McCormick & Schmick’s to modernize restaurants
McCormick & Schmick’s Seafood Restaurants on Tuesday unveiled that it will invest between USD 10 million and USD 15 million to modernize its nearly 100 restaurants.
The upgrades include new lighting, furniture, décor technology, kitchen equipment and, when possible, a more open format to encourage socializing.
The announcement comes as the Portland, Ore.-based company reported lackluster year-end results, including a 2.3 percent drop in revenues to USD 351.1 million, a 4.9 percent drop in same-restaurant sales and an operating loss of USD 20.8 million, compared to an operating loss of USD 14.6 million in 2009.
McCormick & Schmick’s fourth-quarter results were better — revenues increased 3.4 percent to USD 91.6 million, and same-restaurant sales fell only 1 percent. However, the company reported an operating loss of USD 24.2 million, compared to operating loss of USD 17 million in the fourth quarter of 2009.
Looking ahead, the upscale seafood chain is predicting revenues of USD 345 million to USD 355 million this year.
McCormick & Schmick’s CEO Bill Freeman is cautiously optimistic about the future. “In the second half of 2010, we completed a comprehensive strategic review of our brand DNA and restaurant portfolio to determine what changes might be necessary to maximize our potential. Based on our findings, we put together a strategic plan, as a complement to those initiatives that were implemented over the past two years, to further improve our financial performance and guest experience,” he said.
“As part of these efforts, we are pleased to announce the launch of a multi-year service, hospitality and portfolio upgrade program designed to improve long term top line sales, traffic and restaurant-level margins, while leveraging our current leases and refining our key design principles,” added Freeman. “By investing capital back into our portfolio, along with our ongoing strategic initiatives to evolve the brand, strengthen our connection to the guest and broaden our outreach, we anticipate further enhancing shareholder value in the years to come.”
McCormick & Schmick’s currently operates 96 restaurants, including 89 units in the United States and seven units in Canada under The Boathouse banner.