Red Lobster 2010 Annual Report Download - page 15

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Specialty Restaurant Group
The Specialty Restaurant Group (SRG) consists of The Capital Grille,
Bahama Breeze and Seasons 52 – three high-return brands whose
collective unit growth potential is significant. They extend our reach
to the higher end of the full-service restaurant industry, enabling us
to capture guests and guest occasions that our core brands do not
reach. With high average annual sales per restaurant, these brands
can potentially account for 20-25 percent of Darden’s total sales
growth over the next five years.
The SRG was formed three years ago in recognition that these
brands share support requirements that differ from those of our other
brands. We also felt we could grow them more effectively by leveraging
shared leadership expertise. As a result, centralized within the SRG
under the Group’s President are such key functions as finance,
human resources, purchasing and development.
•฀The Capital Grille continues to maintain competitively superior
average restaurant volumes and has increased its market share.
To support its brand promise of a club-like dining experience
that builds exceptional guest relationships through personalized
service, it has continued to invest in customer service, including
deployment of a dynamic guest database management system
that enhances the brand’s customer relationship management
capabilities. The brand opened three new locations in fiscal
2010 and plans growth of 3-5 restaurants per year for the
next few years.
•฀Bahama Breeze promises guests a Caribbean escape that
enables an island state of mind. The brand has made significant
strides in strengthening its business model, including a new
restaurant฀prototype฀that฀reduces฀investment฀costs฀by฀$2฀million฀
and features a newly redesigned kitchen for improved operating
efficiency. Bahama Breeze opened one new restaurant in fiscal
2010 and is building a pipeline of future sites with plans to open
1-4 new restaurants a year for the next few years.
•฀Seasons 52 is accelerating growth to take advantage of a strong
brand promise and business model, which are now proven in
geographically diverse markets. Its brand promise of a fresh dining
experience that celebrates living well has been well received by
guests outside the brand’s initial region. The current real estate
environment, combined with Darden’s real estate expertise, has
enabled Seasons 52 to successfully capitalize on the availability
of premium sites. Seasons 52 opened three new restaurants
in fiscal 2010 and plans 4-6 new locations per year for the
next few years.