Dive Brief:
- P.F. Chang's is growing its To Go concept, which was first announced last year and offers takeout, delivery and catering from smaller footprints in high-density urban markets.
- The company opened two To Go locations in Texas and Florida Monday, which adds to its eight existing locations in New York City and Chicago. By 2022, P.F. Chang's aims to have more than 50 To Go units in its network. More than 20 of these additional locations "are already underway," according to a company release.
- The expansion of this model complements the work P.F. Chang's has done throughout the past year to improve its off-premise strategy, which includes a new app and e-commerce website platform and improved packaging.
Dive Insight:
Like most chains, off-premise channels became critical for P.F. Chang's during the past year. The company's To Go format could help it meet strong diner demand for takeout and delivery occasions and save on occupancy costs at the same time thanks to the format's reduced footprint.
The models are about 1,500 to 2,000 square feet, versus 7,000 square feet for a traditional, full-service P.F. Chang's restaurant, and are part of the company's strategy to reach more city populations. This small size could also attract franchisees striving for improved cash flow, and competes with a growing contingent of off-premise-focused models cropping up across segments.
IHOP, Famous Dave's and Firehouse Subs have all rolled out smaller format stores in response to the growth of takeout and delivery, for example. Arby's, Wendy's, Taco Bell, Burger King, KFC and McDonald's have introduced innovations at the drive-thru — whether by adding lanes or introducing drive-thru-only units. Some chains are adding drive-thrus for the first time, including Sweetgreen and Shake Shack, in a bid to meet changing consumer expectations for off-premise dining.
"P.F. Chang's To Go is not a replacement for our full-scale restaurants, but we know consumers across the country are seeking convenient dining options and our evolving business model accommodates this desire," P.F. Chang's CEO Damola Adamolekun said in a statement.
