Undercover Boss: Why Johnny Rockets is Dancing Through the Downturn

While other chains have struggled and scaled back expansion in the downturn, Johnny Rockets has grown roughly 20 percent each year, says CEO John Fuller. The chain grew from 170 units in 2007 to 300 today. What's kept the nostalgic, burgers-and-fries brand popular?

"This is far from a scientific answer," says Fuller, "but Johnny Rockets represents a separate time -- a more carefree time. It's the kind of place where you can go in and relax and get away from it all. We're a trouble-free spot. We sell food, friendliness and a simpler time." Fuller appears on CBS's Undercover Boss this Sunday at 9 p.m. ET/PT.*

Dancing waiters = social media success
There are other reasons besides the chain's much-copied atmosphere. For the unfamiliar, privately held Johnny Rockets has a 1940s-'50s ambiance featuring red, white and silver decor, jukeboxes playing oldies tunes, and waiters who break out in dance routines when the music plays.

"We had a situation where Justin Bieber got up and danced with the dancers," Fuller says. "You can't make that happen. It's one of the magical things about the experience, that a guy like that would get in line with our servers and dance with them."

The dancing aspect has made Johnny Rockets a natural for social media, giving this old-time brand a whole new source of buzz. Its Facebook fan page has 66,000 fans. Food bloggers rave -- for instance, BaconTunaMelt recently titled a post "Johnny Rockets is Where Good Times Roll."

Bloggers shoot videos of the dancing waiters and post them to the fan page, or on their blogs. A search on YouTube for "Johnny Rockets Dance" turns up more than 500 videos. For instance, here's one from the blog Mrs. Martinez Raves and Rants:

Ironically, though Johnny Rockets has become a new-media star, Fuller confesses he doesn't even have a personal Facebook account. "Our communications department is all over it," he says. "It's an important part of being successful in the restaurant business today."

Getting hands-on
Another irony: Fuller had never worked a day in a restaurant until just recently. He's a finance guy who joined the company in 2008 as Johnny Rocket's chief financial officer. Before that, he held financial positions at Rubio's, (RUBO) Del Taco and CKE Restaurants. When he was promoted to CEO in January, Fuller says getting out and working a week behind the counter was at the top of his to-do list, but he was having trouble clearing his schedule.

So he jumped when the CBS series Undercover Boss came calling with an offer to put him to work in Johnny Rockets' eateries incognito.

"I wanted to do it, show or no show," he says. "When I committed to the show, I had to go out and learn the stores. So that made it happen."

Gearing up for more growth
Now that the economy is perking up a bit, Johnny Rockets is gearing up for more growth in the coming year, when the brand will celebrate its 25th birthday. The company made four new hires earlier this month to help beef up its support for franchise owners. All have deep chain-restaurant experience: For instance, new executive director of development Chris Pangan, who'll lead new-concept innovation, hails from Catalina Restaurant Group and has worked for Yum! Brands' (YUM) Taco Bell, KFC and Pizza Hut. New real-estate director Alan Greengard also spent time at Yum!

Hiring such an experienced team is important as Johnny Rockets looks to grow its presence. Internationally, Fuller reports, the company just signed a 40-location agreement in Russia, and has deals for seven new units in Kuwait and another six in the United Arab Emirates city of Dubai.

"International is probably the biggest area of opportunity for us," he says. "If you think about the feeling of escape you get in the U.S. going into a Johnny Rockets, it's even more so for Americans overseas."

There'll be domestic growth, too -- so far, Johnny Rockets is only in 30 states and the District of Columbia. The brand also does well in specialty locations such as cruise ships and casinos.

In the great scheme of American restaurant chains, Johnny Rockets is still only a mid-sized chain. Expect to see dozens more Johnny Rockets popping up in cities such as Chicago, where Fuller says a new franchisee plans 10 restaurants.

"We want to achieve critical mass in several major markets," he says.

*Disclosure: CBS owns BNET.com.