Del Frisco's Unveils New, Smaller Concept
Del Frisco’s Restaurant Group, in an effort to lower average spend per restaurant by $1M and average footprint by 800 SF (and combat declining Q4 sales), is developing a smaller, more efficient Del Frisco’s Grille concept.
CEO Mark Mednansky says the new concept will be a “more scalable, more efficient and a more cost-effective growth vehicle for us,” Nation's Restaurant News reports.
Mark says the changes will have minimal effect on seating capacity and instead will focus on having smaller, more efficient kitchens. The new concept also means more access to prime real estate for the restaurant chain.
After Q4 same-store sales fell at each of its three brands (declining 1.6% at Del Frisco’s Double Eagle Steak House, 1.8% at Sullivan’s Steakhouse and 4.5% at Del Frisco’s Grille), the company has also decided to slow development.
Faced with an activist investor, Fidelity National Financial, which has increased its stake more than 10%, Del Frisco's could be facing even more change in the near future. [NRM]