Casual Dining Banks on Hip Sips

Perking up coffee sales is the latest big push for quick-service chains, but at casual-dining restaurants, adult beverages are the best bet to boost profits.

By Allison Perlik, Senior Editor -- Restaurants & Institutions, 3/17/2008

Amid softening industry sales, record-high gas prices and escalating food costs, casual-dining chains are redoubling efforts in the one foodservice arena traditionally insulated from larger economic woes: cocktail sales. Given that alcoholic beverages account for an average of 21% of sales at full-service restaurants, according to the National Restaurant Association, it’s a sound strategy.

Fatz Cafe, a 42-unit regional chain based in Taylors, S.C., sees plenty of potential for growth. Beverage sales historically have represented only a small fraction of business for the company, so its new specialty drink lineup—highlighted in a standalone menu on every table—could make a big impact.

“We wanted to catch up with our competition and offer our guests something a little better,” says Eric Holman, vice president of concept and menu development.

Regional flair differentiates additions such as The Peach Shed (vodka with cranberry and peach mixers) and Kiawah Cooler (rum with peach, pineapple and pomegranate). Eye-catching garnishes are another component, with berries, peaches and fresh mint making appearances along with flavored-sugar rims. To better showcase the upgraded offerings, Fatz Cafe invested in four new glassware designs.

“It was an expensive change, but one we felt was necessary to make the impact we wanted to make,” Holman says.

Drinks that Make a Difference

For Scottsdale, Ariz.-based P.F. Chang’s China Bistro, where beverages comprise about 25% of sales, a new crop of signature cocktails will help expand the brand’s identity in consumers’ minds, says Beverage Director Mary Melton.

“I would always love to see more sales, but it’s more about keeping contemporary and being a trend setter,” she says.

The dozen specialty drinks that will debut at the upscale-casual chain in June all offer twists on back-in-style classic cocktails. Several of the new choices also reflect greater emphasis on fresh-squeezed juices, including the Plum Collins (a play on the Tom Collins with plum-flavored vodka and orange, lemon and lime juices) and Chinese 88 (a reimagined French 75 with gin, brut champagne and lemon juice).

Prices between $7 and $9 also could prove a draw for customers facing double-digit price tags for drinks at other restaurants and bars, Melton notes.

“Even in a slow economy, people still want to sit down and have a drink. That’s where these drinks and our pricing will be even more of a value, because customers know they can come in and still get trendy drinks but not be gouged,” she says.

Besides the focus on classic drinks, P.F. Chang’s new lineup also reflects a shift away from vodka-dominated lists. Bourbon, rum and gin figure prominently in the new recipes, among them the bourbon-based Yuzu Old Fashioned and gin-based Ming Sling. The chain also will offer customers greater variety in spirit brands, including some premium selections, Melton says.

Expanded spirits choices also figure into the new beverage menu recently launched at Nashville, Tenn.-based O’Charley’s. Premium brands now are the basis for all the chain’s signature cocktails, including the popular Strawberry Lemonade with vodka and fresh-squeezed lemon juice. Meanwhile, the overhauled margarita program features a greater number of tequilas, new glassware and a proprietary mix developed especially for O’Charley’s.

“We put a lot of passion behind our food, and now we’re truly understanding that we need to apply that same passion to our beverage program,” says Corporate Director of Beverage Operations Stuart Melia.

Besides the high-impact ideas illustrated in the above programs, chains ready for their own beverage-menu makeovers should keep in mind these additional trends to watch:

•Sangria is red-hot. Greenwood, Colo.-based Red Robin is touting Sunset Sangria and So Peachy Sangria in a spring limited-time offer, while Dallas-based Romano’s Macaroni Grill added the White Peach Sangria Martini with peach vodka, chardonnay and lemon-lime soda. Lubbock, Texas-based Abuelo’s Mexican Food Embassy gets creative with two popular tastes, mixing frozen sangria with frozen margarita in the Sangria Swirl.

•Tableside service turns heads. At Bugaboo Creek Steak House, new pear margaritas with pear-infused tequila, pear liqueur and sweet-and-sour mix are shaken tableside and served on the rocks in tangerine sugar-rimmed glasses. Plano, Texas-based Bennigan’s Grill & Tavern presents its Tilted Tea and Juicy Rita cocktails in custom-made shakers.

•Seasonal drinks score big. Red Robin’s Mandarin Cream Lemonade dosed with vanilla and mandarin syrups welcomes diners to warm weather, while the Wild Maine Blueberry Mojito from Boston-based Bugaboo Creek Steak House evokes the lazy days of summer.

•Pomegranate is still in demand. Dallas-based Romano’s Macaroni Grill introduced a pomegranate martini with citrus-flavored vodka and orange liqueur, while new choices at Fatz Cafe include Pomegranate Passion, a blend of vodka and pomegranate juice.

•Make alcohol-free an option, too. Glendale, Calif.-based IHOP got creative with a recent menu-themed menu promotion and designed the Beezlenut Splash, a blend of lemon-lime soda with cubes of floating cherry- and berry-flavored gelatin.