Philip M. Greifeld

Captain D’s Seafood Kitchen is aiming to build this year on same-store sales growth it realized in 2011, chief executive Philip M. Greifeld told Nation’s Restaurant News.

Greifeld joined Nashville-based Captain D’s LLC, parent to the Captain D’s Seafood Kitchen chain, in September 2010, just months after it was acquired by Sun Capital Partners Inc. from equity group Sagittarius Brands Inc.

For several years prior to Sun’s purchase of Captain D’s, the 527-unit counter-service chain suffered from declining sales and unit counts. But Greifeld said current management says it has “stabilized the business,” continued momentum so far this year, and that there is the potential to grow average unit sales volume.

“In January, so far, we’re up 9 percent in same-store sales, and we think 2012 will be an incremental growth year,” Greifeld said.

While the privately-held chain would not disclose specific figures, it had estimated sales per unit of about $808,000 in 2010, according to the Nation’s Restaurant News Top 200 census.

As a result of rising confidence, Greifeld said the chain would launch a new franchising initiative in 2012. He characterized the move as a heightened new-store development effort after a hiatus to give improvement initiatives time to take hold, and said refranchising may play a limited part in the program.

The company also is planning marketing and menu campaigns to drive this year’s growth.

An upcoming February advertising campaign with the tagline, “It’s got to be D’s,” will highlight the craveability of the chain’s menu items and feature a three-meal, $4.99 value offer that includes a new 6-ounce fried “Southern-style” whitefish entrée.

The Southern-style item was originally slated as a limited-time offer for November and December, but “earned its way onto the menu” by accounting for 10 percent to 11 percent of the sales mix during that promotional period, Greifeld said.

A dozen butterfly shrimp and two pieces of flounder are the other entrée choices for the upcoming systemwide $4.99 meal promotion, which includes a choice of two side dishes and hush puppies.

“Our average check is $6.25, so our $4.99 campaign represents a solid value on price,” Greifeld said. But he added that beyond price, the quantity and quality of the $4.99 offerings make them unmatched in quick-service and fast-casual circles.

Although Captain D’s would not disclose its 2011 systemwide same-store sales improvement, Greifeld said it resulted from growth in both guest traffic and average check.