Red Lobster 2002 Annual Report Download - page 16

Great Food and Beverage 13 Produce Great Results in 2002
In a year marked by recession and post 9/11 uncertainty, Red
Lobster’s strength as a trusted brand and, indeed, an American
icon, were most evident. The 34-year-old leader in casual dining
seafood posted record results during fiscal 2002.
• Total sales reached a record high of $2.34 billion, 7.1% over
fiscal 2001.
• Same-restaurant sales growth, which has continued for
18 consecutive quarters, increased 6.2% for the year.
• The average weekly same-restaurant guest count rose 3.4% to
a 10-year high.
This performance reaffirms Red Lobster’s strategy of offering
great seafood at a great value. In addition to the great variety of
seafood we serve every day, much of our success during the year
centered on well-executed features, such as “30 Shrimp for $9.99,”
our signature “Lobsterfest” and a “Festival of Crab” celebration.
These advertised campaigns emphasized Red Lobster’s classic
favorites and exciting new offerings, while underscoring the
important elements of this enduring, trusted brand.
Much of Red Lobster’s success reflects a strategic approach
to culinary development, which includes a systemized analytical
tool – Menu Offering Rationalization and Evaluation (MORE) –
that helps determine how well our menu mix matches the tastes
and preferences of our guests.
Red Lobster’s recently launched fresh fish initiative, emphasizing
the freshest fish in casual dining, is a product of this disciplined
approach. Rigorous research also characterizes Red Lobster’s beverage
strategy. As a result of this continued focus, adult beverage sales were
up in fiscal 2002. And as Red Lobster continues to improve the total
dining experience offered to guests, this remains a significant
opportunity for growth.
Red Lobster continues to add to a long tradition of culinary
innovation in a multi-unit restaurant operation. Restaurant Business
magazine recognized Executive Chef Stephen Anderson as the
most influential and creative menu planner in the chain restaurant
market this year, naming him the magazine’s first ever “Menu
Strategist of the Year” for his key role in enhancing the Red
Lobster menu with bigger, bolder flavors and expanding its fresh
fish selections. Anderson was also a recipient of Nation’s Restaurant
News’ 2002 MenuMaster Award, which highlights the role of
research and development in food service. Red Lobster’s culinary
management team gained further strength this past year with the
addition of Keith Keogh, a highly regarded culinarian, as Senior
Vice President of Culinary and Beverage Excellence.
The Red Lobster team enjoys an enviable position in the
restaurant industry. Serving 2.8 million guests each week, we
command 49% of the casual dining seafood market, and seafood
is what casual dining consumers order most frequently when they
dine out – especially as they get older and dine out more often.
Operations Overview
>> Brilliant with the Basics >> Awards and Recognition
RED LOBSTER SAME-RESTAURANT SALES GROWTH
vs. CASUAL DINING AVERAGE
(as a percentage)
Great Food and
Beverage
Produce
Great Results
’00 ’01 ’02
Red Lobster Knapp TrackTM Casual Dining Average
q1 q2 q3 q4 q1 q2 q3 q4 q1 q2 q3 q4
4.0
8.2
5.0
13.1
6.2
8.4
5.5
3.8 3.2
6.1
12.0
3.7