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Chicago Tribune
Chicago Tribune
Business
Greg Trotter

Freshii branching out into Chicago-area Target stores

Dec. 02--Fast-casual chain Freshii will open its eighth location within a Chicago-area Target store next week, part of a test between the two companies as Target looks to focus more on wellness.

For Freshii, the openings continue a rapid expansion of the chain, one that reflects the growing popularity of food that's considered both quick and healthy. "Why the partnership with Target is interesting is that it's a mass brand," said Freshii CEO Matthew Corrin. "It allows us to bring health and wellness to the masses."

For Target, replacing the existing in-store "Target cafes," which sold fare like popcorn, hot dogs and pizza, demonstrates an increased focus on wellness throughout the store in recent months, said Target spokeswoman Katie Boylan.

Both Corrin and Boylan stressed that the partnership was a test and declined to comment on the possibility of future expansion of Freshii within Target's 1,800 or so stores. Target also is testing Freshii in a Minneapolis store.

In Chicago, the two locations within city limits are in the Near North and South Loop neighborhoods. The suburban Targets with a Freshii are Glenview, Arlington Heights, Highland Park, Lombard and Hodgkins. A Willowbrook location will open next week.

Freshii, a privately held company with headquarters in Chicago and Toronto, will have about 30 locations in the Chicago area after the Willowbrook opening, Corrin said. In 2008, there was only one, he said.

In total, Freshii has 200 restaurants, about half of which are in the U.S., and that number is expected to double in 2016, Corrin said. The vast majority of Freshii restaurants, 96 percent, are franchisee-owned, he said.

Target CEO Brian Cornell, who was hired in August 2014, has accelerated the company's focus on health and wellness across departments, Boylan said. "This fits into that broader area of focus for us," Boylan said of the Freshii partnership.

In an interview last month with the Tribune, Cornell talked of the Minneapolis-based retail chain's efforts to regain footing in a shifting consumer landscape. For the third quarter, Target's sales rose 1.9 percent at existing stores, where traffic increased for the fourth consecutive quarter, prompting the company to raise its full-year 2015 profit outlook.

gtrotter@tribpub.com

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