R&I Insider - July 15, 2006
By The Editors
No Bones About It
Darden Restaurants has cooled on what was one of R&I’s Top 400’s hottest concepts. The Orlando-based company says it intends to “refocus” Smokey Bones Barbeque & Grill, including replacing much of its barbecue-focused menu and possibly changing the concept’s name.
Darden President and Chief Operating Officer Drew Madsen told investors during a conference call last month that the restaurant’s barbecued ribs will remain on the menu, but much else will change. “Smokey Bones’ position is too narrow, making it relevant for too few occasions,” Madsen said, according to a transcript of the call on Darden’s Web site. “When guests scale back their casual dining visits to core occasions, Smokey Bones is too often not in the consideration set.”
During Darden’s 2005 fiscal year (ended in May 2005) Smokey Bones’ sales increased 55%, but same-store sales in recently ended fiscal 2006 were down 3.7% for the concept, and average unit volumes dipped to $2.9 million from $3.1 million in fiscal 2005. Red Lobster same-store sales increased 4.9% in fiscal 2006 and Olive Garden and Bahama Breeze had increases of 5.5% and 1.7% respectively.
Madsen says that for the last six months, Darden has been developing a new menu for the chain, which it will test in several locations beginning in the second quarter of fiscal year 2007. Darden opened 22 Smokey Bones restaurants during fiscal 2006, but plans on opening only five during the current fiscal year, Madsen says. Darden will open two more Seasons 52 locations this year, both in Atlanta.
‘May I Suggest a Lively Cola?’
Suggestions for pairing foods with wines are commonly offered and increasingly, restaurants are making similar suggestions for beer. The Culinary Institute of America and a soft-drink manufacturer think it’s time to give similar attention to soft drinks and the menu.
“We’re taking a look at traditional beverages and what flavors work well with different kinds of foods,” says Ron DeSantis, CIA director of industry solutions. The program shows operators how to create new combinations with inventory already on hand. “This brings the restaurant experience to the next level,” explains Victor Gielisse, associate vice president of the CIA’s industry solutions group.
Oklahoma City-based Sonic Drive-In thinks its patrons are ready for such beverage guidance; it presently promotes sandwiches with appropriate drinks. “Last year, we paired our Tuscan Chicken Sandwich with Cherry Light Lemonade,” says Todd Townsend, chief marketing officer. “It was very popular.” This spring, BLT were matched with iced tea.
“It’s likely some chains will have drink specialists,” DeSantis offers. “A lot has to do with training about flavors and the types of foods and drinks that go with them. It’s not just about soda.”
Menu Focus
Earning their keep on menus as more than vegetarian-friendly must-haves, sturdy portobello mushrooms beef up a savory array of entrées, sandwiches, pastas and pizzas at Top 400 chain tables.
ATLANTA
LongHorn Steakhouse: Blue-cheese crusted filet topped with melted blue cheese and served atop a marinated, grilled portobello mushroom
BOSTON
Au Bon Pain: Roasted portobello mushrooms topped with goat cheese, tomato and arugula with artichoke aioli on sun-dried-tomato bread
CONCORD, CALIF.
Round Table Pizza: Veggie Supreme (artichoke hearts, zucchini, spinach, portobello mushrooms, Roma tomatoes, onions, Italian herb seasoning and garlic with a three-cheese blend in Creamy Garlic Sauce)
LOS ANGELES
California Pizza Kitchen: Mediterranean Tortilla Spring Rolls (grilled portobello mushrooms, grilled Japanese eggplant, sun-dried tomatoes with caramelized onions and fontina, mozzarella and Parmesan cheeses)
ORLANDO, FLA.
Smokey Bones Barbeque & Grill: Herb-grilled chicken breast served over portobello mushroom cap stuffed with feta cheese and spinach-artichoke dip, garnished with diced tomatoes (shown)
Trans-Fat Freedom
While “trans fat-free” isn’t something consumers are asking for, some chains are removing the hydrogenated vegetable fat from their offerings as a preemptive strike. “We felt that there was a buzz going on about trans fats,” says John Wright, CEO for San Diego-based Pat & Oscar’s, which introduced a menu free of trans fats in June. “It was something we didn’t want to have a conversation about.”
Likewise, Calabasas Hills, Calif.-based The Cheesecake Factory eliminated trans fats from its savory menu in May. “We always stay ahead of the curve,” explains Howard Gordon, senior vice president of business development and marketing. Other chains that have publicized efforts to curb use of trans fats include Richmond Heights, Mo.-based Panera Bread, which rid its menu of trans fats in February and Dublin, Ohio-based Wendy’s, which plans to switch to a new frying oil by August.
According to a recent survey by Port Washington, N.Y.-based consultancy The NPD Group, consumers remain ambiguous about trans fats when dining out. Wright admits that demand for Pat & Oscar’s trans fat-free items wasn’t overwhelming. And certain products, particularly baked goods, are more difficult to change than others. “We haven’t eliminated trans fats in our cheesecakes,” says Gordon. “We’re looking at that, but it’s a much harder process.”
Table Turns
Ed Choe (r.) was named to the newly created position of executive vice president of restaurant services at Wendy’s International Inc. in Dublin, Ohio. Previously senior vice president of Wendy’s Northeast region, Choe will oversee corporate and field departments that support store operations. ... Gregory Casale joined Phoenix-based Paradise Bakery and Cafe as executive chef. A graduate of The Culinary Institute of America, Casale has worked at New York City’s Ivy Award-winning River Café as well as at other restaurants. ... Grill Concepts Inc. in Los Angeles, parent of the Daily Grill chain, named Wayne Lipschitz vice president and chief financial officer. He succeeds Philip Gay, recently promoted to chief executive officer. ... Anne Varano, senior vice president of human resources and communication for Carrollton, Texas-based Carlson Restaurants Worldwide, was named Best Human Resources Executive of the Year at the American Business Awards presentation in June. Carlson owns the T.G.I. Friday’s and Pick Up Stix chains. ... Arthur Rubinfeld joined Chicago-based Potbelly Sandwich Works Inc. as executive vice president of corporate strategy and chief development officer. He spent 10 years as chief development officer at Starbucks Coffee Co. Also new at Potbelly is Jayson Tripp, who joined as vice president of store development and analytics. He, too, is a Starbucks veteran, having served there as director of portfolio strategy.
Hog Wild
Pork doesn’t often net much real estate on chain menus beyond barbecued ribs, but the other white meat’s appeal is growing as higher domestic supplies push down prices. Looking to capitalize are several of R&I’s Top 400 chains that have added new, pork-based items to menus.
Pompano Beach, Fla.-based Roadhouse Grill took a creative approach with a limited-time appetizer of four meaty, bone-in Pork Wings accompanied by the chain’s “kickin’ wing sauce.” Center-plate pork dishes take on upscale trappings at Minneapolis-based Buca di Beppo and Houston-based Luby’s. In Buca’s Porchetta Rustica, a “rustic” red wine sauce with balsamic vinegar, blueberries, capers and hazelnuts blankets slices of herb-roasted loin, while Luby’s Grilled Caribbean Pork (top) offers pan-grilled, Jamaican spice-rubbed boneless chops garnished with oven-roasted sweet peppers.
Honey-wheat rolls (bottom) carry smoked pork spiked with poblano peppers, sautéed onions, buffalo barbecue sauce and melted Cheddar cheese, at Woburn, Mass.-based Ninety Nine Restaurant and Pub, while Calabasas Hills, Calif.-based The Cheesecake Factory’s B.B.Q. Pulled Pork Sandwich piles pulled, roasted pork tenderloin atop brioche buns. Louisville, Colo.-based Old Chicago offers Chipotle BBQ Pork Calzones with yellow peppers, onions, cheese, fresh basil and red-pepper ranch for dipping.
In the Fun Zone
Family-dining stalwart Denny’s is shooting for the stars with a new, outer-space-themed kids menu offering moon- and star-shaped chicken nuggets and pancakes fashioned into aliens. Dubbed the D-Zone, the program appeals to young diners’ sense of fun while appeasing parents with healthful additions such as fruit medleys, applesauce and baked snack crackers.
The June menu update came on the heels of a recent study from Stamford, Conn.-based market researcher Just Kid Inc. identifying key attributes that make food fun for children aged 2 to 12: different shapes and colors; ability to eat with their fingers; dipping or scooping; and adding their extras such as sprinkles, sauces or toppings. “Encouraging fun, family interaction and providing children with nutritional food options have always been top priorities for us,” says Peter Gibbons, vice president of product development for Spartanburg, S.C.-based Denny’s.
Continuing the trend of more-healthful menu options aimed at younger diners, in April Dublin, Ohio-based Wendy’s boosted Kids’ Meal choices with low-fat yogurt and granola cups (shown) and two deli sandwiches, roasted turkey breast with cheese and Black Forest ham with cheese. In February, Atlanta-based Arby’s began offering Market Fresh Mini Ham & Cheese and Turkey & Cheese Sandwiches on crustless honey-wheat bread, along with fruit cups containing red seedless grapes and diced apples, in its updated Kids’ Meals.
Step Right Up: BR’s New Look
Its iconic “31” is hidden within the new logo, but everything else about Baskin-Robbins’ new store design is intended to make core elements of its brand—especially its 31 ice cream flavors—more visible. After testing the look in Las Vegas for nearly a year, Baskin-Robbins has begun remodeling units to take on the new look, and all newly constructed stores will incorporate the design features. Included are a centrally located “sundae station”—which in larger stores will have bar-style seating so customers can watch treats being prepared—and lower dipping cabinets with step-up rails so small children can better contemplate their choices.
“We’ve had several years of virtually no brand development while we focused on co-branding with Dunkin’ Donuts and Togo’s,” says Ken Kimmel, Baskin-Robbins brand officer at Canton, Mass.-based Dunkin’ Brands. “The new logo and design send a signal to the franchise community that we’re back in development mode and opening single-brand stores again, and it tells our customers that there’s something exciting going on in Baskin-Robbins. There’s no chance people won’t come into one of the remodeled stores and say, ‘Wow. This is different.’”
A new color scheme plays up the pink of its sampling spoons along with blue and butterscotch hues. As many as 250 domestic Baskin-Robbins locations will be remodeled this summer.
Sign In
When the Six Dollar Burger was introduced in 2001 at Carl’s Jr. and added later at Hardee’s, the $3.95 item was promoted as casual-dining quality at a quick-service price. Now, with upgraded service and décor throughout the system, parent CKE Restaurants has revamped logos for the brands. The identifiers continue to share the “Happy Star” icon that originated at Carl’s Jr. and later was incorporated in Hardee’s logo as the number of menu items common to both increased. In the revised logos, the star is less cartoonish and, says the Carpinteria, Calif.-based company, more in line with the upmarket positioning.
Both chains have adopted limited table service as part of the push to improve dining-experience quality and consumer brand perceptions. In tests, customers said the new logos “gave the impression that the overall dining experience would be better,” according to Brad Haley, CKE executive vice president of marketing. Upgrading of unit designs with interiors that swap more muted tones for primary colors continues and crews at both chains will be getting uniforms with similar colors.
Same-store sales at both Carl’s Jr. and Hardee’s were up 5.4% for the first half of 2006, which the company credits to new products, including Hardee’s Philly Cheesesteak Thickburger.