Outstanding Operator: Another Broken Egg Cafe

Another Broken Egg Cafe is Food On Demand’s Next Outstanding Operator.

CEO Paul Macaluso knows first-hand how to implement strategies to streamline the off-premises side of a business. Macaluso joined the brunch brand in 2019, just months before the pandemic hit and restaurant doors were forced to shutter.

At the time, Another Broken Egg’s off-premises sales were less than two percent. “We had no platform for online ordering, literally [customers] called for to-go orders,” he said. “So, we had to scale really quickly when dining rooms were shut down.”

Another Broken Egg Cafe CEO, Paul Macaluso

Founded just outside of New Orleans, Another Broken Egg is a daytime restaurant chain, known for its Southern, chef-inspired menu offerings and crafted cocktails inside a modern sit-down setting. Because brunch is a very social daypart, up until the pandemic, the brand solely focused on its in-dining operations.

Luckily for the chain, Macaluso brought with him 30 years of experience innovating restaurants and working on off-premises operations at brands like Taco Bell, Burger King and Focus Brands.

Investing in off-premises

The first step was updating point-of-sale systems to allow integration of third-party delivery orders and vendors such as DoorDash and Uber Eats.

Next was to create to-go stations in the back-of-house, equipped with all the tools necessary such as packaging. The chain then rerouted its kitchen display system (KDS) so online orders were sent to a specific worker dedicated to the avenue.

The brand then updated its front-of-house so customers and delivery drivers knew where to grab their pickup orders. Macaluso said they also worked with landlords to add parking spots dedicated for pickup and launched an app for online ordering, powered by Olo.

“Most things brands have done in the last five to 10 years we did over six months because we had to figure it out,” said Macaluso.

The investments paid off, not only bringing in significant revenue during the lockdowns but afterwards as well.

Despite initial uncertainty, off-premises sales have remained sticky for the company, today accounting for around 10 percent of total sales on average, with some cafes coming in at 30 percent.

“We thought well, maybe it’s going to go back to nothing again over time, [but] it has been sustainable. It has added on average over $200,000 per cafe in revenue which is huge for us,” said Macaluso.

Catering and growth

In addition, Another Broken Egg recently got into catering and plans to lean heavier into the sector moving forward.

“We understand from a consumer demand standpoint, as employers are trying to attract people back to the office, they are using food as kind of a reward, an appreciation—so that’s exciting for us,” said Macaluso.

Macaluso adds that some franchisees are diving head-on into catering and are doing “tremendous work” in the space.

For support, Macaluso says they work with franchisees through a catering committee to aid in best practices on marketing and operations.

Looking ahead, Another Broken Egg Cafe anticipates continued growth in both revenue and locations. The chain reached nearly $165 million in systemwide sales from 89 locations in 2022. Now at 97 locations in 16 states, the chain is set to reach its 100-unit milestone in the coming months.