Schlotzsky’s looks to expand beyond lunchSchlotzsky’s looks to expand beyond lunch

Schlotzsky’s Franchise LLC is looking to expand beyond lunch, its busiest daypart, with new dinner menu items and a test of breakfast.

In March, the Austin, Texas-based operator debuted a new pasta platform to bridge both lunch and dinner. Schlotzsky’s also continues to test breakfast offerings with Cinnabon, which is also owned by Atlanta-based parent Focus Brands Inc.

Schlotzsky’s four “oven-baked pastas” aim to draw dinner customers, chief marketing officer Mark Mears said.

“We feel it’s important to satisfy what guests are looking for, and they are clearly looking for a heartier meal and something a bit more than a sandwich, chips and a drink,” Mears told Nation’s Restaurant News. “It’s important for us to offer a high quality, wholesome and hearty dinner item so they don’t have to go to a casual-dining restaurant.”

The pasta introduction followed a campaign to reimage the chain’s older restaurants.

Schlotzsky’s CMO Mark Mears. Photo: Schlotzsky's

“We’ve been on an evolution at Schlotzsky’s for several years, and we think we’re ready for a revolution,” Mears said. “That means expanding more into our dinner daypart.”

Schlotzsky’s introduced the four pastas systemwide in March, along with ciabatta sandwiches and an upgraded salad.

“What that does is give us more credibility that Schlotzsky’s is a viable alternative for dinner occasions,” Mears said.

Three of the pasta dishes feature proteins, at a suggested price of $8.99, with a vegetarian option priced at $7.99.

The new pasta dishes are also served in half portions as part of Schlotzsky’s “Pick Two,” which includes any combination of soups, sandwiches, salads, flatbreads and pizzas.

“That not only helps grow our lunch business, but provides an additional shot in the arm for dinner,” Mears said.

Schlotzsky's Tomato Basil Canestrelli. Photo: Schlotzsky's

Sales between lunch and dinner are split about 60-40, Mears said, with some locations divided 65-35.

Mears noted that Schlotzsky’s customers want a dining experience that is worth paying a bit more for than what they might find from a typical quick-service sandwich chain. The brand is looking to move towards a fast-casual bakery-café experience, Mears said.

Schlotzsky’s also has breakfast menus in some locations, as well as afternoon snacks and items designed for later in the evening.

“We want to be seen as an all-day opportunity,” Mears said, adding that the company has been testing breakfast since last summer in about 27 of its 355 units.

“It’s been pretty much an ops test to see if we can do that right, and then we’ll put some marketing behind it to see how high is up,” Mears said. “It allows us to capitalize on our Cinnabon partnership with our sister company in Focus Brands. It gives us instant credibility in breakfast.”

Mears said Schlotzsky’s is still in the process of testing breakfast.

“We’re still proving it out to see if it makes sense for us. We believe it does, but we don’t know if it makes sense for every restaurant or maybe just certain locations that have the appropriate ingress and egress,” he said.

Schlotzsky’s has begun upgrading menu boards at some of its restaurants. So far, 57 restaurants have new digital menu boards, Mears said. A total of 262 units have drive thrus, he added.

Schlotzsky’s has restaurants in 36 states.

Contact Ron Ruggless at [email protected].
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