After rolling out a menu overhaul last year, the 19-unit Pat & Oscar’s Restaurant chain on Monday unveiled a new prototype design at its original unit in Carmel Mountain Ranch, Calif.
The new look is the first phase of a systemwide remodel plan that initially will include three more company units in Southern California, as well as new units going forward, said John Kaufman, Pat & Oscar’s president and chief executive.
Though only open a week with the new design, the Carmel Mountain Ranch location has already seen sales jump 6 percent, Kaufman said Monday.
“We’ll see how it plays out, but we’re looking for a minimum of a 15 percent lift in sales,” he said.
The remodeled restaurant has a new color scheme that includes more earth tones in various greens, creams, warm browns and taupes. Interior seats are covered in brown leather and tabletops feature warmer woods.
The walls are decorated with black-and-white historical scenes of surrounding San Diego County, and a mural highlights keywords such as “community,” “delicious” and “catering.”
The prototype has four beers on tap -- a first for Pat & Oscar’s, which previously only offered bottled beer -- and more prominent displays of wine offerings, Kaufman said.
Outdoor patio furniture has been replaced with stone-surface tables and chairs with a wood-and-steel finish, in what officials described as a more upscale look. Flooring, lighting, counters and wall covering have also been spruced up.
Kaufman said the Carmel Mountain Ranch remodel required more of a capital investment because a take-out area was incorporated into the main dining room to add more table space, which involved heavier construction. For most units, the remodel will be more cosmetic with “minimal” costs ranging between $75,000 and $125,000, he said.
The 18-year-old Mount Carmel unit formerly was one of 12 corporate-owned locations, but the company took on an unnamed investor partner, technically as a franchisee, who now owns the restaurant. The company, however, continues to operate it.
Kaufman said similar “hybrid” franchise relationships would be sought for other company-owned locations. In addition, the chain will start growing again this year, with two new units planned — one corporate and one franchise location — probably in the Orange County, Calif. area.
Kaufman and others on the management team purchased the Carlsbad, Calif.-based chain from former owner Pacific Equity Partners in January 2009.
Founded in 1991, Pat & Oscar’s is known for its appeal to families and groups with dishes such as ribs, pizza, salads and the brand’s signature bread sticks. In August, the company announced a menu overhaul that included the expansion of shared-dish options for six or more people, as well as more individual dishes, smaller-portioned options and side dishes.
Now with the menu rollout complete, Kaufman said the increased family options have been a hit with value-seeking diners. The option of dishes for six, for example, made up 2 percent to 3 percent of sales in test units last year, but now Kaufman said it accounts for about 11 percent of sales.
Guests are also choosing more add-on items, such as a bottomless salad for $3.99 and the Big O cookie dessert. Add-ons have helped increase the average check by about 50 cents per person to $9, he said.
“We can feed a family of six for $6 per person, without beverages,” said Kaufman. “And we’re getting more margin off that dollar as well.”
Like most chains, Pat & Oscar’s took a hit during the recession, Kaufman said, but consumer traffic appears to be coming back.
For the fiscal year that ended in April, he said, same-store sales were down 8 percent, compared with a 15-percent decline the previous year. Over the past five periods, however, same-store sales were down only 3 percent, he noted.
“We’ve come a long way in a year and a half and it’s been a tough year, but sales are climbing,” he said. “The opportunity now is to grow.”
Contact Lisa Jennings at [email protected].