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Quick casual's 'platinum standard' cuts down on delivery time, but not quality of cuisine
Pei Wei Asian Diner delivers much more than a pee-wee P.F. Chang's China Bistro, even though it comes from the same DNA. Pei Wei, now nearly 3 years old with 21 units in four states, has become what at least one analyst calls "the platinum standard" for quick-casual restaurants, those designed to offer higher-quality fare with the convenience of fast food. Officials say the concept's growth potential is strong. With average annual sales per unit at $2.2 million, Pei Wei boasts a menu of Chinese, Japanese, Korean, Thai and Vietnamese items; a striking, upscale decor; and a thriving take-out business.
"Pei Wei allows us to capture and complement a bigger piece of the overall Asian segment without compromising the bistro business," says Rick Federico, chairman and chief executive of Pei Wei parent P.F. Chang's China Bistro Inc. of Scottsdale, Ariz.
"Dining out is not a luxury anymore, it's a lifestyle," Federico says. "People have a variety of demands for their time, but they don't want to compromise intensity of flavors. They don't want to compromise the integrity of the product. They want some level of experience when they are dining out, and to a large degree they want the opportunity to enjoy some of those flavor profiles at home."
To cater to that crowd Pei Wei, pronounced "pay way," has dedicated takeout entrances and cash registers. Takeout sales account for about 40 percent of each unit's sales.
"We thought we'd be right in the sweet spot with this in terms of flavor profiles, sensitivity to time and product quality by putting it in a package where people didn't feel they were compromising because they wanted to do it in less time," Federico explains.
Pei Wei already has entered two new markets in 2003, with a new store each in Denver and Houston, and plans to debut in a third new market, Las Vegas, later this year. The concept has 10 units in the Phoenix-Scottsdale area, one in Tuscon, Ariz., six in Dallas, and two in Southern California.
Pei Wei borrows some items from the bistro menu, such as the popular lettuce wraps. Other bestsellers are honey-seared chicken, Mongolian beef and...