New unit growth is also in the plans for P.F. Chang’s. | Photo: Shutterstock
P.F. Chang’s, with its opulent interiors and elevated take on Asian cuisine, has long been known as a place to celebrate special occasions.
But birthdays and anniversaries don’t have to be the only reasons for customers to visit, says new CEO Jim Mazany.
The 221-unit casual-dining chain “is definitely aspirational, but when you think about meeting the consumer where they are today, there’s different types of consumers,” he said in an interview.
There are those who visit P.F. Chang’s for a big night out and are willing to spend across the entire menu. And then there are families or office workers who just want to come in on a Tuesday for a nice meal. “We need to be approachable for all of those areas,” Mazany said.
Jim Mazany. | Photos courtesy of P.F. Chang’s
Mazany, a restaurant veteran with stops at SPB Hospitality, TGI Fridays and Joe’s Crab Shack, joined P.F. Chang’s earlier this month. He’s the chain’s third CEO this year, and will spearhead a turnaround effort after a period of sluggishness. After bouncing back well from the pandemic, the chain’s systemwide sales declined in each of the past two years, according to Technomic data.
It won’t be a total overhaul. Mazany characterized his plan as “more of an evolution than a revolution,” with a focus on driving same-store sales, engaging employees and building a pipeline of new restaurants.
Part of the strategy is to position P.F. Chang’s as more of an everyday dining option, without losing its polished-casual appeal. And some of that work is already underway. In September, the chain rolled out a line of cocktails for $8.99, and earlier this year, it introduced lunch and dinner specials starting at $13.99 and $16.99, respectively. It also began offering downsized portions of entrees and appetizers at lower prices.
These moves come amid an industrywide shift toward value, even at brands that skew upscale, like The Cheesecake Factory.
“The opportunity for consumers to be able to experience this brand for under $20, with authentic Asian cuisine that’s made from scratch, I think is really, really exciting,” Mazany said.
But prices are just one part of the value equation at P.F. Chang’s. The brand also wants to deliver a memorable experience to keep customers coming back.
Under Mazany, it will step up training for front-of-house staff so they can deliver “purposeful and meaningful” service. It also wants to create more energy and theater in the dining room. Expect to see more dishes that activate the senses, like new Sizzling Dumplings, which are served tableside on a piping hot plate.
“I’m really looking to move the needle, to really do some stuff that’s very noticeably different and appreciated by our guest and creates an experience that’s very unique,” Mazany said, adding that he doesn’t want to reveal too many details just yet.
New Sizzling Dumplings are designed to bring energy to the dining room.
Energizing employees
Mazany has been involved with a couple of restaurant company turnarounds in his career, and has learned that people are the most important piece.
“Before you can have a guest-led recovery, you’re gonna have to have an employee experience that has to really think highly of their positions so that they can go out and deliver service that is above and beyond,” he said.
At P.F. Chang’s, he is working to instill a sense of pride in workers in part through the chain’s unique food, much of which is prepared in a wok. Mazany got his start as a chef, and has a lot of appreciation for this ancient style of cooking.
“You’re searing, you’re steaming products, you’re creating unique flavors that other restaurant groups have a hard time duplicating,” he said. “There’s uniqueness to food that comes out of a wok.”
So, P.F. Chang’s is leaning into its woks. A new ad campaign launched in October with the tagline “light the fire” puts the spotlight on the chain’s wok-based cooking.
The company will continue to showcase the breadth and depth of Asian cuisine as it brings new items to the menu, Mazany said. It’s hoping that reinforcing its culinary heritage will also translate into pride and energy for staff.
“You’re cooking for guests like if it was your own home,” Mazany said. “To me, that’s a super powerful kind of culture to have.”
P.F. Chang’s aims to give customers a “tour of Asia” on the menu.
Returning to unit growth
After three consecutive years of unit growth, P.F. Chang’s closed more restaurants than it opened last year, one of the few times that has happened in the brand’s 32-year history.
Mazany said this was largely due to natural forces like expiring leases and changing trade areas, issues that all restaurant chains deal with over time.
And the company has already opened five new restaurants this year, including a blockbuster debut in Laredo, Texas, where the store is generating sales of $250,000 per week and customers are waiting up to three hours for a table.
“There’s pent-up demand in markets for the brand,” Mazany said. “And when we do come in, if we deliver upon the brand experience, we’ll be rewarded with a loyal guest.”
So while P.F. Chang’s works to stabilize the core business, it will also look to continue opening more restaurants across the country. Mazany believes there is lots of white space for the brand. He likes what he’s seen so far out of Texas, of course, and is also eyeing the Southeast, Florida and the East Coast for opportunities.
The company is also planning to grow internationally. It currently has about 100 locations overseas, and could see that number doubling or tripling, Mazany said. He mentioned the U.K. and Middle East as good fits for the concept.
“In London, as a market, a brand like P.F. Chang’s could have a dozen [locations], and in the U.K., you could have 30 or 40,” he said. “So there’s a lot of opportunity for us to expand that footprint.”
Mazany is still assessing a couple of other growth vehicles for the brand: the fast-casual Pagoda Asian Grill and the off-premise-focused P.F. Chang’s To-Go. Pagoda currently has two test locations, in New York and Florida. Former CEO Eduardo Luz said earlier this year that the chain saw a very large white space for the Chipotle-like concept.
Mazany said his focus right now is on P.F. Chang’s core bistro concept, and he doesn’t want the other formats to distract from that at the moment. “But I think in the weeks and months to come, I’ll be able to evaluate that and have a better perspective as we move forward,” he said.
