Red Lobster 2003 Annual Report Download - page 14

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Great Expectations
12 DARDEN RESTAURANTS
Red Lobster
It’s a good time to be a casual dining seafood restaurant. Seafood is the number-one
choice among casual dining customers, especially aging baby boomers. Fish and
shellfish are growing in popularity with increasingly health-conscious consumers,
and casual dining sales have climbed to $59 billion – an all time high. These positive
dynamics bode well for
Red Lobster
, the nation’s leader in casual dining seafood
with a 49 percent market share.
Red Lobster’s
sales performance during fiscal 2003 certainly confirmed
these dynamics. For the 22nd consecutive quarter, we posted comparable
U.S. restaurant sales growth. Total sales for the year reached a record high
of $2.43 billion, up 4.1 percent from last year, while average annual sales per
restaurant were $3.7 million, also a record. We opened 11 new restaurants
during the year, growing
Red Lobster
to 673 restaurants in North America
that serve more than 140 million guests each year.
To continue achieving the highest levels of operational excellence
and
continue to grow, we must consistently and continually bring our vision to life:
Red Lobster
is every community’s favorite seafood restaurant … Dedicated to
delighting each guest and … Making the flavors and feelings of the seaside
available to everyone. To achieve this vision, we continue to focus on:
• Refreshing the décor of our restaurants with our award-winning Coastal
Home design. Our renovated restaurants deliver an up-to-date atmosphere
that captures the feelings of the seaside and that our guests love.
• Leading our crew members to achieve extraordinary levels of commitment
and performance. Our strong training and selection systems are the foundations
that have resulted in turnover rates that are among the lowest in casual dining.
• Demonstrating food and beverage excellence through ongoing menu
innovations, to bring terrific new flavors to our guests, along with our
well-loved favorites.
• Delivering service and hospitality excellence with service processes
and styles that delight every guest by meeting their needs and providing
unexpected pleasures. The overall result has been greater guest
satisfaction, as evidenced by improved Guest Satisfaction Survey ratings.
• Communicating and living Share the Love™, our powerful message to
consumers that captures the opportunity to enjoy the food they love with
people they love at
Red Lobster
, while being cared for as treasured friends.
Red Lobster
began delighting guests with the flavors and feelings of the seaside
35 years ago, when our first restaurant opened. Our commitment to evolving the
Red Lobster
brand to sustain and grow our appeal to casual dining consumers is
the foundation of our ongoing success. Our recipe for excellence is simply this:
a committed and capable crew, delivering our brand to every guest, combined
with diligent management of our business model to deliver quality earnings,
now and for generations to come.
RED LOBSTER U.S. SAME-RESTAURANT SALES GROWTH
vs. CASUAL DINING AVERAGE
(as a percentage)
’01 ’02 ’03
q1 q2 q3 q4 q1 q2 q3 q4 q1 q2 q3 q4
23
12 0
2
332
1
120
3