The company plans to open 37 new Pei Wei restaurants during2007, nine of which were opened by the end of the first quarter,and 19 new Bistro format restaurants, one of which was open by theend of the first quarter. In October the chain opened a TanekoJapanese Tavern, a new format that it is testing.


In connection with Takeko, Federico commented that the company'sfirst round of guest research has shown that diners at the Tanekogive great marks for quality, service, an interesting menu and thelook and feel of the restaurant. The research offers otherpositives too, but Federico noted that the Taneko customer base hasturned out to be a "loyal following" in a "narrow demographic."Typical customers are older than 50, with incomes of more than$125,000 per year, but the company would like to expand its appeal.To that end, Federico said that P.F. Chang's is now developingmarketing plans to make the Taneko Tavern concept more visible andattractive to guests in the 25-40- year-old age range becauseexpanding the audience "will be critical to the success" of the newconcept.


P.F. Chang's plans to continue development of its Bistro conceptin existing markets and plans to enter eight new markets in 2007,according to the company's public filings Wednesday, in which itnoted that it has signed lease agreements for all of its plannednew Bistro and Pei Wei openings for fiscal 2007. The plans call forBistro restaurants that typically range from 6,000 sf to 7,500 sf,and that require, on average, a total cash investment ofapproximately $2.8 million to $3 million. The Pei Wei restaurantsgenerally range from 2,800 sf to 3,400 sf and require an averagetotal cash investment of approximately $750,000 to $850,000.


Rick Federico, P.F. Chang's CEO, said that the company planschanges to its site selection process for the Pei Wei chain, but hedid not provide specifics of the changes. As of the end of thequarter, the 11-year-old P.F. Chang's owned and operated 153 and116 of its Pei Wei format restaurants, which it classifies as aquick casual concept. The company owns and operates all of itsrestaurants except for a Bistro restaurant in Honolulu that openedin September under a joint venture arrangement.

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