ORLANDO Fla. Darden Restaurants Inc. said it will install wood-fired grills in all 680 units of its Red Lobster chain starting next week as the next phase of a plan to revitalize the brand.
The rollout will be accompanied by the training of 3,500 staff members in grilling techniques. Each store in North America will have four or five certified “grill masters,” the company said.
ADarden spokeswoman said the rollout would cost the company around $10 million in total, including $2.5 million for the equipment and $8 million to advertise the addition. Items cooked on the grill will be comparable in price to selections that are prepared through other means, she added.
The company said wood-fire grilling has been in test for more than a year at 36 Red Lobsters across the country.
“This is the most comprehensive culinary and menu change in Red Lobster’s history, said Kim Lopdrup, the chain’s president. “Wood-fire grilling introduces our guests to a whole new way to enjoy seafood.”
During the testing, Red Lobster studied consumer preferences for more than 15 cooking methods. Darden said the chain conducted 30 focus groups before deciding to roll out the wood-fire grills.
The research apparently indicated that oak was the preferred fuel. “We’re grilling food over oak because of the crisp, clean flavor it provides,” said Michael LaDuke, Red Lobster’s senior executive chef.
The new grills will be used to prepare such items as Wood-Grilled Lobster, Wood-Grilled Sirloin & Shrimp, Wood-Grilled Scallops, and Honey BBQ Grilled Chicken. Additionally, guests can choose to have any fresh fish wood-grilled. Units typically feature five to eight daily fresh species.
The rollout coincides with a shrimp promotion that showcases such dishes as Jumbo Shrimp with Lobster Butter, Shrimp and Scallops, Shrimp and Chicken, and Peach Bourbon BBQ Shrimp & Scallops.
The addition of the grills comes at what many characterize as a time of unparalleled difficulties for casual dining. Soaring commodity costs have combined with declining sales to crunch margins and pare profits.
Darden, particularly its Olive Garden brand, had fared better than many of its competitors in the sector. But at least one analyst is warning that the segment’s condition may be catching up with the company, whose other holdings include the LongHorn Steakhouse and The Capital Grille chains.
John Ivankoe, who tracks the industry for J.P. Morgan, said he now expects Darden's blended domestic same-store sales to decrease 3.7 percent for the remainder of the company's fiscal year, which ends in May. He previously forecast an uptick of 0.8 percent.
Ivankoe also lowered his earnings forecast for the fiscal year to $2.05 per share, from $2.74 per share. He noted that nearly all casual-dining companies have been experiencing declining sales and earnings.
In September, Darden said it expected combined domestic same-store sales for its three largest brands — Red Lobster, Olive Garden and LongHorn--to range from flat to up 1 percent.