Casual-dining chains ramp up discount deals and giveaways
For the most recent quarters
reported as of July 15, chains with
declining same-store sales and the
fall-off amounts included Ninety
Nine Restaurant & Pub, 4. 5 percent; Bonefish Grill, 10 percent;
McCormick & Schmick’s Seafood
Restaurants, 13. 9 percent; Fleming’s Prime Steakhouse & Wine
Bar, 19. 9 percent; and Morton’s
the Steakhouse, 24. 1 percent.
Chicago-based Morton’s earlier this month closed units in Minneapolis, Westchester, Ill., and
Southfield, Mich., leaving it 71
U.S. restaurants. McCormick &
Schmick’s of Portland, Ore., said recently it would open just two new
restaurants in fiscal 2009, versus
the 10 and 16 net new units it added
in 2008 and 2007, respectively.
Mimi’s Cafe of Tustin, Calif.,
which had a 7.2-percent dip in
same-store sales in fiscal 2009
ended in April, said it, too, would
open just two restaurants this
year. It added 10 to 17 net units in
each of the four previous years.
Even the Second 100 casual-dining operators doing relatively
well in the downturn are hustling
to maintain unit averages, including segment sales leader BJ’s
Restaurant & Brewery.
Huntington Beach, Calif.-based
BJ’s, for the first quarter ended
March 23, said comparable-restau-rant sales decreased 0.1 percent,
compared with flat sales a year
earlier. In June it revamped its
100-item menu with 20 new foods
and beverages, starting at $7.95,
including an appetizer flatbread
with basil and Italian sausage,
Thai shrimp lettuce wraps and
freshly muddled mojitos.
Uno Chicago Grill of Boston is
attempting seasonal menu magic
with a “Best of Summer Starring
Lobster” promotional lineup, including lobster sliders, priced in
some markets at two for $13.99 or
three for $18.99, and lobster
wraps, $17.49.
Contests and promotions that
drive consumers to chain websites,
where they may be pitched loyalty
or e-mail marketing program
memberships, gift cards and merchandise, are on the rise, and recently included the “Crabs Up For
Grabs” giveaway by Joe’s Crab
Shack of Houston.
Many chains, including Claim
Jumper and On The Border Mexican Grill & Cantina, are promoting menu specials and bar and patio “happy hours” with discounted
foods and drinks that often last
from 3 p.m. to 7 p.m. and, in some
cases, resume after traditional
evening meal periods.
Joe’s Crab Shack of
Houston recently ran
a “Crabs Up For Grabs”
giveaway on its website.
Claim Jumper of
Irvine, Calif., is offering
lower summer pricing
for select menu items,
such as its Lemon Bar
Brûlée dessert, now
$6.50, down from its regular price of $7.95.
Dallas-based On the
Border recently had a “Create Your
Own Combo” special that permits
guests to pick two menu items, such
as a ground-beef taco and chicken
enchilada, to be served with rice
and beans for $6.99, down from
$11.29 at some locations.
Meal deals ranging from $7 to
$12 have been common within the
segment. Examples include an offer
of a burger, fries and a piece of pie for
$7.99 by Marie Callender’s Restaurant & Bakery of Aliso Viejo, Calif.
Among its traffic builders, Chevys
Fresh Mex of Cypress, Calif., has a
“Kids Eat Free” Tuesday deal at
most units requiring parents to buy
a regular priced entrée.
Some chains are trying limited
repositioning plays.
Morton’s, although known for
steaks, is branding its lounges as
“Bar 12-21,” where it offers such
cheaper fare as burgers and sliders. Competitor Fleming’s, stopping short of branding its lounge,
has a “ 5 for $6 ’til 7” p.m. promotion featuring five cocktails, five
wines by the glass and five appetizers for $6. In June, Fleming’s
added in the bar sirloin burgers,
which also will be offered as part
of a new, larger burger line in the
dining room come September.
“It’s a tough economy, and our
guests want value,” said Russell
Skall, executive chef for Newport
Beach, Calif.-based Fleming’s. “We
know that, so we’re going to try to
[offer] that and try to stay ahead
of the competition.” ■
Elissa Elan contributed to this
story.
©2009 Kronos Incorporated
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