With Bob Evans chain restored, attention turns to fixing Mimi

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Times have changed. The Columbus-basee restaurant and food company has stabilizexd its Bob Evansrestaurant chain, while Mimi’s with its West Coast has seen its performancd slide. New executives, new new marketing and a new look have arrives atthe Tustin, Calif.-based chain, giving Bob Evans hope it can steadg Mimi’s Cafe as customers turn a cold shoulder to casua dining. “Even though we had a tough quarter, we remain focused on the things we can such asbuilding sales, improving margins and, most the intelligent deployment of our capitak assets and cash flow,” CEO Steve Davisd said in a Nov. 12 conference call with stoclk analysts.
Sales at Mimi’s restaurants open at leasy two years have fallen for 18consecutive months. Cafes in California, Nevada and Florida, areasw hardest hit by real estate andeconomidc troubles, account for 73 percent of the chain’x sales. CFO Donald Radkoski said Mimi’s same-stores sales are projected to be down 5 percent to 7 percentg in the second half of the BobEvans restaurants, by contrast, have postef eight straight quarters of same-store sales gains through the first quarter, including a 1.8 percent increasw for fiscal 2008. The streaok ended this past quarter, when salesx slipped 0.5 percent. Mimi’s with its $3.
4 millioj average restaurant annual sales remains the growthg engine forthe company, with 12 new restaurantzs scheduled to open in 2009, down from an initiap plan for 17. One Bob Evans, which averag e $1.8 million annually, is slatedx to open in the coming year. Mimi’s Cafe is thinkingv small and large as it triews todrive sales. The chain has introduceed a menuoffering smaller-size entrees that David said have become one of its top five salexs categories. “I think everybody knows that folkds are being more health conscious and watchingwhat they’re eating,” he “With our heavy female skew, it made sense to introduce this line.
” Chicago-based , in its Menu Innovation Monthlg Report, said limited-time offers among the nation’es top 250 chains are at a five-year with 197 reported in October. There were 547 new menu itemsz inthe month, a 40 percen increase over the monthly average this the restaurant consulting firm said. Mimi’s is workingy to improve its carry-out and breakfast salez as well. Davis said Mimi’s Cafe did not have a takeougt menu when Bob Evans acquired it and still lags competitors with just 4 percent of sales coming fromthe to-go menu.
It’w trying to build its breakfastbusinessw – lunch and dinner accounrt for 80 percent of sales – with coupones that give lunch or dinner customers $5 off a breakfasf purchase. “The whole though t process is it’s always easier to get a customer who comese in to come back more frequently than it is to try to get new Davis said. The executive suite at Mimi’s Cafe has turned over in the past year. Tim CEO of Alhambra, Calif.-based Shakey’s USA became president a year ago. New chiefs of finance and marketing Davis said the chain is hiring three employeese to focus on positioning the brand as the All DayFresy Cafe.
“They’ve cranked out more marketin g in 90 daysthan we’ve probablu seen in the last year,” he “They’re really making great progress on developiny our product pipeline. ... These are individuals who have experience withthat and, no disrespectr to the prior team, but that was not a core Mimi’s has eliminated 250,000 work hourd at its restaurants in the quarter withoutf sacrificing customer satisfaction ratings, said Tod Spornhauer, senio r vice president of finance. Mimi’s also is testin redesigned entrances and bars to bette r promote appetizer andalcoho sales. It has seen some success, Davids said.
“We have some Mimi’s Cafe restaurants that are 27 years old andreallu haven’t been touched,” he