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Camille's inks Wal-Mart deal

David Rutkauskas, founder of Camille’s Sidewalk Cafe, says he expects that the company’s new deal with Wal-Mart will mean that about 200 new Camille’s franchises will open in the next five to 10 years. DARYL WILSON / Tulsa World

 
By DEBBIE BLOSSOM World Staff Writer
Published: 1/5/2008  2:56 AM
Last Modified: 1/5/2008  4:09 AM

The Tulsa-based business will be putting its "fast-casual" restaurants in supercenters nationwide.

Tulsa-based Camille's Sidewalk Cafe has signed an agreement with Wal-Mart Stores Inc. to place its franchises in supercenter stores around the nation.

The first Supercenter Camille's is expected to open within the year in Austin, Texas, said David Rutkauskas, founder of the chain.

Next on the menu: Scottsdale, Ariz.

He anticipates about 200 to open in the next five to 10 years.

"We inked the deal about a week ago," he said this week. Negotiations took almost seven months yet went smoothly, he added.

"What's amazing about this whole thing is they came to us, and that's a testament to our brand," Rutkauskas said. "We found them to be great to work with."

The world's biggest and best-known retailer was looking for a new restaurant for its upcoming stores, something more upscale than its long-ago relationship with McDonald's, Rutkauskas said.

The move seems in line with Wal-Mart's latest slogan: "Save Money. Live Better," indicating a revised marketing strategy that focuses on the good things in life rather than just low prices for the Bentonville, Ark.-based company.

Wal-Mart wanted a convenient and appetizing menu offering healthier foods and a casual feel, Rutkauskas said.

"They looked at us as one of the pioneers of the fast-casual movement," he said. "They're excited about Camille's, and they like how we do business."

So do those that follow the industry.

In the latest issue of Fast Casual Magazine, Camille's jumped to the No. 5 spot on the publication's list of the Top 100 Movers and Shakers within the industry after two years at No. 13.

The magazine cited Camille's emphasis on healthy food, and its strategy to target the female demographic.

Wal-Mart officials weren't available to discuss the agreement, but sent a comment via e-mail.

"At Wal-Mart, we do our best to ensure that each of our stores reflects the diverse needs and wants of our customers," wrote spokeswoman Jami Lamontagne. "Working with local companies, such as Camille's, is just one way we do that."

The Camille's locations in Wal-Mart will either be owned by current franchisees who already have at least one restaurant in that particular city, Rutkauskas said, or new owners will be recruited.

Franchisees pay the standard fees: $25,000 up front and 6 percent of weekly sales. They must also contribute to a national fund that supports product roll-outs and promotional campaigns.

The Wal-Mart locations will be easier to open than stand-alone sites because operators won't have to hunt for suitable retail space, and the build-out will be much quicker, Rutkauskas said.

After Camille's 1996 debut in a tiny kiosk at Woodland Hills Mall, Rutkauskas realized the concept's franchise appeal just as investors and consumers were searching for a healthier, fresh-tasting take on quickly prepared food.

The business has grown rapidly during the past decade through traditional franchise partnerships, and into a few regional airports and on college campuses through agreements with two different companies.

This past year, Camille's entered the Massachusetts and Utah markets, and opened its first location in Puerto Rico. As for international presence, 21 stores are expected to open in the next 24 months in Puerto Rico, and by February locations will be open in the Kingdom of Bahrain in the Middle East. There are now 107 operating Camille's locations and 900 in development worldwide.

"We're now about brand-building, and growing out the brand as much as we can," Rutkauskas said.

"It's a business opportunity of a lifetime. . . . It's very exciting for us."


Debbie Blossom 581-8387
debbie.blossom@tulsaworld.com

By DEBBIE BLOSSOM World Staff Writer

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Report Comment
Bill Wagoner, Tulsa, OK (1/5/2008 5:45:38 AM)
Congrats to David and Camille! What a fantastic opportunity!
Report Comment
Debbie, Tulsa (1/5/2008 6:57:37 AM)
What a terrible recipe; an overpriced eatery in a discount store. I don't eat at Camille's because I believe their prices are over-the-top and food quality below average. To put them in a discount store such as Wal-Mart doesn't make much sense. I think MacDonalds is more shopper-appropriate.

I don't see this pairing lasting long.
Report Comment
a, tulsa (1/5/2008 7:48:51 AM)
I've never been to Camille's and I will not shop at the Walmart Supercenters, but what a cool thing for this company!
Report Comment
Durka Durka, Owasso (1/5/2008 7:53:13 AM)
I am sure that Lee Scott and his team did a bit of research before extending this offer. They are probably trying to make their stores more appealing and inviting. Some of this can be seen with new floor plans. I am sure there will still be a McDonald's close to your Wal-Mart Lil' Debbie.
Report Comment
lmn, op (1/5/2008 8:27:58 AM)
This news is not exciting to me. I have been to Camille's plenty of times and I just don't find the menu worth returning. I tend to compare it to Panera, and Panera wins hands-down for me. Just my opinion - does anyone else feel this way?
Report Comment
Jay, (1/5/2008 8:38:03 AM)
I've never heard of the place?????
Report Comment
Elmore James, (1/5/2008 8:56:28 AM)
Camille's won't fly in Wal Mart, the perpetual state fair crowd won't dig it!!
Report Comment
GJ , tulsa (1/5/2008 9:32:09 AM)
imn,

I feel the same way. I think it's more trendy than a good place to eat. Their other establishment, Coney Beach at 111th and Memorial is WAY overpriced and the food was hideous. They market it as gourmet burgers and dogs.....gourmet hardly. It was disgusting.
Report Comment
CG, Sand Springs (1/5/2008 9:54:08 AM)
What a fantastic business oppurtunity for a Tulsa company. I don't care what the food/prices are like, I personally am never going to be eating in a Walmart, but could anything be worse than McDonald's? Ever notice the people you get to see in McDonald's? Is there a more impoverished, obese demographic than McDonald's customers? I'd be surprised. Good for Walmart.
Report Comment
chris, (1/5/2008 10:05:55 AM)
Are you kidding me? Wal-Mart? Guess I'll never eat at Camille's again. Oh and if your putting your stores in Wal-Marts please move out of the Cherry St. location and let someone with a little more dignity have the spot (and better food).
Report Comment
OU Student, (1/5/2008 10:40:59 AM)
That is wonderful to see a local business make it national. Good luck!
Report Comment
Mar, Tulsa (1/5/2008 10:43:16 AM)
Today you get what you pay for, you want cheap you will get cheaply made food. Camille's, Panera, etc. are somewhat higher priced, but the quality of the food is excellent. I am surprised that Camilles would go with Wal-Mart, but I could see them going with Target if Target didn't already have their own eating spot. It looks like Wal-Mart is tired of being known as the poor man's store, so are trying to upgrade their reputation and image. I don't shop that much at Wal-Mart, I prefer Target and other stores, but good for Camilles, it's great that a company that had it's start in Tulsa is making it big.
Report Comment
tb, Tulsa (1/5/2008 11:05:59 AM)
5. 1/5/2008 8:27:58 AM, lmn, op
Imn - I agree with you. Their tomato bisque soup - what were they thinking? Panera's menu and food is MUCH better.
Report Comment
joe, tulsa (1/5/2008 11:49:54 AM)
overpriced , not for walmart crowd.
Report Comment
bg, (1/5/2008 12:00:52 PM)
I find it really sad that so many people have become accustomed to pathetic fast food fare that they can't appreciate something more creative. I think that those who feel Camille's won't make it in WalMart because of the WalMart demographic are promoting an ugly stereotype. Not everyone can be or wants to be a high powered executive with a six figure income. Don't look down at people because they have less or they shop at WalMart. I'm not a snob, if I can save money buying something at WalMart instead of Target, I'll do it. If Camille's provides a good product and good service at WalMart they will be successful.
Report Comment
Wait and See, (1/5/2008 1:57:02 PM)
I think I am more suprised to see that Camille's would want to be associated with Wal-Mart. He says they are in the "brand building" phase, hmm, I wouldnt have guessed that that was the direction they wanted to go.
Report Comment
george, tulsa (1/5/2008 2:56:39 PM)
I say bets of luck!

If Wal-Mart feels that it is a good fit and they profit by it, the owners will get squeezed until the lose the business to 'ole Wally World.
Report Comment
DLA, afton (1/5/2008 3:04:10 PM)
Excellent!!! Bring Camilles to Vinita and Grove!!! We love them both, Camilles and Walmart!!
Report Comment
Chris, Tulsa (1/5/2008 3:45:12 PM)
I think it's great. Camilles isn't over priced. If you eat at Mickey D's which is just plain out right wrong, then yes it's overpriced, but eating at the new place just might add eleven minutes to your life.
Report Comment
dave, Tulsa (1/5/2008 4:41:52 PM)
Camilles is simply too stingly with it's food. --6 tortilla chips with spoonfull of salsa with each over-priced wrap.
Report Comment
Gravy boy, Turley (1/5/2008 5:27:14 PM)
#5."I have been to Camille's plenty of times and I just don't find the menu worth returning"
If you don't like it then WHY HAVE YOU BEEN TO CAMILLE'S PLENTY OF TIMES?
I have never been there but I may now, best wishes
Report Comment
Antony Bhal, tulsa (1/5/2008 6:22:22 PM)
Kudos Camilles. I eat at Camilles often I dont find the food overpriced and I always leave full. I quess those who think it is not enough are one of the reasons America is obese. It is not a all you can eat buffet. However I dont think I would ever visit one in a Walmart store as I dont shop with that company. I will still visit the location on cherry st. and Jenks. Again Kudos for this venture and hope you and share some culture to those walmart.
Report Comment
Bill Hader, Jenks (1/5/2008 6:25:49 PM)
Those who prefer Panera over a LOCAL company? I have found the food to be about the same quailty and enjoy both. However before I spend my dollar with a chain company who is based someplace else, I will spend it with a local company who employees TULSAN'S. Where do these Tulsaa's spend their money? hopfully in Tulsa. Its a win for Our city. so quit your bellyachen...
Report Comment
Alice Jones, Tulsa (1/5/2008 6:30:41 PM)
I like the wraps at Camilles. Very Very tasty. The breakfast wraps are a treat that I can not pass up when shopping the farmers market on Cherry Street on a Saturday. Great atomsphere, and it really is nice to hear about this for them. They are a great community partner with events in the area as well and thank you for that too. You have a satisfied customer here. And my family as well.
Report Comment
Crash and Burn, (1/5/2008 9:03:17 PM)
Sounds like a brokered marraige, an over priced cafe tying the knot with a discount mega giant. This could be the end of Camille's due to the fact their menu and atmosphere does not compliment the clientele of WalMart. Camille's best start looking at going public on the NASDAQ to open an additional 200 stores then maybe the owners won't loose the bundle they've made up to this point. WalMart shoppers tend not to "benge" shop as those in the mall do. As a business person this appears to be a disastrous decision by WalMart and Camille's. But in the end, we all know WalMart will not loose money, it will be Camille's. This is the Wrong Idea, Wrong Location, and Wrong Time.
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