Panini Kabob Grill aims to take its business public
Panini Kabob Grill, a popular Mediterranean restaurant chain, is gearing up for an expansion plan that will see the establishment of 12 new locations across California, Nevada, and Arizona in 2025 and 2026. This move is part of the company's mission to bring healthy Mediterranean food to more communities in the Western U.S.
The journey of Panini Kabob Grill began in 1998 when Mike Rafipoor, its founder, opened the first restaurant in a 1,300-square feet space in a mall in Orange County, California. The focus was on kabobs, as the restaurant had a chef hired away from a Persian restaurant. Sales for the first year went through the roof, leading Rafipoor to sell his car wash business.
Rafipoor's vision for Panini Kabob Grill was to create a preservative-free, antibiotic-free, hormone-free, and organic kitchen. This commitment to quality and health is reflected in the restaurant's culinary approach, which emphasizes freshness and wholesomeness. The menu has grown to include paninis, wraps, pastas, soups and salads, desserts, and some units offer breakfast.
Panini Kabob Grill avoids pre-sliced, frozen, or off-site prepared ingredients. Instead, they source their produce locally and use grass-fed beef and antibiotic-free and hormone-free meats, ensuring that every dish is crafted daily from scratch in their kitchens. This approach has made Panini Kabob Grill a preferred choice for dine-in, takeout, delivery, and catering in every new market they enter.
The restaurant industry, however, posed a challenge for Rafipoor. Banks were reluctant to lend money due to an 80-85% fatality rate for restaurants in the first three years. But Panini Kabob Grill grew slowly, with one unit being opened every one or two years. The chain's units average $6.3 million in sales, with some doing $12 million.
Looking ahead, Rafipoor aims to push systemwide sales to $400 million and take the chain public with an initial public offering, possibly by 2028 or 2029. In preparation for this, Panini Kabob Grill plans to open six to seven new restaurants this year, all company-owned. The first Panini Kabob Grill outside California is scheduled to open in Las Vegas in September.
In 2017, Panini Kabob Grill tried franchising, but Rafipoor bought back the units due to operators not meeting his high standards. However, the chain is now in a position to ramp up growth, with additional units planned in Arizona.
With its commitment to quality, health, and freshness, Panini Kabob Grill is poised for expansion and growth in the coming years. The restaurant's focus on providing a healthy Mediterranean dining experience is set to bring its offerings to more communities in the Western U.S. and beyond.
- The expansion plan of Panini Kabob Grill, a Mediterranean restaurant chain, includes franchising as a means to finance the establishment of 12 new locations across California, Nevada, and Arizona in 2025 and 2026.
- In light of the restaurant industry's challenging financial landscape,Panini Kabob Grill's strategy for growth involves maintaining company ownership of units, with six to seven new restaurants slated to open this year.
- Investors intrigued by the lifestyle, food-and-drink, and business opportunities offered by Panini Kabob Grill may potentially be able to invest in the chain when it goes public, with an initial public offering planned for 2028 or 2029.
