BJ’s Restaurants plans to reorganize all 204 of its kitchens by the end of the second quarter to streamline operations and ease working conditions, one of several operational changes the casual chain is undertaking for a competitive edge.
The regional brand is also tweaking its processes for handling delivery and takeout orders while ramping up for the June launch of catering.
BJ’s is betting that its extensive menu will prove a key advantage in capturing large delivery orders. Customers could be offered options such as pizza or pasta bars, or entrees made with the brand’s signature slow-roasted meats, CEO Greg Trojan said during a conference call with financial analysts.
BJ’s expanded its slow-roast line during the first quarter with the addition of a tri-tip sirloin, both as an entree and as the meat used in sliders and Philly cheesesteak sandwiches. Along with zucchini noodles, the new roast contributed to a 2% rise in same-store sales for the three months ended April 2. Traffic rose 0.7% for the period, the company said.
The chain intends to maintain its sales momentum by continuing to spotlight its everyday specials and the slow-roast line, which required the company to install special ovens a few years back.
Management did not reveal many specifics of the systemwide kitchen overhaul it plans to complete this quarter. It refers to the new back-of-house as Golden Standard Kitchen Systems. “This effort is focusing on how we organize, set up and prep our kitchens for successful shift execution,” Trojan said.
He indicated that the redo is consistent with BJ’s longstanding Project Q initiative, which aims to simplify operations for maximum efficiency and minimum wear and tear on the staff.
Switching over to the new kitchen setup will require about 125 hours of training per store, with more learnings coming as the new design goes live, said CFO Greg Levin.
He added that the kitchen project is “not necessarily directly related to off-premise.” But, he added, BJ’s has a separate initiative addressing the processes and procedures that feed the chain’s takeout and delivery channels, which currently account for 10.1% of total unit sales.
Responsibility for assembling small off-premise orders will shift back to the kitchen, which will be enlarged separately from the Gold Standard initiative to provide storage and prep space for outgoing meals to be assembled and staged by back-of-house staff. Those tasks currently fall on front-of-house staff as add-ons to their current duties, Trojan said.
The launch of a catering program should push BJ’s off-premise sales mix closer to a new target of 20%, Trojan said.
Management noted that it will step up its marketing to introduce the initiative.
For the first quarter, BJ’s posted revenues of $290.6 million, a 4.3% increase from the year-ago period. Net income declined 12.3%, to $12.9 million. The profit figures reflected a $400,000 expense from an accounting change, management noted.
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