Pan-Asian Chain Taps Texas As First Stop on National Expansion

New fast-causal eateries continue to seek opportunities to grab a larger slice of a still-growing piece of the industry.

The latest is Tin Drum Asian Kitchen, a chain offering the kind of fresh-to-order fare found in street cafes across Asia. The Atlanta-based business, which takes its name from the instrument played by a sort of town crier in ancient Asian lore, is looking to break out of its home state to expand nationally. Tin Drum's next stop is Houston.

The chain signed a deal with Houston restaurateurs Shairoz Lakhani, Avez Maredia and Faizan Momin for five locations. Lakhani and Maredia own three Texas franchises of fast-growing Dallas-based chain Wingstop and have two more under development.

“Houston is one of the most culturally diverse cities in the country with diners who crave international flavors,” Steven Chan, Tin Drum founder and CEO, said in a statement.

Lakhani said in statement the Houston group is looking to fill what they see as a void in the market for pan-Asian cuisine.

Tin Drum is looking to expand more in Texas but has also targeted Tennessee, Alabama, North Carolina, South Carolina and Florida. According to Tin Drum, total investment in a location ranges from $351,800 to $563,250. A singe eatery, offering tables and take-out, typically occupies between 1,800 and 2,200 square feet.

The chain got its start in 2003 next to Georgia Tech. It has since expanded to 11 locations in the Atlanta area, two thirds of which are franchised.

Since 2013, Tin Drum has had equity backing from Atlanta-based BIP Capital. The firm’s portfolio includes franchise chain Tropical Smoothie Café, which has more than 650 locations in 43 states.

Tin Drum’s newest franchisees got acquainted with the chain while at Emory University and Georgia State University, both in Atlanta.

“During our college days in Atlanta, we fell in love with Tin Drum and have wanted to open a location in Houston since we got into the restaurant business after graduating,” Lakhani said.

Last year, sales at fast-casual restaurants grew to more than $42 billion, according to Technomic’s Top 500 Chain Restaurant Report. The largest chains added 1,569 restaurants last year. But a lot of smaller chains are expanding as well.