Management believes there exists other opportunities within the Asian-Chinese segment to pursue
P.F. Chang's to explore quick-casual concept
SCOTTSDALE, Ariz. (Jan. 28) -- P.F. Chang’s China Bistro is developing a new concept called Pei Wei’s Asian Diner, a quick-casual version of its more upscale parent, sources say.
Pei Wei’s (pronounced "Pay Way’s") is expected to open in the Phoenix area in late spring or summer, though the company is remaining silent on details.
Chang’s has hired Mark H. Brezinski, former operations chief at Canyon Caf?and co-founder of Tin Star, a quick-casual Southwestern concept in Dallas, to work on developing of Pei Wei’s.
However, a Jan. 25 bulletin from the New York investment firm of Donaldson, Lufkin & Jenrette outlined the 35-unit Chang’s strategy:
"P.F. Chang’s is looking at an opportunity to penetrate the segment further," the bulletin said. "Management believes there exists other opportunities within the Asian-Chinese segment to pursue.
"To that end, they have let Paul Fleming. who now serves as consultant, to begin development of a scaled-down version of the Bistro but under a different name," the bulletin continued. "We would expect one or two of these to open later this year with at least a two-year timeframe for R&D."
The investment house’s bulletin further stated that Pei Wei’s will be "a smaller investment at $500,000, geared toward takeout, with some seats, maybe 80 versus the 120 in a typical Chang’s. Sales of $1 million would be expected at the low end. The menu would be similar but with lower prices and smaller portions."
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