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Bravo Brio works to boost traffic after 1Q sales drop

Company hopes limited-time offers will get customers in the door

First-quarter same-store sales declined 2.8 percent at Bravo Brio Restaurant Group Inc., the Columbus, Ohio-based operator said this week, and the company hopes traffic-boosting efforts will turn that number around.

“I think one of the things that we’re really, really focused on is the traffic piece,” Bravo Brio CEO Brian O’Malley said during the company’s earnings call Monday. “We know that we’ve got to get more traffic in.”

The casual-dining Italian operator has started limited-time offers at its two concepts, Bravo! Cucina Italiana, which has 53 locations, and Brio Tuscan Grille, which has 64 units, in a bid to get more customers in the door and improve same-store sales.

Same-store sales and traffic at both concepts have been weak for years. First-quarter offers included an Italian Classics offer priced at $10.99 at Bravo. Traffic at the two chains fell 3 percent in the quarter ended March 27, but company executives said traffic improved sequentially during the period.

Same-store sales fell 4.1 percent at Bravo and 2.1 percent at Brio. Revenues in the quarter increased 0.6 percent, to $108.8 million, from $108.2 million the previous year. 

Net income fell 11 percent, to $2.25 million, or 15 cents per share, from $2.5 million, or 17 cents per share, in the same period the previous year. Bravo Brio stock fell 3 percent in Tuesday morning trading.

Labor costs as a percent of sales increased 20 basis points, to 36.1 percent, due to sales deleveraging. Food costs fell 10 basis points, to 25.7 percent of sales.

The company is testing a new menu at Bravo in some select markets, including 18 items designed to reflect “a more culinary forward focus.” The new menu includes fresh pasta, housemade ricotta, appetizers, desserts and “bar bites.” The company expects to roll out the menu to the entire system later this quarter.

Brio will undergo a similar evolution, O’Malley said. The chain is testing a new menu in select markets, with plans to return to its “culinary roots.” Brio will focus on the grill, with steaks, chops and seafood. 

O’Malley said the company does well with older customers, but it’s working to attract younger consumers, and those between the ages of 35 and 50.

Bravo Brio is working to improve service with a “yes focused service model” that gets customers to join its loyalty program, “Eat, Repeat, Reward.” 

“The approach to enhancing the overall guest experience is predicated on upholding all elements of service and hospitality with the same sense of purpose we introduced at new restaurant openings,” O’Malley said. 

Bravo Brio also made progress on reimaging restaurants and adding private dining rooms. By adding the dining rooms, the company hopes to attract more event service while shrinking the size of the dining room to use staff more efficiently during weeknights when restaurants aren’t as busy.

The efforts are in their early stages, O’Malley said, but “we are excited about the initial results and feedback. We are creating energy and excitement, which we believe will translate to increased traffic and sales over time.”

Contact Jonathan Maze at [email protected]
Follow him on Twitter: @jonathanmaze

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