Cover Story: Economic Indicators
Co-Chairmen Paul Motenko and Jerry Hennessy have taken BJ’s Restaurants from a five-unit pizza-and-grill chain into a 38-unit multiconcept company that generates restaurant-level cash flow of 20 percent. The company has hired CEO Jerry Dietchle, former president of The Cheesecake Factory, to manage the crucial operations and finance departments. BJ’s plans to add at least eight units this year and as many as 11 in 2006. Web Exclusive: One-on-one with BJ's Restaurants CEO Jerry Deitchle
Storyboard: Hometown Advantage
Fatz Cafe’s new TV ad campaign is designed to help solidify the growing brand’s image as a hometown casual-dining joint. The ads show scenes from the market where customers eat and live while underscoring the chain’s core values such as large portions and friendly service. Sales increased 3.9 percent when the first spots aired in January.
Restauratour: Mediterranean Makeover
Lettuce Entertain You has repackaged a Greek taverna into Osteria Via Stato, an Italian wine bar and trattoria. The low-key, minimal atmosphere allows the food to take center stage. Wide arches, farm-style wooden tables and displays of fresh produce help create a warm, rustic look.
Toque of the Town: Open Season
To target a younger demographic and families with children, Cracker Barrel is stretching beyond its comfort classics. Vice President of Product Development Mark Tanzer has developed seasonal menus that include more adventurous salads, fish selections and gourmet ingredients. Sales of the featured menus have been in the 10 to 16 percent range.
Liquid Measure: Caffeine High
Dunkin’ Donuts launched a line of espresso-based drinks in fall 2003 that has boosted sales and traffic. The program centers around a machine that delivers drinks quickly, consistently and at a low price point. Espresso now makes up 10 percent of sales, with coffee still accounting for 50 percent.
Brand Tactics: Inside Job
LaRosa’s Pizzeria has jump-started dining-room sales with a new look, menu and service style. The new approach has boosted its average check by $1.50 and increased unit volumes by at least $1 million. The goal is to grow sales from 2004’s $117 million to $250 million in 2010.
Growth Strategy: American Pie
Canada-based Boston’s The Gourmet Pizza has saturated Canada with 200 units and expects to expand in the United States at a pace of 30 to 40 a year. CEO and President Jim Treliving is betting that the chain’s broad menu, combined sports bar and dining room, and franchising support will let it succeed south of the border.
Human Assets: Culture Club
Carlson Restaurants Worldwide makes diversity an essential component of its culture and business strategy. It incorporates diversity into hiring, training and development, and involves mentoring, measuring and accountability across all divisions. The company says its diversity strategy has helped reduce turnover.
