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Red Lobster fires up $10.5M wood-grill line

Red Lobster fires up $10.5M wood-grill line

ORLANDO Fla. —Red Lobster, in a bid to heat up sales gone cold and spark customer interest, has installed wood-fire grills in all of its 680 units, part of an ongoing plan to boost the chain’s number of food offerings and present lighter, more healthful fare.

Red Lobster’s “Wood-Fire Grill” promotion, which was set to debut Nov. 11 at a cost of $10.5 million, comes as the economic slowdown continues to wreak havoc on much of the restaurant industry, prompting several companies to explore ways to revitalize their brands and differentiate themselves from competitors. —Red Lobster, in a bid to heat up sales gone cold and spark customer interest, has installed wood-fire grills in all of its 680 units, part of an ongoing plan to boost the chain’s number of food offerings and present lighter, more healthful fare.

Although Darden Restaurants Inc., Orlando-based parent of the Red Lobster, Olive Garden, LongHorn Steakhouse and Capital Grille chains, among others, had been faring better financially than many of its casual-dining peers, one industry analyst recently projected that the company’s fortunes were set to reverse. —Red Lobster, in a bid to heat up sales gone cold and spark customer interest, has installed wood-fire grills in all of its 680 units, part of an ongoing plan to boost the chain’s number of food offerings and present lighter, more healthful fare.

John Ivankoe of J.P. Morgan said Nov. 5 that he expects Darden’s blended domestic same-store sales to decrease 3.7 percent for the remainder of the company’s fiscal year, which ends next May. He previously forecast a same-store uptick of 0.08 percent. —Red Lobster, in a bid to heat up sales gone cold and spark customer interest, has installed wood-fire grills in all of its 680 units, part of an ongoing plan to boost the chain’s number of food offerings and present lighter, more healthful fare.

Ivankoe also lowered his earnings forecast for Darden for the fiscal year to $2.05 per share, from a $2.74 per share. He noted that nearly all casual-dining companies have been experiencing declining sales and earnings. —Red Lobster, in a bid to heat up sales gone cold and spark customer interest, has installed wood-fire grills in all of its 680 units, part of an ongoing plan to boost the chain’s number of food offerings and present lighter, more healthful fare.

Darden in September said it expected combined domestic same-store sales for Red Lobster, Olive Garden and LongHorn for the fiscal year to range from flat to up 1 percent compared with a year earlier. —Red Lobster, in a bid to heat up sales gone cold and spark customer interest, has installed wood-fire grills in all of its 680 units, part of an ongoing plan to boost the chain’s number of food offerings and present lighter, more healthful fare.

For the three months ended Aug. 24, Red Lobster’s same-store sales and guest counts fell 3.7 percent and 5.6 percent, respectively. —Red Lobster, in a bid to heat up sales gone cold and spark customer interest, has installed wood-fire grills in all of its 680 units, part of an ongoing plan to boost the chain’s number of food offerings and present lighter, more healthful fare.

As part of the grill initiative, Red Lobster would train 3,500 staff members so that each branch in North America would have four to five certified “grill masters.” Darden’s investment includes $2.5 million for equipment an$8 million for advertising, spokeswoman Wendy Spirduso said. —Red Lobster, in a bid to heat up sales gone cold and spark customer interest, has installed wood-fire grills in all of its 680 units, part of an ongoing plan to boost the chain’s number of food offerings and present lighter, more healthful fare.

“We are working to introduce new guests and core guests to our culinary expertise,” she explained. “We know we have to stay relevant, and in these times when people are going out less to eat, we need to give them new reasons to come out.” —Red Lobster, in a bid to heat up sales gone cold and spark customer interest, has installed wood-fire grills in all of its 680 units, part of an ongoing plan to boost the chain’s number of food offerings and present lighter, more healthful fare.

Darden officials said wood-fire grilling had been in test for more than a year at 36 U.S. Red Lobsters. —Red Lobster, in a bid to heat up sales gone cold and spark customer interest, has installed wood-fire grills in all of its 680 units, part of an ongoing plan to boost the chain’s number of food offerings and present lighter, more healthful fare.

“This is the most comprehensive culinary and menu change in Red Lobster’s history,” said Kim Lop-drop, the chain’s president. “Wood-fire grilling introduces our guests to a whole new way to enjoy seafood.” —Red Lobster, in a bid to heat up sales gone cold and spark customer interest, has installed wood-fire grills in all of its 680 units, part of an ongoing plan to boost the chain’s number of food offerings and present lighter, more healthful fare.

During the testing, Red Lobster studied consumer preferences for more than 15 cooking methods. Darden said the chain conducted 30 focus groups before deciding to roll out the wood-fire grills using oak as the preferred fuel. —Red Lobster, in a bid to heat up sales gone cold and spark customer interest, has installed wood-fire grills in all of its 680 units, part of an ongoing plan to boost the chain’s number of food offerings and present lighter, more healthful fare.

“We’re grilling food over oak because of the crisp, clean flavor it provides,” said Michael LaDuke, Red Lobster’s senior executive chef. —Red Lobster, in a bid to heat up sales gone cold and spark customer interest, has installed wood-fire grills in all of its 680 units, part of an ongoing plan to boost the chain’s number of food offerings and present lighter, more healthful fare.

The new grills will be used to prepare such items as Wood-Grilled Lobster, Wood-Grilled Sirloin & Shrimp, Wood-Grilled Scallops and Honey BBQ Grilled Chicken. In addition, guests can choose to have any fresh fish wood-grilled. The chain’s restaurants typically feature five to eight fresh species daily. —Red Lobster, in a bid to heat up sales gone cold and spark customer interest, has installed wood-fire grills in all of its 680 units, part of an ongoing plan to boost the chain’s number of food offerings and present lighter, more healthful fare.

The Wood-Fire Grill rollout coincides with a shrimp promotion that showcases such dishes as Jumbo Shrimp with Lobster Butter, Shrimp and Scallops, Shrimp and Chicken, and Peach Bourbon BBQ Shrimp & Scallops. —Red Lobster, in a bid to heat up sales gone cold and spark customer interest, has installed wood-fire grills in all of its 680 units, part of an ongoing plan to boost the chain’s number of food offerings and present lighter, more healthful fare.

Other chains also are working to improve their food and service styles as they try to separate themselves from the restaurant pack. —Red Lobster, in a bid to heat up sales gone cold and spark customer interest, has installed wood-fire grills in all of its 680 units, part of an ongoing plan to boost the chain’s number of food offerings and present lighter, more healthful fare.

In February, P.F. Chang’s China Bistro rolled out a Chinese Grill Menu that featured such items as grilled Sichuan Chicken Flat-bread, citrus-soy wild salmon and an Asian-marinated New York strip steak. The Scottsdale, Ariz.-based chain also introduced a line of mini desserts at the same time. —Red Lobster, in a bid to heat up sales gone cold and spark customer interest, has installed wood-fire grills in all of its 680 units, part of an ongoing plan to boost the chain’s number of food offerings and present lighter, more healthful fare.

CBRL Group Inc., the Lebanon, Tenn.-based parent of Cracker Barrel Old Country Store, is “accelerating development” of “a new breakfast category” for the 576-unit family-dining chain and also is looking to add to the menu “seafood items and some interesting new side dishes,” chief executive Michael Woodhouse said in May. —Red Lobster, in a bid to heat up sales gone cold and spark customer interest, has installed wood-fire grills in all of its 680 units, part of an ongoing plan to boost the chain’s number of food offerings and present lighter, more healthful fare.

Woodhouse also said the chain has been testing two programs that potentially would boost traffic by turning tables more quickly, particularly during weekday lunchtimes. One program, called Best of the Barrel, is already in test at 30 Cracker Barrels and features a pared-down menu that is designed to improve speed of service. The other initiative, “The Seat to Eat Project,” uses “cook-and-hold platforms” and “window management applications” to shorten the time guests must wait for their food after placing an order. —Red Lobster, in a bid to heat up sales gone cold and spark customer interest, has installed wood-fire grills in all of its 680 units, part of an ongoing plan to boost the chain’s number of food offerings and present lighter, more healthful fare.

Dallas-based Brinker International in June said its Chili’s Grill & Bar chain was testing new kitchen equipment and other technology in order to decrease service times. The new equipment is expected to cut prep time while improving food quality. The initiative, called “Right and Right On Time,” is to be rolled out to all units by the end of fiscal 2009, next June. —Red Lobster, in a bid to heat up sales gone cold and spark customer interest, has installed wood-fire grills in all of its 680 units, part of an ongoing plan to boost the chain’s number of food offerings and present lighter, more healthful fare.

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