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Seafood vets spawn new fast-casual concepts

Seafood vets spawn new fast-casual concepts

DALLAS —The seafood segment, long dominated by casual-dining and fine-dining formats and recently appearing to trend up-market along with the soaring cost of fish, is seeing innovation from fast-casual concepts that are able to tame both commodity inflation and the category’s trickier operational standards.

Consider three examples: A Dallas-area fine-dining seafood restaurant operator recently expanded into the fast-casual arena with the debut of Fish Express. California Fish Grill, which opened in 1998 in Gardena, Calif., has added Southern California branches in Anaheim Hills, Cypress and Irvine. And the 600-unit Captain D’s division of Nashville, Tenn.-based Sagittarius Brands added “Seafood Kitchen” to its signage last year and repositioned itself more as fast-casual than fast food. —The seafood segment, long dominated by casual-dining and fine-dining formats and recently appearing to trend up-market along with the soaring cost of fish, is seeing innovation from fast-casual concepts that are able to tame both commodity inflation and the category’s trickier operational standards.

“This is an exciting category right now,” said Victor Topete, owner of California Fish Grill. “When we started, there were a lot of full-service concepts with fish, but there weren’t too many concepts like this.” —The seafood segment, long dominated by casual-dining and fine-dining formats and recently appearing to trend up-market along with the soaring cost of fish, is seeing innovation from fast-casual concepts that are able to tame both commodity inflation and the category’s trickier operational standards.

His four units offer counter-ordering, table-delivery utility at prices ranging from $2.19 for fish tacos to $11.95 for grilled shrimp with fries or rice and coleslaw. —The seafood segment, long dominated by casual-dining and fine-dining formats and recently appearing to trend up-market along with the soaring cost of fish, is seeing innovation from fast-casual concepts that are able to tame both commodity inflation and the category’s trickier operational standards.

“People are much more concerned about their health,” Topete said. “They realize there are huge benefits to eating certain species of fish, especially salmon. That has definitely driven our business. Fish is part of their daily diet. In the past, people couldn’t find a reasonably priced fish meal out there. There weren’t many choices. Now with this concept’s price point, they can eat fish three times a week if they want.” —The seafood segment, long dominated by casual-dining and fine-dining formats and recently appearing to trend up-market along with the soaring cost of fish, is seeing innovation from fast-casual concepts that are able to tame both commodity inflation and the category’s trickier operational standards.

Mike Hoque, creator of Fish Express in Dallas and owner of the Go Fish fine-dining seafood restaurant in suburban Addison, Texas, said his foray into fast-casual service was inevitable as consumers learned more about the health benefits of seafood. Hoque launched Fish Express on Jan. 10 in a 2,500-square-foot, 80-seat spot in North Dallas. —The seafood segment, long dominated by casual-dining and fine-dining formats and recently appearing to trend up-market along with the soaring cost of fish, is seeing innovation from fast-casual concepts that are able to tame both commodity inflation and the category’s trickier operational standards.

“After being successful at Go Fish, we start thinking at how to serve the same customer more frequently,” Hoque said. —The seafood segment, long dominated by casual-dining and fine-dining formats and recently appearing to trend up-market along with the soaring cost of fish, is seeing innovation from fast-casual concepts that are able to tame both commodity inflation and the category’s trickier operational standards.

The new restaurant, designed with sailcloth accents and flat-screen TVs with aquarium views, offers counter ordering and table service. Its per-person check average is $8 at lunch and $10 at dinner. —The seafood segment, long dominated by casual-dining and fine-dining formats and recently appearing to trend up-market along with the soaring cost of fish, is seeing innovation from fast-casual concepts that are able to tame both commodity inflation and the category’s trickier operational standards.

In its first two months, Fish Express’ best sellers are a seafood burger, $6.99; two fish tacos, $5.99; and $9.99 orders of grilled salmon, trout, tilapia, tuna, mahi mahi or shrimp with two sides, such as mango slaw or grilled vegetables. Sauce options are a ginger glaze, basil pesto or lemon-olive oil. —The seafood segment, long dominated by casual-dining and fine-dining formats and recently appearing to trend up-market along with the soaring cost of fish, is seeing innovation from fast-casual concepts that are able to tame both commodity inflation and the category’s trickier operational standards.

The operators concede that the escalating price of seafood as a result of species depletion and growing consumer demand makes food cost an issue for the segment. Some who have attempted fast-casual fish formats have converted them into full-service restaurants, as the economics just did not pan out. —The seafood segment, long dominated by casual-dining and fine-dining formats and recently appearing to trend up-market along with the soaring cost of fish, is seeing innovation from fast-casual concepts that are able to tame both commodity inflation and the category’s trickier operational standards.

California Fish Grill, for example, has had to boost its prices. “We had a recent increase, probably the largest since we opened,” Topete said. “Costs have been a huge issue.” Topete said his four units rely on high volumes as an offsetting force. —The seafood segment, long dominated by casual-dining and fine-dining formats and recently appearing to trend up-market along with the soaring cost of fish, is seeing innovation from fast-casual concepts that are able to tame both commodity inflation and the category’s trickier operational standards.

Hoque said his fine-dining restaurant’s buying power had helped Fish Express, and he had used its creative staff to produce the fast-casual sibling’s mango slaw and ginger glazes. —The seafood segment, long dominated by casual-dining and fine-dining formats and recently appearing to trend up-market along with the soaring cost of fish, is seeing innovation from fast-casual concepts that are able to tame both commodity inflation and the category’s trickier operational standards.

Aaron Noveshen, who owns the Culinary Edge consulting firm in San Francisco and the Pacific Catch restaurant there, said seafood requires a more knowledgeable kitchen and service staff than do such quick-service stalwarts as burgers. —The seafood segment, long dominated by casual-dining and fine-dining formats and recently appearing to trend up-market along with the soaring cost of fish, is seeing innovation from fast-casual concepts that are able to tame both commodity inflation and the category’s trickier operational standards.

Noveshen, who helped create the World Wraps concept, and his partner opened the 22-seat Pacific Catch in April 2003 in San Francisco’s Marina district. “It was a quick-casual fresh-fish grill,” Noveshen said. “You ordered at the counter and grabbed a seat.” —The seafood segment, long dominated by casual-dining and fine-dining formats and recently appearing to trend up-market along with the soaring cost of fish, is seeing innovation from fast-casual concepts that are able to tame both commodity inflation and the category’s trickier operational standards.

But the format evolved into full service about six months after the opening. “One of the things that is tough in this model is that in order to get high-quality people we were paying $12 to $13 an hour,” Noveshen said. “They were providing about 50 percent of the full-service experience already. We realized we could get higher-quality people and they could work for full-service tips, so it was a win-win.” —The seafood segment, long dominated by casual-dining and fine-dining formats and recently appearing to trend up-market along with the soaring cost of fish, is seeing innovation from fast-casual concepts that are able to tame both commodity inflation and the category’s trickier operational standards.

Pacific Catch, which has opened a second unit in Corte Madera, Calif., does about 50 percent of its business in take-out. Price points range from $3.50 for fish tacos to $12.95 for rice bowls. Annual sales are $1.6 million at the original 800-square-foot restaurant. —The seafood segment, long dominated by casual-dining and fine-dining formats and recently appearing to trend up-market along with the soaring cost of fish, is seeing innovation from fast-casual concepts that are able to tame both commodity inflation and the category’s trickier operational standards.

Yet despite the challenges of offering fast-casual seafood menus, “you see quick-service concepts moving their menus more toward quick-casual,” Noveshen said. The Culinary Edge worked with Captain D’s on development of its new menus “to capture a healthier appeal and a more contemporary cooking style,” Noveshen said. —The seafood segment, long dominated by casual-dining and fine-dining formats and recently appearing to trend up-market along with the soaring cost of fish, is seeing innovation from fast-casual concepts that are able to tame both commodity inflation and the category’s trickier operational standards.

Captain D’s unveiled its “Seafood Kitchen” prototype last August in Donelson, Tenn. The chain retained such signature items as fried fish platters, but expanded its grilled seafood and pasta selections. The menu now includes Alaskan salmon, tilapia, farm-raised catfish, shrimp skewers, shrimp scampi, shrimp Alfredo and chicken parmigiana. —The seafood segment, long dominated by casual-dining and fine-dining formats and recently appearing to trend up-market along with the soaring cost of fish, is seeing innovation from fast-casual concepts that are able to tame both commodity inflation and the category’s trickier operational standards.

So far, growth for fast-casual seafood concepts has been slow, Topete said. “It’s a tough concept,” he said. “Food costs are a huge issue. Rents are going up. We can’t just expand and maintain our quality.” His California Fish Grills average about 3,000 square feet each and seat between 120 and 150. —The seafood segment, long dominated by casual-dining and fine-dining formats and recently appearing to trend up-market along with the soaring cost of fish, is seeing innovation from fast-casual concepts that are able to tame both commodity inflation and the category’s trickier operational standards.

“We get daily deliveries, so we want to move the seafood,” he said. “We rely on volume. That’s where we make the money.” —The seafood segment, long dominated by casual-dining and fine-dining formats and recently appearing to trend up-market along with the soaring cost of fish, is seeing innovation from fast-casual concepts that are able to tame both commodity inflation and the category’s trickier operational standards.

Hoque said his interest in a fast-casual concept has led him to consider opening several more Fish Express locations in the Dallas area. His company, Dallas Restaurant Group LLC, also plans to open another upscale seafood restaurant in downtown Dallas, to be called Dallas Fish Market. —The seafood segment, long dominated by casual-dining and fine-dining formats and recently appearing to trend up-market along with the soaring cost of fish, is seeing innovation from fast-casual concepts that are able to tame both commodity inflation and the category’s trickier operational standards.

Hoque said the fast-casual niche in seafood has remained largely untapped, which helps explain the large amount of interest his concept has received. —The seafood segment, long dominated by casual-dining and fine-dining formats and recently appearing to trend up-market along with the soaring cost of fish, is seeing innovation from fast-casual concepts that are able to tame both commodity inflation and the category’s trickier operational standards.

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