a buy offer from stakeholder Biglari Capital Corp., owner of nearly 4.5 million shares, or 15%, in April. The Texas-based holding company is now looking to acquire the remaining amount of El Pollo Loco stock.
Board members said they were “in the process of carefully evaluating the proposal” in an April 7 filing with no set timetable for any decision related to Biglari’s inquiry.
Notable Ups and Downs
Costa Mesa’s Panini Kabob Grill climbed to No. 16 with a 14% jump in sales to $183 million. The chain captured 17% growth in local headcount, with 473 employees in OC as of April.
“As guest traffic stabilized, we focused on maximizing efficiency and elevating the guest experience — leading to consistent gains in sales per labor hour across the system,” founder and CEO Mike Rafipoor said. “To support this growth, we also made thoughtful investments in talent. Our employee count rose in alignment with volume needs.”
Wienerschnitzel sales dropped 16% to $355 million last year. Owner and operator of the hot dog chain, Galardi Group, started deploying AI-voice technology in restaurant drive-thrus with tech partner Presto Phoenix Inc. last year with plans to ultimately reach all 350 locations.
Sales for California Pizza Kitchen fell 10% to $406 million in 2024. In November, the No. 8 ranked Costa Mesa-based chain announced plans to boost growth by launching franchising in the U.S. for the first time in the brand’s history. Tustin-based Wahoo’s Fish Taco, ranked No. 24, has struggled since the pandemic. But this year, the chain inched up sales by nearly 2% to $59.2 million (see Leader Board, page 77).