Nation's Restaurant News

Del Frisco’s Grille eyes expansion

Del Frisco’s Restaurant Group has opened the second unit of its smaller, more casual Del Frisco’s Grille in Dallas.

The company opened the first unit of the concept in New York in August, and divulged plans for additional Grille restaurants in Phoenix and Washington, D.C.

Mark S. Mednansky, chief executive of the Southlake, Texas-based company, said Del Frisco’s is nearing leases for the Grille in at least one additional city. The company is also considering offering breakfast in the Washington location and plans to offer weekend brunch, a first for the steakhouse operator.

“In D.C. we’re going to do morning. We think this will be the first time we do breakfast,” Mednansky said. “There’s a need for a great power breakfast in D.C. where we’re going. So we’re going to have breakfast, we’re going to have brunch, lunch, dinner and late-night. With this brand, I think we’re going to experiment with a whole bunch of dayparts.”

In Dallas, the 8,100-square-foot restaurant seats about 230 on two levels, each with its own bar, Mednansky said. The two bars distinguish the restaurant from the original, which opened in New York City’s Rockefeller Center.

“We’re going to stay with two bars, but in Phoenix, we’re going upstairs. We’re going to do a rooftop bar,” Mednansky told Nation’s Restaurant News on the Dallas unit’s opening day.

Watch a video of Mark Mednansky talking about the new unit; story continues below

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The Phoenix location will have about 7,900 square feet and the Washington unit will have about 8,000 square feet, he said. The Grille will seat 220 to 230 customers.

“We think the perfect size for this concept is right around 7,500 to 8,500 square feet,” Mednansky said. “That’s about half the size of Del Frisco’s, so that really opens the world for us. Right now we have signed deals for D.C. — an incredible site on Pennsylvania Avenue, just down from the White House, and in Phoenix, Ariz., at 24th Street and Camelback.”

Mednansky said the concept is evolving, but that it complements the company’s nine Del Frisco’s Double Eagle Steakhouses and 20 Sullivan’s Steakhouses well.

“We think we are going to fit the same guest that goes to Del Frisco’s here at the Grille. This is on their off night. People come join us for a business dinner. They come join us for a birthday or anniversary. Tuesday, Wednesday or Thursday night when they were going to a Houston’s or a P.F. Chang’s, now they can come to the Grille,” he said.

“They are still coming to part of the family. They are still getting Del Frisco’s quality. They are still getting our great hospitality, but at a lower price point. This could be the minor leagues, in a way, while the food is spectacular and the service is spectacular, you build up until you get to the big house at Del Frisco’s.”

The New York unit offers 700 wines, including 22 by the glass, as well as beer on tap.

“We really want people to have a bottle of wine with dinner,” he said, adding that he hopes the Grille will be “wine-centric.”

Wine sales have pushed check averages past the $60 to $65 that were originally anticipated at the New York location, he added. A Del Frisco’s steakhouse has a typical check average of about $110.

Contact Ron Ruggless at ronald.ruggless@penton.com.
Follow him on Twitter: @RonRuggless
 


Krispy Kreme names Kenneth May president, COO

Krispy Kreme Doughnuts Inc. said Monday it has named former FedEx executive Kenneth A. May president and chief operating officer.

May will report to chief executive James H. Morgan and will assume responsibility for all of Krispy Kreme’s operating segments, which include restaurants and retail, both company-owned and franchised. Morgan had served as Krispy Kreme’s president since 2008.

A company spokesman for the Winston-Salem, N.C.-based Krispy Kreme said Morgan and the senior management team created the president/COO role after identifying a need for the position to focus on the company’s operating segments on a daily basis.

“There was considerable interest in this opportunity, and it was critical that we seek out someone with a unique combination of big brand experience, retail customer engagement, proficiency in delivering quality products and services, an understanding of complex logistical operations, and familiarity with both domestic and international operations,” Morgan said in a statement. “We were able to find all of those qualifications in Ken May.”

May has more than 25 years of operational, retail, supply chain and brand experience, the company said. He most recently served as president of ES3, a logistics company focused on supply chain operations for manufacturers and retailers. He previously served as president and chief executive of FedEx Kinko’s Office and Print Centers, and led the merger of Kinko’s and FedEx. Prior to that role, he held positions at FedEx including senior vice president of U.S. operations for FedEx Express.

May was formerly a board member of P.F. Chang’s China Bistro Inc. and the national chairman of the board for the March of Dimes in 2010.

“Being invited to join Krispy Kreme and be a part of taking this iconic brand to the next level is a once-in-a-lifetime opportunity,” May said. “I am delighted to be here, and look forward to contributing to Krispy Kreme’s ongoing success and development.”

Krispy Kreme operates or franchises more than 675 units in 21 countries. It booked $362 million in annual revenue for its latest year ended Jan. 30, compared with $346.5 million in the previous year. The company also swung to a profit in its latest year, booking net income of $7.6 million compared with a net loss of $157,000 in the prior fiscal year.

Contact Marcella Veneziale at marcella.veneziale@penton.com.
 


Yum inks deal with gas stations in China

Yum! Brands Inc. has struck a deal with China Petroleum & Chemical Corp. that will allow additional restaurant openings for KFC, Pizza Hut and Yum’s proprietary East Dawning brand in Sinopec gas stations.

Yum currently has seven restaurants located in Sinopec stations in Shanghai, Shandong, Fujian, Guangdong and Shenzhen. The deal would allow the Louisville, Ky.-based company to open 50 more restaurants in Chinese gas stations over the next five years. There are more than 30,000 Sinopec stations in China, and Yum has more than 4,000 restaurants in that country, mostly KFC units as well as Pizza Hut Delivery and Pizza Hut Casual Dining.

“The cooperation between Yum! and Sinopec will propel the development of a new commercial service model in gas stations and expressway service stations,” Mark Chu, president of Yum’s China division, said in a statement. “Different from previous cooperative models, the collaboration between Yum and Sinopec is a flexible and diversified framework agreement open to our various brands. Yum will select appropriate brands for different gas stations according to their unique features, so that the newly-built restaurants can meet the needs of Sinopec locations.”

In addition to locations of its American brands and the East Dawning quick-service concept, Yum’s China division also owns a stake in the 480-unit Little Sheep casual-dining brand, which specializes in “hot pot” cuisine. Yum submitted a formal bid to acquire Little Sheep from its founders for $682 million on May 13, and Chinese regulators approved the bid Nov. 8.

China has been the strongest performing division of Yum Brands’ portfolio for the past several years. For the Sept. 3-ended third quarter, same-store sales in the country rose 19 percent, compared with a 2-percent decline for Yum’s restaurants in the United States.

Yum operates or franchises more than 38,000 locations of KFC, Pizza Hut and Taco Bell in the United States and more than 100 countries.

Contact Mark Brandau at mark.brandau@penton.com.
Follow him on Twitter: @Mark_from_NRN


Mint refreshes restaurants’ holiday menus

Mint, cool and refreshing, might seem like a flavor that would be appropriate for the summer. But as restaurants prepare for the December holidays, many are turning to mint as a perennial winter favorite.

The offerings include a Peppermint Chocolate Chip Milkshake from Chick-fil-A, which the quick-service chain is selling for the third year in a row, and the return of Dunkin’ Donuts’ Peppermint Mocha Coffee and Latte. Yogurtland, a 160-unit frozen-yogurt chain based in Anaheim, Calif., brought back its Snowflake Mint flavor for November.

In addition, IHOP debuted White Chocolate Chip Mint Pancakes as part of its seasonal holiday offerings, and McDonald’s introduced for the first time limited-time seasonal drinks to its McCafé line: Peppermint Mocha and Peppermint Hot Chocolate.

Watch a commercial for the new McCafé beverages; story continues below

Beverages now represent more than 20 percent of sales at U.S. McDonald’s units, “so it’s becoming increasingly important to add new and unique beverage options to the McDonald’s menu,” said Marta Fearon, McCafé marketing director for McDonald’s USA, in a release.

“With the introduction of the decadent Peppermint Mocha and Peppermint Hot Chocolate, we are pleased to provide customers with a flavorful taste experience that is perfect for the holiday season,” she added.

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Independent restaurants also are serving minty desserts this season.

Jasper’s Corner Tap & Kitchen in San Francisco recently added chocolate profiteroles served with peppermint mousse and hot fudge fondue to its menu.

De Santos in New York City is drizzling peppermint syrup on mixed berries, which are then covered with mascarpone cheese and browned in the oven.

Dennis Marron, the new chef at Poste Moderne Brasserie in Washington, D.C., is serving a chocolate-mint torte with blood orange crème fraîche ice cream.

• Salt & Straw, an ice cream shop in Portland, Ore., has made mint not just seasonal, but local, by using Oregon mint oil sold at the local farmers market in its Peppermint Cocoa ice cream, which also is made from locally processed chocolate and crushed hand-made peppermint candies.

Mint is appearing on the savory side of menus, too, including the following dishes:

• Chicken posole with tomatillos, mint and serrano chiles, La Sandia Mexican Kitchen & Tequila Bar, Santa Monica, Calif.

• Roasted sardines with root vegetable giardiniera, breadcrumbs, hot peppers and mint, BiNA Osteria, Boston

• Grilled lamb sirloin with artichokes, green beans, mint and Ligurian olives, Tulio, Seattle

• Slow-braised lamb ragù with taggiasche black olives, pecorino and mint, Culina, Los Angeles

• Thai shrimp and chorizo lettuce wrap tossed with sweet chile, mint, cilantro and green onion, served with mint and tamarind chutneys,s Zengo, Denver

Technically, mint isn’t a flavor sensation at all, but a feeling, as our sense of touch detects mint. We feel it in our mouths, similarly to how we feel the spiciness of hot peppers. Why that sensation appeals as temperatures drop is unclear.

Contact Bret Thorn at bret.thorn@penton.com.
Follow him on Twitter: @foodwriterdiary
 


Minibar.ber.shop blends salon, restaurant concepts

Evan Musikantow is betting that people will be more likely to go for a haircut when they can also grab a hot panini and a beer at the salon.

Musikantow, a longtime franchise developer of Applebee’s restaurants, launched last month minibar.ber.shop, a new hybrid concept in Scottsdale, Ariz., where customers can do just that.

The bar and restaurant/barbershop is designed to eventually become a franchise model, said Musikantow, chief operating officer of the Scottsdale-based mini group of companies, which will operate the brand.

“There’s a real niche,” he said. “No one has successfully franchised a good barbershop or done it with something exciting.”

Using the tagline “Get Buzzed, $20 haircuts, $2 beers,” minibar.ber.shop was designed to appeal to men, but it appears to have struck a chord with women as well, Musikantow said.

He described the concept as “the Mondrian or Delano hotel meets the barbershop.”

The 3,300-square-foot location is sleek and modern with a clean black-and-white décor.

The bar/restaurant is separated from the barbershop by a glass wall that looks into a retail area, where the shop sells men’s grooming products.

The 40-seat restaurant, which serves breakfast, lunch and dinner, has no kitchen. All food is prepared off site by a local French restaurant and delivered fresh daily.

Guests can order a selection of sandwiches that are grilled to order or served cold. Other options include bar snacks — hummus, spinach dip, bruschetta — various salads, a fruit and cheese plate, and desserts and pastries.

The bar offers a wide selection of wine, beer, sake and champagne. Coffee and sodas are also available.

The average check with beverages is about $10.

Tucked in the back is a VIP room where guests can bring a group “Entourage style” for a pre-wedding stag party or a Sunday watching football, drinking beer and getting haircuts.

The venue was created with a top-notch sound system for deejayed events or parties.

On the barbershop side, the menu of services plays off the bar aspect. “A shot,” for example, includes a haircut, hot-towel neck shave and eyebrow trim. “A double” is a cut with shampoo, hot-towel neck shave and eyebrow trim.

Musikantow said the margin potential is about 50 percent on both sides of the business, “so long as you don’t overstaff.” The restaurant side can be run with as few as four to six employees, he said.

The mini group has signed deals to open four more minibar.ber.shop units before the end of the fourth quarter this year, with two more scheduled to open in the first quarter of 2012.

The simplified model makes it ideal for franchising, he added.

Musikantow developed the concept because he was looking for something new to get excited about as Applebee’s development slowed.

“People walk in and they’re blown away,” he said. “Why does it have to be a chore to get your hair cut?”

Contact Lisa Jennings at lisa.jennings@penton.com.
Follow her on Twitter: @livetodineout
 


Restaurants expand gift card offerings

With holiday shoppers spending more than expected over the Thanksgiving and Black Friday weekend, restaurant brands are looking to get their fair share by pushing gift card sales with bonuses for buyers and other incentives throughout the season.

An estimated 212 million shoppers spent about $45 billion in stores and online over Black Friday weekend, which was well above the spending tallied last year, according to a National Retail Federation survey. This year, shoppers spent an estimated $365.30 on average over the long weekend, up from last year’s estimate of $343.30.

EARLIER: Restaurant deals target Black Friday shoppers

“As retailers look ahead to the first few weeks of December, it will be important for them to keep momentum going with savings and incentives that holiday shoppers simply can’t pass up,” Matthew Shay, NRF president and chief executive, said.

Among restaurants, such deals have included gift card incentives that reward the buyer, a move that Hudson Riehle, senior vice president of the National Restaurant Association’s research and knowledge group, said “makes perfect sense in this slow-growth economy.”

The NRA estimates that three out of four consumers say they would like to receive a restaurant gift card or certificate.

“When you look at the potential list of gifts,” Riehle said, “restaurant gift cards are usually on the top of the list or among the top two or three choices.”

It’s a gift that also taps into pent-up demand for dining out, something consumers say they still aren’t doing as much as they would like, he said.

This year, many restaurants are offering the opportunity for prizes, bonus gift cards for buyers and even inviting customers to custom-design cards with personal images or messages, as well as specific holiday greetings. Others are looking to use gift cards sales to support charities.

OSI Restaurant Partners, for example, is offering a free $20 Bonus Card for every $100 gift card purchase through Dec. 31 for use at any of the company’s brands: Outback Steakhouse, Carrabba’s Italian Grill, Bonefish Grill, Fleming’s Prime Steakhouse & Wine Bar and Roy’s Hawaiian Fusion Cuisine.

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In addition, Bonefish Grill is inviting guests to register their bonus cards for a chance to win prizes during “Twelve Days of Happiness” from Dec. 13 through Dec. 24. Each day, every restaurant will award a $50 certificate for a dinner for two. At the end of the 12 days, one grand prize winner will receive a $5,000 American Express gift card, and another first prize winner will receive one worth $1,000.

The more than 100-unit Pollo Tropical chain, based in Miami, is offering Smart Cards featuring 10 offers available at the chain’s restaurants, such as two-for-one deals or $3 off a family meal. Approved charities or fundraising non-profit groups can sell the cards for $1 and keep all the proceeds for their cause.

The chain is also offering $5 certificate discounts for every $25 gift card purchased. For every $50 gift card, the chain is offering a $10 complimentary certificate.

Those who purchase gift cards, however, should note that while the gift cards themselves typically don’t have expiration dates, the bonus cards and discounts offered as incentives usually do.

Additional restaurant gift card offers this year:

T.G.I. Friday’s is offering a $5 “Bonus Bite” card for every $25 gift card purchased and guests in the restaurants have a chance to win daily and weekly Best Buy Reward Zone points toward merchandise at the electronics store.

Chili’s Grill & Bar is offering savings on gift card purchases. Through Dec. 28, guests that buy $100 or more in gift cards will receive 10 percent off their entire gift card purchase. Guests can custom-design their cards or choose one that is gingerbread scented.

IHOP is offering a $5 coupon for a future visit to those who purchase a $25 gift card in restaurants through Jan. 1.

Applebee’s is offering a free $10 bonus card with the purchase of $50 in gift cards in one of the chain’s restaurants through Dec. 31.

• For every $25 gift card purchased at The Cheesecake Factory through Dec. 24, guests can receive a “Slice of Joy” card valid for one free slice of cheesecake. Sister brand Grand Lux Café is offering a $5 card for the purchase of a $25 in gift cards.

• At Chipotle Mexican Grill through Dec. 31, guest that buy at least $30 worth of gift cards at one of the chain’s restaurants can bring their receipt the next time they visit and get a free burrito, burrito bowl, salad or order of tacos.

Morton’s The Steakhouse is offering guests a $100 gift card for the purchase of $500 in gift cards, or a $50 gift card with a $300 gift card buy, available online or in restaurants, through Dec. 24.

• Guests that buy $50 in gift cards at Islands Restaurants through Dec. 24 receive $10 toward their next visit.

King’s Seafood House is offering a free $20 gift certificate for use in 2012 for every $100 gift card purchased through Dec. 27. The offer is also available at the company’s 555 East Steakhouse, Ocean Avenue Seafood and Water Grill locations.

Contact Lisa Jennings at lisa.jennings@penton.com.
Follow her on Twitter: @livetodineout
 



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