OSI Restaurant Partners LLC, parent to Outback Steakhouse, Carrabba’s Italian Grill, Bonefish Grill and other casual-dining chains, reported Thursday a larger net loss for its third quarter, despite an 8.9-percent increase in revenue, driven by same-store sales increases at all concepts.
For the quarter ended Sept. 30, OSI posted a net loss of $8.5 million, compared with a loss in the year-ago third quarter of $7.7 million. The company booked a greater benefit for income taxes in the year-ago quarter, according to its filings with securities regulators. The company’s earnings before interest, taxes, depreciation and amortization, or EBITDA, increased 14.3 percent to $59.1 million.
Latest-quarter revenue rose 8.9 percent to $928.3 million, reflecting positive same-store sales at all of the company’s chains. Domestic systemwide same-store sales rose 5.6 percent at Outback Steakhouse, 6.3 percent at Carrabba’s, 7.4 percent at Bonefish Grill and 10.1 percent at Fleming’s Prime Steakhouse and Wine Bar. The company also operates the Roy’s casual-dining chain, which it has long planned to divest.
OSI Partners operates or franchises more than 1,400 restaurants.
Liz Smith, the chief executive of the Tampa-based company, said in a statement: “We are very pleased with our strong top line results in generating a sixth consecutive quarter of positive comparable-store sales growth and share gains at all of our major concepts.
“We have made excellent progress driving performance across all concepts by improving menu innovation, service and marketing while building infrastructure for future growth. As we look toward 2012, we will continue our focus on transforming OSI into a sustainable growth company by increasing existing unit sales and by accelerating expansion domestically and internationally.”
Contact Sarah Lockyer at sarah.lockyer@penton.com.
Follow her on Twitter: @slockyerNRN
Editor’s Note: A previous version of this story has been updated to include that Stephen Joost will remain on Firehouse Subs’ board.
Firehouse Subs has promoted Vincent Burchianti to chief financial officer of the 456-unit sandwich chain.
Burchianti, a 10-year veteran of the Jacksonville, Fla.-based Firehouse Subs, previously served as vice president of finance and technology. He succeeds Stephen Joost, who left the CFO position to serve as president of the Jacksonville City Council. Joost remains on the company’s board.
"Vince understands our industry and, more importantly, our brand,” said Robin Sorensen, co-founder of Firehouse Subs, in a statement, “and since day one has embraced and held true the deep rooted core values that have made Firehouse Subs successful over the past 17 years."
Burchianti previously worked at Nathan’s Famous Inc. and Arby’s Inc.
Contact Ron Ruggless at ronald.ruggless@penton.com.
Follow him on Twitter: @RonRuggless
Chris Sullivan, co-founder of the Tampa, Fla.-based Outback Steakhouse chain, says he has been re-energized by the launch of his new Mediterranean, upscale-casual concept, Carmel Café & Wine Bar.
Sullivan, who has opened two Carmel Café units in Clearwater, Fla., and suburban Tampa, spoke with Nation’s Restaurant News about his plans for the new concept.
He said he plans to open a third location in South Tampa and anticipates that the restaurants will generate about $2 million each.
The concept features iPad ordering and servers who wear their own clothes in an atmosphere marked by murals and 70 wines from around the world.
Watch Sullivan discuss Carmel Café; story continues below
Carmel Café differs significantly from Outback Steakhouse and its sister brands Bonefish Grill and Carrabba’s Italian Grill, but Sullivan said he has enjoyed the opportunity to be more creative with Carmel’s menu options and flavors.
Sullivan joins a growing list of former chain executives who have moved from large-volume concepts to smaller, more niche operations. They include:
Bob Basham, Sullivan’s pal and fellow Outback co-founder, who started a quick-service chicken concept called PDQ in Tampa. The first PDQ location is scheduled to open in south Tampa in the next two weeks.
Nick Vojnovic, former president of the company that owned the Beef ‘O’ Brady’s sports-pub chain, has become a partner in a quick-service Greek concept called Little Greek Restaurant. The chain has four Tampa Bay area units and one in Texas and is set to open another Tampa location
Bill Whitaker, founder of the fast-casual sandwich-salad Crispers chain in Lakeland, Fla., has launched an upscale sandwich and wine bistro called Press 101 in Lakeland and Orlando. He plans to open a third unit in Florida.
Ned Lidvall, former Friendly’s chief executive, has joined forces with three restaurant veterans, including Mike Stack of McAlister’s Deli, to expand the single-unit Jackson, Miss.-based Babalu Tacos and Tapas to other markets.
Bill Shumate, the founder of several casual-dining restaurants, has launched a three-unit, upscale burger concept called Square 1 Burgers & Bar. The concept has one unit in south Tampa and two units in Sarasota, Fla.
Read more about Chris Sullivan in the Having Words With feature in the Nov. 7 edition of the Nation’s Restaurant News.
Contact Alan Snel at alan.snel@penton.com.
Follow him on Twitter: @AlanSnelNRN
A veteran Delray Beach, Fla., restaurant operator has jumped into the already crowded better-burger fray with a new brand called BurgerFi.
Founder David Manero, who operates The Office and Vic and Angelo’s restaurants in South Florida, opened the first two locations of the fast-casual restaurant this year in Fort Lauderdale and Delray Beach. Meanwhile, three franchisee-owned BurgerFi sites are under construction in Miami, Fort Lauderdale and Coral Springs.
Manero said the name BurgerFi is short for what he says is his goal of forging a “Burgerfication of the Nation.”
Prices range from $5.47 for a BurgerFi burger to $9.97 for the Ultimate Cheeseburger. Customers also can build a single burger for $3.97, a double burger for $5.97 and a triple for $6.97, adding more than available 50 toppings.
Craft beer and wine are available, along with naturally sweetened soda, custards and hot dogs. BurgerFi also offers a vegetarian option called a VegeFi quinoa burger for $6.77.
BurgerFi’s average per-person check is $9.25.
Customers place their order at a counter and are paged to pick up their food when it is ready.
Manero said sustainability is an important part of the BurgerFi concept, from the natural Angus beef used in the burgers to the recycled milk cartons that were crafted into outdoor chairs and tables. The restaurant’s interior is designed to have an urban, hip look, he added.
“The overall styling and design of our restaurants is very unique,” he said. “I saw the need to develop this type of restaurant concept for America. The American people are clamoring for a mid-price burger restaurant.”
<!–pagebreak–>
Continued from page 1
Manero said he also has struck franchise deals for three BurgerFi restaurants in New York and one each in White Plains, N.Y., Los Angeles and Stamford, Conn.
While no locations have been open for a full year, Manero said he expects BurgerFi’s average unit volume will be in excess of $2.5 million.
The initial investment to open a BurgerFi franchise ranges from $313,750 to $627,083, which includes a franchise free of $37,500, according to the company website. Manero said there is also a 5.5-percent royalty fee.
All franchisees are required to attend a two-week training course at “BurgerFi University,” a 6,000-square-foot space in Palm Beach, Fla. A training team also goes to a franchisee’s store to instruct on BurgerFi cooking and service techniques.
Better burger chains have been proliferating in Florida. Tampa restaurant operator Bill Shumate launched Square 1 Burgers & Bar in the Tampa and Sarasota areas, and Tampa-based Front Burner Brands is expected to debut its second Burger 21 unit in the Tampa suburb of Carrollwood next Monday.
RELATED: Front Burner grows three brands
In addition, Domino’s Pizza founder Tom Monaghan is opening a military-themed burger concept called Gyrene Hamburger in Naples, Fla., while South Florida-based Shula Burger — with corporate roots to legendary NFL coach Don Shula — aims to have 100 locations in the next five years.
Contact Alan Snel at alan.snel@penton.com.
Follow him on Twitter: @AlanSnelNRN
Seasons 52, Darden Restaurants’ 18-unit seasonally oriented concept, has plans to open six new locations over the next year.
Three of the new restaurants are scheduled to open by the end of November, said Mike Bernstein, a spokesman for Seasons 52. They will be located next to Mercato Center in Naples, Fla.; in the St. Johns Town Center in Jacksonville, Fla.; and in the Country Club Plaza Center in Kansas City.
The three remaining locations are slated to open their doors next year in downtown Santa Monica, Calif.; in the Roosevelt Field Mall in Garden City on Long Island, N.Y.; and in the Oakbrook Center in Oak Brook, Ill., outside Chicago.
The Garden City and Oak Brook locations are expected to open in the spring of 2012, while the Santa Monica site is slated to debut in fall 2012.
“We’re proud to have a disciplined growth strategy that is enabling us to introduce this special concept with excellence nationwide,” Seasons 52 said in a statement. “Seasons 52 president Stephen Judge is leading this effort, securing premium real estate locations with popular and upscale retailers that provide a lifestyle environment compatible with the Seasons 52 concept.”
Seasons 52 opened six restaurants during fiscal 2011, which ended June 30.
Seasons 52 also announced it has selected Barbara Rafalowski as the new managing partner for Indiana’s Seasons 52 at Keystone at the Crossing.
“Barbara has the experience and knowledge of the industry that our brand needs,” Judge said in a statement. “She will bring a new energy to the Indianapolis location and will help continue Seasons 52’s vision of inspiring customers through the seasons.”
Rafalowski previously worked as operating partner at Stonewood Grill and Tavern in Orlando, Fla., and as senior manager at Grand Lux Café in Boca Raton, Fla., Sunrise, Fla., and Chicago.
The Seasons 52 concept, which rotates it menu seasonally, introduced its fall offerings for the media at its Tampa restaurant Tuesday night. The brand is known for its grilled menu offerings and items that contain 475 calories or less.
On Tuesday night, Seasons 52 used a live Web stream for its restaurants in Tampa and Altamonte Springs, Fla., and Cherry Hill, N.J., to show master sommelier George Miliotes discussing wine and food combinations from the brand’s test kitchen. Some of the new appetizers and flatbread offerings were shown simultaneously via the live streaming video from the test kitchen and in the Tampa restaurant.
For the fourth quarter ended June 30, Darden Restaurants Inc. said same-store sales at Seasons 52 rose 2.2 percent from the same period last year. For the full fiscal year, same-store sales increased 4.4 percent. Its average unit volume was $6.3 million.
Darden also operates Red Lobster, Olive Garden and LongHorn Steak House, Bahama Breeze and The Capital Grille.
Contact Alan Snel at alan.snel@penton.com.
Follow him on Twitter: @AlanSnelNRN
Beef ‘O’ Brady’s has rolled out a new prototype that has already generated a company record for first-week sales.
The Tampa, Fla.-based casual-dining chain’s new restaurant design, dubbed “Beef’s 2.0,” includes updated color schemes and booth-side televisions. The units measure 4,000 square feet and seat 170, compared to measuring 3,000 square feet and seating 120 at older restaurants, said Beef ‘O’ Brady’s chief executive Chris Elliott.
“One of the things we needed to do be competitive and attractive to franchisees was to re-work the physical plant,” Elliott told Nation’s Restaurant News.
Other new elements include a sports ticker displayed on a scrolling digital screen, a designated take-out area and a special game room for kids.
The first restaurant in the 213-unit chain to inaugurate the prototype was in Lake Jackson, Texas, which generated the record company sales figure of $54,315 in its first week.
Jason Chavez, who owns that location, said the prototype’s new layout, aesthetics and dark wood furniture, plus the addition of 30 televisions, drove traffic. Chavez said there was already a buzz before the unit opened, generating 2,200 Facebook fans before the Aug. 29 debut date.
Beef ‘O’ Brady’s plans to roll out nine more prototype units this year, including restaurants in Florida, Texas, California, Arizona and Idaho, Elliott said. The cost of opening a new model ranges from $250,000 to $650,000, he said.
Beef ‘O’ Brady’s has also introduced a new line of drinks that is expected to bump up sales by $27,000 at each unit, Elliott said. It has also increased the number of its craft beer selections from eight to 24.
The new drinks include seven non-alcoholic beverages — including iced coffees and a Cherry Limeade Cooler — and 10 signature cocktails.
The new drinks are part of an overall 15-month menu upgrade that included improving lunch offerings, Elliott said. The lunch adjustments in portion, price and service have already resulted in sales at that daypart, representing slightly more than 30 percent of total sales, up from 25 percent of total sales, he said.
Elliott expects the new drinks to have a similar effect. Non-alcoholic beverages currently represent 6 percent of total sales, but the new non-alcoholic drinks are expected to increase that figure to 7.5 percent of total sales, he said. Alcoholic drinks currently represent 15 percent of total sales, he said, and the new signature cocktails are expected to boost that amount to 16.5 percent of total sales.
Contact Alan Snel at alan.snel@penton.com.
Follow him on Twitter: @AlanSnelNRN
