Established concepts aim to invigorate images, sales: the climate for full-service chains is anything but casual as the segment's prolonged sales slump forces mature concepts to adapt to new competitors and customer preferences

Nation's Restaurant News,  Nov 5, 2007  by Carolyn Walkup

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A franchisee of Sizzler in Las Vegas has under construction the first full-service variation of the 233-unit brand's grill concept, featuring table service and a full bar.

"It offers the potential opportunity to sell appetizers, desserts, full bar choices and increase guest check averages," says Todd Peterson, vice president of real estate and design for the Culver City, Calif.-based chain, which was founded in 1958.

The higher check average, which Peterson estimates would be $3 to $4 higher than the chain's $11.15 average at company stores, would offset additional labor costs, Peterson says, adding that the concept still would have a soup and salad bar.

Design of the new unit is much more contemporary than in the past and should cost between $1.3 million and $1.6 million to build, excluding cost of land, which Peterson says is comparable to the cost to build a traditional fast-casual unit. He does not yet know the estimated cost to remodel in the new look.

West Roxbury, Mass.-based Uno Chicago Grill recently unveiled in Swampscott, Mass., a new prototype featuring more upscale elements than traditional units, such as wine, lighter colors and finishes, flatscreen televisions, and a display kitchen. The prototype also boasts an updated version of Uno's menu with such new items as chicken Milanese, a spicy shrimp quesadilla, a rosemary chicken entree and a steak quesadilla made with Angus beef.

Frank Guidara, chief executive and president of the 200-unit chain, estimates that the prototype, which seats 185, will generate sales 20 percent to 40 percent higher than the chain's average unit volume of $2.3 million. A second such unit is scheduled to open in Winter Garden, Fla., in December, and the company plans to retrofit existing units with elements of the new design.

Uno also is preparing to debut two units of the new fast-casual concept, Uno Due Go, in the Dallas-Fort Worth airport in late March or April. The fast-casual concept, which gives Uno a vehicle to expand in on-site locations and food courts, will feature pizza, sandwiches and soups. The average per-person check is projected to be $6 to $8, Guidara said.

But while so many casual-dining chains are enthusiastically surging forward with their rebranding initiatives, they should guard against going overboard in their zeal to change, cautions WD Partners' Lombardi.

"They need to keep iconic elements to connect the old with the new without doing a complete redo," he says.

cwalkup@nrn.com

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