Red Lobster 2003 Annual Report Download - page 17

Operating Highlights
2003 ANNUAL REPORT 15
Smokey Bones BBQ
The combination of a barbecue-based menu and a lively, comfortable mountain
lodge setting continues to be a winning concept as Darden rolls out our newest
concept,
Smokey Bones BBQ. During fiscal 2003, Smokey Bones doubled its
restaurant base from 19 to 39 locations in the Northeast, Midwest and
Southeast. In only its fourth year of operations, this business generated $93 million
in sales and posted strong restaurant-level performance.
Smokey Bones ’ financial results in fiscal 2003 reflect high levels of customer
satisfaction as indicated by a number of measurement tools introduced this year.
The Fan Survey is the restaurants’ guest satisfaction“shopper” program, and
the company has set a minimum score of 90 percent for the survey. In fiscal
2003, restaurants open at least a year averaged 93 percent each quarter, with
all restaurants meeting or exceeding the 90 percent minimum every quarter.
Additionally, Smokey Bones introduced the Guest Satisfaction Survey already
used widely by other Darden concepts. Smokey Bones ’ initial results ranked
very favorably compared to Darden’s established Red Lobster and Olive Garden
brands. Quality assurance audit scores reached a high of 94 percent, with
many new guests commenting on the cleanliness of Smokey Bones locations
compared to other restaurants in the barbecue category.
This positive service and hospitality feedback is especially significant given
the challenges of aggressively opening new restaurants. Training, in particular,
is a top priority.
Smokey Bones has introduced interactive electronic training
modules, online training and print-on-demand features for training materials.
Our base of certified trainers and managers also has increased to support
restaurant openings. Restaurants in four different geographic regions have
been certified to train new managers. Smokey Bones also is working diligently
to reduce teammate and management turnover – a common challenge for any
new restaurant.
Looking forward, Smokey Bones is well positioned to meet our goal of
opening 25 to 30 restaurants in fiscal 2004. We remain excited about Smokey
Bones’
potential growth into an operating company with at least $500 million
in annual sales. Our enthusiasm is based on the differentiated concept –
barbecue in a lively mountain lodge atmosphere, the market fragmentation
of the barbecue category and the broad regional and demographic appeal of
barbecue itself. Given the favorable financial and operating fundamentals
of Smokey Bones restaurants, our level of enthusiasm is only growing.
NUMBER OF RESTAURANTS
(by fiscal year)
00 01 02 03
2
9
19
39